UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
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(
)
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N/A
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02.
Results of Operations and Financial Condition.
On April 18, 2022, CrossFirst Bankshares, Inc. (the “Company”) issued a press release regarding its financial results for its first fiscal
quarter of 2022. A copy of the press release is attached hereto as Exhibit 99.1 and the Company’s related investor presentation is furnished
as Exhibit 99.2.
The information in Item 2.02 of this Current Report, including Exhibits 99.1, is being “furnished” and shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a
filing.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date:
April 18, 2022
CROSSFIRST BANKSHARES, INC.
By:
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
1
Heather Worley
Heather@crossfirst.com | (214) 676-4666
https://investors.crossfirstbankshares.com
CrossFirst Bankshares, Inc. Reports First Quarter 2022
Results
First Quarter 2022 Key Financial Performance Metrics
Net Income
ROAA
Net Interest Margin
(FTE)
Diluted EPS
ROE
$16.8 million
1.23%
3.29%
(1)
$0.33
10.44%
LEAWOOD, Kan., April 18, 2022 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for
CrossFirst Bank, today reported operating results for the first quarter of 2022, with first quarter net income of $16.8 million, or $0.33 per
diluted share.
CEO Commentary:
"We delivered a strong quarter of loan growth with solid financial results to start 2022. We’ve made significant progress on our goals of
investing in talent and technology to support our continued success, and I’m excited about our progress and execution to further our
strategy,” said CrossFirst’s CEO and President, Mike Maddox. “Our people are the foundation of what we do, and we are committed to
being an employer of choice which is fundamental to delivering for our clients and shareholders.”
2022 First Quarter Highlights:
•
$5.5 billion of assets, with net income for the quarter ended March 31, 2022 of $16.8 million, an increase of $4.8 million or
40% compared to the first quarter of 2021
•
Implemented CECL on January 1, 2022, with a combined allowance for credit losses (“ACL”) and reserve for off-balance
sheet credit risk from unfunded commitments (“RUC”) totaling $60 million or 1.39% of outstanding loans, excluding
Paycheck Protection Program (“PPP”) loans, at March 31, 2022, compared to $58 million or 1.39% of outstanding loans,
excluding PPP loans, at December 31, 2021
•
Return on Average Assets of 1.23% and a Return on Equity of 10.44% for the quarter ended March 31, 2022
•
Net Interest Margin (Fully Tax-Equivalent)
(1)
same quarter last year
•
$127 million of loan growth, excluding PPP loans, from the previous quarter and $145 million or 3% loan growth from the
same quarter last year
•
Book value per share of $12.53 at March 31, 2022 compared to $12.17 at March 31, 2021
Quarter-to-Date
March 31,
(Dollars in millions except per share data)
2022
2021
Operating revenue
(2)
$
48.1
$
45.3
Net income
$
16.8
$
12.0
Diluted earnings per share
$
0.33
$
0.23
Return on average assets
1.23
%
0.84
%
Return on average common equity
10.44
%
7.80
%
Net interest margin
(1)
3.24
%
2.97
%
Net interest margin, fully tax-equivalent
(1)(4)
3.29
%
3.01
%
Efficiency ratio
57.57
%
50.41
%
Non-GAAP core operating efficiency ratio, fully tax-equivalent
(3)(4)
56.66
%
49.64
%
(1)
The Company changed the annualization method on the available-for-sale securities portfolio from Actual/Actual to 30/360 and moved the unrealized
gain (loss) on available-for-sale securities from an interest-earning asset to a non-interest earning asset. All periods presented reflect this change.
(2)
Net interest income plus non-interest income.
(3)
Represents a non-GAAP measure. See "Table 5. Non-GAAP Financial Measures" for a reconciliation of these measures.
(4)
Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental federal
income tax rate used is 21.0%.
CROSSFIRST BANKSHARES, INC.
2
Income from Operations
Net Interest Income
Interest income was $47.8 million for the first quarter of 2022, a decrease of 1% from the first quarter of 2021 and a decrease of 3% from
the previous quarter. Interest income was slightly down from the first quarter of 2021 as a result of lower average loans outstanding and a
reduction of PPP fee income. Average earning assets totaled $5.4 billion for the first quarter of 2022, a decrease of $223 million or 4%
from the same quarter in 2021. For the first quarter of 2022, interest income declined compared to the prior quarter primarily due to fewer
days in the quarter and nonaccrual loan movement.
Interest expense for the first quarter of 2022 was $4.6 million, or 34% lower than the first quarter of 2021 and 19% lower than the previous
quarter. Average interest-bearing deposits decreased to $3.5 billion in the first quarter of 2022, or a 15% decrease from the same prior year
period. FHLB and short-term borrowing decreases also impacted interest expense for the current quarter, decreasing $0.2 million or 14%
compared to the first quarter of 2021. The decline in cost of funds from the previous quarter to 0.39%, compared to 0.48% for the fourth
quarter of 2021, was the primary driver of lower interest expense sequentially. The prepayment of $40 million of FHLB advances in the
fourth quarter of 2021 was a primary driver of the higher cost of funds in the fourth quarter. The prepayment penalty on the FHLB
advances contributed to a 0.05% increase in the previous quarter.
Net interest income totaled $43.1 million for the first quarter of 2022 or 1% less than the fourth quarter of 2021, and 5% higher than the
first quarter of 2021. Tax-equivalent net interest margin decreased to 3.29% in the current quarter, from 3.30% in the previous quarter, and
increased from 3.01% in the same quarter in 2021. During the first quarter of 2022, CrossFirst realized $0.9 million in fees from the
forgiveness of $34 million of PPP loans. The Company will continue to recognize fees over the life of the loans or as the loans are
forgiven. The tax-equivalent adjustment, which accounts for income taxes saved on the interest earned on nontaxable securities and loans,
was $0.8 million for the first quarter of 2022.
Non-Interest Income
Non-interest income increased $0.8 million in the first quarter of 2022 or 19% compared to the same quarter of 2021 and increased $0.1
million compared to the fourth quarter of 2021. The increase in non-interest income compared to the previous quarter was due to a $0.2
million increase in credit card fees and $0.2 million increase in service charge income, partly offset by a $0.2 million decrease in letter of
credit fees. The increase in non-interest income compared to the same quarter of 2021, was primarily due to increases of $0.3 million in
credit card fees and $0.5 million in service charge income.
Non-Interest Expense
Non-interest expense for the first quarter of 2022 was $27.7 million, which increased 21% compared to the first quarter of 2021 and
increased 4% from the fourth quarter of 2021. Salaries and benefit costs were higher in the current quarter by $1.5 million compared to
the prior quarter and $4.4 million higher than the same quarter in the prior year mainly due to increased hiring for market expansion and
increased incentive expenses. Software and communication expenses increased $0.2 million compared to the same quarter in the prior
year, offset by a $0.4 million decrease in deposit insurance premiums. Compared to the prior quarter, occupancy expense increased $0.1
million and software and communication expenses increased $0.1 million, partly offset by a decrease in other non-interest expenses.
CrossFirst’s effective tax rate for the first quarter of 2022 was 20%, as compared to 19% for the first quarter of 2021 and 22% in the fourth
quarter of 2021. The tax rate for the first quarter of 2022 decreased slightly compared to the prior quarter due to the impact of stock-based
awards vesting. For both comparable periods, the Company continued to benefit from the tax-exempt municipal bond portfolio and bank-
owned life insurance. The tax-exempt benefit diminishes as the Company’s ratio of taxable income to tax-exempt income increases.
The Company changed the annualization method on the available-for-sale securities portfolio from Actual/Actual to 30/360 and moved the
unrealized gain (loss) on available-for-sale securities from an interest-earning asset to a non-interest earning asset. All periods presented
reflect this change.
CROSSFIRST BANKSHARES, INC.
3
Balance Sheet Performance & Analysis
During the first quarter of 2022, total assets decreased by $103 million or 2% compared to December 31, 2021, and decreased $480
million or 8% compared to March 31, 2021. Total assets decreased on a linked quarter basis primarily due to a $206 million decrease in
cash and cash equivalents, partly offset by a $97 million increase in net loans. The year-over-year decrease was due to decreases in cash
and cash equivalents of $354 million and PPP loan forgiveness of $305 million. Non-interest-bearing deposits decreased $53 million
compared to December 31, 2021, and increased $316 million from March 31, 202 1. During the first quarter of
2022
, available-for-sale
investment securities decreased $23 million to $723 million compared to December 31, 2021. The securities yields decreased 2 basis
points to a tax equivalent yield of 3.00% for the first quarter of 2022 compared to the prior quarter.
Loan Results
During the first quarter of 2022, the Company experienced an increase in average loans of $112 million compared to the fourth quarter of
2021, and a decrease of $174 million or 4% compared to the first quarter of 2021. The year-over-year reduction in average loans was
primarily a result of PPP loan forgiveness. Net of PPP loans, average loans grew 4% compared to the quarter ended December 31, 2021.
