UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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)
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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
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Item 2.02.
Results of Operations and Financial Condition.
On April 17, 2023, CrossFirst Bankshares, Inc. (the “Company”) announced that it had released its financial results for its first quarter of
2023. 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 does not intend for information contained in its website to be part of this report.
The Company intends to hold a conference call to review first quarter 2023 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:
April 17, 2023
CROSSFIRST BANKSHARES, INC.
By:
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
1
CrossFirst Bankshares, Inc. Reports First Quarter 2023
Results
LEAWOOD, Kan., April 17, 2023 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for
CrossFirst Bank, today reported first quarter net income of $16.1 million, or $0.33 per diluted common share and adjusted net income of
$17.3 million, or $0.35 per diluted common share.
First Quarter 2023 Key Financial Performance Metrics
Net Income
ROAA
(1)
Net Interest Margin –
Fully Tax Equivalent
(“FTE”)
(1)
Diluted EPS
ROE
(1)
$16.1 million
0.97%
3.65%
$0.33
10.53%
Adjusted First Quarter 2023 Key Financial Performance Metrics
(2)
Adjusted Net Income
Adjusted ROAA
(1)
Net Interest Margin -
FTE
(1)
Adjusted Diluted
EPS
Adjusted ROE
(1)
$17.3 million
1.04%
3.65%
$0.35
11.30%
(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:
“We continued our momentum into the first quarter producing strong earnings, growth in our capital and improvement in our credit quality
against a challenging backdrop,” said CrossFirst’s CEO and President, Mike Maddox. Mr. Maddox continued, “We maintain a diversified
balance sheet with significant liquidity to withstand market volatility. We are fortunate to have an experienced team of bankers and
leaders, and I am extremely proud of the way they have navigated the recent turmoil within our industry, with a focus on serving our
clients and continuing to build franchise value.”
2023
First Quarter Highlights:
●
Completed the Central bank core systems conversion
●
Loans grew $275 million for the quarter with our newer markets and verticals contributing meaningfully as we realize scale
in those areas
●
Credit quality improved with non-performing assets decreasing $2.0 million and the non-performing assets to total assets
ratio decreasing to 0.16% at quarter end
●
Recorded $4.4 million of provision expense during the quarter driven by loan growth and net charge-offs of $1.6 million, or
0.12% of average loans
●
Deposits increased $186 million due to a $405 million increase in wholesale deposits. Non-interest-bearing accounts were
lower as elevated deposits at year-end were deployed early in the quarter in addition to clients migrating into savings and
money market accounts
●
Net interest margin – FTE of 3.65% widened four basis points for the quarter entirely due to the benefit of non-interest-
bearing deposits
●
Issued $7.8 million of non-cumulative Series A Preferred Stock further bolstering our capital position
Exhibit 99.1
2
Quarter-to-Date
(Dollars in millions except per share data)
March 31, 2023
December 31, 2022
March 31, 2022
Operating revenue
(1)
$
62.6
$
58.4
$
48.1
Net income
$
16.1
$
11.9
$
16.8
Diluted earnings per common share
$
0.33
$
0.24
$
0.33
Return on average assets
0.97
%
0.77
%
1.23
%
Adjusted return on average assets
(2)
1.04
%
1.15
%
1.23
%
Return on average equity
10.53
%
8.04
%
10.44
%
Adjusted return on average equity
(2)
11.30
%
12.03
%
10.44
%
Net interest margin
3.60
%
3.56
%
3.24
%
Net interest margin
–
(3)
3.65
%
3.61
%
3.29
%
Efficiency ratio
60.81
%
62.40
%
57.57
%
Adjusted efficiency ratio
–
(2)(3)
56.42
%
55.01
%
56.66
%
(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)
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 $16.1 million or $0.33 per diluted share for the first quarter of 2023, compared to $11.9 million or $0.24 per diluted
share during the fourth quarter of 2022 and $16.8 million or $0.33 per diluted share during the first quarter of 2022. On a linked quarter
basis, net income was higher due to an increase in net interest income partially offset by higher non-interest expenses. The first quarter of
2023 included $1.5 million of acquisition-related non-interest expense and the fourth quarter of 2022 included acquisition-related non-
interest expense of $3.6 million and a $4.4 million acquisition-related Day 1 CECL provision expense. Compared to the same period in
the prior year, the quarter’s results were impacted by better net interest income that was more than offset by higher provision expense and
non-interest expense.
Adjusted net income for the first quarter of 2023 totaled $17.3 million or $0.35 per diluted share compared to $17.9 million or $0.36 per
diluted share for the fourth quarter of 2022. The linked quarter’s adjusted net income was lower by $0.6 million as increases in net interest
income were more than offset by higher provision expense and higher non-interest expense.
Net Interest Income
Fully tax equivalent (“FTE”) net interest income totaled $59.0 million for the quarter compared to $54.8 million for the fourth quarter of
2022, increasing due to higher average earning assets and stronger loan yields, partially offset by higher cost of funds and two fewer days.
Net interest margin – FTE widened 4 basis points to 3.65% compared to the prior quarter entirely due to the benefit of non-interest-bearing
deposits.
Average earning assets increased $521 million compared to the prior quarter due to higher average loan balances. The increase in average
balances of loans outstanding more than offset lower average cash and federal funds sold balances. The yield on earning assets increased
entirely due to stronger loan yields due to the repricing of variable loans as well as higher pricing on new loans. The cost of funds
increased due to continued pricing pressure on deposits as well as the mix of deposits shifting into higher cost products. Despite the
offsetting changes in the yield on earning assets and the cost of funds, net interest margin – FTE widened due to the benefit of non-interest
bearing-deposits.
Compared to the first quarter of 2022, FTE net interest income increased $15.1 million and net interest margin - FTE increased 36 basis
points. The higher income and margin were primarily due to increases in average earning assets from strong loan growth and an increase
in the loan yields, partially offset by a higher cost of funds due to the rising rate environment.
