UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02.
Results of Operations and Financial Condition.
On October 16, 2023, CrossFirst Bankshares, Inc. (the “Company”) announced that it had released its financial results for its third quarter
of 2023. A copy of the full text of the related press release, which is posted on the Investor Section of the Company’s website
(investors.crossfirstbankshares.com) under Financials – Quarterly Reports, is furnished as Exhibit 99.1 hereto and incorporated by
reference into this Item 2.02. The Company does not intend for information contained on its website to be part of this report.
The Company intends to hold a conference call to review third quarter 2023 financial results. The investor presentation, which will
accompany the call, is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being “furnished” and shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly stated in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
99.1
99.2
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date:
October 16, 2023
CROSSFIRST BANKSHARES, INC.
By:
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
1
CrossFirst Bankshares, Inc. Reports Third Quarter 2023
Results
LEAWOOD, Kan., October 16, 2023 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company
for CrossFirst Bank, today reported third quarter net income of $16.9 million, or $0.34 per diluted common share, and adjusted net income
of $18.6 million, or $0.37 per diluted common share on an adjusted basis.
Third Quarter 2023 Key Financial Performance Metrics
Net Income
ROAA
(1)
Net Interest Margin –
Fully Tax Equivalent
(“FTE”)
(1)
Diluted EPS
ROCE
(1)
$16.9 million
0.94%
3.19%
$0.34
10.19%
Adjusted Third Quarter 2023 Key Financial Performance Metrics
(2)
Adjusted Net Income
Adjusted ROAA
(1)
Net Interest Margin -
FTE
(1)
Adjusted Diluted
EPS
Adjusted ROCE
(1)
$18.6 million
1.04%
3.19%
$0.37
11.26%
CEO Commentary:
“We continued to execute on our strategic plans with growth in operating revenue, core deposits and earnings this quarter in a difficult
macro economic environment for banking,” said CrossFirst’s CEO and President, Mike Maddox. Mr. Maddox continued, “We remain
focused on driving scale and gaining operating leverage through our high-growth, dynamic markets and verticals all while remaining
diligent on credit quality.”
2023
Third Quarter Highlights:
●
Improved profitability as operating revenue, adjusted diluted earnings per common share, and adjusted return on average
common equity increased compared to the prior quarter and the prior year third quarter; Year-to-date 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”)
o
Added $106 million of loans net of $5.2 million in acquired loan marks, $165 million of deposits and $4.5 million
of core deposit intangible
o
Deepened our Arizona franchise; system integration planned for the fourth quarter of 2023
●
Loans grew $149 million, or 2.6%, for the quarter and grew 10.7% year-to date
o
Excluding the Tucson acquisition, loans grew 0.8% for the quarter and 8.7% year-to-date
●
Deposits grew $232 million, or 3.8%, for the quarter and grew 12.0% year-to-date
o
Excluding the Tucson acquisition, deposits grew 1.1% for the quarter and 9.1% year-to-date
o
Non-interest-bearing deposits increased 11% from the prior quarter, and increased 6% excluding the impact of the
Tucson acquisition
●
Non-performing 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
●
Reduced non-interest expense compared to the linked quarter, progressing towards our longer-term efficiency goal
(1)
Ratios are annualized.
(2)
With the exception of Net Interest Margin - FTE, represents a non-GAAP financial measure. See “Table 5. Non-GAAP Financial Measures” for
a reconciliation of these measures.
Exhibit 99.1
2
Quarter-to-Date
Year-to-Date
(Dollars in millions except per share data)
September 30, 2023
June 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Operating revenue
(1)
$
61.1
$
60.3
$
53.5
$
184.1
$
152.4
Net income
$
16.9
$
16.0
$
17.3
$
49.0
$
49.7
Adjusted net income
(2)
$
18.6
$
17.3
$
17.3
$
53.2
$
50.7
Diluted earnings per common share
$
0.34
$
0.33
$
0.35
$
0.99
$
0.99
Adjusted diluted earnings per common share
(2)
$
0.37
$
0.35
$
0.35
$
1.08
$
1.01
Return on average assets
0.94
%
0.93
%
1.19
%
0.95
%
1.18
%
Adjusted return on average assets
(2)
1.04
%
1.00
%
1.19
%
1.03
%
1.21
%
Return on average common equity
10.19
%
10.00
%
11.18
%
10.24
%
10.59
%
Adjusted return on average common equity
(2)
11.26
%
10.81
%
11.22
%
11.12
%
10.82
%
Net interest margin
3.15
%
3.23
%
3.50
%
3.32
%
3.40
%
Net interest margin -FTE
(3)
3.19
%
3.27
%
3.56
%
3.36
%
3.46
%
Efficiency ratio
59.49
%
62.02
%
53.20
%
60.77
%
55.97
%
Adjusted efficiency ratio - FTE
(2)(3)
55.17
%
57.27
%
52.25
%
56.28
%
54.21
%
(1)
Net interest income plus non-interest income.
(2)
Represents a non-GAAP financial measure. See "Table 5. Non-GAAP Financial Measures" for a reconciliation of these measures.
(3)
Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental federal income tax rate
used is 21.0%.
Income from Operations
Net income totaled $16.9 million, or $0.34 per diluted common share, for the third quarter of 2023, compared to $16.0 million, or $0.33
per diluted common share, during the second quarter of 2023 and $17.3 million, or $0.35 per diluted common share, during the third
quarter of 2022. On a linked quarter basis, net income was higher due to increases in net interest income and non-interest income as well
as lower non-interest expense, partially offset by higher provision expense. Compared to the same period in the prior year, the quarter’s
results were impacted by higher net interest income and non-interest income that were more than offset by higher non-interest expense.
