UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02.
Results of Operations and Financial Condition.
On January 23, 2023, CrossFirst Bankshares, Inc. (the “Company”) announced that it had released its financial results for its fourth quarter
and the full year ended December 31, 2022. A copy of the full text of the related press release, which is posted on the Investor Section of
investors.crossfirstbankshares.com under News & Events – Press Releases or under Financials & Filings, is furnished as Exhibit 99.1
hereto and incorporated by reference into this Item 2.02.
The Company intends to hold a conference call to review fourth quarter and full year 2022 financial results. The investor presentation,
which will accompany the call, is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, 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 stated 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:
January 23, 2023
CROSSFIRST BANKSHARES, INC.
By:
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
1
CrossFirst Bankshares, Inc. Reports Fourth Quarter and Full Year 2022
Results
LEAWOOD, Kan., January 23, 2023 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for
CrossFirst Bank, today reported fourth quarter net income of $11.9 million, or $0.24 per diluted share, and full year net income of $61.6
million, or $1.23 per diluted share. Adjusted net income was $17.9 million, or $0.36 per diluted share for the fourth quarter and $68.6
million, or $1.37 per diluted share for the full year.
Fourth Quarter 2022 Key Financial Performance Metrics
Net Income
ROAA
(1)
Net Interest Margin –
Fully Tax Equivalent
(“FTE”)
(1)
Diluted EPS
ROE
(1)
$11.9 million
0.77%
3.61%
$0.24
8.04%
Adjusted Fourth Quarter 2022 Key Financial Performance Metrics
(2)
Adjusted Net Income
Adjusted ROAA
(1)
Net Interest Margin -
(FTE)
(1)
Adjusted Diluted
EPS
Adjusted ROE
(1)
$17.9 million
1.15%
3.61%
$0.36
12.03%
(1)
Ratios are annualized.
(2)
With the exception of Net Interest Margin - (FTE), represents a non-GAAP financial measure. See “Table 5. Non-GAAP Financial
Measures” for a reconciliation of these measures.
CEO Commentary:
“CrossFirst had a very successful quarter with the closing of our acquisition of Central, launching our new digital banking platform, and
incredibly strong organic balance sheet growth,” said CrossFirst’s CEO and President, Mike Maddox. “2022 was our best year on record
by a number of different measures, and strategic investments we made last year supported our entry into dynamic markets including
Phoenix and Denver, which we believe will drive significant future growth.”
2022 Fourth Quarter and Full Year Highlights:
•
Completed the acquisition of Farmers & Stockmens Bank (“Central”) adding liquidity, new production talent, and expanding
into attractive and growing markets
◦
Added $389 million of loans and $570 million of deposits
•
Loans grew $1.1 billion for the year or 26%; loans grew $695 million for the quarter or 59% on an annualized basis
◦
Excluding the Central acquisition, loans grew 17% for the year and 26% on an annualized basis for the quarter
•
Deposits grew $968 million for the year or 21%; deposits grew $664 million for the quarter or 53% on an annualized basis
◦
Excluding the Central acquisition, deposits grew 9% for the year and 7% on an annualized basis for the quarter
◦
Non-interest-bearing deposit accounts grew to 25% of total deposits
•
Credit quality improved meaningfully with the non-performing assets ratio at 0.20% at year end and full year net charge offs
of just 0.08%
•
Launched a new digital banking platform, providing enhanced online tools and resources for clients
Exhibit 99.1
2
Quarter-to-Date
Full Year
December 31,
December 31,
(Dollars in millions except per share data)
2022
2021
2022
2021
Operating revenue
(1)
$
58.4
$
48.2
$
210.8
$
182.4
Net income
$
11.9
$
20.8
$
61.6
$
69.4
Diluted earnings per share
$
0.24
$
0.40
$
1.23
$
1.33
Return on average assets
0.77
%
1.50
%
1.07
%
1.24
%
Adjusted return on average assets
(2)
1.15
%
1.50
%
1.19
%
1.31
%
Return on average common equity
8.04
%
12.57
%
9.97
%
10.84
%
Adjusted return on average common equity
(2)
12.03
%
12.57
%
11.11
%
11.40
%
Net interest margin
3.56
%
3.24
%
3.44
%
3.11
%
Net interest margin -FTE
(3)(4)
3.61
%
3.30
%
3.50
%
3.17
%
Efficiency ratio
62.40
%
55.38
%
57.75
%
54.50
%
Adjusted efficiency ratio - FTE
(2)(4)
55.01
%
54.52
%
54.43
%
52.02
%
(1)
Net interest income plus non-interest income.
(2)
Represents a non-GAAP financial measure. See "Table 5. Non-GAAP Financial Measures" for a reconciliation of these measures.
(3)
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.
(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%.
Income from Operations
Net income totaled $11.9 million or $0.24 per diluted share for the fourth quarter of 2022, compared to $17.3 million or $0.35 per diluted
share during the third quarter of 2022. The quarter’s results were impacted by an increase in net interest income offset by higher non-
interest expenses. The quarter included acquisition-related non-interest expense of $3.6 million and a $4.4 million acquisition-related Day
1 CECL provision expense, discussed in detail below. Full year net income of $61.6 million was lower than 2021 net income of $69.4
million as better net interest income and non-interest income were more than offset by higher provision expense and non-interest expense.
Adjusted net income for 2022 totaled $68.6 million or $1.37 per diluted share compared to $73.0 million or $1.40 per diluted share for
2021. Full year adjusted net income was lower by $4.4 million as increases in net interest income were offset by higher CECL provision
and higher non-interest expense compared to 2021.
Net Interest Income
Fully taxable equivalent (“FTE”) net interest income totaled $54.8 million for the fourth quarter of 2022, which was 9% higher than the
third quarter and 24% higher than the fourth quarter of 2021. Net interest margin - FTE increased to 3.61% in the current quarter from
3.56% in the previous quarter and 3.30% in the fourth quarter of 2021 as increases in earning asset yields outpaced the cost of funds
increase. Full year 2022 net interest income - FTE grew $25.1 million, an increase of 15% compared to 2021, while the net interest
margin - FTE increased to 3.50% from 3.17% in the prior year due to the higher interest rate environment as well as the mix shift from
cash into higher earning assets.
Interest income was $82.4 million for the fourth quarter of 2022, an increase of 26% from the prior quarter and an increase of 67% from
the fourth quarter of 2021. Higher yields on earning assets - FTE was the primary driver of the increase and improved 80 basis points and
1.76% compared to the prior quarter and the prior year fourth quarter, respectively. Average earning assets increased $394 million, or 7%,
compared to the third quarter and increased $700 million, or 13%, compared to the same period in 2021. The increase in average earning
assets for the quarter was due to organic loan growth as well as the addition of $389 million of Central loans. Compared to the fourth
quarter of 2021, the earning asset increase was entirely driven by loan growth and higher average investment balances, partially offset by
lower cash balances. For the full year 2022, interest income increased $55.4 million primarily due to the higher interest rate environment,
loan growth, and a mix shift from cash into higher earning assets.
CROSSFIRST BANKSHARES, INC.
