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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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02.
Results of Operations and Financial Condition.
On July 18, 2022, CrossFirst Bankshares, Inc. (the “Company”) issued a press release announcing its financial results for its second
quarter of 2022. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The Company intends to hold a conference call to present information on its results of operations for the second quarter of 2022. The
investor presentation, which will accompany the call, is furnished as Exhibit 99.2 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 set forth by specific reference in such a
filing.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date:
July 18, 2022
CROSSFIRST BANKSHARES, INC.
By:
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
1
Heather Worley
Heather@crossfirst.com | (214) 676-4666
https://investors.crossfirstbankshares.com
CrossFirst Bankshares, Inc. Reports Second Quarter 2022
Results
Second Quarter 2022 Key Financial Performance Metrics
Net Income
ROAA
Net Interest Margin
(FTE)
Diluted EPS
ROE
$15.5 million
1.12%
3.52%
(1)
$0.31
10.15%
LEAWOOD, Kan., July 18, 2022 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for
CrossFirst Bank, today reported operating results for the second quarter of 2022, with second quarter net income of $15.5 million, or $0.31
per diluted share, and year-to-date net income of $32.4 million, or $0.64 per diluted share.
CEO Commentary:
"In addition to our announcement about our planned acquisition of Central, we produced a very strong quarter of organic loan growth. We
also invested in talent to support our continued success by filling key roles with both internal promotions and adding high-caliber talent
from the outside,” said CrossFirst’s CEO and President, Mike Maddox. “We remain highly focused on credit quality, and we are
committed to managing through a challenging economy while delivering for our clients and stockholders.”
2022 Second Quarter Highlights:
•
Announced on June 13, 2022, an agreement under which CrossFirst Bank will acquire Central Bancorp, Inc.’s bank
subsidiary, Farmers & Stockmens Bank (“Central”), in an all-cash transaction
•
$5.7 billion of assets with 6% operating revenue growth compared to the second quarter of 2021
•
$179 million or 4% of total loan growth from the previous quarter and $290 million or 7% loan growth from the same quarter
last year; excluding PPP loans
(2)
, loan growth was $195 million from the previous quarter or 5% and was $473 million or
12% from the same quarter last year
•
Continued improvement in credit quality during the second quarter of 2022 as evidenced by the decrease in non-performing
assets to total assets ratio from 1.09% at June 30, 2021 to 0.54% at June 30, 2022
•
Return on Average Assets of 1.12% and a Return on Equity of 10.15% for the quarter ended June 30, 2022
•
Net Interest Margin (Fully Tax-Equivalent)
(1)
quarter last year
Quarter-to-Date
Year-to-Date
June 30,
June 30,
(Dollars in millions except per share data)
2022
2021
2022
2021
Operating revenue
(3)
$
50.9
$
48.2
$
99.0
$
93.4
Net income
$
15.5
$
15.6
$
32.4
$
27.6
Diluted earnings per share
$
0.31
$
0.30
$
0.64
$
0.53
Return on average assets
1.12
%
1.10
%
1.18
%
0.97
%
Return on average common equity
10.15
%
9.86
%
10.30
%
8.84
%
Net interest margin
(1)
3.46
%
3.08
%
3.35
%
3.02
%
Net interest margin, fully tax-equivalent
(1)(4)
3.52
%
3.14
%
3.41
%
3.07
%
Efficiency ratio
57.36
%
53.61
%
57.46
%
52.06
%
Non-GAAP core operating efficiency ratio, fully tax-equivalent
(2)(4)
55.08
%
53.34
%
55.83
%
51.51
%
(1)
The Company changed the annualization method on the available-for-sale securities portfolio from Actual/Actual to 30/360 and moved the unrealized
gain (loss) on available-for-sale securities from an interest-earning asset to a non-interest earning asset. All periods presented reflect this change.
(2)
Represents a non-GAAP measure. See "Table 5. Non-GAAP Financial Measures" for a reconciliation of these measures.
(3)
Net interest income plus non-interest income.
(4)
Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental federal
income tax rate used is 21.0%.
CROSSFIRST BANKSHARES, INC.
2
Income from Operations
Net Interest Income
Interest income was $52.8 million for the second quarter of 2022, an increase of 9% from the second quarter of 2021 and an increase of
11% from the previous quarter due to higher average loans outstanding and higher interest rates. Average earning assets totaled $5.4 billion
for the second quarter of 2022, a decrease of $92 million or 2% from the same quarter in 2021. This decline in average earning assets was
largely driven by a decrease of $210 million in average interest-bearing deposits in other banks, the impact of which was outweighed by
the increase of $29 million in average loans and the associated loan yield increase.
Interest expense for the second quarter of 2022 was $6.1 million, slightly lower than the second quarter of 2021 and 32% higher than the
previous quarter. Average interest-bearing deposits decreased to $3.4 billion in the second quarter of 2022, a 13% decrease from the same
prior year period. The cost of funds increased from the previous quarter to 0.50%, compared to 0.39% for the first quarter of 2022, driven
by the higher interest rate environment.
Net interest income totaled $46.7 million for the second quarter of 2022, which was 8% higher than the first quarter of 2022, and 10%
higher than the second quarter of 2021. Tax-equivalent net interest margin increased to 3.52% in the current quarter from 3.29% in the
previous quarter and 3.14% in the second quarter of 2021. The tax-equivalent adjustment, which accounts for income taxes saved on the
interest earned on non-taxable securities and loans, was $0.8 million for the second quarter of 2022.
Non-Interest Income
Non-interest income decreased $1.6 million in the second quarter of 2022 or 28% compared to the same quarter of 2021 and decreased
$0.7 million compared to the first quarter of 2022. The decrease in non-interest income compared to the previous quarter was due to a $1.1
million decrease in credit card fees and $0.1 million decrease in swap fee income, partly offset by a $0.3 million increase in letter of credit
fees and $0.1 million increase in service charge income. The decrease in non-interest income compared to the same quarter of 2021, was
primarily due to $1.8 million in income from bank-owned life insurance proceeds received last year.
Non-Interest Expense
Non-interest expense for the second quarter of 2022 was $29.2 million, which increased 13% compared to the second quarter of 2021 and
increased 6% from the first quarter of 2022. Salaries and benefit costs were lower in the current quarter by $0.8 million compared to the
prior quarter. Furthermore, professional fees increased $0.3 million and data processing expenses increased $0.3 million, partly offset by a
slight decrease in software and communication expenses. Compared to the same quarter in the prior year, salaries and benefit costs were
$1.4 million higher mainly due to increased hiring for market expansion and increased incentive expenses. Additionally, software and
communication expenses increased $0.2 million, and data processing expenses increased $0.4 million, offset by a $0.7 million decrease in
foreclosed assets. The other non-interest expense increase for the second quarter of 2022 was primarily due to increases in travel and
meeting expenses and employee separation expense of $1.1 million.
CrossFirst’s effective tax rate for the second quarter of 2022 was 21%, as compared to 17% for the second quarter of 2021 and 20% in the
first quarter of 2022. The 4% effective tax rate increase compared to the same quarter in the prior year was primarily due to the $1.8
million in income from bank-owned life insurance proceeds received last year, which was not subject to tax. For both comparable periods,
the Company continued to benefit from its tax-exempt municipal bond portfolio and bank-owned life insurance. The tax-exempt benefit
diminishes as the Company’s ratio of taxable income to tax-exempt income increases.
CROSSFIRST BANKSHARES, INC.
3
Balance Sheet Performance & Analysis
During the second quarter of 2022, total assets increased by $190 million or 3% compared to March 31, 2022, and increased $397 million
or 7% compared to June 30, 2021. Total assets increased on a linked quarter basis primarily due to a $179 million increase in loans. The
year-over-year increase was due to increases in loans of $310 million and cash and cash equivalents of $57 million. Non-interest-bearing
deposits increased $53 million compared to March 31, 2022, and increased $345 million from June 30, 2021. During the second quarter of
2022
, available-for-sale investment securities decreased $27 million to $696 million compared to March 31, 2022 primarily due to
unrealized losses from interest rate increases. The securities yields increased 7 basis points to a tax equivalent yield of 3.07% for the
second quarter of 2022 compared to the prior quarter.
Loan Results
During the second quarter of 2022, the Company produced an increase in average loans of $105 million compared to the first quarter of
2022, and an increase of $29 million or 1% compared to the second quarter of 2021. The linked quarter increase in average loans was
primarily a result of growth in the commercial and commercial real estate portfoli os. Net of PPP loans, average loans grew 3% compared
to the quarter ended March 31, 2022. Loan yields increased 28 basis points to 4.28% during the second quarter of 2022 and increased 29
basis points compared to the same prior year quarter.
2Q22
1Q22
4Q21
3Q21
2Q21
QoQ
Growth
($)
QoQ
Growth
(%)
(1)
YoY
Growth
($)
YoY
Growth
(%)
(1)
(Dollars in millions)
Average loans (gross)
Commercial and industrial
$
1,532
$
1,434
$
1,328
$
1,233
$
1,221
$
98
7
%
$
311
25
%
Energy
241
274
290
311
341
(33)
(12)
(100)
(29)
Commercial real estate
1,399
1,327
1,272
1,213
1,203
72
5
196
16
Construction and land development
581
593
579
611
633
(12)
(2)
(52)
(8)
Residential and multifamily real estate
609
604
612
659
659
5
1
(50)
(8)
Paycheck Protection Program
20
42
84
147
296
(22)
(52)
(276)
(93)
Consumer
56
59
56
57
56
(3)
(5)
-
0
Total
$
4,438
$
4,333
$
4,221
$
4,231
$
4,409
$
105
2
%
$
29
1
%
Yield on average loans for the period
ending
4.28
%
4.00
%
4.17
%
4.00
%
3.99
%
(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 second quarter of 2022, the Company experienced a decrease in average deposits of 2% compared to the previous quarter, and a
4% decline in average deposits compared to the second quarter of 2021. The deposit reduction for the quarter was driven by decreases in
transaction deposits and time deposits. As a result of the increasing interest rate environment, the Company had an increase of 11 basis
points in the overall cost of deposits during the second quarter of 2022, and the cost of interest-bearing depo sits has increased 6 basis
points over the last twelve months.
