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Item 7.01. Regulation FD Disclosure.
Furnished as Exhibit 99.1 hereto and incorporated into this Item 7.01 by reference is the investor presentation that CrossFirst Bankshares,
Inc. has prepared for use in connection with investor communications.
The information in Item 7.01 of this Current Report, including Exhibits 99.1, is being “furnished” and shall not be deemed "filed" for
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Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
99.1
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date:
October 30, 2023
CROSSFIRST BANKSHARES, INC.
By:
/s/ Benjamin R. Clouse
Benjamin R. Clouse
Chief Financial Officer
Exhibit 99.1
CROSSFIRST BANKSHARES, INC. Third Quarter 2023 Investor Presentation Mike Maddox, President & CEO Ben Clouse, CFO
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 allocation strategies and plans; and future financial performance. These statements are often, but not always, made through the use of words or phrases such as “positioned,” “growth,” “estimate,” “believe,” “plan,” “future,” “opportunity,” “optimistic,” “anticipate,” “target,” “expectations,” “expect,” “will,” “strategy,” “goal, “focused,” “guidance,” “foresee” and similar words or phrases of a future or forward -looking nature. The inclusion of forward-looking information herein should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs, certain assumptions made by management, and financial trends that may affect our financial condition, results of operations, business strategy or financial needs, many of which, by their nature, are inherently uncertain and beyond our control. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not guarantees
of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors, including without limitation, the following: impact on us and our clients of a decline in general business and economic conditions and any regulatory responses thereto, including uncertainty and volatility in the financial markets; interest rate fluctuations; our ability to effectively execute our growth strategy and manage our growth, including identifying and consummating suitable mergers and acquisitions, entering new lines of business or offering new or enhanced services or products; fluctuations in fair value of our investments due to factor s outside of our control; our ability to successfully manage credit risk and the sufficiency of our allowance; geographic concentration of our markets; economic impact on our commercial real estate and commercial-based loan portfolios, including declines in commercial and residential real estate values; an increase in non-performing assets; our ability to attract, hire and retain key personnel; maintaining and increasing customer deposits, funding availability, liquidity and our ability to raise and maintain sufficient capital; competition from banks, credit unions and other financial services providers; the effectiveness of our risk management framework; accounting estimates; our ability to maintain effective internal control over financial reporting; our ability to keep pace with technological changes; cyber incidents or other failures, disruptions or security breaches; employee error, fraud committed against the Company or our clients, or incomplete or inaccurate information about clients and
counterparties; mortgage markets; our ability to maintain our reputation; costs and effects of litigation; environmental liability; risk exposure from transactions with financial counterparties; severe weather, natural disasters, pandemics, acts of war or terrorism or other external events; and changes in laws, rules, regulations, interpretations or policies relating to financial institutions, including stringent capital requirements, higher FDIC insurance premiums and assessments, consumer protection laws and privacy laws; volatility in our stock price; the ability of our Board to issue our preferred stock; risks inherent with proposed business acquisitions and the failure to achieve projected synergies; or other external events. These and other factors that could cause results to differ materially from those described in the forward-looking statements, as well as a discussion of the risks and uncertainties that may affect our business, can be found in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, and we disclaim any obligation to update any forward-looking statement or to publicly announce the results of any revisions to any of the forward-looking statements included herein, except as required by law. MARKET AND INDUSTRY DATA. This presentation references certain market, industry and demographic data, forecasts and other statistical information. We have obtained this data, forecasts and information from various independent, third party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry publications and surveys and