Loan yields decreased 17 basis points to 4.00% during the first quarter of 2022 and increased 6 basis points compared to the same prior
year quarter.
1Q22
4Q21
3Q21
2Q21
1Q21
QoQ
Growth
($)
(1)
QoQ
Growth
(%)
(1)(2)
YoY
Growth
($)
YoY
Growth
(%)
(2)
(Dollars in millions)
Average loans (gross)
Commercial
$
1,434
$
1,328
$
1,233
$
1,221
$
1,329
$
106
8
%
$
105
8
%
Energy
274
290
311
341
351
(16)
(6)
(77)
(22)
Commercial real estate
1,327
1,272
1,213
1,203
1,183
55
4
144
12
Construction and land development
593
579
611
633
598
14
2
(5)
(1)
Residential and multifamily real estate
604
612
659
659
688
(8)
(1)
(84)
(12)
Paycheck Protection Program
42
84
147
296
308
(42)
(50)
(266)
(86)
Consumer
59
56
57
56
50
3
5
9
18
Total
$
4,333
$
4,221
$
4,231
$
4,409
$
4,507
$
112
3
%
$
(174)
(4)
%
Yield on average loans for the period
ending
4.00
%
4.17
%
4.00
%
3.99
%
3.94
%
(1)
Represents current quarter to prior quarter change.
(2)
Actual unrounded values are used to calculate the reported percent disclosed. Accordingly, recalculations using the amounts in millions as disclosed in this release may not
produce the same amounts.
Deposit & Other Borrowing Results
During the first quarter of 2022, the Company experienced an increase in average deposits of 2% compared to the previous quarter, and a
4% decline in average deposits compared to the first quarter of 2021. The deposit growth for the quarter was driven by a continued
increase in non-interest-bearing and transaction deposits, which represented 25% and 13% of total deposits, respectively, at March 31,
2022. In addition, the Company continued to improve the overall cost of deposits, which declined 2 basis points during the first quarter of
2022. The cost of interest-bearing deposits has declined 16 basis points over the last twelve months primarily as a result of the lower
interest rate environment.
1Q22
4Q21
3Q21
2Q21
1Q21
QoQ
Growth
($)
(1)
QoQ
Growth
(%)
(1)(2)
YoY
Growth
($)
YoY
Growth
(%)
(2)
(Dollars in millions)
Average deposits
Non-interest bearing deposits
$
1,157
$
1,058
$
910
$
802
$
731
$
99
9
%
$
426
58
%
Transaction deposits
586
543
511
665
717
43
8
(131)
(18)
Savings and money market deposits
2,303
2,272
2,276
2,385
2,422
31
1
(119)
(5)
Time deposits
587
662
752
869
972
(75)
(11)
(385)
(40)
Total
$
4,633
$
4,535
$
4,449
$
4,721
$
4,842
$
98
2
%
$
(209)
(4)
%
Cost of deposits for the period ending
0.31
%
0.33
%
0.38
%
0.41
%
0.48
%
Cost of interest-bearing deposits for the
period ending
0.41
%
0.43
%
0.47
%
0.50
%
0.57
%
(1)
Represents current quarter to prior quarter change.
(2)
Actual unrounded values are used to calculate the reported percent disclosed. Accordingly, recalculations using the amounts in millions as disclosed in this release may
not produce the same amounts.
CROSSFIRST BANKSHARES, INC.
4
At March 31, 2022, other borrowings totaled $228 million, as compared to $238 million at December 31, 2021, and $287 million at
March 31, 2021.
Asset Quality Position
Credit quality metrics generally improved during the first quarter of 2022 as the allowance for credit losses (“ACL”) decreased by $3
million compared to the prior quarter, reflecting some stabilization in the Company’s economic outlook. The allowance for credit losses
was $55 million or 1.27% of outstanding loans and 167% of nonaccruing loans at March 31, 2022. The combined allowance for credit
losses and accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) was $60 million or 1.38% of outstanding loans
and 182% of nonaccruing loans at March 31, 2022. Excluding PPP loans, the allowance for credit losses was 1.28% of outstanding loans
and the combined allowance for credit losses and accrual for off-balance sheet credit risk from unfunded loan commitments was 1.39%.
The allowance for credit losses to total loans decreased to 1.27% at March 31, 2022 from 1.37% at December 31, 2021. The improvements
in credit metrics compared to March 31, 2021 were primarily driven by upgrades in COVID-19 impacted segments and the Energy
portfolio. Net charge-offs were $1.1 million for the first quarter of 2022 as compared to $0.8 million for the fourth quarter of 2021. The
charge-offs for the current quarter were primarily related to commercial and industrial and energy credits. The following table provides
information regarding asset quality.
Asset quality
1Q22
4Q21
3Q21
2Q21
1Q21
Non-accrual loans
$
33.1
$
31.4
$
48.1
$
54.7
$
63.3
Other real estate owned
1.0
1.1
1.1
1.7
2.3
Nonperforming assets
35.6
32.7
49.8
58.1
68.9
Loans 90+ days past due and still accruing
1.5
0.1
0.5
1.8
3.2
Loans 30 - 89 days past due
15.9
3.5
37.6
18.8
11.0
Net charge-offs (recoveries)
1.1
0.8
1.3
2.6
8.2
Asset quality metrics
(%)
1Q22
4Q21
3Q21
2Q21
1Q21
Nonperforming assets to total assets
0.64
%
0.58
%
0.92
%
1.09
%
1.15
%
Allowance for credit loss to total loans
1.27
1.37
1.51
1.78
1.65
Allowance for credit loss + RUC to total loans
(1)
1.38
-
-
-
-
Allowance for credit loss to nonperforming loans
160
185
132
134
112
Net charge-offs (recoveries) to average loans
(2)
0.10
0.07
0.13
0.23
0.74
Provision to average loans
(2)
(0.06)
(0.47)
(0.94)
0.32
0.67
Classified Loans / (Total Capital + ACL)
10.8
10.8
17.3
24.0
38.2
Classified Loans / (Total Capital + ACL + RUC)
(1)
10.7
-
-
-
-
(1)
Includes the accrual for off-balance sheet credit risk from unfunded commitments that resulted from CECL adoption on January 1, 2022.
(2)
Interim periods annualized.
Capital Position
At March 31, 2022, stockholders' equity totaled $623 million, or $12.53 per share, compared to $668 million, or $13.23 per share, at
December 31, 2021. During the first quarter of 2022, CrossFirst continued its $30 million share repurchase program by purchasing
1,058,332 shares or 2% of common stock outstanding. In addition, accumulated other comprehensive income (loss) declined by $43
million between December 31, 2021 and March 31, 2022; driven by a $45 million decrease in the unrealized gain (loss) on available-for-
sale securities, net of tax.
The ratio of common equity Tier 1 capital to risk-weighted assets was approximately 12% and the total capital to risk-weighted assets was
approximately 13% at March 31, 2022. The Company remains well-capitalized.
CROSSFIRST BANKSHARES, INC.
5
Conference Call and Webcast
CrossFirst will hold a conference call to review first quarter 2022 financial results on Tuesday, April 19, 2022, at 10 a.m. CT / 11 a.m. ET.
The conference call and webcast may also include discussion of Company developments, forward -looking statements and other material
information about business and financial matters. To access the event by telephone, please dial (877) 621-5851 at least fifteen minutes
prior to the start of the call and provide conference number 6954906. International callers should dial +1 (470) 495-9492 and enter the
same conference number.
The call will also be broadcast live over the internet and can be accessed via the following link:
https://edge.media-server.com/mmc/p/moxcfams. Please visit the site at least 15 minutes prior to the call to allow time for registration.
For those unable to join the presentation, a replay of the call will be available two hours after the conclusion of the live call. To access the
replay, dial (855) 859-2056 and provide conference number 6954906, passcode 9067. International callers should dial +1 (404) 537-3406
and enter the same confirmation number. A replay of the webcast will also be available for 90 days on the company’s website
https://investors.crossfirstbankshares.com/.
Cautionary Notice about Forward-Looking Statements
The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Quarterly Report
on Form 10-Q is filed. This earnings release contains forward-looking statements. These forward-looking statements reflect the Company's
current views with respect to, among other things, future events and its financial performance. Any statements about management’s
expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may
be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,”
“can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,”
“intends” and similar words or phrases. Any forward-looking statements in this earnings release may turn out to be inaccurate. The
inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that
the future plans, estimates or expectations contemplated by us will be achieved. The Company has based these forward-looking statements
largely on its current expectations and projections about future events and financial trends that it believes may affect its financial
condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in
such forward-looking statements.