2Q22
1Q22
4Q21
3Q21
2Q21
QoQ
Growth
($)
QoQ
Growth
(%)
(1)
YoY
Growth
($)
YoY
Growth
(%)
(1)
(Dollars in millions)
Average deposits
Non-interest-bearing deposits
$
1,150
$
1,157
$
1,058
$
910
$
802
$
(7)
(1)
%
$
348
43
%
Transaction deposits
507
586
543
511
665
(79)
(13)
(158)
(23)
Savings and money market deposits
2,334
2,303
2,272
2,276
2,385
31
1
(51)
(2)
Time deposits
560
587
662
752
869
(27)
(5)
(309)
(36)
Total
$
4,551
$
4,633
$
4,535
$
4,449
$
4,721
$
(82)
(2)
%
$
(170)
(4)
%
Cost of deposits for the period ending
0.42
%
0.31
%
0.33
%
0.38
%
0.41
%
Cost of interest-bearing deposits for the
period ending
0.56
%
0.41
%
0.43
%
0.47
%
0.50
%
(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 June 30, 2022, other borrowings totaled $298 million, as compared to $228 million at March 31, 2022, and $284 million at June 30,
2021.
CROSSFIRST BANKSHARES, INC.
4
Asset Quality Position
Non-performing assets decreased to $30.8 million due to a $5.4 million decrease in non-accrual loans. The decline is attributable to
decreases in non-accrual commercial and industrial and energy loans. The non-performing assets to total assets ratio decreased from 1.09%
at June 30, 2021 to 0.54% at June 30, 2022. Classified loans increased slightly during the second quarter due to some grade changes in the
commercial and industrial portfolio, but remained in an acceptable range at 12.1% of total capital plus the allowance for credit losses.
The allowance for credit losses was $56 million or 1.23% of outstanding loans and 202% of non-accruing loans at June 30, 2022. The
combined allowance for credit losses and accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) was $61 million
or 1.35% of outstanding loans and 221% of non-accruing loans at June 30, 2022.
The allowance for credit losses to total loans decreased to 1.23% at June 30, 2022 from 1.27% at March 31, 2022. The improvements in
credit metrics compared to June 30, 2021 were primarily driven by upgrades in COVID-19 impacted segments and the Energy portfolio.
Net charge-offs were $1.1 million for the second quarter of 2022 and were consistent with the prior quarter. The charge-offs for the current
quarter were primarily related to commercial and industrial and energy credits. The following table provides information regarding asset
quality.
Asset quality
2Q22
1Q22
4Q21
3Q21
2Q21
Non-accrual loans
$
27.7
$
33.1
$
31.4
$
48.1
$
54.7
Other real estate owned
1.0
1.0
1.1
1.1
1.7
Non-performing assets
30.8
35.6
32.7
49.8
58.1
Loans 90+ days past due and still accruing
2.2
1.5
0.1
0.5
1.8
Loans 30 - 89 days past due
16.6
15.9
3.5
37.6
18.8
Net charge-offs (recoveries)
1.1
1.1
0.8
1.3
2.6
Asset quality metrics
(%)
2Q22
1Q22
4Q21
3Q21
2Q21
Non-performing assets to total assets
0.54
%
0.64
%
0.58
%
0.92
%
1.09
%
Allowance for credit loss to total loans
1.23
1.27
1.37
1.51
1.78
Allowance for credit loss + RUC to total loans
(1)
1.35
1.38
-
-
-
Allowance for credit loss to non-performing loans
187
160
185
132
134
Net charge-offs (recoveries) to average loans
(2)
0.10
0.10
0.07
0.13
0.23
Provision to average loans
(2)
0.19
(0.06)
(0.47)
(0.94)
0.32
Classified Loans / (Total Capital + ACL)
12.1
10.8
10.8
17.3
24.0
Classified Loans / (Total Capital + ACL + RUC)
(1)
12.0
10.7
-
-
-
(1)
Includes the accrual for off-balance sheet credit risk from unfunded commitments that resulted from CECL adoption on January 1, 2022.
(2)
Interim periods annualized.
Capital Position
At June 30, 2022, stockholders' equity totaled $608 million, or $12.27 per share, compared to $668 million, or $13.23 per share, at
December 31, 2021. During the second quarter of 2022, CrossFirst continued its share repurchase program by purchasing 237,993 shares
of common stock outstanding. In addition, accumulated other comprehensive income (loss) declined by $71 million between December
31, 2021 and June 30, 2022; driven by a $74 million decrease in the unrealized gain (loss) on available-for-sale securities, net of tax.
The ratio of common equity Tier 1 capital to risk-weighted assets was approximately 12% and the total capital to risk-weighted assets was
approximately 13% at June 30, 2022. The Company remains well-capitalized.
CROSSFIRST BANKSHARES, INC.
5
Conference Call and Webcast
CrossFirst will host a conference call to review second quarter 2022 financial results on Tuesday, July 19, 2022, at 10 a.m. CT / 11 a.m.
ET. The conference call and webcast may also include discussion of Company developments, forward-looking statements and other
material information about business and financial matters. To access the event by telephone, please dial (877) 270-2148 at least fifteen
minutes prior to the start of the call and request access to the CrossFirst Bankshares, Inc. call. International callers should dial +1 (412)
902-6510 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/px7sxoby. 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 4987463. 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, the
acquisition of Central, 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 “anticipate,” “believes,” “can,” “could,” “may,” “predicts,”
“potential,” “should,” “will,” “estimate,” “planned,” “projects,” “continuing,” “ongoing,” “expects,” “intends” 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, credit quality and risk, ongoing impact of the COVID-19 pandemic, industry
and technological changes, cyber incidents or other failures, disruptions or security breaches, interest rates, commercial and residential real
estate values, economic and market conditions in the United States or internationally, funding availability, accounting estimates and risk
management processes, the transition away from the London Interbank Offered Rate (LIBOR), legislative and regulatory changes,
business strategy execution, hiring and retention of key personnel, competition, mortgage markets, fraud committed against the Company,
environmental liability and severe weather, natural disasters, acts of war or terrorism 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 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, which is headquartered in Leawood, Kansas. CrossFirst Bank has nine full-service banking locations in
Kansas, Missouri, Oklahoma, Texas, and Arizona that offer products and services to businesses, professionals, individuals, and families.
CROSSFIRST BANKSHARES, INC.
6
Unaudited Financial Tables
◦
◦
◦
◦
◦
CROSSFIRST BANKSHARES, INC.
7
TABLE 1. CONSOLIDATED BALANCE SHEETS
June 30, 2022
December 31, 2021
(2)
(Unaudited)
(Dollars in thousands)
Assets
Cash and cash equivalents
$
277,678
$
482,727
Available-for-sale securities - taxable
186,154
192,146
Available-for-sale securities - tax-exempt
509,493
553,823
Loans, net of unearned fees
4,528,234
4,256,213
Allowance for credit losses on loans
(1)
55,817
58,375
Net loans
4,472,417
4,197,838
Premises and equipment, net
64,769
66,069
Restricted equity securities
14,946
11,927
Interest receivable
17,909
16,023
Foreclosed assets held for sale
973
1,148
Bank-owned life insurance
68,293
67,498
Other
95,679
32,258
Total assets
$
5,708,311
$
5,621,457
Liabilities and stockholders’ equity
Deposits
Non-interest-bearing
$
1,163,462
$
1,163,224
Savings, NOW and money market
2,847,887
2,895,986
Time
733,071
624,387
Total deposits
4,744,420
4,683,597
Federal Home Loan Bank advances
296,600
236,600
Other borrowings
1,041
1,009
Interest payable and other liabilities
58,234
32,678
Total liabilities
5,100,295
4,953,884
Stockholders’ equity
Common stock, $0.01 par value:
authorized - 200,000,000 shares, issued - 52,972,244 and 52,590,015 shares at June
30, 2022 and December 31, 2021, respectively
529
526
Treasury stock, at cost:
3,436,295 and 2,139,970 shares held at June 30, 2022 and December 31, 2021,
respectively
(48,501)
(28,347)
Additional paid-in capital
528,548
526,806
Retained earnings
176,869
147,099
Accumulated other comprehensive income (loss)
(49,429)
21,489
Total stockholders’ equity
608,016
667,573
Total liabilities and stockholders’ equity
$
5,708,311
$
5,621,457
(1)
As of December 31, 2021, this line represents the allowance for loan and lease losses.
(2)
The year-end Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures
required by accounting principles generally accepted in the United States of America.
CROSSFIRST BANKSHARES, INC.
