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Item 7.01. Regulation FD Disclosure.
Furnished as Exhibit 99.1 hereto and incorporated into this Item 7.01 by reference is the investor presentation that CrossFirst Bankshares,
Inc. has prepared for use in connection with investor communications.
The information in Item 7.01 of this Current Report, including Exhibits 99.1, is being “furnished” and shall not be deemed "filed" for
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Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
99.1
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date:
May 5, 2023
CROSSFIRST BANKSHARES, INC.
By:
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
CROSSFIRST BANKSHARES, INC. GulfSouth Bank Conference May 8, 2023 Mike Maddox, President & CEO Randy Rapp, President, CrossFirst Bank Ben Clouse, CFO Heather Worley, Director of IR
Legal disclaimer CROSSFIRST BANKSHARES, INC. FORWARD -LOOKING STATEMENTS. 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, statements regarding our business plans; expansion targets and opportunities, including as related to the proposed acquisition of Canyon Bancorporation, Inc. and Canyon Community Bank, N.A. (collectively “Canyon”); our anticipated expenses, cash requireme nts and sources of liquidity; our capital allocation strategies and plans; 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,” “anticipated,” “target,” “expectations,” “expect,” “will,” “strategy,” “goal, “focused,” “foresee”, “estimate”, “intend”, “plan”, “projection”, “annualized” 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: impacts on us and our clients of 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, fundi ng 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, pandemics
or other external events; changes in laws, rules, regulations, interpretations or policies relating to financial institutions including capital requirements, higher FDIC insurance premiums and assessments, consumer protection laws and privacy laws; volatility in our stock price; issuance of our preferred stock; or risks inherent with proposed business acquisitions and the failure to achieve projected synergies. 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 common share”, “tangible common stockholders’ equity”, “tangible book value per common share”, “adjusted return on average assets (ROAA)”, “adjusted return on average equity (ROE)”, “adjusted efficiency ratio – fully tax equivalent (FTE)” and “pre-tax pre-provision (PTPP) profit.” 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
Management Team PRESENTERS CROSSFIRST BANKSHARES, INC. Mike Maddox – President, CEO and Director Joined CrossFirst in 2008 after serving as Kansas City regional president for Intrust Bank Practicing lawyer for more than six years before joining Intrust Bank Appointed as President and CEO June 1, 2020, after 12 years of service B.S. Business, University of Kansas; J.D. Law, University of Kansas; Graduate School of Banking at the University of Wisconsin – Madison Randy Rapp – President, CrossFirst Bank More than 33 years of commercial banking experience in Texas in various credit, production, risk and executive roles Joined CrossFirst in March 2019 after a 19-year career at Texas Capital Bank (NASDAQ:TCBI) serving as Executive Vice President and Chief Credit Officer from May 2015 until March 2019 B.B.A. Accounting, The University of Texas at Austin and M.B.A. Finance, Texas Christian University Obtained CPA designation Ben Clouse – Chief Financial Officer More than 25 years of experience in financial services, asset and wealth management, banking, retail and transportation, including public company CFO experience Joined CrossFirst in July 2021 after serving as CFO of Waddell & Reed Financial, Inc. (formerly NYSE: WDR) until its acquisition in 2021 Significant experience leading financial operations as well as driving operational change B.S. Business, Kansas State University; Master of Accountancy, Kansas State University Obtained CPA designation and FINRA Series 27 license Heather Worley – Managing Director, Investor Relations More than 15 years of experience in marketing, communications and investor relations in banking and finance Joined CrossFirst in September 2021. Previously, SVP & Director of IR for Texas Capital Bancshares, Inc. (NASDAQ: TCBI) Recognized by Institutional Investor magazine All-America Executive Team
2017 | Top Investor Relations Professional & All-America Executive Team 2019 | Top Investor Relations Program B.A. Communications, Mississippi State University 4