Accordingly, the Company cautions you that any such forward-looking statements are not a guarantee of future performance and that
actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a
number of factors. Such factors include, without limitation, those listed from time to time in reports that the Company files with the
Securities and Exchange Commission as well as the uncertain impact of the COVID-19 pandemic and geopolitical events. These forward-
looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update
any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence
of unanticipated events or circumstances, except as required by law.
About CrossFirst Bank
CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned
subsidiary CrossFirst Bank, which is headquartered in Leawood, Kansas. CrossFirst has nine full-service banking locations in Kansas,
Missouri, Oklahoma, Texas, and Arizona that offer products and services to businesses, professionals, individuals, and families.
CROSSFIRST BANKSHARES, INC.
6
Unaudited Financial Tables
◦
◦
◦
◦
◦
CROSSFIRST BANKSHARES, INC.
7
TABLE 1. CONSOLIDATED BALANCE SHEETS
March 31, 2022
December 31, 2021
(Unaudited)
(Dollars in thousands)
Assets
Cash and cash equivalents
$
276,927
$
482,727
Available-for-sale securities - taxable
196,721
192,146
Available-for-sale securities - tax-exempt
526,057
553,823
Loans
4,349,568
4,256,213
Allowance for credit losses on loans
(1)
55,231
58,375
Net loans
4,294,337
4,197,838
Premises and equipment, net
65,799
66,069
Restricted equity securities
10,526
11,927
Interest receivable
16,933
16,023
Foreclosed assets held for sale
973
1,148
Bank-owned life insurance
67,886
67,498
Other
61,962
32,258
Total assets
$
5,518,121
$
5,621,457
Liabilities and stockholders’ equity
Deposits
Noninterest-bearing
$
1,110,284
$
1,163,224
Savings, NOW and money market
2,999,329
2,895,986
Time
512,067
624,387
Total deposits
4,621,680
4,683,597
Federal Home Loan Bank advances
226,600
236,600
Other borrowings
1,022
1,009
Interest payable and other liabilities
45,620
32,678
Total liabilities
4,894,922
4,953,884
Stockholders’ equity
Common stock, $0.01 par value:
authorized - 200,000,000 shares, issued - 52,926,555 and 52,590,015 shares at
March 31, 2022 and December 31, 2021, respectively
529
526
Treasury stock, at cost:
3,198,302 and 2,139,970 shares held at March 31, 2022 and December 31, 2021,
respectively
(45,109)
(28,347)
Additional paid-in capital
527,468
526,806
Retained earnings
161,323
147,099
Accumulated other comprehensive income (loss)
(21,012)
21,489
Total stockholders’ equity
623,199
667,573
Total liabilities and stockholders’ equity
$
5,518,121
$
5,621,457
(1)
As of December 31, 2021, this line represents the allowance for loan losses.
CROSSFIRST BANKSHARES, INC.
8
Three Months Ended
March 31,
2022
2021
(Dollars in thousands except per share data)
Interest Income
Loans, including fees
$
42,728
$
43,758
Available-for-sale securities - taxable
1,044
751
Available-for-sale securities - tax-exempt
3,692
3,351
Deposits with financial institutions
152
128
Dividends on bank stocks
144
165
Total interest income
47,760
48,153
Interest Expense
Deposits
3,511
5,728
Fed funds purchased and repurchase agreements
-
1
Federal Home Loan Bank Advances
1,109
1,283
Other borrowings
25
24
Total interest expense
4,645
7,036
Net Interest Income
43,115
41,117
Provision for Credit Losses
(1)
(625)
7,500
Net Interest Income after Provision for Credit Losses
(1)
43,740
33,617
Non-Interest Income
Service charges and fees on customer accounts
1,408
957
Realized gains (losses) on available-for-sale securities
(26)
10
Unrealized gains (losses), net on equity securities
(103)
(39)
Income from bank-owned life insurance
388
416
Swap fees and credit valuation adjustments, net
118
155
ATM and credit card interchange income
2,664
2,328
Other non-interest income
493
317
Total non-interest income
4,942
4,144
Non-Interest Expense
Salaries and employee benefits
17,941
13,553
Occupancy
2,493
2,494
Professional fees
805
782
Deposit insurance premiums
737
1,151
Data processing
812
716
Advertising
692
303
Software and communication
1,270
1,065
Foreclosed assets, net
(53)
50
Other non-interest expense
2,969
2,704
Total non-interest expense
27,666
22,818
Net Income Before Taxes
21,016
14,943
Income tax expense
4,188
2,908
Net Income
$
16,828
$
12,035
Basic Earnings Per Share
$
0.33
$
0.23
Diluted Earnings Per Share
$
0.33
$
0.23
(1)
For the three-months ended March 31, 2021, this line represents the provision for loan losses.
CROSSFIRST BANKSHARES, INC.
9
TABLE 3. 2021 - 2022 QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST
INCOME
(UNAUDITED)
Three Months Ended
March 31,
2022
2021
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
(1)
$
220,802
$
1,188
2.15
%
$
211,646
$
916
1.73
%
Securities - tax-exempt
(1)(2)
533,674
4,467
3.35
449,925
4,055
3.61
Federal funds sold
-
-
-
-
-
-
Interest-bearing deposits in other banks
309,948
152
0.20
452,305
128
0.11
Gross loans, net of unearned income
(3)
4,332,831
42,728
4.00
4,506,843
43,758
3.94
Total interest-earning assets
(1)(2)
5,397,255
$
48,535
3.64
%
5,620,719
$
48,857
3.52
%
Allowance for credit losses
(57,922)
(78,371)
Other non-interest-earning assets
224,405
255,819
Total assets
$
5,563,738
$
5,798,167
Interest-bearing liabilities
Transaction deposits
$
585,990
$
222
0.15
%
$
716,763
$
364
0.21
%
Savings and money market deposits
2,302,552
1,847
0.33
2,421,765
2,388
0.40
Time deposits
587,452
1,442
1.00
972,006
2,976
1.24
Total interest-bearing deposits
3,475,994
3,511
0.41
4,110,534
5,728
0.57
FHLB and short-term borrowings
231,156
1,109
1.95
290,187
1,284
1.79
Trust preferred securities, net of fair value
adjustments
1,012
25
10.25
965
24
9.96
Non-interest-bearing deposits
1,157,387
-
-
731,472
-
-
Cost of funds
4,865,549
$
4,645
0.39
%
5,133,158
$
7,036
0.56
%
Other liabilities
44,442
39,134
Stockholders’ equity
653,747
625,875
Total liabilities and stockholders' equity
$
5,563,738
$
5,798,167
Net interest income
(2)
$
43,890
$
41,821
Net interest spread
(1)(2)
3.25
%
2.96
%
Net interest margin
(1)(2)
3.29
%
3.01
%
(1)
(loss) on available-for-sale securities from an interest-earning asset to a non-interest earning asset. All periods presented reflect this change.
(2)
rate used is 21.0%.
(3)
Average gross loan balances include nonaccrual loans.
(4)
Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed
in this release may not produce the same amounts.
CROSSFIRST BANKSHARES, INC.
10
QUARTER-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
Three Months Ended
March 31, 2022 over 2021
Average Volume
Yield/Rate
Net Change
(2)
(Dollars in thousands)
Interest Income
Securities - taxable
$
41
$
231
$
272
Securities - tax-exempt
(1)
716
(304)
412
Federal funds sold
-
-
-
Interest-bearing deposits in other banks
(49)
73
24
Gross loans, net of unearned income
(1,708)
678
(1,030)
Total interest income
(1)
(1,000)
678
(322)
Interest Expense
Transaction deposits
(59)
(83)
(142)
Savings and money market deposits
(113)
(428)
(541)
Time deposits
(1,022)
(512)
(1,534)
Total interest-bearing deposits
(1,194)
(1,023)
(2,217)
FHLB and short-term borrowings
(277)
102
(175)
Trust preferred securities, net of fair value adjustments
1
-
1
Total interest expense
(1,470)
(921)
(2,391)
Net interest income
(1)
$
470
$
1,599
$
2,069
(1)
(2)
CROSSFIRST BANKSHARES, INC.