The third quarter included acquisition-related charges of $1.3 million and Day 1 CECL provision expense on acquired loans of $0.9
million, resulting in adjusted net income of $18.6 million, or $0.37 per diluted common share on an adjusted basis, compared to adjusted
net income of $17.3 million, or $0.35 per diluted common share, on an adjusted basis for the second quarter of 2023.
Net Interest Income
Fully tax equivalent net interest income totaled $55.8 million for the quarter, compared to $55.3 million for the second quarter of 2023, as
the benefit from higher average earning assets, higher loan yields and one additional day were partially offset by higher cost of funds. Net
interest margin – FTE narrowed to 3.19% primarily due to the impact of non-accrual loan interest reversals.
Average earning assets increased $183 million compared to the prior quarter primarily due to higher average loan balances, higher average
cash balances and the impact of the Tucson acquisition. The yield on earning assets widened 8 basis points entirely due to stronger loan
yields from the repricing of variable rate loans as well as higher pricing on new loans, partially offset by the impact of non-accrual loan
interest reversals. The cost of interest-bearing liabilities increased 23 basis points due to continued pricing pressure on interest-bearing
deposits from the higher interest rate environment.
Compared to the third quarter of 2022, net interest income – FTE increased $5.3 million while net interest margin - FTE decreased 37
basis points. The higher income is due to 23% growth in average earning assets while the net interest margin – FTE decreased as higher
loan yields were more than offset by a higher cost of funds due to the rising rate environment. The increase in average earning assets was
entirely driven by higher average loan and investment balances, partially offset by lower average cash balances. The yield on earning
assets increased 1.79% due to new loan production as well as repricing of variable rate loans. The cost of funds increased 2.37% over the
same period due to pricing pressure on deposits as well as client migration into higher cost deposit products compared to the prior year.
CROSSFIRST BANKSHARES, INC.
3
Non-Interest Income
Non-interest income increased $0.2 million compared to the second quarter of 2023 and increased $2.2 million compared to the same
quarter in 2022. The increase in non-interest income compared to both prior periods was due to increases in service charges and fees,
stronger credit card interchange income and other client-related non-interest income. Additionally, gains on sale of loans decreased
compared to the prior quarter due to stronger SBA loan sales in the prior quarter.
Non-Interest Expense
Non-interest expense decreased $1.1 million from the second quarter of 202 3 and increased $7.9 million from the third quarter of 2022.
The third quarter of 2023 included $1.3 million of acquisition-related expenses with $0.8 million included in professional fees, $0.3
million in salaries and employee benefits, $0.1 million in software and communication , and $0.1 million in other non-interest expense.
The second quarter of 2023 included $0.3 million of acquisition-related expenses, most of which were included in professional fees, and
$1.3 million of employee separation costs included in salaries and employee benefits. The third quarter of 2022 included $0.1 million of
acquisition-related expenses, which were included in advertising, professional fees and other non-interest expense. Excluding these
acquisition-related expenses and employee separation costs, non-interest expense decreased $0.7 million compared to the second quarter of
2023 and increased $6.7 million compared to the third quarter of 2022.
On an adjusted basis, salaries and employee benefits were $1.0 million lower than the prior quarter due to reductions in headcount.
Additionally, other non-interest expenses decreased $0.3 million primarily due to a decrease in discretionary expenses. Partially offsetting
these decreases was a $0.4 million increase in other professional fees and a $0.1 million increase in occupancy expense. Core deposit
intangible amortization also increased $0.1 million due to the Tucson acquisition. Compared to the third quarter of 2022, salaries and
employee benefits costs were higher due to the addition of employees as part of the Colorado and New Mexico and Tucson acquisitions, as
well as merit increases. Occupancy costs increased due to the addition of a second location in Dallas, Texas and new properties in
Colorado and New Mexico. Additionally, deposit insurance premiums increased due to growth in assets and a higher assessment rate.
Software and communication expenses increased due to headcount and client account growth as well as new technology implementation.
Core deposit intangible amortization expense also increased compared to the prior year as a result of the previously mentioned
acquisitions.
The Company’s effective tax rate for the third quarter of 2023 was 21.3%, as compared to 20.8% in the second quarter of 2023 and 20.3%
for the third quarter of 2022. The higher rate for the third quarter of 2023 was primarily related to discrete impacts of stock compensation
activity.
Statement of Financial Condition Performance & Analysis
During the third quarter of 2023, total assets increased slightly compared to the end of the prior quarter and increased $1.3 billion, or 23%,
compared to September 30, 2022. Total assets increased on a linked quarter basis primarily due to an increase in loans, primarily from the
Tucson acquisition. The year-over-year increase was primarily due to an increase in loans of $1.3 billion, including $0.5 billion in acquired
loans. Deposits increased $0.2 billion compared to June 30, 2023, and increased $1.3 billion from September 30, 2022, including $0.7
billion in acquired deposits.
Loan Results
During the third quarter of 2023, loans increased $149 million compared to June 30, 2023, including $106 million, net, from the Tucson
acquisition. Loans increased $1.3 billion, or 27%, compared to September 30, 2022, including the impact of acquired loans which added
11%. The loan increase compared to September 30, 2022 was primarily due to growth in the commercial and industrial, commercial real
estate – owner-occupied and commercial real estate – non-owner-occupied portfolios.