8
Three Months Ended
Six Months Ended
June 30,
June 30,
2022
2021
2022
2021
(Dollars in thousands except per share data)
Interest Income
Loans, including fees
$
47,327
$
43,846
$
90,055
$
87,604
Available-for-sale securities - taxable
1,086
869
2,130
1,620
Available-for-sale securities - tax-exempt
3,845
3,497
7,537
6,848
Deposits with financial institutions
369
110
521
238
Dividends on bank stocks
213
162
357
327
Total interest income
52,840
48,484
100,600
96,637
Interest Expense
Deposits
4,732
4,850
8,243
10,578
Fed funds purchased and repurchase agreements
74
2
74
3
Federal Home Loan Bank Advances
1,294
1,280
2,403
2,563
Other borrowings
31
24
56
48
Total interest expense
6,131
6,156
10,776
13,192
Net Interest Income
46,709
42,328
89,824
83,445
Provision for Credit Losses
(1)
2,135
3,500
1,510
11,000
Net Interest Income after Provision for Credit Losses
(1)
44,574
38,828
88,314
72,445
Non-Interest Income
Service charges and fees on customer accounts
1,546
1,177
2,954
2,134
Realized losses on available-for-sale securities
(12)
(13)
(38)
(3)
Unrealized losses on equity securities, net
(71)
6
(174)
(33)
Income from bank-owned life insurance
407
2,245
795
2,661
Swap fees and credit valuation adjustments, net
12
(30)
130
125
ATM and credit card interchange income
1,521
1,506
4,185
3,834
Other non-interest income
798
934
1,291
1,251
Total non-interest income
4,201
5,825
9,143
9,969
Non-Interest Expense
Salaries and employee benefits
17,095
15,660
35,036
29,213
Occupancy
2,622
2,397
5,115
4,891
Professional fees
1,068
1,138
1,873
1,920
Deposit insurance premiums
713
917
1,450
2,068
Data processing
1,160
720
1,972
1,436
Advertising
757
435
1,449
738
Software and communication
1,198
1,034
2,468
2,099
Foreclosed assets, net
15
665
(38)
715
Other non-interest expense
4,575
2,847
7,544
5,551
Total non-interest expense
29,203
25,813
56,869
48,631
Net Income Before Taxes
19,572
18,840
40,588
33,783
Income tax expense
4,027
3,263
8,215
6,171
Net Income
$
15,545
$
15,577
$
32,373
$
27,612
Basic Earnings Per Share
$
0.31
$
0.30
$
0.65
$
0.54
Diluted Earnings Per Share
$
0.31
$
0.30
$
0.64
$
0.53
(1)
For the three and six-months ended June 30, 2021, this line represents the provision for loan and lease losses.
CROSSFIRST BANKSHARES, INC.
9
TABLE 3. YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTEREST
INCOME
(UNAUDITED)
Six Months Ended
June 30,
2022
2021
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(4)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(4)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
(1)
$
220,783
$
2,487
2.26
%
$
209,730
$
1,947
1.86
%
Securities - tax-exempt
(1)(2)
543,873
9,120
3.35
464,208
8,286
3.57
Federal funds sold
-
-
-
-
-
-
Interest-bearing deposits in other banks
253,771
521
0.41
429,930
238
0.11
Gross loans, net of unearned income
(3)
4,385,664
90,055
4.14
4,457,792
87,604
3.96
Total interest-earning assets
(1)(2)
5,404,091
$
102,183
3.81
%
5,561,660
$
98,075
3.55
%
Allowance for credit losses
(57,324)
(77,552)
Other non-interest-earning assets
207,881
251,450
Total assets
$
5,554,648
$
5,735,558
Interest-bearing liabilities
Transaction deposits
$
546,982
$
596
0.22
%
$
690,514
$
677
0.20
%
Savings and money market deposits
2,318,415
4,716
0.41
2,403,318
4,495
0.38
Time deposits
573,503
2,931
1.03
920,307
5,406
1.18
Total interest-bearing deposits
3,438,900
8,243
0.48
4,014,139
10,578
0.53
FHLB and short-term borrowings
280,883
2,477
1.78
289,039
2,566
1.79
Trust preferred securities, net of fair value
adjustments
1,018
56
11.11
971
48
9.89
Non-interest-bearing deposits
1,153,499
-
-
766,725
-
-
Cost of funds
4,874,300
$
10,776
0.44
%
5,070,874
$
13,192
0.52
%
Other liabilities
46,312
35,017
Stockholders’ equity
634,036
629,667
Total liabilities and stockholders' equity
$
5,554,648
$
5,735,558
Net interest income
(2)
$
91,407
$
84,883
Net interest spread
(1)(2)
3.37
%
3.03
%
Net interest margin
(1)(2)
3.41
%
3.07
%
(1)
(loss) on available-for-sale securities from an interest-earning asset to a non-interest-earning asset. All periods presented reflect this change.
(2)
rate used is 21.0%.
(3)
Average gross loan balances include non-accrual loans.
(4)
Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed
in this release may not produce the same amounts.
CROSSFIRST BANKSHARES, INC.
10
YEAR-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
Six Months Ended
June 30, 2022 over 2021
Average Volume
Yield/Rate
Net Change
(2)
(Dollars in thousands)
Interest Income
Securities - taxable
$
107
$
433
$
540
Securities - tax-exempt
(1)
987
(153)
834
Federal funds sold
-
-
-
Interest-bearing deposits in other banks
(132)
415
283
Gross loans, net of unearned income
(1,434)
3,885
2,451
Total interest income
(1)
(472)
4,580
4,108
Interest Expense
Transaction deposits
(151)
70
(81)
Savings and money market deposits
(163)
384
221
Time deposits
(1,840)
(635)
(2,475)
Total interest-bearing deposits
(2,154)
(181)
(2,335)
FHLB and short-term borrowings
(71)
(18)
(89)
Trust preferred securities, net of fair value adjustments
2
6
8
Total interest expense
(2,223)
(193)
(2,416)
Net interest income
(1)
$
1,751
$
4,773
$
6,524
(1)
(2)
CROSSFIRST BANKSHARES, INC.
11
TABLE 4. 2021 - 2022 QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME
(UNAUDITED)
Three Months Ended
June 30,
2022
2021
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(4)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(4)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
(1)
$
220,763
$
1,299
2.35
%
$
207,835
$
1,031
1.99
%
Securities - tax-exempt
(1)(2)
553,960
4,653
3.36
478,334
4,231
3.54
Federal funds sold
-
-
-
-
-
-
Interest-bearing deposits in other banks
198,210
369
0.75
407,801
110
0.11
Gross loans, net of unearned income
(3)
4,437,917
47,327
4.28
4,409,280
43,846
3.99
Total interest-earning assets
(1)(2)
5,410,850
$
53,648
3.98
%
5,503,250
$
49,218
3.59
%
Allowance for credit losses
(56,732)
(76,741)
Other non-interest-earning assets
191,539
247,129
Total assets
$
5,545,657
$
5,673,638
Interest-bearing liabilities
Transaction deposits
$
508,403
$
374
0.29
%
$
664,552
$
313
0.19
%
Savings and money market deposits
2,334,103
2,869
0.49
2,385,074
2,107
0.35
Time deposits
559,708
1,489
1.07
869,176
2,430
1.12
Total interest-bearing deposits
3,402,214
4,732
0.56
3,918,802
4,850
0.50
FHLB and short-term borrowings
330,064
1,368
1.66
287,904
1,282
1.79
Trust preferred securities, net of fair value
adjustments
1,024
29
11.94
976
24
9.82
Non-interest-bearing deposits
1,149,654
-
-
801,591
-
-
Cost of funds
4,882,956
$
6,129
0.50
%
5,009,273
$
6,156
0.49
%
Other liabilities
48,160
30,948
Stockholders’ equity
614,541
633,417
Total liabilities and stockholders' equity
$
5,545,657
$
5,673,638
Net interest income
(2)
$
47,519
$
43,062
Net interest spread
(1)(2)
3.48
%
3.10
%
Net interest margin
(1)(2)
3.52
%
3.14
%
(1)
(loss) on available-for-sale securities from an interest-earning asset to a non-interest-earning asset. All periods presented reflect this change.
(2)
rate used is 21.0%.
(3)
Average loan balances include non-accrual loans.
(4)
Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed
in this release may not produce the same amounts.
CROSSFIRST BANKSHARES, INC.
12
QUARTER-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
Three Months Ended
June 30, 2022 over 2021
Average Volume
Yield/Rate
Net Change
(2)
(Dollars in thousands)
Interest Income
Securities - taxable
$
67
$
201
$
268
Securities - tax-exempt
(1)
643
(221)
422
Federal funds sold
-
-
-
Interest-bearing deposits in other banks
(84)
343
259
Gross loans, net of unearned income
287
3,194
3,481
Total interest income
(1)
913
3,517
4,430
Interest Expense
Transaction deposits
(86)
147
61
Savings and money market deposits
(46)
808
762
Time deposits
(827)
(114)
(941)
Total interest-bearing deposits
(959)
841
(118)
FHLB and short-term borrowings
179
(93)
86
Trust preferred securities, net of fair value adjustments
1
4
5
Total interest expense
(779)
752
(27)
Net interest income
(1)
$
1,692
$
2,765
$
4,457
(1)
(2)
CROSSFIRST BANKSHARES, INC.
13
TABLE 5. NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
In addition to disclosing financial measures determined in accordance with GAAP, the Company discloses non-GAAP financial measures
in this release. The Company believes that the non-GAAP financial measures presented in this release reflect industry conventions, or
standard measures within the industry, and provide useful information to the Company's management, investors and other parties
interested in the Company's operating performance. These measurements should be considered in addition to, but not as a substitute for,
financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use in this release,
but these measures may not be synonymous to similar measurement terms used by other companies.
CrossFirst provides reconciliations (unaudited) of these non-GAAP measures below. The measures used in this release include the
following:
•
We calculate ‘‘non-GAAP core operating income’’ as net income adjusted to remove non-core income and expense items
related to:
▪
Acquisition costs - We incurred expenses in the second quarter of 2022 related to the announced acquisition of Central
Bancorp, Inc.’s bank subsidiary, Farmers & Stockmens Bank.