11
TABLE 4. LINKED QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME
(UNAUDITED)
Three Months Ended
March 31, 2022
December 31, 2021
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
$
220,802
$
1,188
2.15
%
$
194,850
$
1,044
2.14
%
Securities - tax-exempt
(1)
533,674
4,467
3.35
522,860
4,385
3.35
Federal funds sold
-
-
-
-
-
-
Interest-bearing deposits in other banks
309,948
152
0.20
387,828
143
0.15
Gross loans, net of unearned income
(2)
4,332,831
42,728
4.00
4,220,842
44,392
4.17
Total interest-earning assets
(1)
5,397,255
$
48,535
3.64
%
5,326,380
$
49,964
3.72
%
Allowance for credit losses
(57,922)
(64,102)
Other non-interest-earning assets
224,405
228,204
Total assets
$
5,563,738
$
5,490,482
Interest-bearing liabilities
Transaction deposits
$
585,990
$
222
0.15
%
$
543,088
$
216
0.16
%
Savings and money market deposits
2,302,552
1,847
0.33
2,272,307
1,824
0.32
Time deposits
587,452
1,442
1.00
661,978
1,694
1.02
Total interest-bearing deposits
3,475,994
3,511
0.41
3,477,373
3,734
0.43
FHLB and short-term borrowings
231,156
1,109
1.95
261,600
1,999
3.03
Trust preferred securities, net of fair value
adjustments
1,012
25
10.25
1,000
24
9.67
Non-interest-bearing deposits
1,157,387
-
-
1,058,462
-
-
Cost of funds
4,865,549
$
4,645
0.39
%
4,798,435
$
5,757
0.48
%
Other liabilities
44,442
35,632
Stockholders’ equity
653,747
656,415
Total liabilities and stockholders' equity
$
5,563,738
$
5,490,482
Net interest income
(1)
$
43,890
$
44,207
Net interest spread
(1)
3.25
%
3.24
%
Net interest margin
(1)
3.29
%
3.30
%
(1)
(loss) on available-for-sale securities from an interest-earning asset to a non-interest earning asset. All periods presented reflect this change.
(2)
rate used is 21.0%.
(3)
Average loan balances include nonaccrual loans.
(4)
Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed
in this release may not produce the same amounts.
CROSSFIRST BANKSHARES, INC.
12
LINKED QUARTER VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
Three Months Ended
March 31, 2022 over December 31, 2021
Average Volume
Yield/Rate
Net Change
(2)
(Dollars in thousands)
Interest Income
Securities - taxable
$
140
$
4
$
144
Securities - tax-exempt
(1)
90
(8)
82
Federal funds sold
-
-
-
Interest-bearing deposits in other banks
(33)
42
9
Gross loans, net of unearned income
785
(2,449)
(1,664)
Total interest income
(1)
982
(2,411)
(1,429)
Interest Expense
Transaction deposits
12
(5)
7
Savings and money market deposits
8
14
22
Time deposits
(215)
(37)
(252)
Total interest-bearing deposits
(195)
(28)
(223)
FHLB and short-term borrowings
(217)
(673)
(890)
Trust preferred securities, net of fair value adjustments
-
1
1
Total interest expense
(412)
(700)
(1,112)
Net interest income
(1)
$
1,394
$
(1,711)
$
(317)
(1)
(2)
CROSSFIRST BANKSHARES, INC.
13
TABLE 5. NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
In addition to disclosing financial measures determined in accordance with GAAP, the Company discloses non-GAAP financial measures
in this release. The Company believes that the non-GAAP financial measures presented in this release reflect industry conventions, or
standard measures within the industry, and provide useful information to the Company's management, investors and other parties
interested in the Company's operating performance. These measurements should be considered in addition to, but not as a substitute for,
financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use in this release,
but these measures may not be synonymous to similar measurement terms used by other companies.
CrossFirst provides reconciliations of these non-GAAP measures below. The measures used in this release include the following:
•
We calculate ‘‘non-GAAP core operating income’’ as net income adjusted to remove non-recurring or non-core income and
expense items related to:
▪
Charges and adjustments associated with the full vesting of a former executive - We incurred additional charges in the second
quarter of 2021 related to the acceleration of $0.7 million of certain cash, stock-based compensation, and employee costs.
▪
Bank Owned Life Insurance - We obtain bank owned life insurance on key employees throughout the organization and
received a $1.8 million benefit in the second quarter of 2021.
▪
Unrealized loss on equity security – During the quarter ended September 30, 2021, the Company recorded a $6.2 million
impairment loss related to an equity investment that was received as part of a restructured loan agreement.
The most directly comparable GAAP financial measure for non-GAAP core operating income is net income.
•
We calculate "core return on average tangible common equity" as non-GAAP core operating income (as defined above)
divided by average tangible common equity. Average tangible common equity is calculated as average common equity less
average goodwill and intangibles and average preferred equity. The most directly comparable GAAP measure is return on
average common equity.
•
We calculate "non-GAAP core operating return on average assets" as non-GAAP core operating income (as defined above)
divided by average assets. The most directly comparable GAAP financial measure is return on average assets, which is
calculated as net income divided by average assets.
•
We calculate ‘‘non-GAAP core operating return on average common equity’’ as non-GAAP core operating income (as
defined above) less preferred dividends divided by average common equity. The most directly comparable GAAP financial
measure is return on average common equity, which is calculated as net income less preferred dividends divided by average
common equity.
•
We calculate "tangible common stockholders' equity" as total stockholders' equity less goodwill and intangibles and
preferred equity. The most directly comparable GAAP measure is total stockholders' equity.
•
We calculate ‘‘tangible book value per share’’ as tangible common stockholders' equity (as defined above) divided by the
total number of shares outstanding. The most directly comparable GAAP measure is book value per share.
•
We calculate "non-GAAP core operating efficiency ratio - fully tax equivalent (FTE)" as non-interest expense adjusted to
remove non-recurring, or non-core, non-interest expenses as defined above under non-GAAP core operating income divided
by net interest income on a fully tax-equivalent basis plus non-interest income adjusted to remove non-recurring, or non-
core, non-interest income as defined above under non-GAAP core operating income. The most directly comparable financial
measure is the efficiency ratio.
•
We calculate "non-GAAP pre-tax pre-provision profit" as net income before taxes plus the provision for credit losses.
CROSSFIRST BANKSHARES, INC.
14
Quarter Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
(Dollars in thousands)
Non-GAAP core operating income:
Net income
$
16,828
$
20,801
$
21,000
$
15,577
$
12,035
Add: Unrealized loss on equity security
-
-
6,200
-
-
Less: Tax effect
(2)
-
-
1,302
-
-
Unrealized loss on equity security, net of tax
-
-
4,898
-
-
Add: Accelerated employee benefits
-
-
-
719
-
Less: Tax effect
(3)
-
-
-
210
-
Accelerated employee benefits, net of tax
-
-
-
509
-
Less: BOLI settlement benefits
(1)
-
-
-
1,841
-
Non-GAAP core operating income
$
16,828
$
20,801
$
25,898
$
14,245
$
12,035
(1)
No tax effect.
(2)
Represents the tax impact of the adjustments at a tax rate of 21.0%.
(3)
Represents the tax impact of the adjustments above at a tax rate of 21.0%, plus a permanent tax benefit associated with stock-based grants.
Quarter Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
(Dollars in thousands)
Non-GAAP core return on average tangible common equity:
Net income available to common stockholders
$
16,828
$
20,801
$
21,000
$
15,577
$
12,035
Non-GAAP core operating income
16,828
20,801
25,898
14,245
12,035
Average common equity
653,747
656,415
644,715
633,417
625,875
Less: average goodwill and intangibles
121
140
160
179
199
Average tangible common equity
$
653,626
$
656,275
$
644,555
$
633,238
$
625,676
Return on average common equity
10.44
%
12.57
%
12.92
%
9.86
%
7.80
%
Non-GAAP core return on average tangible common
equity
10.44
%
12.57
%
15.94
%
9.02
%
7.80
%
Quarter Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
(Dollars in thousands)
Non-GAAP core operating return on average assets:
Net income
$
16,828
$
20,801
$
21,000
$
15,577
$
12,035
Non-GAAP core operating income
16,828
20,801
25,898
14,245
12,035
Average assets
$
5,563,738
$
5,490,482
$
5,408,984
$
5,673,638
$
5,798,167
Return on average assets
1.23
%
1.50
%
1.54
%
1.10
%
0.84
%
Non-GAAP core operating return on average assets
1.23
%
1.50
%
1.90
%
1.01
%
0.84
%
CROSSFIRST BANKSHARES, INC.
15
Quarter Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
(Dollars in thousands except per share data)
Tangible common stockholders' equity:
Total stockholders' equity
$
623,199
$
667,573
$
652,407
$
637,190
$
628,834
Less: goodwill and other intangible assets
110
130
149
169
188
Tangible common stockholders' equity
$
623,089
$
667,443
$
652,258
$
637,021
$
628,646
Tangible book value per share:
Tangible common stockholders' equity
$
623,089
$
667,443
$
652,257
$
637,021
$
628,646
Shares outstanding at end of period
49,728,253
50,450,045
51,002,698
50,958,680
51,678,669
Book value per share
$
12.53
$
13.23
$
12.79
$
12.50
$
12.17
Tangible book value per share
$
12.53
$
13.23
$
12.79
$
12.50
$
12.16
Quarter Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
(Dollars in thousands)
Non-GAAP Core Operating Efficiency Ratio - Fully Tax
Equivalent (FTE)
Non-interest expense
$
27,666
$
26,715
$
24,036
$
25,813
$
22,818
Less: Accelerated employee benefits
-
-
-
719
-
Adjusted Non-interest expense (numerator)
$
27,666
$
26,715
$
24,036
$
25,094
$
22,818
Net interest income
43,115
43,445
41,801
42,328
41,117
Tax equivalent interest income
(1)
775
762
748
734
704
Non-interest income (loss)
4,942
4,796
(1,105)
5,825
4,144
Add: Unrealized loss on equity security
-
-
6,200
-
-
Less: BOLI settlement benefits
-
-
-
1,841
-
Total tax-equivalent income (denominator)
$
48,832
$
49,003
$
47,644
$
47,046
$
45,965
Efficiency Ratio
57.57
%
55.38
%
59.06
%
53.61
%
50.41
%
Non-GAAP Core Operating Efficiency Ratio - Fully Tax
Equivalent (FTE)
56.66
%
54.52
%
50.45
%
53.34
%
49.64
%
(1)
Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%.