CROSSFIRST BANKSHARES, INC.
4
9/30/23
6/30/23
3/31/23
12/31/22
9/30/22
% of
Total
QoQ
Growth
($)
QoQ
Growth
(%)
YoY
Growth
($)
YoY
Growth
(%)
(Dollars in millions)
Period-end loans (gross)
Commercial and industrial
$
2,056
$
2,058
$
2,034
$
1,975
$
1,689
34
%
$
(2)
(0)
%
$
367
22
%
Energy
214
233
194
173
179
4
(19)
(8)
35
20
Commercial real estate -
owner-occupied
584
543
478
437
362
10
41
8
222
61
Commercial real estate - non-
owner-occupied
2,593
2,480
2,472
2,315
1,988
43
113
5
605
30
Residential real estate
456
440
440
439
421
8
16
4
35
8
Consumer
43
43
30
34
39
1
-
0
4
10
Total
$
5,946
$
5,797
$
5,648
$
5,373
$
4,678
100
%
$
149
3
%
$
1,268
27
%
Deposit & Other Borrowing Results
During the third quarter of 2023, deposits increased 4%, compared to June 30, 2023, and increased 27%, compared to September 30, 2022.
The deposit increase compared to June 30, 2023 was due to increases in non-interest-bearing deposits, transaction deposits and savings and
money market deposits, partially offset by decreases in time deposits. Increases in deposits include $165 million related to the Tucson
acquisition. Decreases in time deposits were due to decreases in wholesale funding with increases in client deposits more than offsetting
these amounts. The total deposit increase compared to September 30, 2022 was due to increases in transaction deposits, savings and money
market deposits and time deposits, including acquired deposits, partially offset by decreases in non-interest-bearing deposits.
9/30/23
6/30/23
3/31/23
12/31/22
9/30/22
QoQ
Growth
($)
QoQ
Growth
(%)
YoY
Growth
($)
YoY
Growth
(%)
(Dollars in millions)
Period-end deposits
Non-interest-bearing deposits
$
1,029
$
928
$
970
$
1,400
$
1,114
$
101
11
%
$
(85)
(8)
%
Transaction deposits
802
604
665
544
519
198
33
283
55
Savings and money market deposits
2,757
2,730
2,826
2,761
2,605
27
1
152
6
Time deposits
1,744
1,838
1,376
946
750
(94)
(5)
994
133
Total
$
6,332
$
6,100
$
5,837
$
5,651
$
4,988
$
232
4
%
$
1,344
27
%
FHLB and Other borrowings ended the quarter at $106.6 million compared to $277.0 million in the linked quarter and $206.4 million at
September 30, 2022. Borrowings were reduced due to client deposit growth and acquired deposit balances across both comparative
periods.
Asset Quality and Provision for Credit Losses
The Company recorded $3.3 million of provision expense, compared to $2.6 million in the prior quarter and $3.3 million in the prior year
third quarter. The current quarter’s provision expense was driven by $0.9 million of Day 1 CECL provision for the Tucson acquisition as
well as increases due to economic factors, specific reserves, and loan growth. Provision expense was partially offset by a $1.6 million
reversal of reserves for unfunded commitments.
Non-performing assets increased $22.8 million to $36.1 million at September 30, 2023 primarily due to one commercial and industrial
credit and one commercial real estate – non-owner-occupied credit that moved to nonaccrual during the quarter and several credits that
were 90+ days past due and still accruing at quarter-end. Annualized net charge-offs were 0.09% for the quarter compared to 0.04% in the
prior quarter and 0.16% in the prior year third quarter.
The allowance for credit losses was $71.6 million and increased to 1.20% of outstanding loans at September 30, 2023. The combined
allowance for credit losses and accrual for off-balance sheet credit risk from unfunded commitments (“RUC”) was $77.7 million or 1.31%
of outstanding loans which was slightly higher compared to the linked quarter and lower than the prior year third quarter due to a reduction
in unfunded commitments and the related reserve.
CROSSFIRST BANKSHARES, INC.
5
The following table provides information regarding asset quality.
Asset quality
9/30/23
6/30/23
3/31/23
12/31/22
9/30/22
Non-accrual loans
$
20.4
$
12.9
$
9.5
$
11.3
$
16.9
Other real estate owned
-
-
0.9
1.1
1.0
Loans 90+ days past due and still accruing
15.7
0.4
0.8
0.8
0.3
Non-performing assets
$
36.1
$
13.3
$
11.2
$
13.2
$
18.2
Loans 30 - 89 days past due
29.5
13.3
5.1
19.6
21.4
Net charge-offs (recoveries)
1.3
0.6
1.6
(0.3)
1.9
Asset quality metrics
(%)
9/30/23
6/30/23
3/31/23
12/31/22
9/30/22
Nonperforming assets to total assets
0.50
%
0.19
%
0.16
%
0.20
%
0.31
%
Allowance for credit losses to total loans
1.20
1.17
1.15
1.15
1.19
Allowance for credit losses + RUC to total loans
(2)
1.31
1.30
1.30
1.31
1.34
Allowance for credit losses to non-performing loans
198
508
629
514
324
Net charge-offs (recoveries) to average loans
(1)
0.09
0.04
0.12
(0.02)
0.16
Provision to average loans
(1)
0.23
0.18
0.32
0.53
0.29
Classified Loans / (Total Capital + ACL)
14.2
9.7
9.4
10.1
11.3
Classified Loans / (Total Capital + ACL + RUC)
(2)
14.0
9.6
9.3
10.0
11.2
(1)
Interim periods annualized.