independent sources. We believe that these sources and estimates are reliable but have not independently verified them. Statements as to our market position are based on market data currently available to us. Although we are not aware of any misstatements regarding the economic, employment, industry and other market data presented herein, these estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change. 2
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),” “pre-tax pre-provision (PTPP) profit” and “adjusted non-interest expense.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditur es or gains that we believe are not indicative of our primary business operating results. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and should not be relied on alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these limitations by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both
measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is provided at the end of this presentation. 3
MANAGEMENT TEAM PRESENTERS CROSSFIRST BANKSHARES, INC. Mike Maddox – President, CEO and Director Joined CrossFirst in 2008 after serving as Kansas City regional president for Intrust Bank Practicing lawyer for more than six years before joining Intrust Bank Appointed as President and CEO June 1, 2020, after 12 years of service B.S. Business, University of Kansas; J.D. Law, University of Kansas; Graduate School of Banking at the University of Wisconsin – Madison Ben Clouse – Chief Financial Officer More than 25 years of experience in financial services, asset and wealth management, banking, retail and transportation, including public company CFO experience Joined CrossFirst in July 2021 after serving as CFO of Waddell & Reed Financial, Inc. (formerly NYSE: WDR) until its acquisition in 2021 Significant experience leading financial operations as well as driving operational change B.S. Business, Kansas State University; Master of Accountancy, Kansas State University Obtained CPA designation and FINRA Series 27 license 4
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% (1) Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details. Ratios are annualized. (2) The incremental federal income tax rate used in calculating tax-exempt income on a tax-equivalent basis is 21.0% 5
FOOTPRINT AND OPERATING STRUCTURE CROSSFIRST BANKSHARES, INC. CrossFirst Bank Locations METRO MAR KETS Kansas City Dallas Fort-Worth Phoenix Denver COMMUNITY MARKETS Wichita Oklahoma City Tulsa Colorado Springs Clayton Tucson INDUSTRY VERTICALS Family Office Financial Institutions Restaurant Finance Energy Mortgage Small Business (SBA) 6
Investment Highlights CROSSFIRST BANKSHARES, INC. Excellent Markets Metro Markets, including Dallas, Kansas City, Phoenix and Denver, provide attractive growth opportunities Stable, legacy Community Markets provide steady stream of earnings and strong funding Improved Growth and Profitability Since 2012, total asset compounded annual growth rate of 27% Operating revenue grew over 40% from 2019 to 2022 Net income doubled from 2019 to 2022 Optimization of investments in new markets and verticals Strong Balance Sheet Loan portfolio is largely variable, approximately 70% at September 30, 2023 Liquidity of 34% of assets, using on- and off-balance sheet sources; 100% AFS securities portfolio Granular deposit portfolio across geographies and industries Well -diversified loan portfolio by industry and geography across C&I and CRE Clean Credit Portfolio Net charge-offs to loans ratio of 0.05% annualized on a trailing 12-month basis Strong reserve levels at 1.20% of loans 7
Improving Core Metrics CROSSFIRST BANKSHARES, INC. Net Income $28.5 $12.6 $69.4 $61.6 $16.1 $16.0 $16.9 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Operating Revenue (1) $150.2 $172.0 $182.4 $210.8 $62.6 $60.3 $61.1 $8.7 $11.7 $13.7 $17.3 $4.4 $5.8 $6.0 $141.5 $160.3 $168.7 $193.5 $58.2 $54.5 $55.1 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Net Interest Income Non-Interest Income Adjusted Net Income (2) & PTPP Profit(2) $27.4 $62.5 $20.0 $72.0 $73.0 $83.0 $68.6 $89.1 $17.4 $24.6 $17.3 $22.9 $18.6 $24.8 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Adjusted Net Income Pretax, Pre-Provision Profit Non-performing Assets /Total Assets 0.97% 1.39% 0.58% 0.20% 0.16% 0.19% 0.50% 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023Credit returned to performing in early Q34 2023 Note: Dollar amounts are in millions, other than per share amounts and the ratio of non-performing assets to total assets is presented as of the end of the respective period (1) Defined as net interest income plus non-interest income (2) Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details 8