▪
Employee separation - During the quarter ended June 30, 2022, the Company recorded $1.1 million expense related to
employee separation.
▪
Charges and adjustments associated with the full vesting of a former executive - We incurred additional charges in the second
quarter of 2021 related to the acceleration of $0.7 million of certain cash, stock-based compensation, and employee costs.
▪
Bank Owned Life Insurance - We obtain bank owned life insurance on key employees throughout the organization and
received a $1.8 million benefit in the second quarter of 2021.
▪
Unrealized loss on equity security - During the quarter ended September 30, 2021, the Company recorded a $6.2 million
impairment loss related to an equity investment that was received as part of a restructured loan agreement.
The most directly comparable GAAP financial measure for non-GAAP core operating income is net income.
Management
believes that non-GAAP core operating income removes events that are not part of core business activities and are useful
analytical tools for investors to compare periods excluding these non-core expenses and charges.
•
We calculate "non-GAAP core return on average tangible common equity" as non-GAAP core operating income (as defined
above) divided by average tangible common equity. Average tangible common equity is calculated as average common
equity less average goodwill and intangibles and average preferred equity. The most directly comparable GAAP measure is
return on average common equity. Management believes that non-GAAP core return on average tangible common equity
removes events that are not part of core business activities and are useful analytical tools for investors to compare periods
excluding these non-core expenses and charges.
•
We calculate "non-GAAP core operating return on average assets" as non-GAAP core operating income (as defined above)
divided by average assets. The most directly comparable GAAP financial measure is return on average assets, which is
calculated as net income divided by average assets. Management believes that non-GAAP core operating return on average
assets removes events that are not part of core business activities and are useful analytical tools for investors to compare
periods excluding these non-core expenses and charges.
•
We calculate "tangible common stockholders' equity" as total stockholders' equity less goodwill and intangibles and
preferred equity. The most directly comparable GAAP measure is total stockholders' equity. Management believes that
tangible stockholders’ equity is important to many investors in the marketplace who are interested in changes from period to
period in our stockholders’ equity, exclusive of changes in intangible assets.
•
We calculate ‘‘tangible book value per share’’ as tangible common stockholders' equity (as defined above) divided by the
total number of shares outstanding. The most directly comparable GAAP measure is book value per share.
Management
believes that tangible book value per share is important to many investors in the marketplace who are interested in changes
from period to period in our stockholders’ equity, exclusive of changes in intangible assets.
•
We calculate ‘‘non-GAAP loan growth, excluding PPP loans’’ as gross loans, net of unearned income subtracted by PPP
loans, net of unearned income. Management believes that loan growth, excluding PPP loans is important to investors
because it is a better representation of the overall loan portfolio activity when comparing between periods.
CROSSFIRST BANKSHARES, INC.
14
•
We calculate "non-GAAP core operating efficiency ratio - fully tax equivalent (FTE)" as non-interest expense adjusted to
remove non-core, non-interest expenses as defined above under non-GAAP core operating income divided by net interest
income on a fully tax-equivalent basis plus non-interest income adjusted to remove non-core, non-interest income as defined
above under non-GAAP core operating income. The most directly comparable financial measure is the efficiency ratio.
Management believes that the non-GAAP core operating efficiency ratio is important to many investors because the ratio
removes events that are not part of core business activities and is a useful analytical tool.
•
We calculate "non-GAAP pre-tax pre-provision profit" as net income before taxes plus the provision for credit losses.
Management believes that non-GAAP pre-tax pre-provision profit is important to many investors because the calculation
removes the tax impact on the financials and gives investors insight into the operating income of the company.
CROSSFIRST BANKSHARES, INC.
15
Quarter Ended
Six Months Ended
6/30/2022
3/31/2022
12/31/2021
9/30/2021
6/30/2021
6/30/2022
6/30/2021
(Dollars in thousands)
Non-GAAP core operating income:
Net income
$
15,545
$
16,828
$
20,801
$
21,000
$
15,577
$
32,373
$
27,612
Add: Acquisition costs
239
-
-
-
-
239
-
Less: Tax effect
(1)
50
-
-
-
-
50
-
Acquisition costs, net of tax
189
-
-
-
-
189
-
Add: Employee separation
1,063
-
-
-
-
1,063
-
Less: Tax effect
(1)
223
-
-
-
-
223
-
Employee separation, net of tax
840
-
-
-
-
840
-
Add: Unrealized loss on equity security
-
-
-
6,200
-
-
-
Less: Tax effect
(1)
-
-
-
1,302
-
-
-
Unrealized loss on equity security, net of tax
-
-
-
4,898
-
-
-
Add: Accelerated employee benefits
-
-
-
-
719
-
719
Less: Tax effect
(2)
-
-
-
-
210
-
210
Accelerated employee benefits, net of tax
-
-
-
-
509
-
509
Less: BOLI settlement benefits
(3)
-
-
-
-
1,841
-
1,841
Non-GAAP core operating income
$
16,574
$
16,828
$
20,801
$
25,898
$
14,245
$
33,402
$
26,280
(1)
Represents the tax impact of the adjustments at a tax rate of 21.0%.
(2)
Represents the tax impact of the adjustments above at a tax rate of 21.0%, plus a permanent tax benefit associated with stock-based grants.
(3)
No tax effect.
Quarter Ended
Six Months Ended
6/30/2022
3/31/2022
12/31/2021
9/30/2021
6/30/2021
6/30/2022
6/30/2021
(Dollars in thousands)
Non-GAAP core return on average tangible common equity:
Net income available to common stockholders
$
15,545
$
16,828
$
20,801
$
21,000
$
15,577
$
32,373
$
27,612
Non-GAAP core operating income
16,574
16,828
20,801
25,898
14,245
33,402
26,280
Average common equity
614,541
653,747
656,415
644,715
633,417
634,036
629,667
Less: average goodwill and intangibles
101
121
140
160
179
111
189
Average tangible common equity
$
614,440
$
653,626
$
656,275
$
644,555
$
633,238
$
633,925
$
629,478
Return on average common equity
10.15
%
10.44
%
12.57
%
12.92
%
9.86
%
10.30
%
8.84
%
Non-GAAP core return on average tangible common
equity
10.82
%
10.44
%
12.57
%
15.94
%
9.02
%
10.63
%
8.42
%
CROSSFIRST BANKSHARES, INC.
16
Quarter Ended
Six Months Ended
6/30/2022
3/31/2022
12/31/2021
9/30/2021
6/30/2021
6/30/2022
6/30/2021
(Dollars in thousands)
Non-GAAP core operating return on average assets:
Net income
$
15,545
$
16,828
$
20,801
$
21,000
$
15,577
$
32,373
$
27,612
Non-GAAP core operating income
16,574
16,828
20,801
25,898
14,245
33,402
26,280
Average assets
$
5,545,657
$
5,563,738
$
5,490,482
$
5,408,984
$
5,673,638
$
5,554,648
$
5,735,558
Return on average assets
1.12
%
1.23
%
1.50
%
1.54
%
1.10
%
1.18
%
0.97
%
Non-GAAP core operating return on average assets
1.20
%
1.23
%
1.50
%
1.90
%
1.01
%
1.21
%
0.92
%
Quarter Ended
6/30/2022
3/31/2022
12/31/2021
9/30/2021
6/30/2021
(Dollars in thousands except per share data)
Tangible common stockholders' equity:
Total stockholders' equity
$
608,016
$
623,199
$
667,573
$
652,407
$
637,190
Less: goodwill and other intangible assets
91
110
130
149
169
Tangible common stockholders' equity
$
607,925
$
623,089
$
667,443
$
652,258
$
637,021
Tangible book value per share:
Tangible common stockholders' equity
$
607,925
$
623,089
$
667,443
$
652,257
$
637,021
Shares outstanding at end of period
49,535,949
49,728,253
50,450,045
51,002,698
50,958,680
Book value per share
$
12.27
$
12.53
$
13.23
$
12.79
$
12.50
Tangible book value per share
$
12.27
$
12.53
$
13.23
$
12.79
$
12.50
Quarter Ended
6/30/2022
3/31/2022
12/31/2021
9/30/2021
6/30/2021
(Dollars in thousands)
Non-GAAP loan growth, excluding PPP loans:
Gross loans, net of unearned income
$
4,528,234
$
4,349,558
$
4,256,213
$
4,233,117
$
4,237,944
Less: PPP loans, net of unearned income
14,536
31,200
64,805
109,465
197,084
Non-PPP gross loans, net of unearned income
$
4,513,698
$
4,318,358
$
4,191,408
$
4,123,652
$
4,040,860
Year-over-year loan growth
6.85
%
Non-GAAP year-over-year loan growth excluding
PPP loans
12.00
Linked quarter loan growth
4.11
Non-GAAP linked quarter loan growth excluding PPP loans
4.52
%
CROSSFIRST BANKSHARES, INC.