(2)
Includes the accrual for off-balance sheet credit risk from unfunded commitments
Capital Position
At September 30, 2023, stockholders' equity totaled $643 million, or $13.04 of book value per common share, compared to $651 million,
or $13.39 of book value per common share, at June 30, 2023. The decrease was due to an increase in accumulated other comprehensive
loss from the unrealized loss on available-for-sale securities, net of tax, partially offset by net income and the issuance of shares as part of
the consideration in the Tucson acquisition.
Tangible book value per common share
(1)
common equity Tier 1 capital to risk-weighted assets was approximately 9.7%, and the ratio of total capital to risk-weighted assets was
approximately 10.9% at September 30, 2023.
(1)
Represents a non-GAAP financial measure. See “Table 5. Non-GAAP Financial Measures” for a reconciliation of this measure.
CROSSFIRST BANKSHARES, INC.
6
Conference Call and Webcast
Management will host a conference call to review third quarter financial results on Tuesday, October 17, 2023, at 10 a.m. CT / 11 a.m. ET.
The conference call and webcast may also include discussion of Company developments, forward-looking statements and other material
information about business and financial matters. To access the event by telephone, please dial
(
844) 481-2831 at least fifteen minutes
prior to the start of the call and request access to the CrossFirst Bankshares call. International callers should dial
+1
(412) 317-1851 and
request access as directed above. The call will also be broadcast live over the internet and can be accessed via the following link:
https://edge.media-server.com/mmc/p/c7g6sbx8. 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 6090856. International callers should dial +1 (412) 317-0088 and enter the
same access code. A replay of the webcast will also be available for 90 days on the Company’s website
https://investors.crossfirstbankshares.com/.
Cautionary Notice about Forward-Looking Statements
The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Quarterly Report
on Form 10-Q is filed. This earnings release contains forward-looking statements regarding, among other things, our business plans;
expansion and growth opportunities; post-closing plans, objectives, expectations and intentions with respect to the Tucson acquisition;
expense control 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 “growth,”
“planned,” “guidance,” “believe,” “future,” “opportunity,” “anticipated,” “expectations,” “expect,” “will,” “could,” “goal,” “focused,”
“work toward,” “aim,” “intend,” “position” 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, our ability to successfully integrate Canyon Bancorporation, Inc. and
Canyon Community Bank, N.A., entering new lines of business or offering new or enhanced services or products; fluctuations in fair value
of our investments due to factors outside of our control; our ability to successfully manage credit risk and the sufficiency of our allowance;
geographic concentration of our markets; economic impact on our commercial real estate and commercial-based loan portfolios, including
declines in commercial and residential real estate values; an increase in non-performing assets; our ability to attract, hire and retain key
personnel; maintaining and increasing customer deposits, funding availability, liquidity and our ability to raise and maintain sufficient
capital; competition from banks, credit unions and other financial services providers; the effectiveness of our risk management framework;
accounting estimates; our ability to maintain effective internal control over financial reporting; our ability to keep pace with technological
changes; cyber incidents or other failures, disruptions or security breaches; employee error, fraud committed against the Company or our
clients, or incomplete or inaccurate information about clients and counterparties; mortgage markets; our ability to maintain our reputation;
costs and effects of litigation; environmental liability; risk exposure from transactions with financial counterparties; severe weather, natural
disasters, 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. 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.
CROSSFIRST BANKSHARES, INC.
7
About CrossFirst Bankshares, Inc.
CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned
subsidiary, CrossFirst Bank, a full-service financial institution that offers products and services to businesses, professionals, individuals,
and families. CrossFirst Bank, headquartered in Leawood, Kansas, has locations in Kansas, Missouri, Oklahoma, Texas, Arizona,
Colorado, and New Mexico.
INVESTOR CONTACT
Mike Daley, Chief Accounting Officer and Head of Investor Relations
mike.daley@crossfirstbank.com
(913) 754-9707
https://investors.crossfirstbankshares.com
CROSSFIRST BANKSHARES, INC.
8
TABLE 1. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
September 30, 2023
June 30, 2023
December 31, 2022
(Dollars in thousands)
Assets
Cash and cash equivalents
$
233,191
$
342,497
$
300,138
Available-for-sale securities - taxable
345,708
297,097
198,808
Available-for-sale securities - tax-exempt
404,779
446,803
488,093
Loans, net of unearned fees
5,945,753
5,796,599
5,372,729
Allowance for credit losses on loans
71,556
67,567
61,775
Loans, net of the allowance for credit losses on loans
5,874,197
5,729,032
5,310,954
Premises and equipment, net
70,245
68,539
65,984
Restricted equity securities
4,396
13,060
12,536
Interest receivable
35,814
33,303
29,507
Foreclosed assets held for sale
-
-
1,130
Goodwill and other intangible assets, net
32,293
27,457
29,081
Bank-owned life insurance
70,367
69,929
69,101
Other
108,489
92,461
95,754
Total assets
$
7,179,479
$
7,120,178
$
6,601,086
Liabilities and stockholders’ equity
Deposits
Non-interest-bearing
$
1,028,974
$
928,098
$
1,400,260
Savings, NOW and money market
3,558,994
3,333,514
3,305,481
Time
1,743,653
1,838,455
945,567
Total deposits
6,331,621
6,100,067
5,651,308
Federal Home Loan Bank advances
88,531
262,708
218,111
Other borrowings
18,059
14,320
35,457
Interest payable and other liabilities
98,217
91,600
87,611
Total liabilities
6,536,428
6,468,695
5,992,487
Stockholders’ equity
Preferred Stock, $0.01 par value: Authorized - 15,000 shares,
issued - 7,750 at September 30, 2023 and June 30, 2023 and no
shares at December 31, 2022
-
-
-
Common Stock, $0.01 par value: Authorized - 200,000,000
shares, issued - 53,285,789, 53,241,855 and 53,036,613 shares
at September 30, 2023, June 30, 2023 and December 31, 2022,
respectively
533
532
530
Treasury stock, at cost: 3,990,753 shares held at September 30,
2023 and 4,588,398 shares held at June 30, 2023 and
December 31, 2022
(58,195)
(64,127)
(64,127)
Additional paid-in capital
542,191
539,793
530,658
Retained earnings
254,855
238,147
206,095
Accumulated other comprehensive loss
(96,333)
(62,862)
(64,557)
Total stockholders’ equity
643,051
651,483
608,599
Total liabilities and stockholders’ equity
$
7,179,479
$
7,120,178
$
6,601,086
CROSSFIRST BANKSHARES, INC.