3
Interest expense for the fourth quarter of 2022 was $28.3 million, which increased 79% from the prior quarter and 392% from the same
quarter in 2021 due to significant changes in market rates in 2022 and higher average interest-bearing deposits. Average interest-bearing
deposits increased to $4.1 billion in the fourth quarter of 2022, a 9% increase from the third quarter and a 19% increase from the prior year
fourth quarter, respectively. For both comparative periods the increase in average interest-bearing deposits was due to organic growth of
savings and money market deposits, increased time deposits and the impact of the acquisition of Central. The cost of funds increased to
2.05% compared to 1.23% for the third quarter and 0.48% for the fourth quarter of 2021, driven by the higher interest rate environment.
For the full year 2022, interest expense increased $30.5 million due to higher market rates and increased competition for deposits.
Non-Interest Income
Non-interest income increased $0.6 million compared to the third quarter of 2022 and decreased by $0.4 million compared to the same
quarter in 2021. The increase in non-interest income compared to the previous quarter was due to gains on securities and increases in
service charges and fees. The decrease compared to the prior year was primarily the result of a decrease in credit card fees, partially offset
by increases in service charges and fees, as well as gains on securities. Full year 2022 non-interest income was up $3.6 million compared
to 2021 as the prior year included losses on securities net of bank-owned life insurance income totaling a net $4.4 million that did not
occur in the current year.
Non-Interest Expense
Non-interest expense increased $8.0 million from the third quarter of 2022. Included in the quarter were $3.6 million of acquisition-
related expenses with $1.2 million included in professional fees, $1.0 million in salaries and benefits, $1.1 million in data processing, and
$0.2 million in other non-interest expense. Excluding these acquisition-related expenses, non-interest expense increased $4.4 million
compared to the third quarter and $6.1 million compared to the fourth quarter of 2021. For both comparative periods salaries and benefit
costs were higher due to hiring in new markets, the addition of employees as part of the Central acquisition and increased performance-
based incentive compensation. Additionally, professional fees increased for both comparative periods primarily due to increases in legal
fees related to lending activity. Full year 2022 non-interest expense increased $22.4 million compared to 2021 due to a $14.2 million
increase in salaries due to hiring activity, the addition of Central, merit increases and increased incentive compensation. In addition,
occupancy expenses increased $1.0 million related to new market expansion, professional fees increased $1.8 million due to the Central
acquisition as well as lending related legal fees, and data processing increased $1.9 million due to the Central acquisition, account growth
and costs related to our digital banking conversion. Advertising as well as other non-interest expenses were up $1.1 million and $2.6
million, respectively, due to increased post-pandemic activities. Other non-interest expense also included an employee separation expense
of $1.1 million in 2022.
The Company’s effective tax rate for the fourth quarter of 2022 was 21.9%, as compared to 20.3% in the third quarter and 21.6% for the
fourth quarter of 2021. The increase compared to the third quarter was due to a $0.3 million charge related to certain non-deductible
acquisition costs.
Balance Sheet Performance & Analysis
During the fourth quarter of 2022, total assets increased by $0.8 billion or 13% compared to the end of the prior quarter, and increased $1.0
billion or 17% compared to December 31, 2021. Total assets increased on a linked quarter basis primarily due to a $0.7 billion increase in
loans. The year-over-year increase was primarily due to an increase in loans of $1.1 billion. For both comparative periods, the increases in
loans included a $0.4 billion increase from the Central acquisition. Deposits increased $0.7 billion compared to September 30, 2022, and
increased $1.0 billion from December 31, 2021. For both periods, $0.6 billion of the increase is due to the acquisition of Central.
Loan Results
During the fourth quarter of 2022, the Company produced an increase in average loans of $383 million compared to the third quarter, and
an increase of $789 million or 19% compared to the fourth quarter of 2021. The linked quarter increase in average loans was primarily a
result of growth in the commercial and commercial real estate portfolios and the acquisition of Central.
CROSSFIRST BANKSHARES, INC.
4
4Q22
3Q22
2Q22
1Q22
4Q21
% of
Total
QoQ
Growth
($)
QoQ
Growth
(%)
(1)
YoY
Growth
($)
YoY
Growth
(%)
(1)
(Dollars in millions)
Average loans (gross)
Commercial
$
1,909
$
1,630
$
1,532
$
1,434
$
1,328
38
%
$
279
17
%
$
581
44
%
Energy
183
211
241
274
290
4
(28)
(13)
(107)
(37)
Commercial real estate
1,461
1,439
1,399
1,327
1,272
29
22
2
189
15
Construction and land development
734
633
581
593
579
15
101
16
155
27
Residential and multifamily real estate
645
644
609
604
612
13
1
0
33
5
Paycheck Protection Program
5
6
20
42
84
0
(1)
(17)
(79)
(94)
Consumer
73
64
56
59
56
1
9
14
17
30
Total
$
5,010
$
4,627
$
4,438
$
4,333
$
4,221
100
%
$
383
8
%
$
789
19
%
(1)
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 fourth quarter of 2022, the Company produced an increase in average deposits of 7% compared to the previous quarter, and an
increase of 16% in average deposits compared to the fourth quarter of 2021. The average deposit increases for both comparative periods
was primarily due to increases in savings and money market deposits, and time deposits, including amounts related to the Central
acquisition.
4Q22
3Q22
2Q22
1Q22
4Q21
QoQ
Growth
($)
QoQ
Growth
(%)
(1)
YoY
Growth
($)
YoY
Growth
(%)
(1)
(Dollars in millions)
Average deposits
Non-interest-bearing deposits
$
1,142
$
1,138
$
1,150
$
1,157
$
1,058
$
4
0
%
$
84
8
%
Transaction deposits
529
531
507
586
543
(2)
0
(14)
(3)
Savings and money market deposits
2,742
2,520
2,334
2,303
2,272
222
9
470
21
Time deposits
868
734
560
587
662
134
18
206
31
Total
$
5,281
$
4,923
$
4,551
$
4,633
$
4,535
$
358
7
%
$
746
16
%
(1)
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.
At December 31, 2022, other borrowings totaled $254 million, as compared to $206 million at September 30, 2022, and $238 million at
December 31, 2021, and increased due to short-term liquidity needs.
Asset Quality and Provision for Credit Losses
The Company recorded $6.7 million of provision expense, compared to $3.3 million last quarter and a ($5.0) million release of provision
in the prior year fourth quarter. The quarter’s provision included $4.4 million of acquisition-related Day 1 CECL provision expense for the
Central loan portfolio. The remainder of the quarter’s provision expense was driven by loan growth, partially offset by lower reserve
requirements from changes in the CECL model’s qualitative factors due to improvement in credit quality indicators.
Non-performing assets decreased to $13.2 million at December 31, 2022 primarily due to a $5.6 million decrease in non-accrual loans. The
decline is attributable primarily to payments and payoffs on non-accrual energy, commercial and commercial real estate loans. The non-
performing assets to total assets ratio decreased from 0.58% at December 31, 2021 to 0.20% at December 31, 2022. Classified loans
decreased $4.4 million during the fourth quarter but included the addition of $5.7 million from Central. Without Central, classified assets
decreased $10.1 million due to reductions in classified energy and commercial loans. Net recoveries were ($0.3) million for the fourth
quarter of 2022 compared to $1.9 million of net charge-offs from the prior quarter and $0.8 million in the prior year fourth quarter.
The allowance for credit losses was $61.8 million or 1.15% of outstanding loans at December 31, 2022. The combined allowance for credit
losses and accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) was $70.5 million or 1.31% of outstanding
loans. The allowance for credit losses and RUC to total loans decreased from 1.34% at September 30, 2022 due to the mix of funded
outstanding balances and unfunded commitments between the two periods and the aforementioned qualitative changes in the CECL model.