17
Quarter Ended
Six Months Ended
6/30/2022
3/31/2022
12/31/2021
9/30/2021
6/30/2021
6/30/2022
6/30/2021
(Dollars in thousands)
Non-GAAP Core Operating Efficiency Ratio - Fully Tax
Equivalent (FTE)
Non-interest expense
$
29,203
$
27,666
$
26,715
$
24,036
$
25,813
$
56,869
$
48,631
Less: Accelerated employee benefits
-
-
-
-
719
-
719
Adjusted Non-interest expense (numerator)
$
29,203
$
27,666
$
26,715
$
24,036
$
25,094
$
56,869
$
47,912
Net interest income
46,709
43,115
43,445
41,801
42,328
89,824
83,445
Tax equivalent interest income
(1)
810
775
762
748
734
1,583
1,438
Non-interest income (loss)
4,201
4,942
4,796
(1,105)
5,825
9,143
9,969
Add: Acquisition costs
239
-
-
-
-
239
-
Add: Employee separation
1,063
-
-
-
-
1,063
-
Add: Unrealized loss on equity security
-
-
-
6,200
-
-
-
Less: BOLI settlement benefits
(2)
-
-
-
-
1,841
-
1,841
Total tax-equivalent income (denominator)
$
53,022
$
48,832
$
49,003
$
47,644
$
47,046
$
101,852
$
93,011
Efficiency Ratio
57.36
%
57.57
%
55.38
%
59.06
%
53.61
%
57.46
%
52.06
%
Non-GAAP Core Operating Efficiency Ratio - Fully Tax
Equivalent (FTE)
55.08
%
56.66
%
54.52
%
50.45
%
53.34
%
55.83
%
51.51
%
(1)
Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%.
(2)
No tax effect.
Quarter Ended
Six Months Ended
6/30/2022
3/31/2022
12/31/2021
9/30/2021
6/30/2021
6/30/2022
6/30/2021
(Dollars in thousands)
Non-GAAP Pre-Tax Pre-Provision Profit
Net income before taxes
$
19,572
$
21,016
$
26,526
$
26,660
$
18,840
$
40,588
$
33,783
Add: Provision for credit losses
2,135
(625)
(5,000)
(10,000)
3,500
1,510
11,000
Non-GAAP Pre-Tax Pre-Provision Profit
$
21,707
$
20,391
$
21,526
$
16,660
$
22,340
$
42,098
$
44,783
Exhibit 99.2
CROSSFIRST BANKSHARES, INC. NASDAQ: CFB 2nd Quarter 2022 Earnings Presentation July 19, 2022
LEGAL DISCLAIMER CROSSFIRST BANKSAHRES, 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 during this meeting contain forward-looking statements. These forward- looking statements reflect our current views with respect to, among other things, future events and our financial performance . These forward-looking statements include, but are not limited to, statements regarding our business plans, the acquisition of F&S Bank, 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 "may," "might," "should," "could," "predict," "potential," "believe," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "strive," "projection," "goal," "target," "outlook," "aim," "would," "annualized" and "outlook," or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward -looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward -looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. There are or will be
important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: risks relating to the COVID-19 pandemic; risks related to general business and economic conditions and any regulatory responses to such conditions; our ability to effectively execute our growth strategy and manage our growth, including identifying and consummating suitable mergers and acquisitions; the geographic concentration of our markets; fluctuation of the fair value of our investment securities due to factors outside our control; our ability to successfully manage our credit risk and the sufficiency of our allowance; regulatory restrictions on our ability to grow due to our concentration in commercial real estate lending; our ability to attract, hire and retain key personnel; interest rate fluctuations; our ability to raise or maintain sufficient capital; competition from banks, credit unions and other financial services providers; the effectiveness of our risk management framework in mitigating risks and losses; our ability to maintain effective internal control over financial reporting; our ability to keep pace with technological changes; system failures and interruptions, cyber-attacks and security breaches; employee error, fraudulent activity by employees or clients and inaccurate or incomplete information about our clients and counterparties; our ability to maintain our reputation; costs and effects of litigation, investigations or similar matters; risk exposure from transactions with financial counterparties; severe weather, acts of god, acts of war or terrorism; compliance with governmental and regulatory requirements; changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters; compliance with requirements associated with being a public company; level of
coverage of our business by securities analysts; and future equity issuances.. 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. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward- looking statement, whether as a result of new information, future developments or otherwise, 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
ABOUT NON-GAAP FINANCIAL MEASURES CROSSFIRST BANKSAHRES, INC. Certain of the financial measures and ratios we present, including “tangible common equity”, “tangible assets”, “tangible book value”, and “tangible book value per share” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” 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 assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. 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. CrossFirst does not provide a reconciliation of forward-looking non-GAAP financial measures to its comparable GAAP financial measures because it could not do so without unreasonable effort due to the unavailability of the information needed to calculate reconciling items and the variability, complexity and limited visibility of the adjusting items that would be excluded from the non -GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, CrossFirst does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for various cash and non-cash reconciling items (including items such as expected credit losses, acquisition- and disposition-related expenses, and restructuring costs) that would be difficult to predict with reasonable accuracy. For example, future expectations for credit losses depend on a variety of factors including general economic conditions that make estimation on a GAAP basis impractical. It is also difficult to anticipate the need for or magnitude of presently unforeseen one-time restructuring expenses. As a result, CrossFirst does not believe that a GAAP reconciliation to forward-looking non-GAAP financial measure s would provide meaningful supplemental information about CrossFirst’s forward-looking measures. 3
OUR ROAD TO SUCCESS CROSSFIRST BANKSAHRES, INC. ONE TEAM Elevating our Strong Corporate Culture by Living our CrossFirst Values Attracting and Retaining High Performing Talent Well-being of our Employees ONE BANK Targeting Businesses and Professionals Branch-Light – Technology Focused Delivering Extraordinary Service and Customer Experience SHARED VISION Performance & Profitability Seizing Growth Opportun ities Strong Credit Quality Enhancing Products and Services Managing Enterprise Risk Contributing to our Communities Total Assets $5.7 billion Gross Loans $4.5 billion Total Deposits $4.7 billion Book Value/Share $12.27 4
OUR GROWTH CROSSFIRST BANKSAHRES, 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 $5,708 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2022 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 Q2 2022* Entered into definitive agreement to acquire “Central” Note: Dollars in chart are in millions. * Subject to regulatory approval; Farmers & Stockmens Bank operates as Central Bank & Trust in Denver and Colorad o Springs and as Farmers & Stockmens Bank in New Mexico (“Central”). 5
VALUE DRIVEN BY OUR PEOPLE CROSSFIRST BANKSAHRES, INC. Our CrossFirst Brand Committed to pursuing excellence in banking and building trusted relationships with our employees, clients, communities, and stakeholders Strong core values of Character, Competence, Commitment, and Connection Our Commitment to Employees Diverse representation of top-tier talent Our IDEA (Inclusion, Diversity, Equality, and Accountability) Champions are a team of employee volunteers who promote diversity, equality and inclusion while supporting our core values and strengths-based culture. Our Investments in the Communities We Serve We proudly support over 100 organizations with donations and sponsorships in the communities we serve. We support our employees through our Generous Giving programs which support individuals in our communities. Investments for Our Future Develop our strong talent to create future leaders Promoted and onboarded new executive team members Hired 13 new revenue producers in 2022 Our Entrepreneurial culture attracts seasoned bankers with diverse banking experience 6