9
TABLE 2. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
September 30,
2023
2023
2022
2023
2022
(Dollars in thousands except per share data)
Interest Income
Loans, including fees
$
103,631
$
98,982
$
59,211
$
292,231
$
149,266
Available-for-sale securities - taxable
3,089
2,622
1,119
7,560
3,250
Available-for-sale securities - tax-exempt
3,365
3,571
3,905
10,730
11,442
Deposits with financial institutions
2,444
1,609
1,193
6,067
1,714
Dividends on bank stocks
127
364
122
753
478
Total interest income
112,656
107,148
65,550
317,341
166,150
Interest Expense
Deposits
56,297
48,663
14,909
141,685
23,152
Fed funds purchased and repurchase agreements
5
-
9
51
83
Federal Home Loan Bank Advances
1,003
3,734
898
7,128
3,302
Other borrowings
224
212
39
590
94
Total interest expense
57,529
52,609
15,855
149,454
26,631
Net Interest Income
55,127
54,539
49,695
167,887
139,519
Provision for Credit Losses
3,329
2,640
3,334
10,390
4,844
Net Interest Income after Provision for Credit
Losses
51,798
51,899
46,361
157,497
134,675
Non-Interest Income
Service charges and fees on customer accounts
2,249
2,110
1,566
6,188
4,520
ATM and credit card interchange income
1,436
1,213
1,326
3,913
5,513
Gain on sale of loans
739
1,205
-
2,131
-
Income from bank-owned life insurance
437
418
405
1,266
1,200
Swap fees and credit valuation adjustments, net
57
84
(7)
231
123
Other non-interest income
1,063
749
490
2,452
1,566
Total non-interest income
5,981
5,779
3,780
16,181
12,922
Non-Interest Expense
Salaries and employee benefits
22,017
24,061
18,252
68,700
53,288
Occupancy
3,183
3,054
2,736
9,211
7,851
Professional fees
1,945
970
580
5,533
2,453
Deposit insurance premiums
1,947
1,881
903
5,359
2,355
Data processing
904
1,057
877
3,203
2,849
Advertising
593
649
796
1,994
2,247
Software and communication
1,898
1,655
1,222
5,204
3,689
Foreclosed assets, net
-
(21)
9
128
(30)
Other non-interest expense
2,945
3,304
3,057
9,980
10,559
Core deposit intangible amortization
922
802
19
2,546
58
Total non-interest expense
36,354
37,412
28,451
111,858
85,319
Net Income Before Taxes
21,425
20,266
21,690
61,820
62,278
Income tax expense
4,562
4,219
4,410
12,802
12,625
Net Income
$
16,863
$
16,047
$
17,280
$
49,018
$
49,653
Basic Earnings Per Common Share
$
0.34
$
0.33
$
0.35
$
1.00
$
1.00
Diluted Earnings Per Common Share
$
0.34
$
0.33
$
0.35
$
0.99
$
0.99
CROSSFIRST BANKSHARES, INC.
10
TABLE 3. YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTEREST
INCOME - FTE
(UNAUDITED)
Nine Months Ended
September 30,
2023
2022
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
$
321,128
$
8,313
3.45
%
$
218,421
$
3,728
2.28
%
Securities - tax-exempt - FTE
(1)
514,333
12,984
3.37
549,490
13,845
3.36
Federal funds sold
691
11
2.13
-
-
-
Interest-bearing deposits in other banks
179,649
6,056
4.51
246,213
1,714
0.93
Gross loans, net of unearned income
(2)
5,742,621
292,231
6.80
4,466,887
149,266
4.47
Total interest-earning assets - FTE
(1)
6,758,422
$
319,595
6.32
%
5,481,011
$
168,553
4.11
%
Allowance for loan losses
(66,265)
(57,213)
Other non-interest-earning assets
228,314
201,519
Total assets
$
6,920,471
$
5,625,317
Interest-bearing liabilities
Transaction deposits
$
610,869
$
13,566
2.97
%
$
541,933
$
2,134
0.89
%
Savings and money market deposits
2,787,915
80,151
3.84
2,386,205
15,285
0.86
Time deposits
1,505,329
47,968
4.26
627,458
5,733
1.22
Total interest-bearing deposits
4,904,113
141,685
3.86
3,555,596
23,152
0.87
FHLB and short-term borrowings
250,795
7,593
4.05
241,897
3,385
1.87
Trust preferred securities, net of fair value
adjustments
1,077
176
21.85
1,024
94
12.29
Non-interest-bearing deposits
1,022,469
-
-
1,148,150
-
-
Cost of funds
6,178,454
$
149,454
3.23
%
4,946,667
$
26,631
0.72
%
Other liabilities
99,896
51,634
Stockholders’ equity
642,121
627,016
Total liabilities and stockholders' equity
$
6,920,471
$
5,625,317
Net interest income - FTE
(1)
$
170,141
$
141,922
Net interest spread - FTE
(1)
3.09
%
3.39
%
Net interest margin - FTE
(1)
3.36
%
3.46
%
(1)
rate used is 21.0%.