The allowance for credit losses and RUC to total loans ratio is not comparable to the prior year fourth quarter due to the adoption of CECL
on January 1, 2022.
CROSSFIRST BANKSHARES, INC.
5
The following table provides information regarding asset quality.
Asset quality
4Q22
3Q22
2Q22
1Q22
4Q21
Non-accrual loans
$
11.3
$
16.9
$
27.7
$
33.1
$
31.4
Other real estate owned
1.1
1.0
1.0
1.0
1.1
Loans 90+ days past due and still accruing
0.8
0.3
2.2
1.5
0.1
Total non-performing assets
$
13.2
$
18.2
$
30.8
$
35.6
$
32.7
Loans 30 - 89 days past due
$
19.6
$
21.4
$
16.6
$
15.9
$
3.5
Net charge-offs (recoveries)
(0.3)
1.9
1.1
1.1
0.8
Asset quality metrics
(%)
4Q22
3Q22
2Q22
1Q22
4Q21
Non-performing assets to total assets
0.20
%
0.31
%
0.54
%
0.64
%
0.58
%
Allowance for credit losses to total loans
1.15
1.19
1.23
1.27
1.37
Allowance for credit losses + RUC to total loans
(2)
1.31
1.34
1.35
1.38
Allowance for credit losses to non-performing loans
514
324
187
160
185
Net charge-offs (recoveries) to average loans
(1)
(0.02)
0.16
0.10
0.10
0.07
Provision to average loans
(1)
0.53
0.29
0.19
(0.06)
(0.47)
Classified Loans / (Capital + ACL)
10.1
11.3
12.1
10.8
10.8
Classified Loans / (Capital + ACL + RUC)
(2)
10.0
11.2
12.0
10.7
N/A
(1)
Interim periods annualized.
(2)
Includes the accrual for off-balance sheet credit risk from unfunded commitments that resulted from CECL adoption on January 1, 2022.
Capital Position
At December 31, 2022, stockholders' equity totaled $609 million, or $12.56 per share, compared to $668 million, or $13.23 per share, at
December 31, 2021. The decrease was due to the acquisition of Central and share repurchases, partially offset by earnings. During the
fourth quarter of 2022, the Company continued its share repurchase program by purchasing 357,646 shares of common stock outstanding
at a weighted average price of $13.42. In addition, accumulated other comprehensive loss declined by $86 million between December 31,
2021 and December 31, 2022; driven by a decrease in the unrealized loss on available-for-sale securities, net of tax.
Tangible book value per share was $11.96 at December 31, 2022. The ratio of common equity Tier 1 capital to risk-weighted assets was
approximately 9.5%, and the ratio of total capital to risk-weighted assets was approximately 10.5% at December 31, 2022.
CROSSFIRST BANKSHARES, INC.
6
Conference Call and Webcast
Management will host a conference call to review fourth quarter and full year financial results on Tuesday, January 24, 2023, 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
(
833) 630-1956 at least
fifteen minutes prior to the start of the call and request access to the CrossFirst Bankshares call. International callers should dial
+1
(412)
317-1837 and request access as directed above. 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/jmnnrip7. 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 (877) 344-7529 and enter the replay access code 6033374. International callers should dial +1 (412) 317-0088 and enter the
same access code. 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 Annual Report on
Form 10-K is filed. This earnings release contains forward-looking statements regarding, among other things, our business plans, and
future 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 “positioned,” “growth,” “approximately,” “believe,” “plan,” “future,”
“opportunities,” “feel,” “anticipate,” “target,” “expectations,” “expect,” “will,” and similar words or phrases. 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, economic and market conditions in the United States or internationally, interest
rates, business and growth strategy execution, the transition away from the London Interbank Offered Rate (LIBOR), fluctuations in fair
value of our investments, credit quality and risk, economic impact on our commercial real estate and commercial-based loan portfolios,
accounting estimates, allowance estimate and risk management processes, hiring and retention of key personnel, funding availability,
competition, industry and technological changes, cyber incidents or other failures, disruptions or security breaches, commercial and
residential real estate values, mortgage markets, fraud committed against the Company, reputation risk, environmental liability, severe
weather, natural disasters, acts of war or terrorism or other external events, ongoing impact of the COVID-19 pandemic, and legislative
and regulatory changes. These and other factors that could cause results to differ materially from those described in the forward-looking
statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form
10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. These forward-
looking statements are made as of the date of this communication, and we disclaim any obligation to update any forward-looking
statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required
by law.
About CrossFirst Bankshares, Inc.
CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned
subsidiary CrossFirst Bank, a full-service financial institution that offers product and services to businesses, professionals, individuals, and
families. CrossFirst Bank, headquartered in Leawood, Kansas, has locations in Kansas, Missouri, Oklahoma, Texas, Arizona, Colorado,
and New Mexico.
INVESTOR CONTACT
Heather Worley
Heather@crossfirst.com
(214)676-4666
https://investors.crossfirstbankshares.com
CROSSFIRST BANKSHARES, INC.
7
TABLE 1. CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31, 2022
December 31, 2021
(Dollars in thousands)
Assets
Cash and cash equivalents
$
300,138
$
482,727
Available-for-sale securities - taxable
198,808
192,146
Available-for-sale securities - tax-exempt
488,093
553,823
Loans, net of unearned fees
5,372,729
4,256,213
Allowance for credit losses on loans
61,775
58,375
Loans, net of the allowance for credit losses on loans
5,310,954
4,197,838
Premises and equipment, net
65,984
66,069
Restricted equity securities
12,536
11,927
Interest receivable
29,507
16,023
Foreclosed assets held for sale
1,130
1,148
Goodwill and other intangible assets, net
29,081
130
Bank-owned life insurance
69,101
67,498
Other
95,754
32,128
Total assets
$
6,601,086
$
5,621,457
Liabilities and stockholders’ equity
Deposits
Non-interest-bearing
$
1,400,260
$
1,163,224
Savings, NOW and money market
3,305,481
2,895,986
Time
945,567
624,387
Total deposits
5,651,308
4,683,597
Federal Home Loan Bank advances
218,111
236,600
Other borrowings
35,457
1,009
Interest payable and other liabilities
87,611
32,678
Total liabilities
5,992,487
4,953,884
Stockholders’ equity
Common Stock, $0.01 par value: Authorized - 200,000,000 shares, issued -
53,036,613 and 52,590,015 shares at December 31, 2022 and December 31, 2021,
respectively
530
526
Treasury stock, at cost: 4,588,398 and 2,139,970 shares held at December 31,
2022 and December 31, 2021, respectively
(64,127)
(28,347)
Additional paid-in capital
530,658
526,806
Retained earnings
206,095
147,099
Accumulated other comprehensive (loss) income
(64,557)
21,489
Total stockholders’ equity
608,599
667,573
Total liabilities and stockholders’ equity
$
6,601,086
$
5,621,457
CROSSFIRST BANKSHARES, INC.
