0001458412 FALSE 0001458412 2023-10-30 2023-10-30
Washington, D.C. 20549
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
October 30, 2023
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
11440 Tomahawk Creek Parkway
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the Exchange Act (17 CFR 240.14d-2(b))
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the Exchange Act (17 CFR 240.13e-4(c))
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Common Stock, par value $0.01 per share
The Nasdaq Stock Market LLC
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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Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not
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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.
of the
Exchange Act
of 1934,
as amended
“Exchange Act”),
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.
Cover Page Interactive Data File (embedded within the Inline XBRL document)
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.
October 30, 2023
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
CROSSFIRST BANKSHARES, INC. Third Quarter 2023 Investor Presentation
Mike Maddox, President & CEO Ben Clouse, CFO
BANKSHARES, INC. 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 regarding, among other
things, our business plans; expansion targets and opportunities;
post-closing plans, objectives, expectations and intentions with respect
to the Tucson acquisition; expense management initiatives and
the results expected to be realized from those initiatives; anticipated expenses,
cash requirements and sources of liquidity; 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 “positioned,” “growth,” “estimate,” “believe,”
“plan,” “future,” “opportunity,” “optimistic,” “anticipate,” “target,”
“expectations,” “expect,” “will,” “strategy,” “goal, “focused,”
“guidance,” “foresee” and similar words or phrases of a future or forward
-looking nature. The inclusion of forward-looking information herein 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. These forward-looking statements are not historical
facts, and are based on current expectations, estimates and projections
about our industry, management’s beliefs, certain
assumptions made by management, and financial trends that may
affect our financial condition, results of operations, business strategy
or financial needs, many of which, by their nature, are
inherently uncertain and beyond our control. Our actual results could differ
materially from those anticipated in such forward-looking statements.
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 due to a number of
factors, including without limitation, the following: impact 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; fluctuations in fair value of our investments due to factor
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, pandemics, acts of war or terrorism or other external events;
and changes in laws, rules, regulations, interpretations or policies relating
to financial institutions, including stringent capital requirements,
higher FDIC insurance premiums and assessments, consumer
protection laws and privacy laws; volatility in our stock price; the
ability of our Board to issue our preferred stock; risks inherent with
proposed business acquisitions and the failure to achieve projected
synergies; or other external events. 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. 2
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 common equity (ROCE)”, “adjusted
efficiency ratio – fully tax equivalent (FTE),” “pre-tax
pre-provision (PTPP) profit” and “adjusted non-interest expense.” 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 expenditur
es 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
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 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 4
The CrossFirst Story Began de novo operations in 2007, completed
IPO in 2019 CrossFirst has grown primarily organically,
as well as through four strategic acquisitions Maintains a branch
-light business model with strategically placed locations across Kansas,
Missouri, Oklahoma, Texas, Arizona, Colorado and New
Mexico Specialty industry verticals include family office, financial
institutions, restaurant finance, energy, mortgage, and
small business (SBA) Strategic Approach Realize enhanced
profitability growth by gaining scale Operate in high-growth, dynamic
markets and verticals Optimize our expense
base to improve operating efficiency Attract, retain and develop
talent to drive a highly-engaged workforce Leverage
technology to elevate the client experience Employ effective enterprise
risk management 3Q23 Company Highlights Full-service
Branches 15 Listing Nasdaq: CFB Balance Sheet Total Assets
$7.2 billion Total Loans $5.9 billion Total Deposits $6.3
billion ACL + RUC / Loans 1.31% Key Ratios 3Q23 ROAA / Adjusted
ROAA(1) 0.94% / 1.04% 3Q23 ROCE/ Adjusted ROCE(1) 10.19%
/ 11.26% 3Q23 Net Interest Margin – FTE(2) 3.19% 3Q23 Efficiency
Ratio/ Adjusted Efficiency Ratio-FTE(1)(2) 59.5% / 55.2% Common
Equity Tier 1 9.7% Tier 1 Leverage 9.9% (1) Represents a
non-GAAP financial measure, see non-GAAP reconciliation slides at
the end of this presentation for more details. Ratios are annualized.