Average earning assets grew $1.2 billion, or 21%, compared to the first quarter of 2022. The increase was entirely driven by higher
average loan and investment portfolio balances, partially offset by lower average cash balances. The yield on earning assets increased
2.44% due to new loan production as well as repricing of variable rate loans. The cost of funds increased 2.27% over the same period due
to pricing pressure on deposits as well as client migration into higher cost deposit products compared to the prior year.
CROSSFIRST BANKSHARES, INC.
3
Non-Interest Income
Non-interest income increased $0.1 million compared to the fourth quarter of 2022 and decreased by $0.5 million compared to the same
quarter in 2022. The increase in non-interest income compared to the previous quarter was due to increases in service charges and fees and
credit card interchange income offset by decreases in other non-interest income. In addition, gains on sale of loans increased from the
addition of Central. The decrease compared to the prior year was primarily the result of a decrease in credit card fees due to one large
customer with pandemic-related activity that was not recurring. The lower credit card fees were partially offset by increases in service
charges and fees, as well as gains on securities and gains on sales of loans.
Non-Interest Expense
Non-interest expense increased $1.7 million from the fourth quarter of 2022 and increased $10.4 million from the first quarter of 2022.
The first quarter of 2023 included $1.5 million of acquisition-related expenses with $1.1 million included in professional fees, $0.2 million
in salaries and employee benefits, $0.1 million in advertising, and $0. 1 million in other non-interest expense. The fourth quarter of 2022
included $3.6 million of acquisition-related expenses with $1.2 million included in professional fees, $1.0 million in salaries and employee
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 $3.8 million compared to the fourth quarter of 2022 and increased $8.9 million compared to the first quarter
of 2022. Compared to the fourth quarter of 2022, salaries and employee benefits costs were higher due to merit increases and the addition
of employees as part of the Central acquisition. Additionally, deposit insurance premiums increased primarily due to an increase in the
assessment rate and growth in assets. Other non-interest expense increased compared to the prior quarter primarily due to core deposit
intangible amortization as a result of the Central acquisition and an increase in commercial credit card fees. Compared to the first quarter
of 2022 salaries and employee benefits costs were higher due to merit increases, hiring in new markets, and the addition of employees as
part of the Central acquisition. Professional fees increased primarily due to increases in consulting costs related to the digital banking
conversion, increased recruiting costs, and timing of legal fees. Additionally, deposit insurance premiums increased due to an increase in
the assessment rate and increases in assets. Other non-interest expense increased compared to the prior year primarily due to core deposit
intangible amortization as a result of the Central acquisition and increased post-pandemic travel expenses.
The Company’s effective tax rate for the first quarter of 2023 was 20.0%, as compared to 21.9% in the fourth quarter of 2022 and 19.9%
for the first quarter of 2022. The fourth quarter of 2022 included a $0.3 million charge related to certain non-deductible acquisition costs
which caused a higher rate for that period.
Statement of Financial Condition Performance & Analysis
During the first quarter of 2023, total assets increased by $0.3 billion or 4% compared to the end of the prior quarter and increased $1.4
billion or 25% compared to March 31, 2022. Total assets increased on a linked quarter basis primarily due to a $0.3 billion increase in
loans. The year-over-year increase was primarily due to an increase in loans of $1.3 billion, including $0.4 billion from the Central
acquisition. Deposits increased $0.2 billion compared to December 31, 2022, and increased $1.2 billion from March 31, 2022, including
$0.6 billion from the Central acquisition.
Loan Results
During the first quarter of 2023, loans increased $275 million compared to December 31, 2022, and increased $1.3 billion or 30%
compared to March 31, 2022, including the impact of the Central acquisition . The linked quarter increase in loans was a result of growth
across most of our loan categories. Our newer markets and verticals contributed meaningfully to the quarter’s loan growth as we realize
scale in those areas. The loan increase compared to March 31, 2022 was primarily due to growth in the commercial and industrial,
commercial and industrial lines of credit and commercial real estate portfolios and included the impact of the Central acquisition.
CROSSFIRST BANKSHARES, INC.
4
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
% of
Total
QoQ
Growth
($)
QoQ
Growth
(%)
(1)
YoY
Growth
($)
YoY
Growth
(%)
(1)
(Dollars in millions)
Loans, net of unearned fees
Commercial and industrial
$
987
$
1,018
$
858
$
812
$
803
17
%
$
(31)
(3)
%
$
184
23
%
Commercial and industrial lines of
credit
1,047
957
831
788
678
19
90
9
369
54
Energy
194
173
179
233
271
3
21
12
(77)
(28)
Commercial real estate
1,809
1,719
1,400
1,436
1,376
33
90
5
433
31
Construction and land development
845
795
674
584
564
15
50
6
281
50
Residential real estate
412
409
394
371
366
7
3
1
46
13
Multifamily real estate
296
238
276
250
243
5
58
24
53
22
Consumer
58
64
66
54
49
1
(6)
(9)
9
18
Total
$
5,648
$
5,373
$
4,678
$
4,528
$
4,350
100
%
$
275
5
%
$
1,298
30
%
(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 first quarter of 2023, deposits increased 3% compared to December 31, 2022, and increased 26% compared to March 31, 2022.
The deposit increase compared to December 31, 2022 was due to increases in transaction deposits, savings and money market deposits,
and time deposits offset by decreases in non-interest-bearing deposits. The deposit increase compared to March 31, 2022 was due to
increases in transaction deposits, savings and money market deposits, and time deposits, including amounts related to the Central
acquisition, partially offset by decreases in non-interest-bearing deposits.