8
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2022
2021
2022
2021
(Dollars in thousands except per share data)
Interest Income
Loans, including fees
$
74,872
$
44,392
$
224,138
$
174,660
Available-for-sale securities - taxable
1,327
850
4,577
3,273
Available-for-sale securities - tax-exempt
3,896
3,623
15,338
14,033
Deposits with financial institutions
2,037
143
3,751
502
Dividends on bank stocks
231
194
709
682
Total interest income
82,363
49,202
248,513
193,150
Interest Expense
Deposits
26,830
3,734
49,982
18,523
Fed funds purchased and repurchase agreements
13
-
96
3
Federal Home Loan Bank Advances
1,457
1,999
4,759
5,837
Other borrowings
48
24
142
96
Total interest expense
28,348
5,757
54,979
24,459
Net Interest Income
54,015
43,445
193,534
168,691
Provision for Credit Losses
6,657
(5,000)
11,501
(4,000)
Net Interest Income after Provision for Credit Losses
47,358
48,445
182,033
172,691
Non-Interest Income
Service charges and fees on customer accounts
1,708
1,250
6,228
4,580
Realized gains (losses) on available-for-sale securities
139
(20)
96
1,023
Gain on sale of loans
47
-
47
-
Gains (losses) on equity securities, net
80
(82)
(181)
(6,325)
Income from bank-owned life insurance
402
395
1,602
3,483
Swap fees and credit valuation adjustments, net
65
119
188
275
ATM and credit card interchange income
1,010
2,427
6,523
7,996
Other non-interest income
908
707
2,778
2,628
Total non-interest income
4,359
4,796
17,281
13,660
Non-Interest Expense
Salaries and employee benefits
22,000
16,468
75,288
61,080
Occupancy
2,812
2,381
10,663
9,688
Professional fees
2,822
981
5,275
3,519
Deposit insurance premiums
999
710
3,354
3,705
Data processing
1,901
742
4,750
2,878
Advertising
954
756
3,201
2,090
Software and communication
1,404
1,136
5,093
4,234
Foreclosed assets, net
13
17
(17)
697
Other non-interest expense
3,518
3,524
14,135
11,491
Total non-interest expense
36,423
26,715
121,742
99,382
Net Income Before Taxes
15,294
26,526
77,572
86,969
Income tax expense
3,348
5,725
15,973
17,556
Net Income
$
11,946
$
20,801
$
61,599
$
69,413
Basic Earnings Per Share
$
0.25
$
0.41
$
1.24
$
1.35
Diluted Earnings Per Share
$
0.24
$
0.40
$
1.23
$
1.33
CROSSFIRST BANKSHARES, INC.
9
TABLE 3. YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTEREST
INCOME - FTE
(UNAUDITED)
Twelve Months Ended
December 31,
2022
2021
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(4)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(4)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
(1)
$
220,760
$
5,286
2.39
%
$
201,419
$
3,955
1.96
%
Securities - tax-exempt - FTE
(1)(2)
551,734
18,559
3.36
488,544
16,981
3.48
Federal funds sold
3,139
49
-
-
-
-
Interest-bearing deposits in other banks
239,240
3,702
1.55
389,893
502
0.13
Gross loans, net of unearned income
(3)
4,603,697
224,138
4.87
4,340,791
174,660
4.02
Total interest-earning assets - FTE
(1)(2)
5,618,570
$
251,734
4.48
%
5,420,647
$
196,098
3.62
%
Allowance for loan losses
(57,388)
(73,544)
Other non-interest-earning assets
198,849
244,368
Total assets
$
5,760,031
$
5,591,471
Interest-bearing liabilities
Transaction deposits
$
538,604
$
4,951
0.92
%
$
608,063
$
1,152
0.19
%
Savings and money market deposits
2,475,891
33,599
1.36
2,338,315
8,225
0.35
Time deposits
688,095
11,432
1.66
812,774
9,146
1.13
Total interest-bearing deposits
3,702,590
49,982
1.35
3,759,152
18,523
0.49
FHLB and short-term borrowings
232,018
4,855
2.09
279,379
5,840
2.09
Trust preferred securities, net of fair value
adjustments
1,072
142
13.25
982
96
9.76
Non-interest-bearing deposits
1,146,594
-
-
876,309
-
-
Cost of funds
5,082,274
$
54,979
1.08
%
4,915,822
$
24,459
0.50
%
Other liabilities
60,175
35,447
Stockholders’ equity
617,582
640,202
Total liabilities and stockholders' equity
$
5,760,031
$
5,591,471
Net interest income - FTE
(2)
$
196,755
$
171,639
Net interest spread - FTE
(1)(2)
3.40
%
3.12
%
Net interest margin - FTE
(1)(2)
3.50
%
3.17
%
(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 non-accrual 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
TABLE 4. 2021 - 2022 QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME – FTE
(UNAUDITED)
Three Months Ended
December 31,
2022
2021
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(4)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(4)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
(1)
$
227,701
$
1,558
2.74
%
$
194,850
$
1,044
2.14
%
Securities - tax-exempt - FTE
(1)(2)
558,393
4,714
3.38
522,860
4,385
3.35
Federal funds sold
12,453
50
-
-
-
-
Interest-bearing deposits in other banks
218,549
1,987
3.61
387,828
143
0.15
Gross loans, net of unearned income
(3)
5,009,667
74,872
5.93
4,220,842
44,392
4.17
Total interest-earning assets - FTE
(1)(2)
6,026,763
$
83,181
5.48
%
5,326,380
$
49,964
3.72
%
Allowance for loan losses
(57,909)
(64,102)
Other non-interest-earning assets
190,929
228,204
Total assets
$
6,159,783
$
5,490,482
Interest-bearing liabilities
Transaction deposits
$
528,725
$
2,772
2.08
%
$
543,088
$
216
0.16
%
Savings and money market deposits
2,742,026
18,359
2.66
2,272,307
1,824
0.32
Time deposits
868,029
5,699
2.60
661,978
1,694
1.02
Total interest-bearing deposits
4,138,780
26,830
2.57
3,477,373
3,734
0.43
FHLB and short-term borrowings
202,705
1,470
2.88
261,600
1,999
3.03
Trust preferred securities, net of fair value
adjustments
1,213
48
15.70
1,000
24
9.67
Non-interest-bearing deposits
1,141,977
-
-
1,058,462
-
-
Cost of funds
5,484,675
$
28,348
2.05
%
4,798,435
$
5,757
0.48
%
Other liabilities
85,521
35,632
Stockholders’ equity
589,587
656,415
Total liabilities and stockholders' equity
$
6,159,783
$
5,490,482
Net interest income - FTE
(2)
$
54,833
$
44,207
Net interest spread - FTE
(1)(2)
3.43
%
3.24
%
Net interest margin - FTE
(1)(2)
3.61
%
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 non-accrual 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.
11
TABLE 5. NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
In addition to disclosing financial measures determined in accordance with U.S. generally accepted accounting principles (GAAP), the
Company discloses non-GAAP financial measures in this release including “tangible common stockholders’ equity,” “tangible book value
per share,” “adjusted efficiency ratio – fully tax equivalent (FTE),” “adjusted net income,” “adjusted diluted earnings per share,” “adjusted
return on average assets (ROAA),” and “adjusted return on common equity (ROE).” We consider the use of select non-GAAP financial
measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We
believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding
certain expenditures or gains that we believe are not indicative of our primary business operating results. We believe that management and
investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting,
analyzing and comparing past, present and future periods.
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP
and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we
present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by
providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the
impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be
considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures follows.
CROSSFIRST BANKSHARES, INC.