Quarter Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
(Dollars in thousands)
Non-GAAP Pre-Tax Pre-Provision Profit
Net income before taxes
$
21,016
$
26,526
$
26,660
$
18,840
$
14,943
Add: Provision for credit losses
(625)
(5,000)
(10,000)
3,500
7,500
Non-GAAP Pre-Tax Pre-Provision Profit
$
20,391
$
21,526
$
16,660
$
22,340
$
22,443
Exhibit 99.2
CROSSFIRST BANKSHARES, INC. NASDAQ: CFB Earnings Conference Call First Quarter 2022 April 19th, 2022 M i k e M a d d o x , P r e s i d e n t & C E O B e n C l o u s e , C F O R a n d y R a p p , C C O & C R O H e a t h e r W o r l e y , D i r e c t o r o f I R
Legal disclaimer CROSSFIRST BANKSHARES, INC. FORWARD
LOOKING STATEMENTS. The financial results in this presentation reflect preliminary, unaudited results, which are not final un
til the Company’s Quarterly Report on Form 10
Q is
filed. This presentation and oral statements made during this meeting contain forward
looking statements. These forward
looking statements reflect our current views with respect to, among other things, future events and our financial performance
. These sta
tements are often, but not always, made through the use of words or phrases such as "may," "might," "should," "could," "predi
ct," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "strive," "pro
jectio
n," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other
comparable words or phrases of a future or forward
looking nature. These forward
looking statements are not historical facts, and a
re based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions
made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution
you th
at any such forward
looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertaintie
s that are difficult to predict. Although we believe that the expectations reflected in these forward
looking s
tatements are reasonable as of the date made, actual results may prove to be materially different from the results expressed
or implied by the forward
looking statements. There are or will be important factors that could cause our actual results to differ
materially from those indicated in these forward
looking statements, including, but not limited to, the following: risks relating to the COVID
19 pandemic; risks
related to general business and economic conditions and any regulatory responses to such condi
tions; our ability to effectively execute our growth strategy and manage our growth, including identifying and consummating s
uitable mergers and acquisitions; the
geographic concentration of our markets; fluctuation of the fair value of our investment secu
rities due to factors outside our control; our ability to successfully manage our credit risk and the sufficiency of our allo
wance; regulatory restrictions on our ability to grow due to our concentration in commercial real estate lending; our ability
to at
tract, hire and retain qualified management personnel; interest rate fluctuations; our ability to raise or maintain sufficien
t capital; competition from banks, cr
edit unions and other financial services providers; the effectiveness of our risk management f
ramework in mitigating risks and losses; our ability to maintain effective internal control over financial reporting; our abi
lity to keep pace with technological changes; system failures and interruptions, cyber
attacks and security breaches; employee erro
r, fraudulent activity by employees or clients and inaccurate or incomplete information about our clients and counterparties;
our ability to maintain our reputation; costs and effects of litigation, investigations or similar matters; risk exposure fro
m tra
nsactions with financial counterparties; severe weather, acts of god, acts of war or terrorism; compliance with governmental
and regulatory requirements; changes in the laws, rules, regulations, interpretations or policies relating to financial insti
tution
s, accounting, tax, trade, monetary and fiscal matters; compliance with requirements associated with being a public company;
level of coverage of our business by
securities analysts; and future equity issuances. Any forward
looking statement speaks only a
s of the date on which it is made, and we do not undertake any obligation to update or
review any forwardlooking statement, whether as a result of new information, future developments or otherwise, except as required by law. NONGAAP FINANCIAL INFORMATIO N. This presentation contains certain nonGAAP measures. These nonGAAP measures, as calculated by CrossFirst, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non GAAP measures are not measures of financial performance or liquidity under GAAP and should not be considered alternatives to the Company’s other financial information determined under GAAP. The Company believes that the non-GAAP financial measures presented reflect industry conventions, or standard measures within the industry, and provide useful information to the Company’s management, investors and other parties interested in the Company’s operating performance. See reconciliations of certain nonGAAP measures included at the end of this presentation. MARKET AND INDUSTRY DATA. This presentation references certain market, industry and demographic data, foreca sts and other statistical information. We have obtained this data, forecasts and information from various independent, third party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry publications and surveys and independent sources. We believe that these sources and estimates are reliablebut have not independently verified them. Statements as to our market position are based on market data currently available to us. Although we are not aware of any misstatements regarding the economic, employment, industry and other market data presented herein, these estimates involve inherent risks and
uncertainties and are based on assumptions that are subject to change. 2
Management Team CROSSFIRST BANKSHARES, INC. Mike Maddox President, CEO and Director Joined CrossFirst in 2008 after serving as Kansas City regional president for Intrust Bank Practicing lawyer for more than six years before joining Intrust Bank Appointed to CEO June 1, 2020 after 12 years of service B.S. Business, University of Kansas; J.D. Law, University of Kansas; Graduate School of Banking at the University of Wisconsin –Madison Ben Clouse Chief Financial Officer More than 25 years of experience in financial services, asset and wealth management, banking, retail and transportation, including public company CFO experience Joined CrossFirst in July 2021 after serving as CFO of Waddell & Reed Financial, Inc. (formerly NYSE: WDR) until its acquisition in 2021 Significant experience leading financial operations as well as driving operational change B.S. Business, Kansas State University; Master of Accountancy, Kansas State University Obtained CPA designation and FINRA Series 27 license Randy Rapp Chief Risk Officer and Chief Credit Officer More than 33 years of commercial banking experience in Texas in various credit, production, risk and executive roles Joined CrossFirst in March 2019 after a 19year career at Texas Capital Bank (NASDAQ:TCBI) serving as Executive Vice President and Chief Credit Officer from May 2015 until March 2019 B.B.A. Accounting, The University of Texasat Austin and M.B.A. Finance, Texas Christian University Obtained CPA designation Heather Worley –Director of Investor Relations More than 15 years of experience in marketing, communications and investor relations in banking and finance Joined CrossFirst in September 2021. Previously, SVP & Director of IR for Texas Capital Bancshares, Inc. (NASDAQ: TCBI) Recognized by Institutional Investor magazine AllAmerica Executive Team 2017 | Top Investor Relations
Professional & AllAmerica Executive Team 2019 | Top Investor Relations Program B.A. Communications, Mississippi State University Other Senior Executives Steve Peterson Chief Banking Officer of CrossFirst Bank 21+ years of banking experience Joined CrossFirst in 2011 Amy Fauss Chief Operating & Chief Human Relations Officer of CrossFirst Bank 28+ years of banking experience Joined CrossFirst in 2009 Jana Merfen Chief Technology Officer of CrossFirst Bank 12+ years of technology experience Joined CrossFirst in 2021 3
2022 Strategic Vision CROSSFIRST BANKSHARES, INC. …As One Team. Invest in our people to enhance our culture Build our success to be recognized as a Gallup® Best Place To Work …Operating as One Bank. Accelerate our growth to increase loans, deposits, and fee income through our existing markets and new business verticals while prudently managing risk Evaluate technology partnerships to enhance our client experience, improve efficiencies, and empower our team …With a Shared Vision. Take a balanced approach to drive shareholder value and invest for future growth Support our strategic partners to make a positive impact in our communities 4
Our Approach to Employees
CROSSFIRST BANKSAHRES, INC.