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
QoQ
Growth
($)
QoQ
Growth
(%)
(1)
YoY
Growth
($)
YoY
Growth
(%)
(1)
(Dollars in millions)
Period-end deposits
Non-interest-bearing deposits
$
970
$
1,400
$
1,114
$
1,163
$
1,110
$
(430)
(31)
%
$
(140)
(13)
%
Transaction deposits
665
544
519
497
565
121
22
100
18
Savings and money market
deposits
2,826
2,761
2,605
2,351
2,435
65
2
391
16
Time deposits
1,376
946
750
733
512
430
45
864
169
Total
$
5,837
$
5,651
$
4,988
$
4,744
$
4,622
$
186
3
%
$
1,215
26
%
(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 March 31, 2023, other borrowings totaled $332 million, as compared to $254 million at December 31, 2022, and $228 million at
March 31, 2022, and increased due to short-term liquidity needs.
Asset Quality and Provision for Credit Losses
The Company recorded $4.4 million of provision expense, compared to $6.7 million in the linked quarter and a ($0.6) million release of
provision in the prior year first quarter. The prior quarter’s provision included $4.4 million of acquisition-related Day 1 CECL provision
expense for the Central loan portfolio. The current quarter’s provision expense was driven by loan growth and net charge-offs of $1.6
million.
Non-performing assets decreased to $11.2 million at March 31, 2023 primarily due to a $1.8 million decrease from the charge-off of one
commercial and industrial loan, as well as paydowns. The non-performing assets to total assets ratio decreased from 0.64% at March 31,
2022 to 0.16% at March 31, 2023. In addition, classified loans decreased $0.7 million during the first quarter. Net charge-offs were $1.6
million for the first quarter of 2023 compared to net recoveries of ($0.3) million in the prior quarter and net charge-offs of $1.1 million in
the prior year first quarter.
The allowance for credit losses was $65.1 million or 1.15% of outstanding loans at March 31, 2023. The combined allowance for credit
losses and accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) was $73.2 million or 1.30% of outstanding loans
which was consistent with the linked quarter and lower than the prior year first quarter, owing primarily to the reduction in specific
reserves on non-performing loans.
CROSSFIRST BANKSHARES, INC.
5
The following table provides information regarding asset quality.
Asset quality
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
Non-accrual loans
$
9.5
$
11.3
$
16.9
$
27.7
$
33.1
Other real estate owned
0.9
1.1
1.0
1.0
1.0
Loans 90+ days past due and still accruing
0.8
0.8
0.3
2.2
1.5
Non-performing assets
$
11.2
$
13.2
$
18.2
$
30.8
$
35.6
Loans 30 - 89 days past due
5.1
19.6
21.4
16.6
15.9
Net charge-offs (recoveries)
1.6
(0.3)
1.9
1.1
1.1
Asset quality metrics
(%)
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
Non-performing assets to total assets
0.16
%
0.20
%
0.31
%
0.54
%
0.64
%
Allowance for credit losses to total loans
1.15
1.15
1.19
1.23
1.27
Allowance for credit losses + RUC to total loans
(2)
1.30
1.31
1.34
1.35
1.38
Allowance for credit losses to non-performing loans
629
514
324
187
160
Net charge-offs (recoveries) to average loans
(1)
0.12
(0.02)
0.16
0.10
0.10
Provision to average loans
(1)
0.32
0.53
0.29
0.19
(0.06)
Classified Loans / (Total Capital + ACL)
9.4
10.1
11.3
12.1
10.8
Classified Loans / (Total Capital + ACL + RUC)
(2)
9.3
10.0
11.2
12.0
10.7
(1)
Interim periods annualized.
(2)
Includes the accrual for off-balance sheet credit risk from unfunded commitments
Capital Position
At March 31, 2023, stockholders' equity totaled $645 million, or $13.28 per common share, compared to $609 million, or $12.56 per
common share, at December 31, 2022. The increase was primarily due to net income, the issuance of preferred stock and an increase in
accumulated other comprehensive income driven by a decrease in the unrealized loss on available-for-sale securities, net of tax.
Tangible book value per common share
(1)
of common equity Tier 1 capital to risk-weighted assets was approximately 9.4%, and the ratio of total capital to risk-weighted assets was
approximately 10.5% at March 31, 2023.
(1)
Represents a non-GAAP financial measure. See “Table 5. Non-GAAP Financial Measures” for a reconciliation of this measure.
CROSSFIRST BANKSHARES, INC.