COMPANY OVERVIEW CROSSFIRST BANKSHARES, INC. The CrossFirst Story Began de novo operations in 2007, completed IPO in 2019 CrossFirst has grown primarily organically, as well as through two strategic acquisitions Maintain a branch -light business model with strategically placed locations across Kansas, Missouri, Oklahoma, Texas, Arizona, Colorado and New Mexico Specialty industry verticals include enterprise value, financial institutions, restaurant finance, energy, mortgage, and small business (SBA) Strategic Approach Organic growth and enhanced profitability Selectively pursue opportunities to expand through acquisitions or new market development Improve financial performance and operating efficiency Attract, retain and develop talent Leverage technology to elevate the client experience Continue to employ effective enterprise risk management 1Q23 Company Highlights Full-service Branches 13 Listing NASDAQ: CFB Balance Sheet Total Assets $6.9 billion Total Loans $5.7 billion Total Deposits $5.8 billion ACL + RUC/Loans 1.30% Key Ratios 1Q23 ROAA / Adjusted ROAA(1) 0.97% / 1.04% 1Q23 ROE/ Adjusted ROE(1) 10.53% / 11.30% 1Q23 Net Interest Margin - FTE 3.65% 1Q23 Efficiency Ratio/ Adjusted Efficiency Ratio-FTE(1) 60.8% / 56.4% Common Equity Tier 1 9.4% Tier 1 Leverage 9.9% Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details. Ratios are annualized. 5
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 Tucson – Future INDUSTRY VERTICALS Private & Relationship Banking Enterprise Value Financial Institutions Restaurant Finance Energy Mortgage Small Business (SBA) Current CrossFirst Bank Locations Future CrossFirst Bank Locations 6
Investment Highlights CROSSFIRST BANKSHARES, INC. Excellent Markets Stable, legacy Community Markets provide steady stream of earnings and strong funding Metro Markets, including Dallas, Kansas City, Phoenix and Denver, provide attractive growth opportunities Improved Growth and Profitability 10-year asset compounded annual growth rate of 28% Operating revenue grew over 40% from 2019 to 2022 Net income doubled from 2019 to 2022 Optimization of investments in new markets and verticals Strong Balance Sheet Loan portfolio is largely variable Liquidity of 33% of assets, using on- and off-balance sheet sources; 100% AFS securities portfolio Granular deposit portfolio across geographies and industries; approximately 35% uninsured deposits Well-diversified loan portfolio by industry and geography across C&I and CRE Clean Credit Portfolio Net charge-offs to loans ratio of 0.09% annualized on a trailing 12-month basis Strong reserve levels at 1.30% of loans 7
Improving Core Metrics CROSSFIRST BANKSHARES, INC. Net Income $28.5 $12.6 $69.4 $61.6 $16.1 2019 2020 2021 2022 Q1 2023 Operating Revenue (1 $15.2 $172.0 $182.4 $210.8 $62.6 $8.7 $11.7 $13.7 $17.3 $4.4 $141.5 $160.3 $168.7 $193.5 $58.2 2019 2020 2021 2022 Q1 2023 Net Interest Income Non-Interest Income Adjusted Net Income (2) & PTPP Pofit (2) $27.4 $62.5 $20.0 $72.0 $73.0 $83.0 $68.6 $89.1 $17.3 $24.6 2019 2020 2021 2022 Q1 2023 Adjusted Net Income Pretax, PreProvision Profit 0.97% 1.39% 0.58% 0.20% 0.16% 2019 2020 2021 2022 Q1 2023 Non-performing Assets /Total Assets Note: Dollar amounts are in millions, other than per share amounts and amounts are presented as of the end of the period unless otherwise stated. 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 8
OUR GROWTH CROSSFIRST BANKSHARES, INC. Total Assets Compound Annual Growth Rates Since 2012 Total Assets 27.6% $565 $847 $1,220 $1,574 $2,133 $2,961 $4,107 $4,931 $5,659 $5,621 $6,601 $56,895 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 2007 Began de novo operations 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 (~$648mm in Total Assets) 2023 Announced expansion into Tucson market through anticipated acquisition of Canyon in second half of 2023 Note: Dollars in chart are in millions. 9
DRIVEN BY OUR EXTRAORDINARY CULTURE CROSSFIRST BANKSHARES, INC. 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 with 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. 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: An immersive, multi-day culture and leadership -driven onboarding program for all new hires to advance and preserve our values and operating standards A development program designed for emerging leaders that explores core leadership concepts and the foundations 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 growth and extraordinary service. 22% of 2022 new hires were ethnically diverse 61% of workforce is female as of 12/31/22 68% GALLUP® Q12 Survey engaged employees; with more than 89% of employees responding Recently recognized as one of seven recipients of the GALLUP® Don Clifton Strengths-Based