(2) The incremental federal income tax rate used in calculating tax-exempt
income on a tax-equivalent basis is 21.0% 5
BANKSHARES, INC. CrossFirst Bank Locations METRO MAR
KETS Kansas City Dallas Fort-Worth Phoenix Denver
COMMUNITY MARKETS Wichita Oklahoma City Tulsa
Colorado Springs Clayton Tucson INDUSTRY VERTICALS
Family Office Financial Institutions Restaurant Finance Energy
Mortgage Small Business (SBA) 6
Investment Highlights CROSSFIRST BANKSHARES, INC. Excellent
Markets Metro Markets, including Dallas, Kansas City, Phoenix
and Denver, provide attractive growth opportunities
Stable, legacy Community Markets provide steady stream of earnings
and strong funding Improved Growth and Profitability Since 2012,
total asset compounded annual growth rate of 27% 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, approximately
70% at September 30, 2023 Liquidity of 34% of assets, using
on- and off-balance sheet sources; 100% AFS securities portfolio
Granular deposit portfolio across geographies and industries Well
-diversified loan portfolio by industry and geography across
C&I and CRE Clean Credit Portfolio Net charge-offs to loans ratio
of 0.05% annualized on a trailing 12-month basis Strong reserve
levels at 1.20% of loans 7
Improving Core Metrics CROSSFIRST BANKSHARES, INC. Net
Income $28.5 $12.6 $69.4 $61.6 $16.1 $16.0 $16.9 2019 2020 2021
2022 Q1 2023 Q2 2023 Q3 2023 Operating Revenue (1)
$150.2 $172.0 $182.4 $210.8 $62.6 $60.3 $61.1 $8.7 $11.7 $13.7
$17.3 $4.4 $5.8 $6.0 $141.5 $160.3 $168.7 $193.5 $58.2 $54.5
$55.1 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Net Interest
Income Non-Interest Income Adjusted Net Income (2) & PTPP
Profit(2) $27.4 $62.5 $20.0 $72.0 $73.0 $83.0 $68.6 $89.1 $17.4
$24.6 $17.3 $22.9 $18.6 $24.8 2019 2020 2021 2022 Q1 2023 Q2
2023 Q3 2023 Adjusted Net Income Pretax, Pre-Provision Profit Non-performing
Assets /Total Assets 0.97% 1.39% 0.58% 0.20% 0.16%
0.19% 0.50% 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3
2023Credit returned to performing in early Q34 2023 Note: Dollar
amounts are in millions, other than per share amounts and the ratio
of non-performing assets to total assets is presented as of the end of
the respective period (1) Defined as net interest income plus
non-interest income (2) Represents a non-GAAP financial measure,
see non-GAAP reconciliation slides at the end of this presentation
for more details 8
Compound Annual Growth Rates $ince 2012 Total Assets 27.4%
$565 $847 $1,220 $1,574 $2,133 $2,961 $4,107 $4,931 $5,659
$5,621 $6,601 $7,177 2012 2013 2014 2015 2016 2017 2018 2019
2020 2021 2022 Q3 2023 2007 Began de novo operations 2012 Expanded
into Wichita & 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;
Nasdaq listed: CFB 2021 Expanded into Phoenix market 2022
Expanded into Colorado and New Mexico markets through acquisition
of Farmers & Stockmens Bank (aka Central Bank & Trust) (~$648mm
in Total Assets) 2023 Expanded into Tucson market through
acquisition of Canyon Bankshares, Inc. (~$106mm in Total
Assets) Note: Dollars in chart are in millions. 9
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
& 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. 26%
of 2023 new hires through 9/30/2023 were ethnically diverse 67% of
workforce is female as of 9/30/2023 68% Engaged employees
as measured by GALLUP® Q12 Survey; 89% employee
response rate Recently recognized as one of seven
recipients of the GALLUP®
Don Clifton Strengths-Based Culture award – a worldwide honor
INC. Financial Performance Net Income $16.9 Million Diluted
EPS $0.34 Adjusted«2» Net Income $18.6 Million Adjusted'2»
Diluted EPS $037 ROCE«1» 10.19% ROAA'1) 0.94% Adjusted«1)«2»