6
Conference Call and Webcast
Management will host a conference call to review first quarter financial results on Tuesday, April 18, 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
(
844) 481-2831 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) 317-1851 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/77e58i2m. 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 2572639. 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 Quarterly Report
on Form 10-Q is filed. This earnings release contains forward-looking statements regarding, among other things, our business plans,
expansion targets and opportunities, 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 “positioning,” “growth,” “approximately,”
“believe,” “plan,” “future,” “opportunity,” “anticipate,” “target,” “expectations,” “expect,” “will,” “strategy,” “goal,” “focused,” “foresee”
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, a decline in general business and economic conditions and any regulatory
responses thereto, including uncertainty and volatility in the financial markets; interest rate fluctuations; our ability to effectively execute
our growth strategy and manage our growth, including identifying and consummating suitable mergers and acquisitions, entering new lines
of business or offering new or enhanced services or products; the transition away from the London Interbank Offered Rate (LIBOR);
fluctuations in fair value of our investments due to factors outside of our control; our ability to successfully manage credit risk and the
sufficiency of our allowance; geographic concentration of our markets; economic impact on our commercial real estate and commercial-
based loan portfolios, including declines in commercial and residential real estate values; an increase in non-performing assets; our ability
to attract, hire and retain key personnel; maintaining and increasing customer deposits, funding availability, liquidity and our ability to
raise and maintain sufficient capital; competition from banks, credit unions and other financial services providers; the effectiveness of our
risk management framework; accounting estimates; our ability to maintain effective internal control over financial reporting; our ability to
keep pace with technological changes; cyber incidents or other failures, disruptions or security breaches; employee error, fraud committed
against the Company or our clients, or incomplete or inaccurate information about clients and counterparties; mortgage markets; our
ability to maintain our reputation; costs and effects of litigation; environmental liability; risk exposure from transactions with financial
counterparties; severe weather, natural disasters, acts of war or terrorism or other external events; and changes in laws, rules, regulations,
interpretations or policies relating to financial institutions. 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 products 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 STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
March 31, 2023
December 31, 2022
(Dollars in thousands)
Assets
Cash and cash equivalents
$
262,971
$
300,138
Available-for-sale securities - taxable
280,408
198,808
Available-for-sale securities - tax-exempt
470,843
488,093
Loans, net of unearned fees
5,647,639
5,372,729
Allowance for credit losses on loans
65,130
61,775
Loans, net of the allowance for credit losses on loans
5,582,509
5,310,954
Premises and equipment, net
67,311
65,984
Restricted equity securities
16,700
12,536
Interest receivable
30,385
29,507
Foreclosed assets held for sale
855
1,130
Goodwill and other intangible assets, net
28,259
29,081
Bank-owned life insurance
69,511
69,101
Other
84,978
95,754
Total assets
$
6,894,730
$
6,601,086
Liabilities and stockholders’ equity
Deposits
Non-interest-bearing
$
969,701
$
1,400,260
Savings, NOW and money market
3,491,586
3,305,481
Time
1,376,027
945,567
Total deposits
5,837,314
5,651,308
Federal Home Loan Bank advances
314,031
218,111
Other borrowings
17,970
35,457
Interest payable and other liabilities
79,924
87,611
Total liabilities
6,249,239
5,992,487
Stockholders’ equity
Preferred Stock, $0.01 par value: Authorized - 15,000 shares, issued - 7,750 and
no shares at March 31, 2023 and December 31, 2022, respectively
-
-
Common Stock, $0.01 par value: Authorized - 200,000,000 shares, issued -
53,189,016 and 53,036,613 shares at March 31, 2023 and December 31, 2022,
respectively
532
530
Treasury stock, at cost: 4,588,398 shares held at March 31, 2023 and December
31, 2022
(64,127)
(64,127)
Additional paid-in capital
539,023
530,658
Retained earnings
222,203
206,095
Accumulated other comprehensive loss
(52,140)
(64,557)
Total stockholders’ equity
645,491
608,599
Total liabilities and stockholders’ equity
$
6,894,730
$
6,601,086
CROSSFIRST BANKSHARES, INC.
8
Three Months Ended
March 31, 2023
December 31, 2022
March 31, 2022
(Dollars in thousands except per share data)
Interest Income
Loans, including fees
$
89,618
$
74,872
$
42,728
Available-for-sale securities - taxable
1,849
1,327
1,044
Available-for-sale securities - tax-exempt
3,794
3,896
3,692
Deposits with financial institutions
2,014
2,037
152
Dividends on bank stocks
262
231
144
Total interest income
97,537
82,363
47,760
Interest Expense
Deposits
36,725
26,830
3,511
Fed funds purchased and repurchase agreements
46
13
-
Federal Home Loan Bank Advances
2,391
1,457
1,109
Other borrowings
154
48
25
Total interest expense
39,316
28,348
4,645
Net Interest Income
58,221
54,015
43,115
Provision for Credit Losses
4,421
6,657
(625)
Net Interest Income after Provision for Credit Losses
53,800
47,358
43,740
Non-Interest Income
Service charges and fees on customer accounts
1,829
1,708
1,408
Realized gains (losses) on available-for-sale securities
63
139
(26)
Gain on sale of loans
187
47
-
Gains (losses) on equity securities, net
10
80
(103)
Income from bank-owned life insurance
411
402
388
Swap fees and credit valuation adjustments, net
90
65
118
ATM and credit card interchange income
1,264
1,010
2,664
Other non-interest income
567
908
493
Total non-interest income
4,421
4,359
4,942
Non-Interest Expense
Salaries and employee benefits
22,622
22,000
17,941
Occupancy
2,974
2,812
2,493
Professional fees
2,618
2,822
805
Deposit insurance premiums
1,531
999
737
Data processing
1,242
1,901
812
Advertising
752
954
692
Software and communication
1,651
1,404
1,270
Foreclosed assets, net
149
13
(53)
Other non-interest expense
4,553
3,518
2,969
Total non-interest expense
38,092
36,423
27,666
Net Income Before Taxes
20,129
15,294
21,016
Income tax expense
4,021
3,348
4,188
Net Income
$
16,108
$
11,946
$
16,828
Basic Earnings Per Common Share
$
0.33
$
0.25
$
0.33
Diluted Earnings Per Common Share
$
0.33
$
0.24
$
0.33
CROSSFIRST BANKSHARES, INC.
9
TABLE 3. 2022 – 2023 QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST
INCOME - FTE
(UNAUDITED)
Three Months Ended
March 31,
2023
2022
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
$
268,705
$
2,111
3.14
%
$
220,802
$
1,188
2.15
%
Securities - tax-exempt - FTE
(1)
542,268
4,591
3.39
533,674
4,467
3.35
Federal funds sold
1,757
5
1.15
-
-
-
Interest-bearing deposits in other banks
195,289
2,009
4.17
309,948
152
0.20
Gross loans, net of unearned income
(2)
5,539,954
89,618
6.56
4,332,831
42,728
4.00
Total interest-earning assets - FTE
(1)
6,547,973
$
98,334
6.08
%
5,397,255
$
48,535
3.64
%
Allowance for loan losses
(63,235)
(57,922)
Other non-interest-earning assets
228,063
224,405
Total assets
$
6,712,801
$
5,563,738
Interest-bearing liabilities
Transaction deposits
$
542,366
$
3,500
2.62
%
$
585,990
$
222
0.15
%
Savings and money market deposits
2,881,726
23,569
3.32
2,302,552
1,847
0.33
Time deposits
1,100,444
9,656
3.56
587,452
1,442
1.00
Total interest-bearing deposits
4,524,536
36,725
3.29
3,475,994
3,511
0.41
FHLB and short-term borrowings
272,754
2,535
3.77
231,156
1,109
1.95
Trust preferred securities, net of fair value
adjustments
1,062
56
21.39
1,012
25
10.25
Non-interest-bearing deposits
1,194,788
-
-
1,157,387
-
-
Cost of funds
5,993,140
$
39,316
2.66
%
4,865,549
$
4,645
0.39
%
Other liabilities
99,451
44,442
Stockholders’ equity
620,210
653,747
Total liabilities and stockholders' equity
$
6,712,801
$
5,563,738
Net interest income - FTE
(1)
$
59,018
$
43,890
Net interest spread - FTE
(1)
3.42
%
3.25
%
Net interest margin - FTE
(1)
3.65
%
3.29
%
(1)
rate used is 21.0%.