Culture award – a worldwide honor! 10
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 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 Ratios are annualized Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details The incremental Federal income tax rate used in calculating tax exempt income on a tax equivalent basis is 21.0% 11
Diverse loan portfolio CROSSFIRST BANKSHARES, INC. Loan Mix by Type ($5.6bn) Owner Occupied Real Estate 9% Energy 3% CRE 44% Residential Real Estate 7% Other 1% C&I 36% Note: Gross loans, (net of unearned income) data as of March 31, 2023. 12
Diverse loan portfolio CROSSFIRST BANKSHARES, 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 Financial Management 7% Restaurants 8% Engineering & Contracting 8% Health Care. 6% Business Loans to Individuals 5% Aircraft & Transportation 5% Merchant Wholesalers 3% Other Industries 41% Estate Activity 7% Manufacturing 10% Note: Data as of March 31, 2023. 13
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 0.6% 0.5% 0.3% 0.2% 0.2% 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. 14
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 1.38% 1.35% 1.34% 1.31% 1.30% $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 ACL + 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 Ratio is annualized for interim periods. 15
Deposit trends CROSSFIRST BANKSHARES, INC. Total Deposits and % DDA $4,622 $4,744 $4,988 $5,651 $587 $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% 16
Deposit diversity & Characteristics CROSSFIRST BANKSHARES, INC. Deposits by Customer Type Wholesale 13.3% Business 69.7% Consumer 17.0% Average Client Account Balances(1) $ in thousands Deposits CDs Total individual $ 56 $ 170 $ 70 Business 214 438 230 Total $ 132 $ 259 $ 145 Customer Deposits by State Kansas 36.1% Other 5.6% Oklahoma 17.3% Illinois 5.2% Texas 12.1% California 3.5% Missouri 9.3% Arizona 2.7% Colorado 6.3% New Mexico 1.9% Business Accounts by Industry (by NAICS Code) Trusts, Estates, & Agency Accts 15.3% Banking Inst & Trust Companies 5.6% Other Services 3.6% Investment Pools & Funds 3.5% Other Financial Investment Activities 3.5% Professional, Scientific, & Tech Svcs 3.3% Construction 3.1% Utilities 2.4% Securities & Oth Fin Activities 2.3% Non-residential Real Estate 2.2% Health Care & Social Assistance 2.2% 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 1.3% Estimated Uninsured Deposit Analysis ($ in millions) Estimated Uninsured Deposits11 $ 2,367 Less: Pass-thru Deposits 331 Estimated Uninsured Deposits Excluding Pass-thru T 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 Excludes internal accounts, ICS, CDARS, public funds and pass-thru insurance deposits Estimated amount of uninsured deposits as reported on the March 31, 2023 Call Report for CrossFirst Bank 17
Net Interest Margin CROSSFIRST BANKSHARES, 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% 18
Net Interest Income Sensitivity CROSSFIRST BANKSHARES, 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% (11.00)% -300 bps -200 bps -100 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 Months 4-12 Months 1-2 Years 2-5 Years > 5 Years Roughly 69% of Company’s earning assets repric e 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) 19
expense management CROSSFIRST BANKSHARES, INC. $27.7 $29.2 $28.5 $36.4 $38.1 $7.1 $5.4 $8.3 $9.6 $5.2 $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, that have yet to reach full scale The Central acquisition added expense to both Q4 2022 and Q1 2023, primarily in salaries & benefits 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. 20
Ample LIQUIDITY and flexibility CROSSFIRST BANKSHARES, INC. Cash and Cash Equivalents $263 M + Available-for-Sale Securities* $751 M Available Credit Lines, FHLB, and FRB $968 Available Brokered Deposits & Wholesale Funding $297M On -Balance Sheet Liquidity Off-Balance Sheet Liquidity $1.014B + $1.265B Total Liquidity $2.279B 33% of Total Assets t *Available-for-Sale Securities $751M = Market Value Net Gain $222M + Pledgeable $244M + Remaining $285M Note: Data as of March 31, 2023 21
CROSSFIRST BANKSHARES, INC. Securities portfolio 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 22
CAPITAL RATIOS CROSSFIRST BANKSHARES, INC. 11.9% 11.9% 12.9% 11.5% 11.5% 12.6% 11.0% 11.1% 12.1% 9.5% 9.5% 10.5% 9.4% 9.5% 10.5% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 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 capital levels to support future growth Remain well capitalized as we deploy capital to support growth initiatives 23
CROSSFIRST BANKSHARES, INC. NASDAQ: CFB Acquisition of Canyon Bancorporation, Inc.