12
Quarter Ended
Twelve Months Ended
12/31/2022
9/30/2022
6/30/2022
3/31/2022
12/31/2021
12/31/2022
12/31/2021
(Dollars in thousands, except per share data)
Adjusted net income:
Net income
$
11,946
$
17,280
$
15,545
$
16,828
$
20,801
$
61,599
$
69,413
Add: Acquisition costs
3,570
81
239
-
-
3,890
-
Add: Acquisition - Day 1 CECL provision
4,400
-
-
-
-
4,400
-
Add: Employee separation
-
-
1,063
-
-
1,063
-
Add: Unrealized loss on equity security
-
-
-
-
-
-
6,200
Add: Accelerated employee benefits
-
-
-
-
-
-
719
Less: BOLI settlement benefits
(1)
-
-
-
-
-
-
(1,841)
Less: Tax effect
(2)
(2,045)
(17)
(273)
-
-
(2,335)
(1,512)
Adjusted net income
$
17,871
$
17,344
$
16,574
$
16,828
$
20,801
$
68,617
$
72,979
Diluted weighted average common shares outstanding
49,165,578
49,725,207
50,203,725
50,910,490
51,660,723
50,002,054
52,030,582
Diluted earnings per share
$
0.24
$
0.35
$
0.31
$
0.33
$
0.40
$
1.23
$
1.33
Adjusted diluted earnings per share
$
0.36
$
0.35
$
0.33
$
0.33
$
0.40
$
1.37
$
1.40
(1)
No tax effect.
(2)
Represents the tax impact of the adjustments at a tax rate of 21.0%, plus permanent tax expense associated with merger related transactions and permanent tax benefit associated with stock-based grants
Quarter Ended
Twelve Months Ended
12/31/2022
9/30/2022
6/30/2022
3/31/2022
12/31/2021
12/31/2022
12/31/2021
(Dollars in thousands)
Adjusted return on average assets:
Net income
$
11,946
$
17,280
$
15,545
$
16,828
$
20,801
$
61,599
$
69,413
Adjusted net income
17,871
17,344
16,574
16,828
20,801
68,617
72,979
Average assets
$
6,159,783
$
5,764,347
$
5,545,657
$
5,563,738
$
5,490,482
$
5,760,031
$
5,591,471
Return on average assets
0.77
%
1.19
%
1.12
%
1.23
%
1.50
%
1.07
%
1.24
%
Adjusted return on average assets
1.15
%
1.19
%
1.20
%
1.23
%
1.50
%
1.19
%
1.31
%
Quarter Ended
Twelve Months Ended
12/31/2022
9/30/2022
6/30/2022
3/31/2022
12/31/2021
12/31/2022
12/31/2021
(Dollars in thousands)
Adjusted return on common equity:
Net income
$
11,946
$
17,280
$
15,545
$
16,828
$
20,801
$
61,599
$
69,413
Adjusted net income
17,871
17,344
16,574
16,828
20,801
68,617
72,979
Average common equity
$
589,587
$
613,206
$
614,541
$
653,747
$
656,415
$
617,582
$
640,202
Return on average common equity
8.04
%
11.18
%
10.15
%
10.44
%
12.57
%
9.97
%
10.84
%
Adjusted return on common equity
12.03
%
11.22
%
10.82
%
10.44
%
12.57
%
11.11
%
11.40
%
CROSSFIRST BANKSHARES, INC.
13
Quarter Ended
12/31/2022
9/30/2022
6/30/2022
3/31/2022
12/31/2021
(Dollars in thousands, except per share data)
Tangible common stockholders' equity:
Total stockholders' equity
$
608,599
$
580,547
$
608,016
$
623,199
$
667,573
Less: goodwill and other intangible assets
29,081
71
91
110
130
Tangible common stockholders' equity
$
579,518
$
580,476
$
607,925
$
623,089
$
667,443
Tangible book value per share:
Tangible common stockholders' equity
$
579,518
$
580,476
$
607,925
$
623,089
$
667,443
Shares outstanding at end of period
48,448,215
48,787,696
49,535,949
49,728,253
50,450,045
Book value per share
$
12.56
$
11.90
$
12.27
$
12.53
$
13.23
Tangible book value per share
$
11.96
$
11.90
$
12.27
$
12.53
$
13.23
Quarter Ended
Twelve Months Ended
12/31/2022
9/30/2022
6/30/2022
3/31/2022
12/31/2021
12/31/2022
12/31/2021
(Dollars in thousands)
Adjusted Efficiency Ratio - Fully Tax Equivalent
(FTE)
(1)
Non-interest expense
$
36,423
$
28,451
$
29,203
$
27,666
$
26,715
$
121,742
$
99,382
Less: Acquisition costs
(3,570)
(81)
(239)
-
-
(3,890)
-
Less: Core deposit intangible amortization
(291)
-
-
-
-
(291)
-
Less: Employee separation
-
-
(1,063)
-
-
(1,063)
-
Less: Accelerated employee benefits
-
-
-
-
-
-
(719)
Adjusted Non-interest expense (numerator)
$
32,562
$
28,370
$
27,901
$
27,666
$
26,715
$
116,498
$
98,663
Net interest income
54,015
49,695
46,709
43,115
43,445
193,534
168,691
Tax equivalent interest income
(1)
818
820
808
775
762
3,221
2,948
Non-interest income
4,359
3,780
4,201
4,942
4,796
17,281
13,660
Add: Unrealized loss on equity security
-
-
-
-
-
-
6,200
Less: BOLI settlement benefits
-
-
-
-
-
-
(1,841)
Total tax-equivalent income (denominator)
$
59,192
$
54,295
$
51,718
$
48,832
$
49,003
$
214,036
$
189,658
Efficiency Ratio
62.40
%
53.20
%
57.36
%
57.57
%
55.38
%
57.75
%
54.50
%
Adjusted Efficiency Ratio - Fully Tax Equivalent
(FTE)
(1)
55.01
%
52.25
%
53.95
%
56.66
%
54.52
%
54.43
%
52.02
%
(1)
Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%.