(2)
Average gross loan balances include non-accrual loans.
(3)
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. LINKED QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME – FTE
(UNAUDITED)
Three Months Ended
March 31, 2023
December 31, 2022
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
$
268,705
$
2,111
3.14
%
$
227,701
$
1,558
2.74
%
Securities - tax-exempt - FTE
(1)
542,268
4,591
3.39
558,393
4,714
3.38
Federal funds sold
1,757
5
1.15
12,453
50
1.59
Interest-bearing deposits in other banks
195,289
2,009
4.17
218,549
1,987
3.61
Gross loans, net of unearned income
(2)
5,539,954
89,618
6.56
5,009,667
74,872
5.93
Total interest-earning assets - FTE
(1)
6,547,973
$
98,334
6.08
%
6,026,763
$
83,181
5.48
%
Allowance for loan losses
(63,235)
(57,909)
Other non-interest-earning assets
228,063
190,929
Total assets
$
6,712,801
$
6,159,783
Interest-bearing liabilities
Transaction deposits
$
542,366
$
3,500
2.62
%
$
528,725
$
2,772
2.08
%
Savings and money market deposits
2,881,726
23,569
3.32
2,742,026
18,359
2.66
Time deposits
1,100,444
9,656
3.56
868,029
5,699
2.60
Total interest-bearing deposits
4,524,536
36,725
3.29
4,138,780
26,830
2.57
FHLB and short-term borrowings
272,754
2,535
3.77
202,705
1,470
2.88
Trust preferred securities, net of fair value
adjustments
1,062
56
21.39
1,213
48
15.70
Non-interest-bearing deposits
1,194,788
-
-
1,141,977
-
-
Cost of funds
5,993,140
$
39,316
2.66
%
5,484,675
$
28,348
2.05
%
Other liabilities
99,451
85,521
Stockholders’ equity
620,210
589,587
Total liabilities and stockholders' equity
$
6,712,801
$
6,159,783
Net interest income - FTE
(1)
$
59,018
$
54,833
Net interest spread - FTE
(1)
3.42
%
3.43
%
Net interest margin - FTE
(1)
3.65
%
3.61
%
(1)
rate used is 21.0%.
(2)
Average loan balances include non-accrual loans.
(3)
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 common share,” “adjusted efficiency ratio – fully tax equivalent (FTE),” “adjusted net income,” “adjusted diluted earnings per
common share,” “adjusted return on average assets (ROAA),” and “adjusted return on 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
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
(Dollars in thousands, except per share data)
Adjusted net income:
Net income
$
16,108
$
11,946
$
17,280
$
15,545
$
16,828
Add: Acquisition costs
1,477
3,570
81
239
-
Add: Acquisition - Day 1 CECL provision
-
4,400
-
-
-
Add: Employee separation
-
-
-
1,063
-
Less: Tax effect
(1)
(310)
(2,045)
(17)
(273)
-
Adjusted net income
$
17,275
$
17,871
$
17,344
$
16,574
$
16,828
Diluted weighted average common shares outstanding
49,043,621
49,165,578
49,725,207
50,203,725
50,910,490
Diluted earnings per common share
$
0.33
$
0.24
$
0.35
$
0.31
$
0.33
Adjusted diluted earnings per common share
$
0.35
$
0.36
$
0.35
$
0.33
$
0.33
(1)
Represents the tax impact of the adjustments at a tax rate of 21.0%, plus permanent tax expense associated with merger related transactions
Quarter Ended
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
(Dollars in thousands)
Adjusted return on average assets:
Net income
$
16,108
$
11,946
$
17,280
$
15,545
$
16,828
Adjusted net income
17,275
17,871
17,344
16,574
16,828
Average assets
$
6,712,801
$
6,159,783
$
5,764,347
$
5,545,657
$
5,563,738
Return on average assets
0.97
%
0.77
%
1.19
%
1.12
%
1.23
%
Adjusted return on average assets
1.04
%
1.15
%
1.19
%
1.20
%
1.23
%
Quarter Ended
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
(Dollars in thousands)
Adjusted return on average equity:
Net income
$
16,108
$
11,946
$
17,280
$
15,545
$
16,828
Adjusted net income
17,275
17,871
17,344
16,574
16,828
Average equity
$
620,210
$
589,587
$
613,206
$
614,541
$
653,747
Return on average equity
10.53
%
8.04
%
11.18
%
10.15
%
10.44
%
Adjusted return on average equity
11.30
%
12.03
%
11.22
%
10.82
%
10.44
%
CROSSFIRST BANKSHARES, INC.