Growing Team
Added four new producers during Q1 2022, including a new leader of our restaurant finance group
Gallup Focused
Organization
Companies focused on strengths have more engaged employees, higher customer engagement, an
d increased sales and profits
We are committed to contributing to our employees’ well
being and ensuring every employee has a voice
We are focused on strengths, engagement and performance, to build an exceptional workplace, develop our employees, and deliv
er on our extraordinary service promise
Managers focused on strengths and performance development
Engaged employees lead to engaged customers
Superior business
Performance
Technology Investment CROSSFIRST BANKSHARES, INC. DATA NATIVE ORGANIZATION FINTECH FUND INVESTMENT FUTURE FIT TECHNOLOGY STRATEGY CYBER & INFORMATION SECURITY DIGITAL TRANSFORMATION DataNative Organization Invested in infrastructure, enterprise data architecture plans, and integration of critical systems Fintech Partnerships Invested in two additional FinTech funds Aim to positively impact the client experience, increase client engagement, and leverage technology to enhance client processes Digital Transformation Investment in Digital Banking Platform to support client experience and growth opportunities Deployed new software to support automation and data efficiency Cyber & Information Security Continued enhancements to the Cyber & Information Security program including thirdparty service providers 6
Our Road to Success CROSSFIRST BANKSAHRES, INC. ONE TEAM Focusing on: Elevating our Strong Corporate Culture by Living our CrossFirst Values Attracting and Retaining High Performing Talent Wellbeing of our Employees ONE BANK Focusing on: Targeting Businesses and Professionals BranchLight Technology Focused Delivering Extraordinary Service and Customer Experience SHARED VISION Focusing on: Performance & Profitability Seizing Growth Opportunities Strong Credit Quality Enhancing Products and Services Managing Enterprise Risk Contributing to our Communities Total Assets %5.5 billion Gross Loans $4.3 billion Total Deposits $4.6 billion Book Value/ Share $12.53 7
First Quarter 2022 Highlights CROSSFIRST BANKSHARES, INC. Financial Performance Net Income $16.8M Diluted EPS $0.33 RO
E 10.4% ROA 1.23% Net Income Stable net interest income, sequentially declining 1% due to loan accrual changes and declining
PPP fees masking growth; increased 5% from Q1 2021 Fully tax equivalent NIM was stable decreasing 1bp during Q1 2022 and has
expand
ed 28bps from Q1 2021 Noninterest income increase of 3% from Q4 2021 and 19% increase from Q1 2021 on continued credit card a
nd treasury business growth Balance Sheet Loan portfolio increased 2% from Q4 2021, or 9% annualized. Ex
PPP, the portfolio increas
ed 3% from Q4 2021, or 12% annualized Total deposits decreased 1% from the prior quarter with a stable percentage of DDA Cred
it Quality Classified loans / total capital + combined ACL ratio decreased to 10.7% and has declined from 38.2% at Q1 2021 NC
Os / a
verage loans of 0.10% compared to 0.07% in Q4 2021 and 0.74% in Q1 2021 NPAs / average assets rose 6bps during the quarter to
0.64% and have declined 51bps from Q1 2021 (1) Represents a Non
GAAP financial measure, see Non
GAAP reconciliation slides at the
end of the presentation for more detail. (2) Includes the accrual for off
balance sheet credit risk from unfunded commitments (“RUC”) that resulted from CECL adoption on January 1, 2022.
EXPANDING OUR FOOTPRINT CROSSFIRST BANKSHARES, INC. AREAS OF FOCUS Continue to execute our organic growth strategy in existing markets Focus on new expansion in target markets where wecurrently have client business Evaluate expansion strategies in key target markets: De Novo Expansion: Hire experienced talent toexpand in key growth markets Strategic Acquisition: Provides operational scale and synergies Adds new lines of business Adds fee income opportunities POTENTIAL TARGET MARKETS Austin, Texas Fort Worth, Texas Nashville, Tennessee San Antonio, Texas Denver, Colorado Houston, Texas Omaha, Nebraska 9
Net Interest Margin CROSSFIRST BANKSAHRES, INC. Yield on Loans & Cost of Deposits 3.94% 0.48% 3.99% 0.41% 4.00% 0.38% 4.17% 0.33% 4.00% 0.31% Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 Net Interest Margin FullyTax Equivalent (FTE)* 3.01% 3.14% 3.23% 3.20% 3.29% Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 Fully taxequivalent net interest margin decreased 1bp to 3.29% in Q1 2022 from Q4 2021, primarily due to nonaccrual changes, fewer days and continued declines in PPP Fees Loan to deposit ratio increased to 94% from 91% in Q4 2021 Current funding structure allows for significant additional capacity for borrowing or wholesale funding if necessary * For all quarters presented, investment yield accrual calculation changed to 30/360 from actual/actual and excludes unrealized gains and losses in the investment portfolio and earning assets 10
Net Interest Income Sensitivity CROSSFIRST BANKSAHRES, INC. Net Interest Income Impact From Rate Changes 3.01% 3.14% 3.23% 3.20 % 3.29% Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 Loans: Rate Reset and Cash Flow Profile 1.53% 0.58% 4.63% 1.87% 7.93% 3.44% 1.13% 5.22% +100 bps +200 bps +300 bps +400 bps Rate Shock * Rate Ramp* 61% 10% 9% 17% 3% 13 Months 412 Months 12 Years 25 Years >5 Years Anticipated asset sensitivity with rate increases driving potential expansion of net interest income Roughly 70% of Company’s earning assets reprice or mature over the next 12 months, with 51% in month 1 Note: Data as of March 31, 2022 * Rate Shock analysis: measures instantaneous parallel shifts in market rates Rate Ramp analysis: rate changes occur gradually over 12 months time Balance sheet size and mix held constant from month end position and includes average YTD loan fees (excluding PPP fees) 11
Loan Floor Analysis CROSSFIRST BANKSHARES, INC. Variable Loans (Computed Coupon minus Floor) [with floors > 0% and next reset date within 3 months] $49 $130 $133 $244 $920 Beyond 1% 0.51% to 1% 0.25% to 0.5% 0% to 0.25% At Floor or Above $550 millionof loans with floors in effect Future rate increases will drive higher loan yields as the impact of floors diminishes Note: Dollar amounts are in millions. Data as of March 31, 2022 12
Asset Quality Performance CROSSFIRST BANKSHARES, INC.
Classified Loans / (Total Capital + ACL + RUC * )
$268.9
$170.7
$124.1
$78.7
$73.3
38.2%
24.0%
17.3%
10.8%
10.7%
Q1
Q2
Q3
Q4
Q1
2021
2021
2021
2021
2022
Classified Loans
Ratio
Classified loans continue
to trend down 22% of classifieds in Q1 2022 relate to
Energy, down from 27% in Q4 2021 The energy portfolio represents less than 45% of our total capital Nonperforming Assets / As
sets
1.15%
1.09%
0.92%
0.58%
0.64%
Q1
Q2
Q3
Q4
Q1
2021
2021
2021
2021
2022
NPAs increased slightly due primarily to the
downgrade of a commercial and industrial loan 25% of the nonperforming asset balance in Q1 2022 relates to energy credits
Note: Dollar amounts are in millions.
* Includes the accrual for off
balance sheet credit r
isk from unfunded commitments (“RUC”) that
resulted from CECL adoption on January 1, 2022.
Asset Quality Performance CROSSFIRST BANKSHARES, INC. Net Charge
Offs / Average Loans(1) 0.74% 0.23% 0.13% 0.07% 0.10% Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 Allowance for Credit Losses / T
otal Loans
1.65% 1.78% 1.51% 1.37% 1.38% 1.27% $74.6 $75.5 $64.2 $58.4 $55.2 Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 Q1 2022 had $1.1 mi
llion of net charge
offs which consisted of loans in both energy and commercial and industrial credits Based on CECL adoption, red
uced ACL/Total Loans to 1.27% at end of Q1 2022 by releasing $625 thousand in reserves and added accrual for unfunded commitm
ents of $5.5 million Combined allowance for credit losses to nonperforming loans at the end of Q1 2022 was 169% Note: Dollar
amount
s are in millions Ratio is annualized for interim periods. Includes the $4.9 million accrual for off
balance sheet credit risk from unfunded commitments (“RUC”) that resulted from CECL adoption on January 1, 2022. 14
2022 Guidance CROSSFIRST BANKSHARES, INC. Business Driver Annual Outlook Loans Expect 810% core loan growth Deposits Expect continued deposit growth to fund lending growth with a continued focus on improving the DDA mix Net Interest Margin (NIM) Expect NIM to increase throughout the year as rates move higher as roughly 70% of our earnings assets are variable ACL / Loans Anticipated to remain in the 1.30% to 1.45% range, based on current economic conditions Effective Tax Rate Expect to remain in the 2023% range 15
CROSSFIRST BANKSAHRES, INC. Supplemental information 16
Stock Repurchase Activity CROSSFIRST BANKSHARES, INC. 51,680 51,679 50,959 51,003 50,450 49,728 610 88 576 0 566 1,058 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2021 2021 2021 2022 # of Shares Repurchased # of Shares OutstandingRepurchased 2% of outstanding shares in Q1 2022 Return of accumulated capital and earnings to shareholders Drives improvementin ROE and EPS Little tangible book value dilution and a short earnback period Note: shares in thousands 17
capital Ratios C
ROSSFIRST BANKSHA
RES, INC.