Exhibit 99.2
CROSSFIRST BANKSHARES, INC. NASDAQ: CFB 4th Quarter and Full Year 2022 Earnings Presentation January 23, 2023
LEGAL DISCLAIMER CROSSFIRST BANKSHARES, INC. FORWARD -LOOKING STATEMENTS. The financial results in this presentation reflect preliminary, unaudited results, which are not final until the Company’s Annual Report on Form 10-K is filed. This presentation and oral statements made relating to this presentation 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 forward -looking statements include, but are not limited to, statements regarding our business plans, the impacts of the acquisition of Central,* expansion targets and opportunities, and future financial performance. These statements are often, but not always, made through the use of words or phrases such as "positioned," "optimistic," "potential," "believe," "expect," "will make," "will," "anticipate," "growth," "intend," "plan," "future," "goal," "target," "uncertainty,“ “strategy,” “opportunities,” “feel,” “expectations,”and "assuming" or the negative version of those words or other comparable words or ph rases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are 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 that any such forward -looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements 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 related to general business and economic conditions and any regulatory responses to such conditions; interest rate fluctuations, our ability to effectively execute our growth strategy and manage our growth, including identifying and consummating suitable mergers and acquisitions; the geographic concentration of our markets; fluctuation of the fair value of our investment securities due to factors outside our control; our ability to successfully manage our credit risk and the sufficiency of our allowance; regulatory restrictions on our ability to grow due to our concentratio n in commercial real estate lending; our ability to attract, hire and retain key personnel; our ability to raise or maintain sufficient capital; competition from banks, credit unions and other financial services providers; the effectiveness of our risk management framework in mitigating risks and losses; our ability to maintain effective internal control over financial reporting; our ability to keep pace with technological changes; system failures and interruptions, cyber-attacks and security breaches; employee error, 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 from transactions with financial counterparties; risks relating to the ongoing COVID-19 pandemic; compliance with governmental and regulatory requirements; and changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters. These and other factors that could cause results to differ materially from those described in the forward-looking
statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, and we disclaim any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law. MARKET AND INDUSTRY DATA. This presentation references certain market, industry and demographic data, forecasts 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 reliable but 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. * CrossFirst acquired Farmers & Stockmens Bank (referred to herein as “Central”) on November 22, 2022. 2
ABOUT NON-GAAP FINANCIAL MEASURES CROSSFIRST BANKSHARES, INC. In addition to disclosing financial measures determined in accordance with U.S. generally accepted accounting principles (GAAP), we disclose non-GAAP financial measures, including “adjusted net income”, “adjusted diluted earnings per share”, “pre-tax pre-provision profit”, “tangible common stockholders’ equity”, “tangible book value per share”, “adjusted return on average assets (ROAA)”, “adjusted return on common equity (ROE)” and “adjusted efficiency ratio – fully tax equivalent (FTE).” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or gains that we believe are not indicative of our primary business operating results. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and should not be relied on alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures wheneve r we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing
our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is provided at the end of this presentation. 3
EXECUTING STRATEGIC INITIATIVES CROSSFIRST BANKSHARES, INC. Net Income $19.6 $28.5 $12.6 $69.4 $61.6 Operating Revenue(1) $116.5 $150.2 $172.0 $182.4 $21.8 $6.1 $8.7 $11.7 $13.7 $17.3 $110.4 $141.5 $160.3 $168.7 $193.5 Net Interest Income Non-Interest Income Adjusted Net Income(2) & PTPP Profit(2) $19.9 $30.7 $27.4 $62.5 $20.0 $72.0 $73.0 $83.0 $68.6 $89.1 Adjusted Net Income Pretax, Pre-Provision Profit Non-performing Assets / Total Assets 0.43% 0.97% 1.39% 0.58% 2.00% Note: Dollar amounts are in millions, other than per share amounts Defined as net interest income plus non-interest income Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details 4
FULL YEAR 2022 HIGHLIGHTS CROSSFIRST BANKSHARES, INC. Financial Performance Net Income $61.6 Million Adjusted(1) Net Income $68.6 Million Diluted EPS $1.23 Adjusted(1) Diluted EPS $1.37 ROE 9.97% Adjusted(1) ROE 11.11% ROAA 1.07% Adjusted(1) ROAA 1.19% Profitability Net interest income increased 15% compared to 2021 due to the higher rate environment, coupled with strong organic loan growth Adjusted ROE of 11.11% is highest since our IPO in 2019 Fully tax equivalent NIM increased 33bps to 3.50% for full year 2022 compared to full year 2021(2)(3) Balance Sheet Completed acquisition of Central adding $389 million of loans and $570 million of deposits Loan portfolio increased $1.1 billion, or 26% from year-end 2021, with organic loan growth of 17% for the year Total deposits increased $968 million, including $570 million from the Central acquisition. DDA as a percentage of total deposits was 25% at December 31, 2022 Credit Quality Credit quality improved meaningfully with the non-performing assets ratio at 0.20% at year end and full year net charge offs of just 0.08% Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details For all periods 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 The incremental Federal income tax rate used in calculating tax exempt income on a tax equivalent basis is 21.0% 5
OUR ROAD TO SUCCESS CROSSFIRST BANKSHARES, INC. ONE TEAM Elevating our Strong Corporate Culture by Living our CrossFirst Values Attracting and Retaining High Performing Talent Invest in well-being of our Employees Total Assets $6.6 billion ONE BANK Targeting Businesses and Professionals Branch-Light – Technology Focused Delivering Extraordinary Service and Customer Experience Enhancing Products and Services Gross Loans $5.4 billion SHARED VISION Performance & Profitability Seizing Growth Opportunities Strong Credit Quality Managing Enterprise Risk Contributing to our Communities Total Deposits $5.7 billion Note: Data as of December 31, 2022 6
OUR GROWTH CROSSFIRST BANKSHARES, INC. Total Assets Compound Annual Growth Rates Since 2012 Total Assets 27.9% $565 $847 $1,220 $1,574 $2,133 $2,961 $4,107 $4,931 $5,659 $5,621 $6,601 2012 Expanded into Wichita and Oklahoma City markets 2013 Expanded into Tulsa market through acquisition of Tulsa National Bancshares, Inc. (~$160mm in Total Assets) 2016 Expanded into Dallas market 2019 CrossFirst Bankshares, Inc. Initial Public Offering at $14.50; Nasdaq listed: CFB 2021 Expanded into Phoenix market 2022 Expanded into Colorado and New Mexico markets through acquisition of Central (~$666mm in Total Assets) Note: Dollars in chart are in millions. 7