13
Quarter Ended
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
(Dollars in thousands, except per share data)
Tangible common stockholders' equity:
Total stockholders' equity
$
645,491
$
608,599
$
580,547
$
608,016
$
623,199
Less: goodwill and other intangible assets
28,259
29,081
71
91
110
Less: preferred stock
7,750
-
-
-
-
Tangible common stockholders' equity
$
609,482
$
579,518
$
580,476
$
607,925
$
623,089
Tangible book value per common share:
Tangible common stockholders' equity
$
609,482
$
579,518
$
580,476
$
607,925
$
623,089
Common shares outstanding at end of period
48,600,618
48,448,215
48,787,696
49,535,949
49,728,253
Book value per common share
$
13.28
$
12.56
$
11.90
$
12.27
$
12.53
Tangible book value per common share
$
12.54
$
11.96
$
11.90
$
12.27
$
12.53
Quarter Ended
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
(Dollars in thousands)
Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)
(1)
Non-interest expense
$
38,092
$
36,423
$
28,451
$
29,203
$
27,666
Less: Acquisition costs
(1,477)
(3,570)
(81)
(239)
-
Less: Core deposit intangible amortization
(822)
(291)
-
-
-
Less: Employee separation
-
-
-
(1,063)
-
Adjusted Non-interest expense (numerator)
$
35,793
$
32,562
$
28,370
$
27,901
$
27,666
Net interest income
58,221
54,015
49,695
46,709
43,115
Tax equivalent interest income
(1)
797
818
820
808
775
Non-interest income
4,421
4,359
3,780
4,201
4,942
Total tax-equivalent income (denominator)
$
63,439
$
59,192
$
54,295
$
51,718
$
48,832
Efficiency Ratio
60.81
%
62.40
%
53.20
%
57.36
%
57.57
%
Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)
(1)
56.42
%
55.01
%
52.25
%
53.95
%
56.66
%
(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 First Quarter 2023 Earnings Presentation April 17, 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 Quarterly Report on Form 10 -Q 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, 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 “positioning,” “growth,” “approximately,” “believe,” “plan,” “future,” “opportunity,” “anticipate,” “target,” “expectations,” “expect,” “will,” “strategy,” “goal, “focused,” “foresee” 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 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: a decline in general business and economic conditions and any regulatory responses thereto, including uncertainty and volatility in the financial markets; interest rate fluctuations; our ability to effectively execute our growth strategy and manage our growth, including identifying and consummating suitable mergers and acquisitions, entering new lines of business or offering new or enhanced services or products; the transition away from the London Interbank Offered Rate (LIBOR); fluctuations in fair value of our investments due to factors outside of our control; our ability to successfully manage credit risk and the sufficiency of our allowance; geographic concentration of our markets; economic impact on our commercial real estate and commercial-based loan portfolios, including declines in commercial and residential real estate values; an increase in non-performing assets; our ability to attract, hire and retain key personnel; maintaining and increasing customer deposits, funding availability, liquidity and our ability to raise and maintain sufficient capital; competition from banks, credit unions and other financial services providers; the effectiveness of our risk management framework; accounting estimates; our ability to maintain effective internal control over financial reporting; our ability to keep pace with technological changes; cyber incidents or other failures, disruptions or security breaches; employee error, fraud committed against the Company or our clients, or incomplete or inaccurate information about clients and counterparties; mortgage markets; our ability to maintain our reputation; costs and effects of litigation; environmental liability; risk exposure from transactions with financial counterparties; severe weather, natural disasters, acts of war or terrorism or other external events; and changes in laws, rules,
regulations, interpretations or policies relating to financial institutions. 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 BANKSAHRES, 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 common share”, “tangible common stockholders’ equity”, “tangible book value per common share”, “adjusted return on average assets (ROAA)”, “adjusted return on average 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 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 is provided at the end of this presentation. 3
First Quarter 2023 Highlights CROSSFIRST BANKSHARES, INC. Financial Performance Net Income $16.1 Million\ Adjusted(2) Net Income $17.3 Million Diluted EPS $0.33 Adjusted(2) Diluted EPS $0.35 ROE(1) 10.53% Adjusted(1)(2) ROE 11.30% ROAA(1) 0.97% Adjusted(1)(2) ROAA 1.04% Profitability Net interest income increased 8% from Q4 2022 and 35% from Q1 2022 due to the higher rate environment, coupled with strong organic loan growth and impacts from the acquisition of Central Fully tax equivalent NIM increased 4bps to 3.65% during Q1 2023 and has expanded 36bps from Q1 2022(3) Balance Sheet Completed the Central bank core systems conversion during the quarter Loan portfolio increased $275 million from Q4 2022 Deposits increased $186 million from Q4 2022 due to a $405 million increase in wholesale deposits Issued $7.8 million of Series A Preferred Stock Credit Quality NPAs / assets decreased $2.0 million, or 4bps during the quarter to 0.16% and have declined 48bps from March 31, 2022 NCOs / average loans were 0.12% annualized for the quarter and 0.09% for the trailing 12 months Provisioned $4.4 million during the quarter, largely to support loan growth (1) Ratios are annualized (2) Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details (3) The incremental Federal income tax rate used in calculating tax exempt income on a tax equivalent basis is 21.0% 4