Canyon Overview & Rationale CROSSFIRST BANKSHARES, INC. CFB Regional Branches(1) Canyon Branch Strategic Rationale Complementary to CrossFirst’s existing geographic footprint and synergistic with CrossFirst’s Phoenix operation Supplements CrossFirst’s existing management in Phoenix Provides liquidity and lower-cost deposits Financially attractive means to achieve expansion goals in Arizona Meaningful synergies in expense base Ongoing business opportunities with the principal shareholder of the seller who will become a shareholder Financial Highlights (For the quarter ended March 31, 2023) Total Assets: $211 million Gross Loans: $122 million Total Deposits: $170 million ROAA (MRQ, annualized): 0.49% NIM – FTE (MRQ, annualized): 4.09% Efficiency Ratio (MRQ): 80.9% NPAs / Assets: 0.00% TCE / TA: 7.7% Canyon Overview Founded in 2000 and operating one branch in Tucson, AZ Strong expertise in Owner Occupied Real Estate, C&I and hospitality lending Niche USDA/SBA lending platform Well developed deposit and treasury management solutions Recently increased focus on hospitality lending with an emphasis on the smaller metro hospitality sector CFB’s regional branches include locations in AZ, CO and NM 25
Pro forma Bank Level Composition CROSSFIRST BANKSHARES, INC. CrossFirst Bank Res RE, 7% OO CRE, 9% NOO CRE, 24% Multifamily , 5% Consumer & Other, 1% C&D, 15% C&I , 39% $5.7bn MRQ Yield on Loans: 6.56% Canyon Community Bank Bank Level Loan Composition Res RE, 3% OO CRE, 18% NOO CRE, 49% Multifamily , 4% C&D, 8% C&I , 18% $122mm MRQ Yield on Loans: 6.01% Pro Forma Res RE, 7% OO CRE, 9% NOO CRE, 24% Multifamily , 5% Consumer & Other, 1% C&D, 15% C&I , 39% MRQ Yield on Loans: 6.55% Bank Level Deposit Composition NOW & Other, 11% MMDA & Sav., 49% Retail Time, 17% Jumbo Time, 6% DDA, 17% $5.8bn DDA, 17% Loan / Deposits: 97% NOW & Other, 25% MMDA & Sav., 43% Retail Time, 3% Jumbo Time, 5% DDA, 24% $170mm MRQ Cost of Deposits: 1.12% Loan / Deposits: 72% NOW & Other, 11% MMDA & Sav., 49% Retail Time, 17% Jumbo Time, 6% DDA, 17% $6.0bn MRQ Cost of Deposits: 2.57% Loan / Deposits: 96% Note: Financial data as of March 31, 2023 Source: Company data 26
franchise enhancing transaction CROSSFIRST BANKSHARES, INC. Consideration Aggregate deal value of ~$15.1 million Merger consideration comprised of ~621 thousand Cross First common shares and ~$8.8 million of cash ® Z Transaction Valuation*3’ Deal Va lue/TBV: 93% Deal Value / MRQ Annualized Earnings: 15.2x Premium /Core Deposits: ¡0.7%) Expected Financial Impact À ~1% dilutive to TBVPS Immediately accretive to EPS s Modest TBV earnback period Required Approvals and Closing Customary regulatory approvals Canyon shareholders have approved Key Canyon directors and shareholders have signed support agreements Expected closina in the second half of 2023 Based on a closing price of $10.22 for CFB on April 20, 2023 Subject to certain shareholder election provisions Transaction valuation multiples based on financial data for the period ended March 31, 2023 27
NON-GAAP Reconciliations CROSSFIRST BANKSHARES, 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) - $ % $ $ Quarter Ended Adjusted return on average assets: Net income S 16,108 S 11,946 (Dollars in thousands) S 17,280 S 15,545 S 16,828 Adjusted net income 17275 17,871 17,344 16,574 16,828 Average assets $ 6,712,801 S 6,159,783 S 5,764347 S 5,545,657 S 5,563,738 Return on average assets Adjusted return on average assets Quarter Ended Adjusted return on average equity: Net income S 16,108 Adjusted net income 17275 Average equity $ 620,210 $ 11,946 17,871 $ 589,587 (Dollars in thousands) $ 17,280 $ 15,545 17,344 16574 $ 613206 S 614541 $ 16,828 16,828 S 653,747 Return on average equity 10.53 % 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 28
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 shore data) $ 608,599 $ 580,547 $ 608,016 $ 623,199 29,081 71 91 110 $ 579,518 $ 580,476 $ 607,925 $ 623,089 48,448215 48,787,696 49,535,949 49,728,253 Quarter Ended (Dollars in thousands) Adjusted Efficiency Ratio • Fully Tax Equivalent (FTE)1'1 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 - - - (1063) - 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(l) 797 818 820 808 775 Non-interest income (loss) 4,421 4359 3,780 4,201 4,942 Total tax-equivalent income (denominator) $ 63,439 $ 59,192 $ 54,295 £ 51,718 $ 48,832 Efficiency Ratio Adjusted Efficiency Ratio • Fully Tax Equivalent (FTE)1'1 Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental rate used is 21.0%. 29
NON-GAAP Reconciliations CROSSFIRST BANKSHARES, INC. Three Months Ended Pre-Tax Pre-Provision Profit: Net income before taxes Add: Provision for credit losses Pre-Tax Pre-Provision Profit 3/31/2023 S 20,129 4,421 S 24,550 Twelve Months Ended 12/31/2022 12/31/2021 (Dollars in thousands) S 77,572 11,501 S 86,969 (4,000) S 15314 56,700 S 32,611 29,900 30