(2)
Average gross loan balances include non-accrual loans.
(3)
Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed
in this release may not produce the same amounts.
CROSSFIRST BANKSHARES, INC.
11
TABLE 4. QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME – FTE (UNAUDITED)
September 30, 2023
June 30, 2023
September 30, 2022
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
Average
Balance
Interest
Income /
Expense
Average
Yield /
Rate
(3)
(Dollars in thousands)
Interest-earning assets:
Securities - taxable
$
357,260
$
3,216
3.60
%
$
336,446
$
2,986
3.55
%
$
213,775
$
1,241
2.32
%
Securities - tax-exempt - FTE
(1)
489,320
4,072
3.33
511,993
4,321
3.38
560,541
4,725
3.37
Federal funds sold
332
5
5.97
-
-
-
-
-
-
Interest-bearing deposits in other banks
198,068
2,439
4.89
145,559
1,609
4.43
231,345
1,193
2.05
Gross loans, net of unearned income
(2)
5,907,730
103,631
6.96
5,776,137
98,982
6.87
4,626,684
59,211
5.08
Total interest-earning assets - FTE
(1)
6,952,710
$
113,363
6.47
%
6,770,135
$
107,898
6.39
%
5,632,345
$
66,370
4.68
%
Allowance for loan losses
(69,415)
(66,078)
(56,995)
Other non-interest-earning assets
230,933
225,915
188,997
Total assets
$
7,114,228
$
6,929,972
$
5,764,347
Interest-bearing liabilities
Transaction deposits
$
689,973
$
5,727
3.29
%
$
598,646
$
4,339
2.91
%
$
531,999
$
1,539
1.95
%
Savings and money market deposits
2,775,549
29,655
4.24
2,707,637
26,927
3.99
2,519,574
10,568
1.66
Time deposits
1,795,798
20,915
4.62
1,612,105
17,397
4.33
733,607
2,802
1.52
Total interest-bearing deposits
5,261,320
56,297
4.25
4,918,388
48,663
3.97
3,785,180
14,909
1.56
FHLB and short-term borrowings
131,420
1,169
3.53
349,763
3,888
4.46
165,196
907
2.18
Trust preferred securities, net of fair
value adjustments
1,091
63
22.91
1,077
58
21.60
1,037
39
14.58
Non-interest-bearing deposits
954,005
-
-
921,259
-
-
1,137,626
-
-
Cost of funds
6,347,836
$
57,529
3.60
%
6,190,487
$
52,609
3.41
%
5,089,039
$
15,855
1.23
%
Other liabilities
108,148
91,994
62,102
Stockholders’ equity
658,244
647,491
613,206
Total liabilities and stockholders' equity
$
7,114,228
$
6,929,972
$
5,764,347
Net interest income - FTE
(1)
$
55,834
$
55,289
$
50,515
Net interest spread - FTE
(1)
2.87
%
2.98
%
3.45
%
Net interest margin - FTE
(1)
3.19
%
3.27
%
3.56
%
(1)
(2)
Average loan balances include non-accrual loans.
(3)
Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this release may
not produce the same amounts.
CROSSFIRST BANKSHARES, INC.
12
TABLE 5. NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
In addition to disclosing financial measures determined in accordance with U.S. generally accepted accounting principles (GAAP), the
Company discloses non-GAAP financial measures in this release including “tangible common stockholders’ equity,” “tangible book value
per common share,” “adjusted efficiency ratio – fully tax equivalent (FTE),” “adjusted net income,” “adjusted diluted earnings per
common share,” “adjusted return on average assets (ROAA),” and “adjusted return on average common equity (ROCE).” We consider the
use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating
period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information
regarding our performance by excluding certain expenditures or gains that we believe are not indicative of our primary business operating
results. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our
performance and when planning, forecasting, analyzing and comparing past, present and future periods.
These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP
and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we
present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by
providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the
impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be
considered when analyzing our performance.
A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures follows.
CROSSFIRST BANKSHARES, INC.
13
Quarter Ended
Nine Months Ended
9/30/2023
6/30/2023
3/31/2023
12/31/2022
9/30/2022
9/30/2023
9/30/2022
(Dollars in thousands, except per share data)
Adjusted net income:
Net income
$
16,863
$
16,047
$
16,108
$
11,946
$
17,280
$
49,018
$
49,653
Add: Acquisition costs
1,328
338
1,477
3,570
81
3,143
320
Add: Acquisition - Day 1 CECL provision
900
-
-
4,400
-
900
-
Add: Employee separation
-
1,300
-
-
-
1,300
1,063
Less: Tax effect
(1)
(468)
(344)
(310)
(2,045)
(17)
(1,122)
(290)
Adjusted net income
$
18,623
$
17,341
$
17,275
$
17,871
$
17,344
$
53,239
$
50,746
Preferred stock dividends
$
155
$
103
$
-
$
-
$
-
$
258
$
-
Diluted weighted average common shares outstanding
49,480,107
48,943,325
49,043,621
49,165,578
49,725,207
49,184,810
50,280,593
Diluted earnings per common share
$
0.34
$
0.33
$
0.33
$
0.24
$
0.35
$
0.99
$
0.99
Adjusted diluted earnings per common share
$
0.37
$
0.35
$
0.35
$
0.36
$
0.35
$
1.08
$
1.01
(1)
Represents the tax impact of the adjustments at a tax rate of 21.0%, plus permanent tax expense associated with merger related transactions.