Diverse loan portfolio CROSSFIRST BANKSAHRES, INC. Loan Mix by Type ($5.6bn) C&I 36% Owner Occupied Real Estate 9% Energy 3% CRE 44% Residential Real Estate 7% Other 1% Note: Gross loans, (net of unearned income) data as of March 31, 2023. 5
Diverse loan portfolio CROSSFIRST BANKSAHRES, INC. CRE Loan Portfolio by Segment Retail 17% Office 14% Industrial 16% 1-4 Family Res Construction 7% Hotel 9% Other 24% Multi-Family 13% C&I Loan Breakdown by Type Financial Management 7% Aircraft & Transportation 5% Merchant Wholesalers 3% Other Industries 41% Manufacturing 10% Real Estate Activity 7% Business Loans to Individuals 5% Health Care 6% Engineering & Contracting 8% Restaurants 8% Note: Data as of March 31, 2023. 6
Asset Quality Performance CROSSFIRST BANKSHARES, INC. Classified Loans / Capital + ACL + RUC $73.3 $81.5 $72.1 $67.7 $67.0 10.7% 12.2% 11.2% 10.0% 9.3% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Classified Assets Classified / Total Capital + ACL + RUC Classified loans remained consistent with the prior quarter while the ratio to Total Capital + ACL + RUC improved to 9.3% Non-performing Assets / Total Assets 0.64% 0.54% 3.10% 0.20% 0.16% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 NPAs decreased primarily due to one C&I loan charge -off and paydowns on non-accrual loans Note: Dollar amounts are in millions. 7
Asset Quality Performance CROSSFIRST BANKSHARES, INC. Net Charge-offs (Recoveries) / Average Loans(1) 0.10% 0.10% 0.16% -0.02% 0.12% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net charge-offs were $1.6 million for Q1 2023, compared to net recoveries of $0.3 million in Q4 2022 and net charge -offs of $1.1 million in Q1 2022 Net charge-offs were 0.09% annualized on a trailing 12-month basis Allowance for Credit Losses / Total Loans $4.9 $5.3 $6.7 $8.7 $8.1 $55.2 $55.8 $55.9 $61.8 $65.1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 ACL RUC ALC + RUC / Total Loans ACL + RUC / Total Loans of 1.30% was consistent with linked quarter and lower than the same period a year ago, primarily due to reduced non-performing loans with specific reserves Allowance for credit losses to non-performing loans at the end of Q1 2023 was 629% Note: Dollar amounts are in millions (1) Ratio is annualized for interim periods. 8
DEPOSIT TRENDS CROSSFIRST BANKSHARES, INC. Total Deposits and % DDA $4,622 $4,744 $4,988 $5,651 $5,837 $3,512 $3,581 $3,874 $4,251 $4,867 $1,110 $1,163 $1,114 $1,400 $970 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 DDA Interest-bearing Deposits Average deposits for Q1 2023 increased $439 million, or 33.7% annualized compared to Q4 2022 Cost of deposits increased 54bps this quarter, due to market rate increases and deposit mix changes Non-interest-bearing deposits were 17% of total deposits this quarter Top 25 deposit relationships represent 23% of total deposits Cost of Deposits 0.31% 0.42% 1.20% 2.03% 2.57% 9
Net Interest Margin CROSSFIRST BANKSAHRES, INC. Yield on Loans & Cost of Deposits 4.00% 0.31% 4.28% 0.42% 5.08% 1.20% 5.93% 2.03% 6.56% 2.57% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Yield on Loans Cost of Total Deposits Net Interest Margin – Fully Tax Equivalent (FTE)(1) 3.29% 3.52% 3.56% 3.61% 3.65% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Fully tax-equivalent NIM increased 4bps from Q4 2022, due to the benefit of non-interest-bearing deposits Loan yields increased 63bps in the quarter due to repricing of existing loans and organic growth Cost of deposits increased 54bps from Q4 2022 due to continued pricing pressure and a mix shift into higher cost products Loan to deposit ratio increased to 97% from 95% in Q4 2022 Ratio is annualized for interim periods; the incremental Federal income tax rate used in calculating tax exempt income on a tax equivalent basis is 21.0% 10
Net Interest Income Sensitivity CROSSFIRST BANKSAHRES, INC. Net Interest Income Impact From Rate Changes (5.27%) (0.58%) (1.69%) 0.05% (0.66%) 0.07% 0.64% (0.04%) 1.31% (0.09%) 2.01% (0.11%) -300 bps -200 bps -100 bps 0 bps 100 bps 200 bps 300 bps Rate Shock Rate Ramp Loans: Rate Reset and Cash Flow Profile 59% 10% 9% 19% 3% 1-3 4-12 1-2 2-5 >5 Years Months Months Years Years Roughly 69% of Company’s earning assets reprice or mature over the next 12 months, with 49% in month one Note: Data as of March 31, 2023 * 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
EXPENSE MANAGEMENT CROSSFIRST BANKSAHRES, INC. $27.7 $29.2 $28.5 $36.4 $38.1 $5.2 $7.1 $5.4 $8.3 $9.6 $2.1 $2.4 $2.1 $3.3 $2.9 $2.5 $2.6 $2.7 $2.8 $3.0 $17.9 $17.1 $18.3 $22.0 $22.6 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Salaries & Benefits Occupancy Data Processing, Software & Comm Other Q1 2023 expenses included seasonal resetting of compensation accruals and merit increases as well as continued investments in new markets, including Central, that have yet to reach full scale Expenses in Q1 2023 included $1.5 million of acquisition-related items compared to $3.6 million in Q4 2022 Note: Dollars are in millions and amounts shown are as of the end of the period unless otherwise specified. 12
AMPLE LIQUIDITY AND FLEXIBILITY CROSSFIRST BANKSAHRES, INC. Cash and Cash Available-for-Sale Equivalents Securities* + $263M $751M Available Credit Lines, FHLB, and FRB Available Brokered Deposits & Wholesale Funding $968M + $297M On-Balance Sheet Liquidity Off-Balance Sheet Liquidity $1.014B $1.265B Total Liquidity $2.279B 33% of Total Assets - > Market Value Net Gain + '' Pledgeable _L Remaining $222M s / $244M s / 1 $285M s •Ava i la ble-for-Sa le Securities $751M Note: Data as of March 31, 2023 13