ROCE 11.26% Adjusted«1»«2) ROAA 1.04% Profitability Improving
profitability as operating revenue, adjusted diluted EPS and
adjusted ROCE increased compared to the prior quarter and
the prior year third quarter YTD 2023 operating revenue grew
21% compared to the prior year Completed the previously-announced
acquisition of Canyon Bancorporation, Inc. and its wholly owned
subsidiary, Canyon Community Bank, N.A. (“Tucson Acquisition”)
Balance Sheet Loans grew $149 million, or 2.6% for the quarter
and 10.7% year-to-date; excluding the Tucson acquisition, grew 0.8%
for the quarter and 8.7% year-to-date Deposits grew $232 million, or 3.8%
for the quarter and 12.0% year-to-date; excluding the Tucson acquisition,
grew 1.1% for the quarter and 9.1% year-to-date Credit Quality
Nonperforming assets increased to 0.50% of total assets, but
were contained within a few relationships of manageable size Net
charge-offs of $1.3 million were previously reserved and represented
an annualized rate of 0.09% of average loans Capital Book value per
common share was $13.04 and tangible book value per common sh
are was $12.23 at September 30, 2023 CET1 capital ratio was 9.7%
and total risk-based capital ratio was 10.9%, both increasing from
June 30, 2023 levels 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 11
Consumer 1% CRE - Non-Owner-Occupied 43% Commercial
34% CRE - Owner-Occupied 10% Residential Real Estate 8% Energy
4% CRE – Non-Owner-Occupied by Segment Industrial, 19% Retail,
16% Multi-Family, 14% Office, 12% Hotel, 11% 1-4 Fam
Res Const, 7% Other, 21% Commercial by Loan Type Manufacturing,
10% Restaurants, 9% Engineering & Contracting, 7% Credit
Related Activities, 7% Financial Management, 6% Health Care,
6% Real Estate Activity, 6% Aircraft & Transportation, 5%
Bus Lns to Individuals, 5% Merchant Wholesalers, 3% Other
Industries, 36% Note: Gross loans, (net of unearned income) data
as of September 30, 2023. 12
INC. Classified Loans $5.6 $6.5 $6.9 $11.9 $72.1 $67.7 $67.0
$69.5 $101.1 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Classified
Loans Acquired Classified Loans Non-performing Assets
/ Total Assets 0.31% 0.20% 0.16% 0.19% 0.50% Q3 2022
Q4 2022 Q1 2023 Q2 2023 Q3 2023 Credit returned to performing
in early Q4 2023 Net Charge-offs (Recoveries) / Average
Loans(1) 0.16% -0.02% 0.12% 0.04% 0.09% Q3 2022 Q4 2022 Q1 2023 Q2
2023 Q3 2023 Allowance for Credit Losses + RUC(2) 1.34%
1.31% 1.30% 1.30% 1.31% $62.6 $70.5 $73.2 $75.3 $77.7
$6.7 $8.7 $8.1 $7.7 $6.1 $55.9 $61.8 $65.1 $67.6 $71.6 Q3 2022 Q4
2022 Q1 2023 Q2 2023 Q3 2023 ACL RUC ACL+RUC / Total
Loans Note: Dollars are in millions and amounts shown are
as of the end of the period. 1. Ratio is annualized for interim periods 2.
RUC includes the accrual for off-balance sheet credit risk for
unfunded commitments 13
$5,837 $6,100 $633 $750 $946 $1,376 $1,838 $1,744 $2,605
$2,761 $2,826 $2,730 $2,757 $519 $544 $665 $604 $809 $1,114 $1,400
$970 $928 $1,029 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
DDA Transaction Savings & Money Mkt Time #DDA
Deposits 22% 25% 17% 15% 16% Note: Dollars are in millions and
amounts shown are as of the end of the period. 14
on Loans & Cost of Deposits 5.08% 1.20% 5.93% 2.03% 6.56%
2.57% 6.87% 3.33% 6.96% 3.59% Q3 2022 Q4 2022 Q1 2023
Q2 2023 Q3 2023 Yield on Loans Cost of Total Deposits
Net Interest Margin – Fully Tax Equivalent (FTE)(1)
3.56% 3.61% 3.65% 3.27% 3.19% Q3 2022 Q4 2022 Q1 2023 Q2 2023
Q3 2023 Net Interest Income Impact From Rate Changes 0.79% 1.05%
0.98% 0.75% 0.34% 0.36% (0.07)% (0.36)% (0.12)% (0.68)%
-300 bps -200 bps -100 bps +100 bps +200 bps Rate Shock
Rate Ramp Loans: Rate Reset and Cash Flow Profile 68% of earning