OUR GROWTH CROSSFIRST BANKSHARES, INC. Total Assets Compound Annual Growth Rates $ince 2012 Total Assets 27.4% $565 $847 $1,220 $1,574 $2,133 $2,961 $4,107 $4,931 $5,659 $5,621 $6,601 $7,177 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q3 2023 2007 Began de novo operations 2012 Expanded into Wichita & Oklahoma City markets 2013 Expanded into Tulsa market through acquisition of Tulsa National Bancshares, Inc. (~$160mm in Total Assets) 2016 Expanded into Dallas market 2019 CrossFirst Bankshares, Inc. Initial Public Offering; Nasdaq listed: CFB 2021 Expanded into Phoenix market 2022 Expanded into Colorado and New Mexico markets through acquisition of Farmers & Stockmens Bank (aka Central Bank & Trust) (~$648mm in Total Assets) 2023 Expanded into Tucson market through acquisition of Canyon Bankshares, Inc. (~$106mm in Total Assets) Note: Dollars in chart are in millions. 9
DRIVEN BY OUR EXTRAORDINARY CULTURE CROSSFIRST BANKSHARES, INC. FOCUSING ON OUR CORE VALUES At CrossFirst Bank, extraordinary service is the unifying purpose at the very heart of our organization. To deliver on our purpose, each of our employees operates with four values that define our approach to banking: character, competence, commitment, and connection. These are not just words at CrossFirst. They are core values that guide our actions, decisions, and vision. CHARACTER Who You Are COMPETENCE What You Can Do COMMITMENT What You Want To Do CONNECTION What Others See In You INVESTING IN OUR PEOPLE & CLIENTS We prioritize and invest in creating opportunities to help employees grow and build their careers using a variety of training and development programs. These include online, classroom, and on-the-job learning formats. Our CrossFirst training programs include: An immersive, multi-day culture and leadership-driven onboarding program for all new hires to advance and preserve our values and operating standards A development program designed for emerging leaders that explores core leadership concepts and the foundations of the banking industry As a GALLUP® Strengths-Based organization, our very first commitment to every new employee is that we will value them and provide access to their unique CliftonStrengths® \ POSITIONING FOR SUCCESS We strive to build an equitable and inclusive environment with diverse teams who support our core values and strategic initiatives. We strive to hire and retain top-tier talent to drive growth and extraordinary service. 26% of 2023 new hires through 9/30/2023 were ethnically diverse 67% of workforce is female as of 9/30/2023 68% Engaged employees as measured by GALLUP® Q12 Survey; 89% employee response rate Recently recognized as one of seven
recipients of the GALLUP® Don Clifton Strengths-Based Culture award – a worldwide honor 10
THIRD QUARTER 2023 HIGHLIGHTS CROSSFIRST BANKSHARES, INC. Financial Performance Net Income $16.9 Million Diluted EPS $0.34 Adjusted«2» Net Income $18.6 Million Adjusted'2» Diluted EPS $037 ROCE«1» 10.19% ROAA'1) 0.94% Adjusted«1)«2» ROCE 11.26% Adjusted«1»«2) ROAA 1.04% Profitability Improving profitability as operating revenue, adjusted diluted EPS and adjusted ROCE increased compared to the prior quarter and the prior year third quarter YTD 2023 operating revenue grew 21% compared to the prior year Completed the previously-announced acquisition of Canyon Bancorporation, Inc. and its wholly owned subsidiary, Canyon Community Bank, N.A. (“Tucson Acquisition”) Balance Sheet Loans grew $149 million, or 2.6% for the quarter and 10.7% year-to-date; excluding the Tucson acquisition, grew 0.8% for the quarter and 8.7% year-to-date Deposits grew $232 million, or 3.8% for the quarter and 12.0% year-to-date; excluding the Tucson acquisition, grew 1.1% for the quarter and 9.1% year-to-date Credit Quality Nonperforming assets increased to 0.50% of total assets, but were contained within a few relationships of manageable size Net charge-offs of $1.3 million were previously reserved and represented an annualized rate of 0.09% of average loans Capital Book value per common share was $13.04 and tangible book value per common sh are was $12.23 at September 30, 2023 CET1 capital ratio was 9.7% and total risk-based capital ratio was 10.9%, both increasing from June 30, 2023 levels 1. Ratios are annualized 2. Represents a non-GAAP financial measure, see non-GAAP reconciliation slides at the end of this presentation for more details 11