DRIVEN BY OUR EXTRAORDINARY CULTURE CROSSFIRST BANKSHARES, INC. FOCUSING ON OUR CORE VALUES At CrossFirst Bank, extraordinary service is the unifying purpose at the very heart of our organization. To deliver on our purpose, each of our employees operates under four values that define our approach to banking: character, competence, commitment, and connection. These are not just words at CrossFirst. They are core values that guide our actions, decisions, and vision. They define who we are. CHARACTER Who You Are COMPETENCE What You Can Do COMMITMENT What You Want To Do CONNECTION What Others See In You INVESTING IN OUR PEOPLE & CLIENTS We prioritize and invest in creating opportunities to help employees grow and build their careers using a variety of training and development programs. These include online, classroom, and on-the-job learning formats. Our CrossFirst Training programs include: A culture and leadership-driven onboarding program for new hires A development program designed for emerging leaders that explores core leadership concepts and foundational concepts of the banking industry As a GALLUP® Strengths-Based organization, our very first commitment to every new employee is that we will value them and provide access to their unique CliftonStrengths®. POSITIONING FOR SUCCESS We strive to build an equitable and inclusive environment with diverse teams who support our core values and strategic initiatives. We strive to hire and retain top-tier talent to drive top-tier growth and extraordinary service. 22% of 2022 new hires were ethnically diverse 61% of workforce is female, following new hires 68% GALLUP® Q12 Survey engaged employees; with more than 89% of employees responding 8
FOOTPRINT AND OPERATING STRUCTURE CROSSFIRST BANKSHARES, INC. METRO MARKETS Kansas City Dallas Fort -Worth Phoenix Denver COMMUNITY MARKETS Wichita Oklahoma City Tulsa Colorado Springs Clayton INDUSTRY VERTICALS Private & Relationship Banking Enterprise Value Financial Institutions Restaurant Franchise Group Commercial Real Estate Energy Mortgage Small Business (SBA) 9
FOURTH QUARTER 2022 HIGHLIGHTS CROSSFIRST BANKSHARES, INC. Financial Performance Net Income $11.9 Million Adjusted(1) Net Income $17.9 Million Diluted EPS $0.24 Adjusted(1) Diluted EPS $0.36 ROE 8.04% Adjusted(1) ROE 12.03% ROA 0.77% Adjusted(1) ROA 1.15% Profitability Net interest income increased 9% from Q3 2022 and 24% from Q4 2021 due to the higher rate environment, coupled with strong organic loan growth Fully tax equivalent NIM increased 5bps to 3.61% during Q4 2022 and has expanded 31bps from Q4 2021(2)(3) Balance Sheet Completed acquisition of Central adding $389 million of loans and $570 million of deposits Loan portfolio increased 26% annualized, excluding $389 million from the acquisition of Central Total deposits increased $664 million, including $570 million from the Central acquisition. DDA as a percentage of total deposits was 25% at December 31, 2022 Credit Quality Provisioned $4.4 million on acquired Central loans under the CECL model NCOs / average loans of (0.02%) annualized for the quarter compared to 0.07% for Q4 2021 NPAs / assets decreased 11bps during the quarter to 0.20% and have declined 38bps from year-end 2021 Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details For all periods 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 The incremental Federal income tax rate used in calculating tax exempt income on a tax equivalent basis is 21.0% 10
NET INTEREST MARGIN CROSSFIRST BANKSHARES, INC. Yield on Loans & Cost of Deposits 4.17% 0.33% 4.00% 0.31% 4.28% 0.42% 5.08% 1.20% 5.93% 2.03% Yield on Loans Cost of Total Deposits Net Interest Margin – Fully Tax Equivalent (FTE)(1)(2) 3.30% 3.29% 3.52% 3.56% 3.61% Fully tax-equivalent net interest margin increased 5bps from Q3 2022, as increases in earning asset yields outpaced cost of funds Loan yields increased 85bps in the quarter due to repricing of existing loans and organic growth Cost of deposits increased 83bps from Q3 2022 due to market rate increases Loan to deposit ratio increased to 95% from 94% in Q3 2022 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 The incremental Federal income tax rate used in calculating tax exempt income on a tax equivalent basis is 21.0% 11
ASSET QUALITY PERFORMANCE CROSSFIRST BANKSHARES, INC. Classified Loans / Capital + ACL + RUC(1) $78.7 $73.3 $81.5 $72.1 $67.7 10.8% 10.7% 12.0% 11.2% 10.0% Classified Loans Classified / Capital + ACL +RUC Classified loans decreased 6% and included the addition of $5.7 million from Central during Q4 2022 Without the impact of Central, classified loans decreased 19.2% in Q4 2022 Non-performing Assets / Total Assets 0.58% 0.64% 0.54% 0.31% 0.20% NPAs decreased due to continued improvements and successful workouts with borrowers 9% of the non -performing asset balance in Q4 2022 relates to energy credits Note: Dollar amounts are in millions. Beginning in 2022, includes the accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) that resulted from CECL adoption on January 1, 2022 12
ASSET QUALITY PERFORMANCE CROSSFIRST BANKSHARES, INC. Net (Recoveries) Charge-offs / Average Loans(1) 0.07% 0.10% 0.10% 0.16% -0.02% Q4 2022 included $0.3 million of net recoveries Full year 2022 net charge-offs to average loans was 0.08% compared to 0.30% for 2021 Allowance for Credit Losses / Total Loans 1.37% 1.38% 1.35% 1.34% 1.31% $58.4 $55.2 $55.8 $55.9 $61.8 ACL RUC ACL + RUC/ Total Loans ACL + RUC / Total Loans decreased slightly to 1.31% at end of Q4 2022 primarily due to improvements in qualitative adjustments for improved credit indicators Allowance for credit losses to non-accruing loans at the end of Q4 2022 was 548% Note: Dollar amounts are in millions Ratio is annualized for interim periods. 13
SUPPLEMENTAL INFORMATION CROSSFIRST BANKSHARES, INC. 14
STOCK REPURCHASE ACTIVITY CROSSFIRST BANKSHARES, INC. 50,450 49,728 49,536 48,788 48,448 566 1,058 238 794 358 # of Shares Repurchased # Shares Outstanding Repurchased 4.9% of outstanding shares in 2022 and 0.7% of outstanding shares in Q4 2022 Drives improvement in ROE and EPS Little tangible book value dilution and a short earnback period Note: shares in thousands. 15
CAPITAL RATIOS CROSSFIRST BANKSHARES, INC. 12.5% 12.5% 13.6% 11.9% 11.9% 12.9% 11.5% 11.5% 12.6% 11.0% 11.1% 12.1% 9.5% 9.5% 10.5% Common Equity Tier 1 Tier 1 Risk Based Total Risk-Based Capital Capital deployed during Q4 2022 with the closing of the Central acquisition on November 22, 2022 and through significant organic loan growth Maintaining strong capital levels to support future growth Remain well capitalized as we return capital to shareholders through share repurchases 16
LOAN PORTFOLIO CROSSFIRST BANKSHARES, INC. CrossFirst Loans Excluding Acquisition Day 1 Loans 12/31/2022 C&I , 41% Res RE, 9% OO CRE, 7% NOO CRE, 23% Multifamily , 4% Consumer & Other, 1% C&D, 15% $5.0bn Central Day 1 Loans Res RE, 4% OO CRE, 23% NOO CRE, 29% Consumer & Other, 9% C&D, 13% C&I , 22% $389.1mm Consolidated Loans 12/31/2022 Res RE, 9% OO CRE, 8% NOO CRE, 24% Multifamily , 3% Consumer & Other, 2% C&D, 15% C&I , 39% $5.4bn 17
DIVERSE LOAN PORTFOLIO CROSSFIRST BANKSHARES, INC. CRE Loan Portfolio by Segment(1) ($2.1bn) Office 15% Industrial 13% 1-4 Family Res Construction 7% Hotel 9% Other 28% Multi-Family 12% Retail 16% C&I Loan Breakdown (1) by Type ($2.2bn) Financial Management 5% Aircraft & Transportation 7% Merchant Wholesalers 3% Other Industries 43% Manufacturing 11% Real Estate Activity 5% Business Loans to Individuals 6% Health Care 5% Engineering & Contracting 10% Restaurants 5% Note: Data as of December 31, 2022. (1) Portfolio breakdown by type includes loans originated by CrossFirst Bank legacy locations and excludes loans originated by the newly acquired Central locations 18