STRATEGIC ACQUISITION OF CENTRAL CROSSFIRST BANKSAHRES, INC. Market Expansion Advances our expansion strategy with access to Colorado & New Mexico Branch-light: Central has two branches in Colorado (Colorado Springs and Denver) and Farmers & Stockmens (F&S) has three in New Mexico (Clayton, Des Moines and Roy) U.S. News ranked Colorado the #2 economy in the United States in 2021 Experienced Leaders & Enhanced Client Resources Management team with extensive market experience and industry expertise Strong cultural alignment with a client centric business model Access to additional products and services provides a robust client experience CrossFirst’s advanced technology platform provides an opportunity for enhanced capabilities for clients Accelerates Growth Strategy Larger balance sheet and new market verticals leverages growth opportunities Adds significant core deposits and liquidity and diversifies balance sheet SBA lending – F&S Bank was the 15th ranked SBA lender in Colorado for SBA’s 2021 fiscal year Mortgage operation creates potential for enhancing fee income Creates Shareholder Value Expected 11.7% EPS accretion in 2023 estimate with fully realized synergies Internal rate of return expected to be in excess of 25% Deploys a portion of CFB’s capital for growth Source: SBA Lenders. 7
EXPANDING OUR FOOTPRINT CROSSFIRST BANKSAHRES, INC. AREAS OF FOCUS Continue to execute our organic growth strategy in new and existing markets, with our primary focus being an organic growth company Focus on new expansion in target markets where we current ly have client business Evaluate expansion strategies in key target markets: De Novo Expansion: Hire experienced talent to expand in key growth markets Strategic Acquisition: Provides operational scale and synergies Adds new lines of business Adds fee income opportunities CURRENT AND POTENTIAL TARGET MARKETS Austin, Texas Houston, Texas San Antonio, Texas Nashville, Tennessee Omaha, Nebraska Current CFB Location Planned CFB Location* * Subject to regulatory approval. 8
SECOND QUARTER 2022 HIGHLIGHTS CROSSFIRST BANKSAHRES, INC. Financial Performance Net Income $15.5M Diluted ES $0.31 REO 10.2% ROA 1.12% Net Income Net interest income increased 8% on strong loan growth and increased yield Non-interest expenses rose 6% during Q1 2022 driven by employee separation and merger-related costs Fully tax equivalent NIM increased 23bps to 3.52% during Q2 2022 and has expanded 38bps from Q2 2021 Balance Sheet Loan portfolio increased 4% from Q1 2022; the portfolio increased 7% from Q2 2021 Total deposits increased 3% from the prior quarter and 9% from Q2 2021; DDA as a percentage of total deposits increased 6% from Q2 2021 and grew 42% year over year Credit Quality Classified loans / total capital + combined ACL ratio of 12.0% has declined from 24.0% at Q2 2021 NCOs / average loans of 0.10%, consistent with Q1 2022, and 13bps lower than Q2 2021 NPAs / assets decreased 10bps during the quarter to 0.54% and have declined 55bps from Q2 2021 (1) For all quarters presented, investment yield accrual calculation changed to 30/360 from actual/actual and excludes unrealized gains and losses in the investment portfolio and earning assets. (2) Includes the accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) that resulted from CECL adoption on January 1, 2022. 9
NET INTEREST MARGIN CROSSFIRST BANKSAHRES, INC. Yield on Loans & Cost of Deposits 3.99% 0.41% 4.00% 0.38% 4.17% 0.33% 4.00% 0.31% 4.28% 0.42% Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Yield on Loans Cost of Total Deposits Net Interest Margin - Fully Tax Equivalent (FTE)* 3.14% 3.23% 3.30% 3.29% 3.52% Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Fully tax-equivalent net interest margin increased 23bps from Q1 2022, primarily due to higher loan yields, loan growth, and accrual improvements, despite a continued decline in PPP fees Cost of funds increased 11bps from Q1 2022 due to market rate increases Loan to deposit ratio increased to 95% from 94% in Q1 2022 Current funding structure allows for significant additional capacity for borrowing or wholesale funding if necessary * For all quarters presented, investment yield accrual calculation changed to 30/360 from actual/actual and excludes unrealized gains and losses in the investment portfolio and earning assets 10
NET INTEREST INCOME SENSITIVITY CROSSFIRST BANKSAHRES, INC. Net Interest Income Impact From Rate Changes (2.73%) (1.09%) 1.99% 0.96% 4.14% 1.99% 6.38% 3.09% 8.58% 4.19% -100 bps +100 bps +200 bps +300 bps +400 bps Rate Shock* Rate Ramp* Anticipated asset sensitivity with rate increases driving potential expansion of net interest income Loans: Rate Reset and Cash Flow Profile 9% 10% 17% 3% 1-3… 4-12… 1-2… 2-5… >5 Years Roughly 70% of Company’s earning assets reprice or mature over the next 12 months, with 51% in month 1 Note: Data as of June 30, 2022 * Rate Shock analysis: measures instantaneous parallel shifts in market rates Rate Ramp analysis: rate changes occur gradually over 12 months time Balance sheet size and mix held constant from month end position and includes average YTD loan fees (excluding PPP fees) 11
ASSET QUALITY PERFORMANCE CROSSFIRST BANKSAHRES, INC. Classified Loans / (Total Capital +ACL + RUC*) $170.7 $124.1 $78.7 $73.3 $80.5 24.0% 17.3% 10.8% 10.7% 12.0% Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Classified Loans Classified / Total Capital + LLR + RUC* Classified loans increased due to some C&I credits negatively affected by supply chain issues 15% of classifieds in Q2 2022 relate to Energy, down from 22% in Q1 2022 Non-performing Assets / Assets 1.09% 0.92% 0.58% 0.64% 0.54% Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 NPAs decreased due to continued improvements in pandemic related industries and energy 19% of the non-performing asset balance in Q2 2022 relates to energy credits Note: Dollar amounts are in millions. * Includes the accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) that resulted from CECL adoption on January 1, 2022. 12
ASSET QUALITY PERFORMANCE CROSSFIRST BANKSAHRES, INC. Net Charge-Offs / Average Loans(1) 0.23% 0.13% 0.07% 0.10% 0.10% Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Q2 2022 included $1.1 million of net charge-offs which consisted of loans in both energy and commercial and industrial credits Combined Allowance for Credit Losses / Total Loans 1.78% 1.51% 1.37% 1.38% 1.35% $75.5 $64.2 $58.4 $55.2 $55.8 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 ACL RUC % Total Loans ACL/ Total Loans decreased slightly to 1.35% at end of Q2 2022 primarily due to credit improvements in C&I and energy loans Combined allowance for credit losses to non-accruing loans at the end of Q2 2022 was 221% Note: Dollar amounts are in millions Ratio is annualized for interim periods. 13
2022 GUIDANCE CROSSFIRST BANKSAHRES, INC. Business Driver Annual Outlook Loans Expect 8-10% core loan growth Deposits Expect continued deposit growth to fund lending growth with a continued focus on improving the DDA mix Net Interest Margin (NIM) Expect NIM to stay in the upper end of the range that we have experienced in 2022, assuming a Fed Funds Rate of 3.75% at year-end Combined ACL / Loans Anticipated to remain in the 1.30% to 1.45% range, based on current economic conditions Effective Tax Rate Expect to remain in the 20-23% range 14
SUPPLEMENTAL INFORMATION CROSSFIRST BANKSAHRES, INC. 15
STOCK REPURCHASE ACTIVITY CROSSFIRST BANKSAHRES, INC. 50,959 51,003 50,450 49,728 49,538 576 0 566 1,058 238 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 # of Shares Repurchased # Shares Outstanding Repurchased only 0.5% of outstanding shares in Q2 2022 due to blackout period surrounding the acquisition announcement Drives improvement in ROE and EPS Little tangible book value dilution and a short earnback period Note: shares in thousands. 16
CAPITAL RATIOS CROSSFIRST BANKSAHRES, INC. 12.4% 12.4% 13.7% 12.6% 12.6% 13.9% 12.5% 12.5% 13.6% 11.9% 11.9% 12.9% 11.5% 11.5% 12.6% Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Common Equity Tier 1 Tier 1 Risk Based Total Risk-Based Capital Maintaining strong capital levels to support future growth Remain well capitalized as we return capital to shareholders through share repurchases Execution of our profitable growth strategy supports capital ratios Capital ratios have decreased due to share repurchase activity and loan growth 17
DIVERSE LOAN PORTFOLIO CROSSFIRST BANKSAHRES, INC. Loan Mix by Type ($4.5bn) C&I 35% Owner Occupied Real Estate 8% Energy 5% CRE 42% Residential Real Estate 9% Other 1% Note: Gross loans, (net of unearned income) data as of June 30, 2022. 18
DIVERSE LOAN PORTFOLIO CROSSFIRST BANKSAHRES, INC. CRE Loan Portfolio by Segment ($1.9bn) Multi-Family 15% Retail 14% Office 16% Industrial 13% 1-4 Family Res Construction 7% Hotel 9% Other 26% C&I Loan Breakdown by Type ($1.6bn) Engineering & Contracting 11% Restaurants 5% Financial Management 5% Merchant Wholesalers 4% 18 Other Industries 44% Manufacturing 11% Business Loans to Individuals 6% Health Care 5% Note: Data as of June 30, 2022. 19
BALANCE SHEET GROWTH CROSSFIRST BANKSAHRES, INC. Year-over-year gross loan growth of 7% Annualized Q2 loan growth of over 16% $16 million in PPP loans were forgiven in Q2 2022 $182 million in PPP loans have been forgiven since Q2 2021 Balance Sheet Q2 2022 Q°Q 2018- Q2 2022 CAGR Gross Loans A 4% A 12% Total Deposits A 3% A 12% Total Assets A 3% A 10% $3,061 $3,208 $3,852 $3,924 $4,442 $4,695 $4,256 $4,684 $4,350 $4,622 $4,528 $4,744 2018 2019 2020 2021 Q1 Q2 2022 2022 Gross Loans Net of Unearned Income Total Deposits Note: Dollars are in millions. * Represents a non-GAAP financial measure. See Non-GAAP Reconciliation slides at the end of this presentation for additional detail. 20