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% CRE – Non-Owner-Occupied by Segment Industrial, 19% Retail, 16% Multi-Family, 14% Office, 12% Hotel, 11% 1-4 Fam Res Const, 7% Other, 21% Commercial by Loan Type Manufacturing, 10% Restaurants, 9% Engineering & Contracting, 7% Credit Related Activities, 7% Financial Management, 6% Health Care, 6% Real Estate Activity, 6% Aircraft & Transportation, 5% Bus Lns to Individuals, 5% Merchant Wholesalers, 3% Other Industries, 36% Note: Gross loans, (net of unearned income) data as of September 30, 2023. 12
ASSET QUALITY PERFORMANCE CROSSFIRST BANKSHARES, INC. Classified Loans $5.6 $6.5 $6.9 $11.9 $72.1 $67.7 $67.0 $69.5 $101.1 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Classified Loans Acquired Classified Loans Non-performing Assets / Total Assets 0.31% 0.20% 0.16% 0.19% 0.50% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Credit returned to performing in early Q4 2023 Net Charge-offs (Recoveries) / Average Loans(1) 0.16% -0.02% 0.12% 0.04% 0.09% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Allowance for Credit Losses + RUC(2) 1.34% 1.31% 1.30% 1.30% 1.31% $62.6 $70.5 $73.2 $75.3 $77.7 $6.7 $8.7 $8.1 $7.7 $6.1 $55.9 $61.8 $65.1 $67.6 $71.6 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 ACL RUC ACL+RUC / Total Loans Note: Dollars are in millions and amounts shown are as of the end of the period. 1. Ratio is annualized for interim periods 2. RUC includes the accrual for off-balance sheet credit risk for unfunded commitments 13
DEPOSIT TRENDS CROSSFIRST BANKSHARES, INC. $4,988 $5,651 $5,837 $6,100 $633 $750 $946 $1,376 $1,838 $1,744 $2,605 $2,761 $2,826 $2,730 $2,757 $519 $544 $665 $604 $809 $1,114 $1,400 $970 $928 $1,029 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 DDA Transaction Savings & Money Mkt Time #DDA Deposits 22% 25% 17% 15% 16% Note: Dollars are in millions and amounts shown are as of the end of the period. 14
NET INTEREST MARGIN CROSSFIRST BANKSHARES, INC. Yield on Loans & Cost of Deposits 5.08% 1.20% 5.93% 2.03% 6.56% 2.57% 6.87% 3.33% 6.96% 3.59% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Yield on Loans Cost of Total Deposits Net Interest Margin – Fully Tax Equivalent (FTE)(1) 3.56% 3.61% 3.65% 3.27% 3.19% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net Interest Income Impact From Rate Changes 0.79% 1.05% 0.98% 0.75% 0.34% 0.36% (0.07)% (0.36)% (0.12)% (0.68)% -300 bps -200 bps -100 bps +100 bps +200 bps Rate Shock Rate Ramp Loans: Rate Reset and Cash Flow Profile 68% of earning assets reprice or mature within the next 12 months, including 47% in month one 58% 10% 11% 18% 3% 1-3 Months 4-12 Months 1-2 Years 2-5 Years >5 Years (1) Ratio is annualized for interim periods; the incremental Federal income tax rate used in calculating tax exempt income on a tax equivalent basis is 21.0% 15
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 Non-interest Expenses as a % of Avereage Assets 1.96% 2.35% 2.30% 2.17% 2.03% Adjusted Non-interest Expense (1) Separation Costs Acquisition Costs + CDI Amortization Note: Dollars are in millions and amounts shown are as of the end of the period unless otherwise specified. (1) Represents a non-GAAP financial measure that is calculated as the numerator of the Adjusted Efficiency Ratio – Fully Tax Equivalent; see non-GAAP reconciliation slides at the end of this presentation for more details 16
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 Net $686 Million Duration: 5.2 years Securities Portfolio Portfolio Strategy Shift 9/30/2023 Municipal - Tax-Exempt, 54% MBS (Fixed), 23% SBA + Agencies, 16% Treasuries, 2% Other,5% Gross $870 Million Net $751 Million Duration: 5.6 years Total Liquidity – 9/30/2023 On-balance Sheet Liquidity Securities Portfolio $751M Cash & Equivalents $233M $984M Off-balance Sheet Liquidity $1.436B Total Liquidity $2.420B Off-Balance Sheet Liquidity Available Brokered Deposits & Wholesale Funding, 9% Available Credit Lines, FHLB & FRB, 91% TOTAL $1.436B Investment Strategy 2022 and Prior Tax-exempt Municipal strategy focused on maximizing yield in a low-interest rate environment Tax-exempt securities added asset duration to offset short duration in loan portfolio MBS securities provided cashflow Investment Strategy 2023 and Beyond Reducing Municipal concentration and focusing reinvestment in lower risk-weighted assets Restructuring portfolio to increase liquidity and provide more balanced cash flow Improved performance with ~40bps pick up in tax-equivalent yield during 2023 17