assets reprice or mature within the next 12 months, including
47% in month one 58% 10% 11% 18% 3% 1-3 Months 4-12 Months
1-2 Years 2-5 Years >5 Years (1) 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% 15
$28.5 $36.4 $38.1 $37.4 $36.3 $0.1 $3.9 $2.3 $1.1 $2.2 $1.3 $28.4
$32.6 $35.8 $35.0 $34.1 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Non-interest Expenses as a % of Avereage Assets 1.96%
2.35% 2.30% 2.17% 2.03% Adjusted Non-interest Expense (1) Separation
Costs Acquisition Costs + CDI Amortization Note: Dollars are
in millions and amounts shown are as of the end of the period unless
otherwise specified. (1) Represents a non-GAAP financial measure
that is calculated as the numerator of the Adjusted Efficiency
Ratio – Fully Tax Equivalent; see non-GAAP reconciliation
slides at the end of this presentation for more details 16
INC. Total Liquidity - $2.42B | 34% of Total Assets 12/31/2022
Municipal - Tax-Exempt, 71% MBS (Fixed), 24% SBA + Agencies,
1% Other, 4% Gross $769 Million Net $686 Million Duration:
5.2 years Securities Portfolio Portfolio Strategy Shift 9/30/2023
Municipal - Tax-Exempt, 54% MBS (Fixed), 23% SBA + Agencies,
16% Treasuries, 2% Other,5% Gross $870 Million Net $751
Million Duration: 5.6 years Total Liquidity – 9/30/2023 On-balance
Sheet Liquidity Securities Portfolio $751M Cash & Equivalents
$233M $984M Off-balance Sheet Liquidity $1.436B Total
Liquidity $2.420B Off-Balance Sheet Liquidity Available
Brokered Deposits & Wholesale Funding, 9% Available
Credit Lines, FHLB & FRB, 91% TOTAL $1.436B Investment
Strategy 2022 and Prior Tax-exempt Municipal strategy focused
on maximizing yield in a low-interest rate environment
Tax-exempt securities added asset duration to offset short duration
in loan portfolio MBS securities provided cashflow Investment
Strategy 2023 and Beyond Reducing Municipal concentration and focusing
reinvestment in lower risk-weighted assets Restructuring portfolio
to increase liquidity and provide more balanced cash flow Improved
performance with ~40bps pick up in tax-equivalent yield during
2023 17
11.00% 9.50% 9.40% 9.50% 9.70% 11.10% 9.50% 9.50% 9.60%
9.80% 12.10% 10.50% 10.50% 10.70% 10.90% Q3 2022 Q4
2022 Q1 2023 Q2 2023 Q3 2023 Common Equity Tier 1 Tier
1 Risk-Based Total Risk-Based Capital Capital deployed
during Q4 2022 with the closing of the Colorado/New Mexico acquisition
and through significant organic loan growth Maintaining capital
levels to support future growth Remain well capitalized as we deploy
capital to support growth initiatives 18
INC. Quarter Ended Nine Months Ended Adjusted net Income: Net
income (GAAP} Add: Acquisition costs Add: Acquisition -DaylCECL
provision Add: Employee separation Less: Tax effect
S >6.363 1,328 900 (463) s 16,047 338 1,300 (344) s (Dollars in
thousands, except per share data) 16.108 $ 11,946 $ 17280 1,477
5570 31 4,400 (310) (2,045) (17) s 49,018 $ 3,143 900 1300 0.122)
49,653 320 1,063 (290) Adjusted net Income Preferred
stock dividends Diluted weighted average common shares outstanding Earnings
per common share - diluted (GAAP) Adjusted earnings per common
share - diluted Quarter Ended Nine Months Ended 12/31/2022
(Dollars in thousands) Adjusted return on average assets: Net
income (GAAP)
$ 16.363 $ 16,047 $ 16.108 $ 11,946 S 17280 $ 49,018 S 49,653
Adjusted net income 13,623 17241 17,275 17,871 17244 53.239
50,746 Average assets $ 7,114228 $ 6929,972 $ 6,712.801
$ 6,159,783 S 5,764247 $ 6,920,471 $ 5,625217 Return on average
assets (GAAP) Adjusted return on average assets Nine Months Ended
Quarter Ended 3/31/2023 12/31/2022 (Dollars in thousands) Adjusted
return on average