COMBINED ALLOWANCE FOR CREDIT LOSSES CROSSFIRST BANKSAHRES, INC. ACL and Reserve for Unfunded Commitments $60.1 ($1.1) ($2.2) $4.3 $61.1 Q1 QTD Inidvidual Growth and Q2 2022 Net Charge-Offs Analysis Qualitative 2022 End Factors End ACL +* Reserve Note: As of end of period; dollars in millions. * Includes the accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) that resulted from CECL adoption on January 1, 2022. 21
EXPENSE MANAGEMENT CROSSFIRST BANKSAHRES, INC. $25.8 $24.0 $26.7 $27.7 $29.2 $5.9 $4.5 $5.9 $5.2 $5.8 $1.8 $1.7 $1.9 $2.1 $2.4 $2.4 $2.4 $2.4 $2.5 $2.6 $15.7 $15.4 $16.5 $17.9 $17.1 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Salaries & Benefits Non-core Expense* Other Occupancy Data Processing, Software & Comm. Investments in talent and technology continue to account for the increase in expenses Non-core expense includes $1.1 million of employee separation costs and $0.2 million of acquisition-related costs Salaries and benefits were down due to the first quarter incentives and related taxes which normalized this quarter Note: Dollars are in millions and amounts shown are as of the end of the period unless otherwise specified. * Represents a non-GAAP financial measure. See Non-GAAP Reconciliation slides at the end of this presentation for additional detail. 22
IMPROVING CORE FUNDING BASE CROSSFIRST BANKSAHRES, INC. Average Total Deposits and % Non-Interest-Bearing $4,721 $4,449 $4,535 $4,633 $4,551 $3,919 $3,539 $3,477 $3,476 $3,401 $802 $910 $1,058 $1,157 $1,150 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Non-Interest-Bearing Other Deposits Cost of Deposits 0.41% 0.38% 0.33% 0.31% 0.42% Average demand deposits have increased 43% since Q2 2021 Cost of funds increased 11bps this quarter, due to market rate increases Non-interest-bearing deposits improved slightly to 25% of total deposits this quarter. Note: Dollars are in millions and amounts shown are as of the end of the period. 23
LOAN PORTFOLIO CROSSFIRST BANKSAHRES, INC. Average Gross Loans by Type $4,409 $4,231 $4,221 $4,333 $4,438 $455 $464 $463 $467 $468 $2,096 $2,076 $2,056 $2,116 $2,177 $341 $311 $290 $274 $241 $1,517 $1,380 $1,412 $1,476 $1,552 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 C&I Energy CRE Consumer Loan Yield 3.99% 4.00% 4.17% 4.00% 4.28% The average loan portfolio at Q2 2022 grew 2% from previous quarter Loan growth primarily driven by commercial real estate and C&I portfolios Net balance of participations and syndications was $183 million as of Q2 2022 Note: Dollars are in millions and amounts shown are as of the end of the period. 24
PPP LOAN SUMMARY CROSSFIRST BANKSAHRES, INC. Fee Recognition $5.9 $2.1 $4.7 $1.7 $3.7 $4.2 $3.0 $1.3 $1.7 $0.9 $0.1 $0.0 $0.4 $2.2 $0.5 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 2021 2021 2021 2021 2021 2021 2021 2022 2022 2022 2022 Round 1 Unrecognized Fees Fee Recognized Round 2 Unrecognized Fees PPP Timeline $336 ($161) $197 ($88) $109 $111 $129 $96 ($44) $65 ($34) $31 ($16) $15 $225 $68 $13 Q1 Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2021 2022 2022 End End End End End End 2020 PPP Loans Laon forgiveness 2021 PPP Loans Note: As of end of period; dollars in millions. 25
SECURITIES PORTFOLIO CROSSFIRST BANKSAHRES, INC. Investment Portfolio Breakouts as of June 30, 2022 Municipal - Taxable, 1.0% Municipal - Tax-Exempt, 73.2% CMO (Fixed), 1.9% Other, 0.8% MBS (Fixed), 23.1% Total: ~$696 million Securities Yield - Fully Tax Equivalent 3.07% 3.04% 3.02% 3.00% 3.07% 2.58% 2.58% 2.54% 2.61% 2.57% Q2 Q3 Q4 Q1 Q2 2021 2021 2021 2022 2022 Securities Yield- Cost of Fund Spread Securities Yield At the end of Q2 2022, the portfolio’s duration was approximately 5.3 years The fully taxable equivalent yield for Q2 2022 rose 7bps to 3.07% The securities portfolio has unrealized losses of approximately $69 million as of June 30, 2022 During Q2 2022, $23 million of securities were purchased at an average tax-equivalent yield of 4.32% and there were $8 million in MBS paydowns Based on approximate fair value. A tax rate of 21% is used to calculate the fully tax equivalent yield 26
QUARTERLY SELECTED FINANCIALS CROSSFIRST BANKSAHRES, INC. Unaudited CrossFirst Bankshares, Inc. Quarterly Financials (Dollars in thousands, except per share data) For the Three Months Ended 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 Income Statement Data: Interest income $ 52,840 $ 47,760 $ 49,202 $ 47,311 $ 48,484 Interest expense 6,131 4,645 5,757 5,510 6,156 Net interest income 46,709 43,115 43,445 41,801 42,328 Provision for credit losses 2,135 (625) (5,000) (10,000) 3,500 Non-interest income 4,201 4,942 4,796 (1,105) 5,825 Non-interest expense 29,203 27,666 26,715 24,036 25,813 Net income before taxes 19,572 21,016 26,526 26,660 18,840 Income tax expense 4,027 4,188 5,725 5,660 3,263 Net income 15,545 16,828 20,801 21,000 15,577 Non-GAAP core operating income(1) $ 16,574 $ 16,828 $ 20,801 $ 25,898 $ 14,245 Balance Sheet Data: Cash and cash equivalents $ 277,678 $ 276,927 $ 482,727 $ 316,722 $ 220,814 Securities 695,647 722,778 745,969 708,106 712,217 Gross loans (net of unearned income) 4,528,234 4,349,568 4,256,213 4,233,117 4,237,944 Allowance for credit losses(2) 55,817 55,231 58,375 64,152 75,493 Goodwill and intangibles 91 110 130 149 169 Total assets 5,708,311 5,518,121 5,621,457 5,401,151 5,311,434 Non-interest-bearing deposits 1,163,462 1,110,284 1,163,224 960,999 818,887 Total deposits 4,744,420 4,621,680 4,683,597 4,436,597 4,356,627 Borrowings and repurchase agreements 296,606 226,600 236,600 276,600 283,100 Trust preferred securities, net of fair value adjustments 1,035 1,022 1,009 997 986 Stockholders' Equity 608,016 623,199 667,573 652,407 637,190 Tangible common stockholders' equity(1) $ 607,924 $ 623,089 $ 667,443 $ 652,257 $ 637,021 Share and Per Share Data: Basic earnings per common share $ 0.31 $ 0.33 $ 0.41 $ 0.41 $ 0.30 Diluted earnings per common share 0.31 0.33 0.40 0.41
0.30 Book value per share 12.27 12.53 13.23 12.79 12.50 Tangible book value per share(1) $ 12.27 $ 12.53 $ 13.23 $ 12.79 $ 12.50 Basic weighted average common shares outstanding 49,758,263 50,251,297 50,893,493 50,990,113 51,466,885 Diluted weighted average common shares outstanding 50,203,725 50,910,490 51,660,723 51,605,721 52,209,541 Shares outstanding at end of period 49,535,949 49,728,253 50,450,045 51,002,698 50,958,680 Represents a non-GAAP financial measure. See Non-GAAP Reconciliation slides at the end of this presentation for additional detail. Implemented CECL on January 1, 2022, all prior quarters presented represent the allowance for loan losses. 27
QUARTERLY SELECTED FINANCIALS CROSSFIRST BANKSAHRES, INC. CrossFirst Bankshares, Inc. Quarterly Financials Unaudited For the Three Months Ended 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 Selected Ratios: Return on average assets(1) 1.12 % 1.23 % 1.50 % 1.54 % 1.10 % Non-GAAP core operating return on average assets(1)(2) 1.20 1.23 1.50 1.90 1.01 Return on average common equity 10.15 10.44 12.57 12.92 9.86 Yield on earning assets 3.92 3.59 3.65 3.56 3.51 Yield on earning assets - tax equivalent(3) 3.98 3.64 3.72 3.64 3.59 Yield on securities 2.66 2.59 2.49 2.46 2.52 Yield on securities - tax equivalent(3) 3.07 3.00 3.02 3.04 3.07 Yield on loans 4.28 4.00 4.17 4.00 3.99 Cost of funds 0.50 0.39 0.48 0.46 0.49 Cost of interest-bearing liabilities 0.66 0.51 0.61 0.57 0.59 Cost of interest -bearing deposits 0.56 0.41 0.43 0.47 0.50 Cost of deposits 0.4 2 0.31 0.33 0.38 0.41 Cost of other borrowings 1.66 1.95 3.03 1.82 1.79 Net interest margin - tax equivalent(3) 3.52 3.29 3.30 3.23 3.14 Non-interest expense to average assets 2.11 2.02 1.93 1.76 1.82 Efficiency ratio(4) 57.36 57.57 55.38 59.06 53.61 Non-GAAP core operating efficiency ratio (FTE)(2)(4) 55.08 56.66 54.52 50.45 53.34 Non-interest-bearing deposits to total deposits 24.52 24.02 24.84 21.66 18.80 Loans to deposits 95.44 % 94.11 % 90.87 % 95.41 % 97.28 % Credit Quality Ratios: Allowance for credit losses to total loans 1.23 % 1.27 % 1.37 % 1.51 % 1.78 % Allowance for credit losses + RUC to total loans(5) 1.35 1.38 - - - Non-performing assets to total assets 0.54 0.64 0.58 0.92 1.09 Non-performing loans to total loans 0.66 0.79 0.74 1.15 1.33 Allowance for credit losses to non-performing loans 186.92 159.60 185.19 131.76 133.79 Net charge-offs (recoveries) to average loans(1) 0.10 % 0.10 % 0.07 % 0.13 % 0.23 % Capital Ratios: Total stockholders' equity to total assets 10.65 % 11.29 % 11.88 % 12.08 % 12.00
% Common equity tier 1 capital ratio 11.51 11.88 12.46 12.61 12.40 Tier 1 risk-based capital ratio 11.53 11.90 12.48 12.63 12.42 Total risk-based capital ratio 12.60 12.92 13.61 13.88 13.67 Tier 1 leverage ratio 11.77 % 11.61 % 11.84 % 11.77 % 10.81 % (1) Interim periods are annualized. (2) Represents a non-GAAP financial measure. See Non-GAAP Reconciliation slides at the end of this presentation for additional detail. (3) Tax-exempt income is calculated on a tax-equivalent basis. Tax-exempt income includes municipal securities, which is exempt from federal taxation. A tax rate of 21% is used. (4) Efficiency ratio is non-interest expense divided by the sum of net interest income and non-interest income; non-GAAP core operating efficiency ratio (FTE) is adjusted for non-core items (5) Includes the accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) that resulted from CECL adoption on January 1, 2022. 28