Quarter Ended
Nine Months Ended
9/30/2023
6/30/2023
3/31/2023
12/31/2022
9/30/2022
9/30/2023
9/30/2022
(Dollars in thousands)
Adjusted return on average assets:
Net income
$
16,863
$
16,047
$
16,108
$
11,946
$
17,280
$
49,018
$
49,653
Adjusted net income
18,623
17,341
17,275
17,871
17,344
53,239
50,746
Average assets
$
7,114,228
$
6,929,972
$
6,712,801
$
6,159,783
$
5,764,347
$
6,920,471
$
5,625,317
Return on average assets
0.94
%
0.93
%
0.97
%
0.77
%
1.19
%
0.95
%
1.18
%
Adjusted return on average assets
1.04
%
1.00
%
1.04
%
1.15
%
1.19
%
1.03
%
1.21
%
CROSSFIRST BANKSHARES, INC.
14
Quarter Ended
Nine Months Ended
9/30/2023
6/30/2023
3/31/2023
12/31/2022
9/30/2022
9/30/2023
9/30/2022
(Dollars in thousands)
Adjusted return on average common equity:
Net income
$
16,863
$
16,047
$
16,108
$
11,946
$
17,280
$
49,018
$
49,653
Preferred stock dividends
155
103
-
-
-
258
-
Net income attributable to common shareholders
$
16,708
$
15,944
$
16,108
$
11,946
$
17,280
$
48,760
$
49,653
Adjusted net income
$
18,623
$
17,341
$
17,275
$
17,871
$
17,344
$
53,239
$
50,746
Preferred stock dividends
155
103
-
-
-
258
-
Adjusted net income attributable to common shareholders
$
18,468
$
17,238
$
17,275
$
17,871
$
17,344
$
52,981
$
50,746
Average common equity
$
650,494
$
639,741
$
619,952
$
589,587
$
613,206
$
636,841
$
627,016
Return on average common equity
10.19
%
10.00
%
10.54
%
8.04
%
11.18
%
10.24
%
10.59
%
Adjusted return on average common equity
11.26
%
10.81
%
11.30
%
12.03
%
11.22
%
11.12
%
10.82
%
Quarter Ended
9/30/2023
6/30/2023
3/31/2023
12/31/2022
9/30/2022
(Dollars in thousands, except per share data)
Tangible common stockholders' equity:
Total stockholders' equity
$
643,051
$
651,483
$
645,491
$
608,599
$
580,547
Less: goodwill and other intangible assets
32,293
27,457
28,259
29,081
71
Less: preferred stock
7,750
7,750
7,750
-
-
Tangible common stockholders' equity
$
603,008
$
616,276
$
609,482
$
579,518
$
580,476
Common shares outstanding at end of period
49,295,036
48,653,487
48,600,618
48,448,215
48,787,696
Book value per common share
$
13.04
$
13.39
$
13.28
$
12.56
$
11.90
Tangible book value per common share
$
12.23
$
12.67
$
12.54
$
11.96
$
11.90
CROSSFIRST BANKSHARES, INC.
15
Quarter Ended
Nine Months Ended
9/30/2023
6/30/2023
3/31/2023
12/31/2022
9/30/2022
9/30/2023
9/30/2022
(Dollars in thousands)
Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)
(1)
Non-interest expense
$
36,354
$
37,412
$
38,092
$
36,423
$
28,451
$
111,858
$
85,319
Less: Acquisition costs
(1,328)
(338)
(1,477)
(3,570)
(81)
(3,143)
(320)
Less: Core deposit intangible amortization
(922)
(802)
(822)
(291)
-
(2,546)
-
Less: Employee separation
-
(1,300)
-
-
-
(1,300)
(1,063)
Adjusted Non-interest expense (numerator)
$
34,104
$
34,972
$
35,793
$
32,562
$
28,370
$
104,869
$
83,936
Net interest income
55,127
54,539
58,221
54,015
49,695
167,887
139,519
Tax equivalent interest income
(1)
707
750
797
818
820
2,254
2,403
Non-interest income
5,981
5,779
4,421
4,359
3,780
16,181
12,922
Total tax-equivalent income (denominator)
$
61,815
$
61,068
$
63,439
$
59,192
$
54,295
$
186,322
$
154,844
Efficiency Ratio
59.49
%
62.02
%
60.81
%
62.40
%
53.20
%
60.77
%
55.97
%
Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)
(1)
55.17
%
57.27
%
56.42
%
55.01
%
52.25
%
56.28
%
54.21
%
(1)
Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%.