CAPITAL RATIOS CROSSFIRST BANKSHARES, INC. 11.00% 9.50% 9.40% 9.50% 9.70% 11.10% 9.50% 9.50% 9.60% 9.80% 12.10% 10.50% 10.50% 10.70% 10.90% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Common Equity Tier 1 Tier 1 Risk-Based Total Risk-Based Capital Capital deployed during Q4 2022 with the closing of the Colorado/New Mexico acquisition and through significant organic loan growth Maintaining capital levels to support future growth Remain well capitalized as we deploy capital to support growth initiatives 18
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSHARES, INC. Quarter Ended Nine Months Ended Adjusted net Income: Net income (GAAP} Add: Acquisition costs Add: Acquisition -DaylCECL provision Add: Employee separation Less: Tax effect ™ S >6.363 1,328 900 (463) s 16,047 338 1,300 (344) s (Dollars in thousands, except per share data) 16.108 $ 11,946 $ 17280 1,477 5570 31 4,400 (310) (2,045) (17) s 49,018 $ 3,143 900 1300 0.122) 49,653 320 1,063 (290) Adjusted net Income Preferred stock dividends Diluted weighted average common shares outstanding Earnings per common share - diluted (GAAP) Adjusted earnings per common share - diluted Quarter Ended Nine Months Ended 12/31/2022 (Dollars in thousands) Adjusted return on average assets: Net income (GAAP) $ 16.363 $ 16,047 $ 16.108 $ 11,946 S 17280 $ 49,018 S 49,653 Adjusted net income 13,623 17241 17,275 17,871 17244 53.239 50,746 Average assets $ 7,114228 $ 6929,972 $ 6,712.801 $ 6,159,783 S 5,764247 $ 6,920,471 $ 5,625217 Return on average assets (GAAP) Adjusted return on average assets Nine Months Ended Quarter Ended 3/31/2023 12/31/2022 (Dollars in thousands) Adjusted return on average common equity: Net income (GAAP} $ 16.363 $ 16,047 S 16,105 S 11,946 S 17280 $ 49,018 $ 49,653 Preferred stock dividends 155 103 - - - 258 - Net income attributable to common shareholders (GAAP} $ 16,708 $ 15,944 S 16,108 S 11,946 S 17280 $ 48,760 $ 49,653 Adjusted net income 13,623 17341 17,275 17,871 17344 53,239 50,746 Preferred stock dividends 155 103 - - - 258 * Net income attributable to common shareholders (GAAP) $ 18,463 $ 17238 S 17,275 S 17,871 $ 17344 $ 52,981 $ 50,746 Average common equity $ 650,494 S 639,741 $ 619,952 S 589,587 S 613,206 $ 636,841 $ 627,016 Return on average common equity (GAAP) Adjusted return on average common equity (1)
Represents the tax impact of the adjustments at a tax rate of 21.0%, plus permanent tax expense associated with merger related transactions. 19
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 $ 580,476 48,448,215 48,78 7,696 Quarter Ended Nine Months Ended 3/31/2023 12/31/2022 (Dollars in thousands) Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)m Non-interest expense S 36354 $ 37,412 $ 38,092 S 36,423 S 28,451 $ ni.sss s 85319 Less: Acquisition costs (1328) (338) 0.477) (3370) (81) (3,143) (320) Less: Core deposit intangible amortization (922) (802) (822) (291) - (2,546) - Less: Employee separation - (1300) - - - 0.300) 0.063) Adjusted Non-interest expense (numerator) $ 34,104 $ 34,972 $ 35,793 S 32362 S 28370 5 104,869 S 83,936 Net interest income 55,127 54,539 58,221 54,015 49,695 167,887 139319 Tax equivalent interest income(1) 707 750 797 813 820 2254 2,403 Non-interest income (toss) 5,981 5,779 4,421 4359 3780 16,181 12,922 Total tax-equivalent income (denominator) $ $ 5 Efficiency Ratio (GAAP) Adjusted Efficiency Ratio - Fully Tax Equivalent (FTE)m 20
NON-GAAP RECONCILIATIONS CROSSFIRST BANKSHARES, INC. Adjusted net income: Net income Add: Acquisition costs Add: Acquisition - Day 1 CECL provision Add: Employee separation Add: Unrealized loss on equity security Add: Accelerated employee benefits Add: Goodwill impairment11 Add: Fixed asset impairment Less: State tax credit111 Less: BO LI settlement benefits111 Less: Tax effect21 Adjusted net income Diluted weighted average common shares outstanding Diluted earnings per share Adjusted diluted earnings per share Twelve Months Ended 12/31/2022 12/31/2021 12/31/2020 12/31/2019 (Dollars in thousands, except per share data) 61,599 3,890 4,400 1,063 (2.555) 68,617 50,002,054 1.23 £ 69,413 6200 719 (1.841) 0512) 72,979 52,030,582 133 1.40 $ 12,601 7,397 19,998 52,548,547 024 038 $ 28,473 424 (1.361) (109) 27,427 48,576,135 038 036 137 Twelve Months Ended Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 (Dollars in thousands) Pre-Tax Pre-Provision Profit: Net income before taxes Add: Provision for credit losses $ 21,425 3329 $ 20266 2,640 $ 20,129 4,421 $ 77572 11301 $ 86,969 (4,000) $ 15314 56,700 $ 32,611 29,900 Pre-Tax Pre-Provision Profit (1) No tax effect. (2) Represents the tax impact of the adjustments at a tax rate of 21.0%, plus permanent tax expense associated with merger related transactions and permanent tax benefit associated with stock-based grants. 21