SECURITIES PORTFOLIO CROSSFIRST BANKSAHRES, INC. Municipal - Taxable, 1% Municipal - Tax-Exempt, 63% CMO (Fixed), 1% SBA (Fixed), 11% Other, 2% MBS (Fixed), 22% Fair Value at March 31, 2023 $751 million At the end of Q1 2023, the portfolio’s duration was approximately 5.2 years The fully tax equivalent yield for Q1 2023 increased 12bps to 3.31% The securities portfolio has net unrealized losses of approximately $68 million as of March 31, 2023 During Q1 2023, $93 million of securities were purchased at an average tax-equivalent yield of 5.00% and there were $4 million in MBS paydowns 14
DEPOSIT DIVERSITY & CHARACTERISTICS CROSSFIRST BANKSAHRES, INC. Deposits by Customer Type Wholesael 13.3% Business 69.7% Individual 17.0% Average Client Account Balances'21 S in rhouzandz Deposits CDs Total Individual $ 56 $ 170 $ 70 Business 214 438 230 Total $ 132 259 $ 145 Customer Deposits by State Kansas Oklahoma 36.1% 17.3% Other Illinois 5.6% 52% Texas Missouri 121% 9.3% California Arizona 35% 2.7% Colorado 6.3% New Mexico 1.9% Business Accounts by Industry (by NAICS Code) Trusts, Estates, & Agency Accts 153% Banking Inst STrust Companies 5.6% Other Services 3.6% Investment Pools & Funds 35% Other Financial Investment Activities 35% Professional, Scientific, & Tech Svcs 33% Construction 3.1% Utilities 2.4% Securities & Oth Fin Activities 23% Non-residential Real Estate 22% Health Care & Social Assistance 22% Educational Services 2.1% Residential Real Estate 2.1% Manufacturing 1.7% Public Admin 1.6% Mgmt of Companies & Enterprises 1.4% Accommodation & Food Svcs 1.4% Other Real Estate Leasing & Svcs 13% Estimated Uninsured Deposit Analysis ($ in millions) Estimated Uninsured Deposits' S 2,367 Less: Pass-thru Deposits 331 Estimated Uninsur ed Deposits Excluding Pass-thru S 2,036 Total Deposits $ 5,837 Estimated Uninsured Deposits (Excluding Pass-thru) as % of Total Deposits 35% Note: All deposit data as of March 31, 2023 ; Average deposit data for the quarter-ended March 31, 2023 Estimated amount of uninsured deposits as reported on the March 31, 2023 Call Report for CrossFirst Bank Excludes internal accounts, ICS, CDARS, public funds and pass-thru insurance deposits 15
2023 GUIDANCE CROSSFIRST BANKSAHRES, INC. Business Driver Q4 2022 Q1 2023 Loans 8-10% core loan growth Unchanged Net Interest Margin (NIM) 3.55% to 3.65% 3.40% to 3.55% Non-interest Expense $37-$38 million range in Q1 $35-$36 million per quarter Combined ACL / Loans 1.30% to 1.45% Unchanged Effective Tax Rate 20-22% Unchanged 16
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSAHRES, INC. 3/31/2023 Adjusted net income: Net income S 16,108 Add:Acquisition costs 1,477 Add: Acquisition - Day 1 CECL provision - Add: Employee separation - Less: Tax effect111 (310) Adjusted net income Diluted weighted average common shares outstanding Diluted earnings per common share Adjusted diluted earnings per common share Quarter Ended (Dollars in thousands, except per share data) S 11,946 S 17,280 S 15,545 S 16,828 3,570 81 239 - 4,400 - - - - - 1,063 - (2,045) (7) (273) - $ % $ $ 3/31/2023 12/31/2022 Quarter Ended 9/30/2022 6/30/2022 3/31/2022 Adjusted return on average assets: Net income Adjusted net income Average assets Return on average assets Adjusted return on average assets (Dollars in thousands) $ 16,108 S 11,946 $ 17,280 S 15,545 S 16,828 17275 17,871 17,344 16,574 16,828 $ 6,712,801 $ 6,159,783 S 5,764347 S 5,545,657 S 5,563,738 Quarter Ended (Dollars in thousands) Adjusted return on average equity: Net income S 16,108 $ 11,946 $ 17,280 $ 15,545 S 16,828 Adjusted net income 17275 17,871 17,344 16,574 16,828 Average equity $ 620,210 $ 589,587 $ 613206 $ 614541 S 653,747 Return on average equity Adjusted return on average equity 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 17
NON-GAAP Reconciliations CROSSFIRST BANKSHARES, INC. 3/31/2023 Tangible common stockholders' equity: Total stockholders' equity Less: goodwill and other intangible assets Less: preferred stock Tangible common stockholders' equity Tangible book value per common share: Tangible common stockholders' equity Common shares outstanding at end of period Book value per common share Tangible book value per common share $ 645,491 28,259 7,750 $ 609,482 48,600,618 Quarter Ended 12/31/2022 9/30/2022 6/30/2022 (Dollars in thousands, except per share data) $ 608,599 $ 580,547 $ 608,016 $ 623,199 29,081 71 91 110 $ 579,518 $ 580,476 $ 607,925 $ 623,089 48,448,215 48,787,696 49,535,949 49,728,253 $ $ $ $ 3/31/2023 Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)(1> Non-interest expense $ 38,092 $ Less: Acquisition costs (1,477) Less: Core deposit intangible amortization (822) Less: Employee separation - Adjusted Non-interest expense (numerator) $ 35,793 $ Net interest income 58,221 Tax equivalent interest income(l) 797 Non-interest income (loss) 4,421 Total tax-equivalent income (denominator) $ 63,439 $ Efficiency Ratio 60.81 % Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)*'1 56.42 % 12/31/2022 Quarter Ended 9/30/2022 6/30/2022 3/31/2022 (Dollars in thousands) 36,423 $ 28,451 $ 29,203 $ 27,666 (3,570) (81) (239) - (291) - - - - - (1,063) - 32,562 $ 28,370 $ 27,901 $ 27,666 54,015 49,695 46,709 43,115 818 820 808 775 4,359 3,780 4,201 4,942 59,192 $ 54,295 $ 51,718 $ 48,832 62.40 % 53.20 % 57.36 % 57.57 % 55.01 % 52.25 % 53.95 % 56.66 % (1) Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental rate used is 21.0%. 18