Exhibit 99.2
CROSSFIRST BANKSHARES, INC. NASDAQ: CFB Third Quarter 2023 Earnings Presentation October 16, 2023
FORWARD-LOOKING STATEMENTS CROSSFIRST 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 allocatio n 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 factors outside of our control; our ability to successfully manage credit risk and the sufficiency of our allowance; geographic conce ntration 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. 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 constru ed 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 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)” 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 expenditures or gains that we believe are not indicative of our primary business operating results. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and should not be relied on alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may
be considered when analyzing our performance. A reconciliation of non -GAAP financial measures to the comparable GAAP financial measures is provided at the end of this presentation. 3
COMPANY OVERVIEW CROSSFIRST BANKSHARES, INC. The CrossFirst Story Began de novo operations in 2007, completed IPO in 2019 CrossFirst has grown primarily organically, as well as through 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% Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details. Ratios are annualized. The incremental federal income tax rate used in calculating tax-exempt income on a tax-equivalent basis is 21.0% 4
THIRD QUARTER 2023 HIGHLIGHTS CROSSFIRST BANKSHARES, INC. Financial Performance Net Income $16.9 Million Adjusted(2) Net Income $18.6 Million Diluted EPS $0.34 Adjusted(2) Diluted EPS $0.37 ROCE(1) 10.19% Adjusted(1)(2) ROCE 11.26% ROAA(1) 0.94% 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 share 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 Ratios are annualized Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details 5
DIVERSE LOAN PORTFOLIO CROSSFIRST BANKSHARES, INC. Consumer 1% CRE - Non-Owner-Occupied 43% Commercial 34% CRE - Owner-Occupied 10% Residential Real Estate 8% Energy 4% TOTAL $5.9 Billion 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. 6
ASSET QUALITY PERFORMANCE CROSSFIRST BANKSHARES, INC. Classified Loans $72.1 $67.7 $67.0 $69.5 $101.1 $5.6 $6.5 $6.9 $11.9 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 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% 13.10% $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. Ratio is annualized for interim periods RUC includes the accrual for off-balance sheet credit risk for unfunded commitments 7
DEPOSIT TRENDS CROSSFIRST BANKSHARES, INC. $4,988 $5,651 $5,837 $6,100 $6,332 $750 $946 $1,376 $1,838 $1,744 $2,605 $2,761 $2,826 $2,730 $2,757 $519 $544 $665 $604 $802 $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. 8
NET INTEREST MARGIN CROSSFIRST BANKSHARES, INC. Yield on Loans & Cost of Depositsr 5.08% 1.20% 5.93% 2.03% 6.56% 2.57% 6.57% 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 4-12 1-2 2-5 > 5 Years Months Months Years Years 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% 9
Expense Management CROSSFIRST BANKSHARES, INC. $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 Adjusted Non-interest Expense Separation Costs Acquisition Cost + CDI Amortization Non-interest Expense as a % o Average Assets 1.96% 2.35% 2.30% 2.17% 2.03% 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 10
AMPLE LIQUIDITY AND FLEXIBILITY CROSSFIRST BANKSHARES, 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 Duration: 5.2 years Net $686 Million 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% Available Credit Lines, FHLB & FRB, 91% 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 11
2023 GUIDANCE CROSSFIRST BANKSHARES, INC. Business Driver Prior Current Loans 8-10% core loan growth Unchanged Net Interest Margin (NIM) 3.20% to 3.35% (Full Year) 3.20% to 3.25% (Q4) Non-interest Expense(1) $34-$35 million per quarter Unchanged Combined ACL / Loans 1.30% to 1.45% Unchanged Effective Tax Rate 20-22% Unchanged Excluding the impact of acquisition-related costs. 12
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSHARES, INC. 9/30/2023 6/30/2023 Adjusted net Income: Net income (GAAP} S 16.363 s 16,047 Add: Acquisition costs 1328 338 Add: Acquisition -Day 1 CECL provision 900 - Add: Employee separation - 1.300 Less: Tax effect™ (463} (344) 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 3/31/2023 12/31/2022 9/S0/2022 9/30/2023 9/30/2022 (Dollars in thousands, except per share data) s 16,108 s 11,946 s 17280 s 49,018 s 49,653 1,477 3,570 81 3,143 320 - 4,400 - 900 - - - - 1300 1,063 (310) (2,045) 07) 0.122) (290) Nine Months Ended Quarter Ended 12/31/2022 (Dollars in thousands) Adjusted return on average assets: Net income (GAAP} S >6.863 s >6,047 s >6.108 s 11,946 S 17,280 S 49,018 s 49,653 Adjusted net income >8,623 17,341 17,275 17.871 17,344 53,239 50,746 Average assets s 7,114,228 5 6929,972 s 6,712,801 s 6,159,783 S 5,764,347 S 6,920,471 s 5,625,317 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} S 16.363 S 16,047 S 16,105 S 11,946 S 17280 s 49,018 s 49,653 Preferred stock dividends 155 103 - - - 258 - Net income attributable to common shareholders (GAAP} $ 16,708 S 15,944 S 16,108 S 11,946 S 17280 $ 48,760 s 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) s 18,463 S 17238 S 17,275 S 17,871 S 17344 s 52,981 s 50,746 Average common equity s 650,494 S 639,741 S 619,952 S 589,587 S 613,206 s 636,841 s 627,016
Return on average common equity (GAAP) Adjusted return on average common equity Represents the tax impact of the adjustments at a tax rate of 21.0%, plus permanent tax expense associated with merger related transactions. 13
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSHARES, 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 49,295,036 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 S 580,476 48,448,215 48,787,696 Nine Months Ended Quarter Ended (Dollars in thousands) Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)m Non-interest expense S 36354 s 37,412 s 38,092 S 36,423 S 28,451 s 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) s 34,104 s 34,972 5 35,793 5 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 OI 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 Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental rate used is 21.0%. 14