COMBINED ALLOWANCE FOR CREDIT LOSSES CROSSFIRST BANKSHARES, INC. ACL and Reserve for Unfunded Commitments $62.6 $4.4 $0.3 $3.2 $70.5 ALC + RUC*Reserve ACL and Reserve for Unfunded Commitments $58.4 $3.4 $61.8 $4.4 ($3.8) ($5.4) $13.5 $70.5 ALC + RUC*Reserve Note: As of end of period; dollars in millions. * Includes the accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) that resulted from CECL adoption on January 1, 2022. 19
EXPENSE MANAGEMENT CROSSFIRST BANKSHARES, INC. $26.7 $27.7 $9.2 $28.5 $36.4 $5.9 $5.2 $7.1 $5.4 $8.3 $1.9 $2.1 $2.4 $2.1 $3.3 $2.4 $2.5 $2.6 $2.7 $2.8 $16.5 $17.9 $17.1 $18.3 $22.0 Salaries & Benefits Occupancy Data Processing, Software & Comm. Other Investments in talent and technology continue to account for the increase in expenses year over year, driven by impacts from the Central acquisition Expenses in Q4 2022 included $3.6 million of acquisition-related items, compared to $80 thousand in Q3 2022 Salaries and benefits were higher due to the Central acquisition, coupled with increased hiring in new markets and business lines and increased performance-based incentive compensation Note: Dollars are in millions and amounts shown are as of the end of the period unless otherwise specified. 20
DEPOSIT COMPOSITION CROSSFIRST BANKSHARES, INC. CrossFirst Deposits Excluding Acquisition Day 1 Deposits 12/31/2022 NOW & Other, 3% MMDA & Sav., 56% Retail Time, 12% Jumbo Time, 6% DDA, 23% $5.1bn Central Day 1 Deposits NOW & Other, 3% MMDA & Sav., 51% Retail Time, 2% Jumbo Time, 1% DDA, 43% $570mm Consolidated Deposits 12/31/2022 NOW & Other, 3% MMDA & Sav., 56% Retail Time, 11% Jumbo Time, 5% DDA, 25% 21
IMPROVING CORE DEPOSIT BASE CROSSFIRST BANKSHARES, INC. Total Deposits and % DDA $4,684 $4,622 $4,744 $4,988 $5,651 $3,521 $3,512 $3,581 $3,874 $4,251 $1,163 $1,110 $1,163 $1,114 $1,400 DDA Interest-bearing Deposits Cost of Deposits 0.33% 0.31% 0.42% 1.20% 2.03% Total demand deposits increased 26% since Q3 2022, including $225 million as part of the Central acquisition Cost of deposits increased 83bps this quarter, due to market rate increases Non-interest-bearing deposits were 25% of total deposits this quarter Note: Dollars are in millions and amounts shown are as of the end of the period. 22
SECURITIES PORTFOLIO CROSSFIRST BANKSHARES, INC. Investment Portfolio Breakout as of December 31, 2022 Municipal - Tax-Exempt, 71.0% CMO (Fixed), 1.3% Other, 3.1% MBS (Fixed), 23.7% Municipal - Taxable, 0.9% Total: ~$687 million Securities Yield – Fully Tax Equivalent(2) 3.02% 3.00% 3.07% 3.07% 3.19% 2.54% 2.61% 2.57% 1.84% 1.14% Securities Yield – Cost of Funds Spread Securities Yield At the end of Q4 2022, the portfolio’s duration was approximately 5.2 years The fully taxable equivalent yield for Q4 2022 increased 12bps to 3.19% The securities portfolio has net unrealized losses of approximately $83 million as of December 31, 2022 During Q4 2022, $30 million of securities were purchased at an average tax-equivalent yield of 5.11% and there were $5 million in MBS paydowns Based on approximate fair value. A tax rate of 21.0% is used to calculate the fully tax equivalent yield 23
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSHARES, INC. A & Twelve Months Ended 12/51/2021 12/31/2020 12/31/2019 (Dollars in thousands, except per shore data) Adjusted net Income: Net income S 61.599 s 69.415 s 12601 s 28.475 s 19.590 Add: Acquisition costs 5.890 - * - * Add: Acquisition – Day l CECL provision 4.400 * * * * Add: Employee separation 1.065 * * * * Add: Unrealized loss on equity security - 6200 - - - Add: Accelerated employee benefits - 719 * - * Add: Goodwill impairment111 - * 7597 - * Add: Fixed asset impairment - * * 424 17 Less: State tax credit1" - * * 0-361) (3129) Aid: Restructuring charges - - - - 4.755 Less: BOLI settlement benefits11 - (1.841) - - * Less: Tax effect2 (2555) H - YOQ) (1,425) Adjusted net Income Diluted weighted average common shares outstanding 37,492,567 f1 Diluted earnings per share Adjusted diluted earnings per share Quarter Ended 9/30/2022 6/30/2022 3/31/2022 (Dollars in thousands, except per shore data) Adjusted net Income: Net income S 11946 s T7.280 s 15.545 s 16.828 s 20.801 Add: Acquisition costs 5.570 81 259 * * Add: Acquisition – Day l CECL provision 4.400 * * * * Add: Employee separation - - 1.065 - * Less: Tax effect2 (2045) (17) (275) - - Adjusted net Income Diluted weighted average common shares outstanding Diluted earnings per share Adjusted diluted earnings per share o No tax effect Represents the tax impact of the adjustments at a tax rate of 21.0%, plus permanent tax expense associated with merger related transactions and permanent tax benefit associated with stock-based grants 24
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSHARES, INC. > o Twelve Months Ended 12/51/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 (Dollars in thousands) Pre-Tax Pre-Provision Profit: Net income before taxes Acid: Provision for credit losses $ 77572 11501 $ 86,969 (4,000) $ 15,314 56,700 $ 32,611 29,900 $ 17,196 13,500 Pre-Tax Pre-Provision Profit Quarter Ended Twelve Months Ended 3/31/2022 (Dollars in thousands) Adjusted return on average assets: Net income $ 11,946 $ 17,280 $ 15545 $ 16,828 $ 20,801 $ 61,599 $ 69,413 ^ Adjusted net income 17,871 17544 16574 16,828 20,801 68,617 72,979 c Average assets $ 6,159,783 $ 5,764,347 $ 5545,657 $ 5,563,738 $ 5,490,482 $ 5,760,031 $ 5591,471 Return on average assets Adjusted return on average assets Quarter Ended Twelve Months Ended 3/31/2022 (Dollars in thousands) Adjusted return on common equity: Net income $ 11,946 $ 17,280 $ 15545 $ 16,828 $ 20,801 $ 61,599 $ 69,413 Adjusted net income 17,871 17544 16574 16,828 20,801 68,617 72,979 Average common equity $ 589,587 $ 613,206 $ 614,541 $ 653,747 $ 656,415 $ 617,582 $ 656,415 Return on average common equity CO b > Adjusted return on common equity 25
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSHARES, INC. Quarter Ended 9/30/2022 6/30/2022 3/31/2022 (Dollars in thousands except per share data) Tangible common stockholders' equity: Total stockholders' equity $ 608,599 $ 580547 $ 608,016 $ 623,199 $ 667,573 Less: goodwill and other intangible assets 29,081 71 91 no 130 Tangible common stockholders' equity Tangible book value per share: Tangible common stockholders' equity $ 579,518 $ 580,476 $ 607,925 $ 623,089 $ 667,443 Shares outstanding at end of period 48,448215 48,787,696 49535,949 49,728253 50,450,045 Book value per share Tangible book value per share Quarter Ended Twelve Months Ended 6/30/2022 3/31/2022 (Dollars in thousands) Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)rt: Non-interest expense $ 36,423 $ 28,451 $ 29,203 $ 27,666 $ 26,715 $ 121,742 $ 99582 Less: Acquisition costs (3.570) (81) (239) - - (3,890) - Less: Core deposit intangible amortization (291) - - - - (291) - Less: Employee separation - - (1.063) - - 0.063) - Less: Accelerated employee benefits - - - - - - (719) Adjusted Non-interest expense (numerator) $ 32,562 $ 28570 $ 27,901 $ 27,666 $ 26,715 $ 116,498 $ 98,663 Net interest income 54,015 49,695 46,709 43,115 43,445 193534 168,691 Tax equivalent interest income 11 818 820 808 775 762 3,221 2,948 Non-interest income 4,359 3,780 4201 4,942 4,796 17,281 13,660 Add: Unrealized loss on equity security - - - - - - 6,200 Less: BOLI settlement benefits - - - - - - 0.841) Total tax-equivalent income (denominator) Efficiency Ratio Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)1’1 55.01 % 53.95 % 56.66 % 54.43 % 5202 % Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%. 26