Capital Ratios
12.0%
12.0%
13.3%
12.4%
12.4%
13.7%
12.6%
12.6%
13.9%
12.5%
12.5%
13.6%
11.9%
11.9%
12.9%
Q1
Q2
Q3
Q4
Q1
2021
2021
2021
2021
2022
Common Equity Tier 1
Tier 1 Risk Based
Total Risk
Based Capital
Maintaining strong capital levels to support future growth
Continue to remain well capitalized as we return capital to shareholders
Execution of our profitable growth strategy supports capital ratios
Capital ratios have decreased due to share repurchase ac
tivity and loan growth
18
Diverse loan portfolio CROSSFIRST BANKSHARES, INC. Loan Mix by Type ($4.3bn) Commercial & Industrial 33% Owner Occupied Real Estate 6% SBA PPP 1% Energy 6% Commercial Real Estate 45% Residential Real Estate 8% Other 1% Note: Gross loans, (net of unearned income) data as of March 31, 2022. 19
Diverse loan portfolio CROSSFIRST BANKSHARES, INC. CRE Loan Portfolio by Segment ($1.8bn) MultiFamily 16% Retail 15% Office 15% Industrial 11% 14 Family Res Construction 7% Hotel 11% Other 25% Commercial and Industrial Loan Breakdown by Type ($1.4bn) Restaurants 4% Financial Management 4% Aircraft & Transportation 8% Merchant Wholesalers 5% 18 Other Industries 44% Manufacturing 13% Business Loans to Individuals 7% Health Care 6% Engineering & Contracting 9% Note: Data as of March 31, 2022. 20
Balance Sheet Growth CROSSFIRST BANKSHARES, INC. 3,061 3,208 3,852 3,924 4,442 4,695 4,256 4,684 4,350 4,622 2018 2019 2020 2021 Q1 2022 Gross loans net of unearned fees Total deposits Balance sheet Q1 2022 QoQ 2018Q1 20220CAGR Gross Loans 2% 11% Gross Loans ex PPP* 3% 0% Total Deposits 1% 12% Total Assets 2% 10% Annualized loan growth of 12% during Q1 2022, excluding the impact of PPP* $34 million in PPP loans were forgiven in Q1 2022 $304 million in PPP loans were forgiven in 2021 Note: Dollars are in millions. * Represents a nonGAAP financial measure. See NonGAAP Reconciliation slides at the end of this presentation for additional detail. 21
expense management CROSSFIRST BANKSHARES, INC. $22.8 $25.8 $24.0 $26.7 $27.7 $4.9 $5.9 $4.5 $5.1 $5.2 $1.8 $1.8 $1.7 $1.9 $2.1 $2.5 $2.4 $2.4 $2.4 $2.5 $13.6 $15.7 $15.4 $16.5 $17.9 Q1 Q2 Q3 Q4 Q1 2021 2021 2021 2021 2022 Salaries & Benefits Occupancy Data Processing, Software & Comm Other Investments in talent and technology continue to account for the increase in expenses The increase in salaries and benefits wasdriven by continued hiring for production talent and annual merit increases Note: Dollars are in millions and amounts shown are asof the end of the period unless otherwise specified. 22
improving core funding base CROSSFIRST BANKSAHRES, INC. Total Deposits and % DDA5052435744374684462242573538347635213512795 81996111631110Q1Q2Q3Q4Q120212021202120212022DDAOther Deposits Cost of Deposits0.48% 0.41%0.38%0.33%0.31%Demand deposits have increased 40% since Q1 2021Deposit costs have trended down due to the persistent low-rate environmentDDA decreased due to seasonality related to tax payments Note: Dollars are in millions and amounts shown are as of the end of the period.23
Loan PortfolioCROSSFIRST BANKSHARES, INC.Gross Loans by Type$4,523$4,252$4,246$4,270$4,363$464$468$471$469 $460$2,096$2,073$2,064$2,055$2,145$343$326$293$279$272$1,620$1,385$1,415$1,467$1,486Q1Q2Q3Q4 Q120212021202120212022CommercialEnergyCommercial Real EstateConsumerLoan Yield 3.94% 3.99%4.00%4.17%4.00%The loan portfolio, excluding PPP loans*, at Q1 2022 grew 3.0% from previous quarterLoan growth primarily driven by commercial real estate and commercial and industrial portfoliosLine utilization continues to be less than historical average Grew loans despite $362mm in borrower paydownsNet balance of participationsand syndications was $54 million as of Q1 2022Note: Dollars are in millions and amounts shown are as of the end of the period.* Represents a nonGAAP financial measure. See Non-GAAP Reconciliation slides at the end of this presentation for additional detail.
PPP Loan SummaryCROSSFIRST BANKSAHRES, INC.Fee Recognition$336$2$197$109$3.7$4.2$1.7$3.0$1.3$1.7$0.9$0.8$2.2$0.5Q1 Q2Q2Q3Q3Q4Q4Q1Q1202120212021202120212021202120222022Round 1 Unrecongized FeesFee Recongnized Roudn 2 Unrecognized FeesPPP Timeline$5.9$4.7$111$129$96$13($44)$65($34) $31 $225($161)$68($88)Q1Q2Q2Q3Q3Q4Q4Q1Q1202120212021202120212021202120222022 EndForgiven EndForgivenEndForgivenEndForgivenEnd2020 PPP LoansLoan Forgiveness2021 PPP Loans Note: As of end of period; dollars in millions.25
Securities portfolio CROSSFIRST BANKSHARES, INC.Investment Portfolio Breakout as of March 31, 2022 Municipal Taxable1.0%Municipal TaxExempt 72.8%CMO (Fixed) 2.1%Other, 0.7%MBS (Fixed)23.4%Total: ~$723 millionSecurities Yield Fully Tax Equivalent3.01% 3.07%3.04%3.02%3.00% 2.45%2.58%2.58%2.54%2.61%Q1 2021Q2 2021Q3 2021Q4 2021`Q1 2022Securities Yield Cost of Funds SpredSecurities YieldAt the end of Q1 2022, the portfolio’s duration was approximately 4.8 years The fully taxable equivalent yield for Q1 2022 decreased 2bps to 3.00%The securities portfolio has unrealized loss of approximately $30 million as of March 31, 2022During Q1 2022, $47 million of securities were purchased at an average taxequivalent yield of 2.63% and there were $10 million in MBS paydownsBased on approximate fair value.A tax rate of 21% is used to calculate the fully tax equivalent yield26
Quarterly selected financials
CROSSFIRST BANKSHARES, INC.
(Dollars in thousands, except per share data)
CrossFirst Bankshares, Inc. Quarterly Financials
For the Three Months Ended
3/31/22
12/31/21
9/30/21
6/30/21
3/31/21
Income Statement Data
Interest income
47,760
49,202
47,311
48,484
48,153
Interest expense
4,645
5,757
5,510
6,156
7,036
Net interest income
43,115
43,445
41,801
42,328
41,117
Provision for credit losses
(625)
(5,000)
(10,000)
3,500
7,500
Non
interest income
4,942
4,796
(1,105)
5,825
4,144
Non
interest expense
27,666
26,715
24,036
25,813
22,818
Net income before taxes
21,016
26,526
26,660
18,840
14,943
Income tax expense
4,188
5,725
5,660
3,263
2,908
Net income
16,828
20,801
21,000
15,577
12,035
Non
GAAP core operating income(1)
16,828
20,801
25,898
14,245
12,035
Balance Sheet Data:
Cash and cash equivalents
276,927
482,727
316,722
220,814
630,787
Securities
722,778
745,969
708,106
712,217
685,454
Gross loans (net of unearned i
ncome)
4,349,568
4,256,213
4,233,117
4,237,944
4,508,600
Allowance for credit losses(2)
55,231
58,375
64,152
75,493
74,551
Goodwill and intangibles
110
130
149
169
188
Total assets
5,518,121
5,621,457
5,401,151
5,311,434
5,998,074
Non
interest
bearing deposits
1,110,284
1,163,224
960,999
818,887
794,559
Total deposits
4,621,680
4,683,597
4,436,597
4,356,627
5,051,570
Borrowings and repurchase agreements
226,600
236,600
276,600
283,100
286,394
Trust preferred securities, net of fair value adjustm
ents
1,022
1,009
997
986
974
Stockholders' Equity
623,199
667,573
652,407
637,190
628,834
Tangible common stockholders' equity(1)
623,089
$
667,443
652,257
637,021
628,646
Share and Per Share Data:
Basic earnings per common share
0.33
$
0.41
0.41
0.30
0.23
Diluted earnings per common share
0.33
0.40
0.41
0.30
0.23
Book value per share
12.53
13.23
12.79
12.50
12.17
Tangible book value per share(1)
12.53
13.23
12.79
12.50
12.16
Basic weighted average common shares outstanding
50,251,297
50,893,493
50,990,113
51,466,885
51,657,204
Diluted weighted average common shares outstanding
50,910,490
51,660,723
51,605,721
52,209,541
52,381,474
Shares outstanding at end of period
49,728,253
50,450,045
51,002,698
50,958,680
51,678,669
Repr
esents a non
-
GAAP financial measure. See Non
GAAP Reconciliation slides at the end of this presentation for additional detail.