common equity: Net income (GAAP} $ 16.363 $ 16,047 S 16,105 S
11,946 S 17280 $ 49,018 $ 49,653 Preferred stock dividends 155 103
- - - 258 - Net income attributable to common shareholders (GAAP}
$ 16,708 $ 15,944 S 16,108 S 11,946 S 17280 $ 48,760 $
49,653 Adjusted net income 13,623 17341 17,275 17,871 17344 53,239
50,746 Preferred stock dividends 155 103 - - - 258 * Net income
attributable to common shareholders (GAAP) $ 18,463 $ 17238
S 17,275 S 17,871 $ 17344 $ 52,981 $ 50,746 Average
common equity $ 650,494 S 639,741 $ 619,952 S 589,587 S 613,206 $
636,841 $ 627,016 Return on average common equity (GAAP) Adjusted
return on average common equity (1)
Represents the tax impact of the adjustments at a tax rate of 21.0%,
plus permanent tax expense associated with merger related
transactions. 19
INC. 9/30/2023 Tangible common stockholders' equity: Total
stockholders 'equity (GAAP) Less: goodwill and other intangible
assets Less: preferred stock Tangible common stockholders'
equity Tangible book value per common share: Tangible
common stockholders 'equity Common sha res outstanding at end
of period Book value per common share (GAAP) Tangible book
value per common share s 643,051 32293 7,750 s 603.008
Quarter Ended 6/30/2023 3/31/2023 12/31/202 2 9/30/2022
(Dollars in thousands, except per chore dato) s 651,483 27,457 7,750
s 645,491 28.259 7,750 s 616276 $ 609,482 48.655,487 48,600,618
s 608,599 29,081 s 580.547 71 S 579513 $ 580,476 48,448,215 48,78
7,696 Quarter Ended Nine Months Ended 3/31/2023 12/31/2022
(Dollars in thousands) Adjusted Efficiency Ratio - Fully Tax
Equivalent (FTE)m Non-interest expense S 36354 $ 37,412 $ 38,092
S 36,423 S 28,451 $ ni.sss s 85319 Less: Acquisition costs (1328) (338)
0.477) (3370) (81) (3,143) (320) Less: Core deposit intangible
amortization (922) (802) (822) (291) - (2,546) - Less: Employee
separation - (1300) - - - 0.300) 0.063) Adjusted Non-interest expense
(numerator) $ 34,104 $ 34,972 $ 35,793 S 32362 S 28370 5 104,869
S 83,936 Net interest income 55,127 54,539 58,221 54,015 49,695
167,887 139319 Tax equivalent interest income(1) 707 750
797 813 820 2254 2,403 Non-interest income (toss) 5,981 5,779
4,421 4359 3780 16,181 12,922 Total tax-equivalent income
(denominator) $ $ 5 Efficiency Ratio (GAAP) Adjusted Efficiency
Ratio - Fully Tax Equivalent (FTE)m 20
INC. Adjusted net income: Net income Add: Acquisition costs
Add: Acquisition - Day 1 CECL provision Add: Employee
separation Add: Unrealized loss on equity security Add: Accelerated
employee benefits Add: Goodwill impairment11 Add: Fixed asset impairment
Less: State tax credit111 Less: BO LI settlement benefits111
Less: Tax effect21 Adjusted net income Diluted weighted
average common shares outstanding Diluted earnings per
share Adjusted diluted earnings per share Twelve Months Ended
12/31/2022 12/31/2021 12/31/2020 12/31/2019 (Dollars in
thousands, except per share data) 61,599 3,890 4,400 1,063 (2.555)
68,617 50,002,054 1.23 £ 69,413 6200 719 (1.841) 0512) 72,979
52,030,582 133 1.40 $ 12,601 7,397 19,998 52,548,547 024 038 $ 28,473
(1.361) (109) 27,427 48,576,135 038 036 137 Twelve Months
Ended Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022
12/31/2021 12/31/2020 12/31/2019 (Dollars in thousands) Pre-Tax
Pre-Provision Profit: Net income before taxes Add: Provision for
credit losses $ 21,425 3329 $ 20266 2,640 $ 20,129 4,421 $
77572 11301 $ 86,969 (4,000) $ 15314 56,700 $ 32,611 29,900
Pre-Tax Pre-Provision Profit (1) No tax effect. (2)
Represents the tax impact of the adjustments at a tax rate of 21.0%, plus permanent
tax expense associated with merger related transactions and permanent
tax benefit associated with stock-based grants. 21