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSAHRES, INC. Unaudited For the Three Months Ended (Dollars in thousands) 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 Non-GAAP Core Operating Income: Net income $ 15,545 $ 16,828 $ 20,801 $ 21,000 $ 15,577 Add: Acquisition costs 239 - - - - Less: Tax effect(1) 50 - - - - Acquisition costs, net of tax 189 - - - - Add: Employee separation 1,063 - - - - Less: Tax effect(1) 223 - - - - Employee separation, net of tax 840 - - - - Add: Unrealized loss on equity security - - - 6,200 - Less: Tax effect(1) - - - 1,302 - Unrealized loss on equity securit y, net of tax - - - 4,898 - Add: Accelerated employee benefits - - - - 719 Less: Tax effect (2) - - - - 210 Accelerated employee benefits, net of tax - - - - 509 Less: BOLI settlement benefits(3) - - - - 1,841 Non-GAAP core operating income $ 16,574 $ 16,828 $ 20,801 $ 25,898 $ 14,245 Non-GAAP Core Operating Return on Average Assets: Net income $ 15,545 $ 16,828 $ 20,801 $ 21,000 $ 15,577 Non-GAAP core operating income 16,574 16,828 20,801 25,898 14,245 Average assets $ 5,545,657 $ 5,563,739 $ 5,490,482 $ 5,408,984 $ 5,673,638 GAAP return on average assets 1.12 % 1.23 % 1.50 % 1.54 % 1.10 % Non-GAAP core operating return on average assets 1.20 % 1.23 % 1.50 % 1.90 % 1.01 % Non-GAAP Core Operating Return on Average Equity: Net income available to common stockholders $ 15,545 $ 16,828 $ 20,801 $ 21,000 $ 15,577 Non-GAAP core operating income available to common stockholders 16,574 16,828 20,801 25,898 14,245 Average common equity 614,541 653,747 656,415 644,715 633,417 Less: average goodwill and intangibles 101 121 140 160 179 Average Tangible Equity $ 614,440 $ 653,626 $ 656,275 $ 644,555 $ 633,238 GAAP return on average common equit y 10.15 % 10.44 % 12.57 % 12.92 % 9.86 % Non-GAAP core return on average tangible common equity
10.82 % 10.44 % 12.57 % 15.94 % 9.02 % Non-GAAP Core Operating Efficiency Ratio: Non-interest expense $ 29,203 $ 27,666 $ 26,715 $ 24,036 $ 25,813 Less: Accelerated employee benefits - - - - 719 Non-GAAP non-interest expense (numerator) $ 29,203 $ 27,666 $ 26,715 $ 24,036 $ 25,094 Net interest income 46,709 43,115 43,445 41,801 42,328 Tax equivalent interest income(4) 808 775 762 748 734 Non-interest income 4,201 4,942 4,796 (1,105) 5,825 Add: Acquisition costs 239 - - - - Add: Employee separation 1,063 - - - - Add: Unrealized loss on equity security - - - 6,200 - Less: BOLI settlement benefits - - - - 1,841 Non-GAAP operating revenue (denominator) $ 53,020 $ 48,832 $ 49,003 $ 47,644 $ 47,046 GAAP Efficiency Ratio 57.36 % 57.57 % 55.38 % 59.06 % 53.61 % Non-GAAP core operating efficiency ratio (FTE) 55.08 % 56.66 % 54.52 % 50.45 % 53.34 % Represents the tax impact of the adjustments at a tax rate of 21.0%. Represents the tax impact of the adjustments above at a tax rate of 21.0%, plus a permanent tax benefit associated with stock-based grants. No tax effect. Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%. 29
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSAHRES, INC. Unaudited As of or for the Year Ended December 31, Six Months Ended June 30, 2021 2020 2019 2018 2022 2021 Non-GAAP core operating income: Net income $ 69,413 $ 12,601 $ 28,473 $ 19,590 $ 32,373 $ 27,612 Add: Acquisition costs - - - - 239 - Less: Tax effect(1) - - - - 50 - Acquisition costs, net of tax - - - - 189 - Add: Employee separation - - - - 1,063 - Less: Tax effect(1) - - - - 223 - Employee separation, net of tax - - - - 840 - Add: Unrealized loss on equity security 6,200 - - - - - Less: Tax effect(1) 1,302 - - - - - Unrealized loss on equity security, net of tax 4,898 - - - - - Add: restructuring charges - - - 4,733 - - Less: Tax effect(1) - - - 1,381 - - Restructuring charges, net of tax - - - 3,352 - - Add: fixed asset impairments - - 424 171 - - Less: Tax effect(2) - - 109 44 - - Fixed asset impairments, net of tax - - 315 127 - - Add: Goodwill impairment(3) - 7,397 - - - - Add: State tax credit(3) - - (1,361) (3,129) - - Add: Accelerated employee benefits 719 - - - - 719 Less: Tax effect (2) 210 - - - - 210 Accelerated employee benefits, net of tax 509 - - - - 509 Less: BOLI settlement benefits(3) 1,841 - - - - 1,841 Non-GAAP core operating income $ 72,979 $ 19,998 $ 27,427 $ 19,940 $ 33,402 $ 26,280 Non-GAAP Core Operating Return on Average Assets: Net income $ 69,413 $ 12,601 $ 28,473 $ 19,590 $ 32,373 $ 27,612 Non-GAAP core operating income 72,979 19,998 27,427 19,940 33,402 26,280 Average assets $ 5,591,471 $ 5,358,479 $ 4,499,764 $ 3,494,655 $ 5,554,648 $ 5,735,558 GAAP Return on average assets 1.24 % 0.24 % 0.63 % 0.56 % 1.18 % 0.97 % Non-GAAP core operating return on average assets 1.31 % 0.37 % 0.61 % 0.57 % 1.21 % 0.92 % Represents the tax impact of the adjustments above at a tax rate of 25.73% from 2018 through 2020 and at 21% for 2021 and 2022, plus a permanent tax benefit associated
with stock-based grants. Represents the tax impact of the adjustments above at a tax rate of 25.73% for fiscal years 2018 and after. No tax effect associated with the 2017 Tax Act adjustment or state tax credit or the goodwill impairment. 30
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSAHRES, INC. Unaudited As of or for the Year Ended December 31, Six Months Ended June 30, 2021 2020 2019 2018 2022 2021 Non-GAAP Core Operating Return on Average Equity: Net income $ 69,413 $ 12,601 $ 28,473 $ 19,590 $ 32,373 $ 27,612 Non-GAAP core operating income 72,979 19,998 27,427 19,940 33,402 26,280 Less: Preferred stock dividends - - 175 2,100 - - Net income available to common stockholders 69,413 12,601 28,298 17,490 32,373 27,612 Non-GAAP core operating income available to common stockholders 72,979 19,998 27,252 17,840 33,402 26,280 Average common equity 640,202 614,726 526,225 327,446 634,036 629,667 Intangible Assets 170 3,898 7,746 7,847 111 189 Average Tangible Equity $ 640,032 $ 610,828 $ 518,479 $ 319,599 $ 633,925 $ 629,478 GAAP return on average common equity 10.84 % 2.05 % 5.38 % 5.34 % 10.30 % 8.84 % Non-GAAP core return on average tangible common equity 11.40 % 3.27 % 5.26 % 5.58 % 10.63 % 8.42 % Non-GAAP Core Operating Efficiency Ratio: Non-interest expense $ 99,382 $ 99,968 $ 87,640 $ 85,755 $ 56,869 $ 48,631 Less: Accelerated employee benefits 719 - - - - 719 Less: goodwill impairment - 7,397 - - - - Less: restructuring charges - - - 4,733 - - Non-GAAP non-interest expense (numerator) $ 98,663 $ 92,571 $ 87,640 $ 81,022 $ 56,869 $ 47,912 Net interest income 168,691 160,249 141,444 110,368 89,824 83,445 Tax equivalent interest income 2,948 2,732 2,522 3,099 1,583 1,438 Non-interest income 13,660 11,733 8,707 6,083 9,143 9,969 Add: Acquisition costs - - - - 239 - Add: Employee separation - - - - 1,063 - Add: Unrealized loss on equity security 6,200 - - - - - Add: fixed asset impairments - - 424 171 - - Less: BOLI settlement benefits(1) 1,841 - - - - 1,841 Non-GAAP Operating revenue (denominator) $ 189,658 $ 174,714 $
153,097 $ 119,721 $ 101,852 $ 93,011 GAAP Efficiency Ratio 54.50 % 58.13 % 58.37 % 73.64 % 57.46 % 52.06 % Non-GAAP Core Operating Efficiency Ratio (FTE) 52.02 % 52.98 % 57.25 % 67.68 % 55.83 % 51.51 % Represents the tax impact of the adjustments above at a tax rate of 21% for 2021 31
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSAHRES, INC. Unaudited For the Three Months Ended (Dollars in thousands, except per share data) 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 Tangible common stockholders' equity: Stockholders' equity $ 608,016 $ 623,199 $ 667,573 $ 652,407 $ 637,190 Less: goodwill and other intangible assets 91 110 130 149 169 Tangible Stockholders' Equity $ 607,925 $ 623,089 $ 667,443 $ 652,258 $ 637,021 Shares outstanding at end of period 49,535,949 49,728,253 50,450,045 51,002,698 50,958,680 Book value per share $ 12.27 $ 12.53 $ 13.23 $ 12.79 $ 12.50 Tangible book value per share $ 12.27 $ 12.53 $ 13.23 $ 12.79 $ 12.50 For the Three Months Ended 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 Gross loans, net of unearned income $ 4,528,234 $ 4,349,558 $ 4,256,213 $ 4,233,117 $ 4,237,944 Less: PPP loans, net of unearned income 14,536 31,200 64,805 109,465 197,084 Non-PPP gross loans, net of unearned income $ 4,513,698 $ 4,318,358 $ 4,191,408 $ 4,123,652 $ 4,040,860 Year-over-year loan growth 6.85 % Non-GAAP year -over-year loan growth excluding PPP loans 12.00 Linked quarter loan growth 4.11 Non-GAAP linked quarter loan growth excluding PPP loans 4.52 % Allowance for loan losses $ 55,817 $ 55,231 $ 58,375 $ 64,152 $ 75,493 Allowance for loan losses to gross loans, net of unearned income 1.23 % 1.27 % 1.37 % 1.51 % 1.78 % Allowance for loan losses to non-PPP gross loans, net of unearned income 1.24 % 1.28 % 1.39 % 1.56 % 1.87 % 32