Implemented CECL on January 1, 2022, all prior quarters presented represent the allowance for loan losses.
Quarterly sele
cted financials
CROSSFIRST BANKSHARES, INC.
CrossFirst Bankshares, Inc. Quarterly Financials
For the Three Months Ended
3/31/22
12/31/21
9/30/21
6/30/21
3/31/21
Selected Ratios:
Return on average assets(1)
1.23
1.50
1.54
1.10
0.84
%
Non
GAAP core operating return on average assets(1)(2)
1.23
1.50
1.90
1.01
0.84
Return on average common equity
10.44
12.57
12.92
9.86
7.80
Yield on earning assets
3.59
3.65
3.56
3.51
3.45
Yield on earning assets
tax equivalent(3)
3.64
3.72
3.64
3.59
3.5
Yield on securities
2.59
2.49
2.46
2.52
2.48
Yield on securities
tax equivalent(3)
3.00
3.02
3.04
3.07
3.01
Yield on loans
4.00
4.17
4.00
3.99
3.94
Cost of funds
0.39
0.48
0.46
0.49
0.56
Cost of interest
bearing liabilities
0.51
0.61
0.57
0.59
0.65
Cost of interest
bearing deposits
0.41
0.43
0.47
0.50
0.57
Cost of deposits
0.31
0.33
0.38
0.41
0.48
Cost of other borrowings
1.95
3.03
1.82
1.79
1.79
Net interest margin
tax equivalent(3)
3.29
3.30
3.23
3.14
3.01
Non
interest expense to average assets
2
.02
1.93
1.76
1.82
1.60
Efficiency ratio(4)
57.57
55.38
59.06
53.61
50.41
Non
GAAP core operating efficiency ratio (FTE)(2)(4)
56.66
54.52
50.45
53.34
49.64
Non
interest bearing deposits to total deposits
24.02
24.84
21.66
18.80
15.73
Loans to
deposits
94.11
%
90.87
%
95.41
97.28
89.25
%
Credit Quality Ratios:
Allowance for credit losses to total loans
1.27
1.37
1.51
1.78
%
1.65
%
Allowance for credit losses + RUC to total loans(5)
1.38
-
Nonperforming assets to total assets
0.64
0.58
0.92
1.09
1.15
Nonperforming loans to total loans
0.79
0.74
1.15
1.33
1.48
Allowance for credit losses to nonperforming loans
159.60
185.19
131.76
133.79
112.10
Net charge
offs (recoveries) to average loans(1)
0.10
0.07
0.13
%
0.23
%
0.74
%
Capital Ratios:
Total stockholders' equity to total assets
11.29
%
11.88
12.08
%
12.00
%
10.48
%
Common equity tier 1 capital ratio
11.88
12.46
12.61
12.40
12.00
Tier 1 risk
based capital ratio
11.90
12.48
12.63
12.42
12.02
Total risk
based
capital ratio
12.92
13.61
13.88
13.67
13.27
Tier 1 leverage ratio
11.61
11.84
11.77
10.81
%
10.51
%
(1) Interim periods are annualized.
(2) R
epresents a non
GAAP financial measure. See Non
GAAP Reconciliation slides at the end of this presentation fo
r additional detail.
(3) Tax
exempt income is calculated on a tax
equivalent basis. Tax
exempt income includes municipal securities, which is exempt from federal taxation. A tax rate of 21% is used.
(4) Efficiency ratio is non
interest expense divided by t
he sum of net interest income and non
interest income; non
GAAP core operating efficiency ratio (FTE) is adjusted for non
core or non
recurring ite
ms
(5) Includes the accrual for off
balance sheet credit risk from unfunded commitments (“RUC”) that resulted
from CECL adoption on January 1, 2022. As of March 31, 2022, the allowance for credit losses was $55.2 million and the accrua
l for off
balance sheet credit risk from unfunded commitments was $4.9 million.
28
Non
gaap reconciliations
CROSSFIRST BANKSH
ARES, INC.
For the Three Months Ended
(Dollars in thousands)
3/31/22
12/31/21
9/30/21
6/30/21
3/31/21
Non
GAAP Core Operating Income:
Net income
16,828
20,801
21,000
15,577
12,035
Add: Unrealized loss on equity security
6,200
Less: Tax
effect(2)
1,302
Unrealized loss on equity security, net of tax
4,898
Add: Accelerated employee benefits
719
Less: Tax effect (3)
210
Accelerated employee benefits, net of tax
509
Less: BOLI settlement
benefits(1)
1,841
Non
GAAP core operating income
16,828
20,801
25,898
14,245
12,035
Non
GAAP Core Operating Return on Average Assets:
Net income
$
16,828
$
20,801
21,000
15,577
$
12,035
Non
GAAP core operating income
16,828
20,801
25
,898
14,245
12,035
Average assets
5,563,739
$
5,490,482
5,408,984
5,673,638
$
5,798,167
GAAP return on average assets
1.23
%
1.50
1.54
1.10
0.84
Non
GAAP core operating return on average assets
1.23
1.50
1.90
%
1.01
%
0.84
%
Non
GAAP Core Operating Return on Average Equity:
Net income available to common stockholders
16,828
20,801
$
21,000
15,577
12,035
Non
GAAP core operating income available to common stockholders
16,828
20,801
25,898
14,245
12,035
Average common equ
ity
653,747
656,415
644,715
633,417
625,875
Less: average goodwill and intangibles
121
140
160
179
199
Average Tangible Equity
653,626
656,275
644,555
633,238
$
625,676
GAAP return on average common equity
10.44
%
12.57
%
12.92
9.86
7.80
Non
GAAP core return on average tangible common equity
10.44
%
12.57
15.94
9.02
7.80
Non
GAAP Core Operating Efficiency Ratio:
Non
interest expense
$
27,666
$
26,715
$
24,036
25,813
22,818
Less: Accelerated employee benefits
719
Non
GAAP non
interest expense
(numerator)
27,666
26,715
24,036
25,094
22,818
Net interest income
43,115
43,445
41,801
42,328
41,117
Tax equivalent interest income(4)
775
762
748
734
704
Non
interest income
4,942
4,796
(1,105)
5,825
4,144
Add: Unr
ealized loss on equity securit
6,200
Less: BOLI settlement benefits
1,841
Non
GAAP operating revenue (denominator)
48,832
49,003
47,644
$
47,046
45,965
GAAP Efficiency Ratio
57.57
%
55.38
%
59.06
%
53.61
50.41
Non
GAAP core
operating efficiency ratio (FTE)
56.66
%
54.52
50.45
53.34
%
49.64
%
No tax effect.
Represents the tax impact of the adjustments at a tax rate of 21.0%.
Represents the tax impact of the adjustments above at a tax rate of 21.0%, plus a permanent tax ben
efit associated with stock
based
grants.
Tax exempt income (tax
-
free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%.
29
Non
gaap reconciliations
CROSSFIRST BANKSHARES, INC.
3/31/22
(Dollars in thousands, except per share data)
Tangible common stockholders' equity:
Stockholders’ equity
Less: goodwill and other intangible assets
623,199
Tangible Stockholders' Equity
623.089
Shares outstanding at end of period
49,728,253
Book va
lue per share
12.53
Tangible book value per share
12.53
For the Three Months Ended
12/31/21
9/30/21
667,573
652,407
130
149
667.443
652,2.58
50,450,045
51,002,698
13.23
$
12.79
13.23
A.
1279
6/30/21
3/31/21
$
637,190
628,834
169
188
$
637,02.1
628.646
50,958,680
51,678,669
12.50
.$
12.17
JL
12.50
jL
12.16
For the Three Months Ended
3/31/2022
12/31/2021
9/30/2021
6/30/2021
3/31/2021
Cross loans, net of unearned income
Less: PPP loans, net of unearned income
4,349.558
31,200
S 4,25
6,213
64.805
S 4,233,117
109.465
S 4,237.944
197.084
4.508.600
336,355
Non
PPP gross loans, net of unearned income
4,318.358
S 4,191.408
S 4,123,652
S 4.040.860
4,172,245
Year
over
year loan growth
Non
CAAP year
over
-
year loan growth
excluding PPP loans Linked quarter loan growth
Non
CAAP linked quarter loan growth excluding PPP loans
(3.53) %
4.00
2.19
3.03 %
Allowance for loan losses
55,231
58.375
64,152
75.493
74,551
Allowance for loan losses to gross loans, net of unearn
ed income
1.27 %
1.37 %
1.51 %
1.78 %
1.65 %
Allowance for loan losses to non
PPP gross loans, net of unearned income
1.28 %
1.39 %
1.56 %
1.87 %
1.79 %
30