CrossFirst Bankshares, Inc. (NASDAQ:CFB) Q1 2022 Earnings Conference Call April 19, 2022 11:00 AM ET Company Participants Heather Worley - Director, Investor Relations Mike Maddox - President and Chief Executive Officer Ben Clouse - Chief Financial Officer Randy Rapp - Chief Risk and Chief Credit Officer Conference Call Participants Matt Olney - Stephens Michael Rose - Raymond James Jennifer Demba - Truist Brady Gailey - KBW Andrew Liesch - Piper Sandler Operator Hello and welcome to the first quarter 2022 ...

Financial Performance and Capital Management - The Company provided an additional $134 million in Paycheck Protection Program (PPP) funding during 2021, with loans earning interest at 1% and maturing in five years[10]. - The Company completed a $20 million share repurchase program in June 2021, repurchasing 1,573,806 common shares at an average price of $12.68 per share[12]. - As of December 31, 2021, the Company had repurchased 566,164 common shares under a new $30 million share repurchase program at an average price of $14.75 per share[12]. - The Company aims to improve financial performance and attract talent while maintaining a branch-lite business model[9]. - The Company reported a focus on organic growth and selective acquisitions to drive shareholder value[9]. - The Company is required to meet several risk-based capital adequacy requirements under the Basel III Capital Rules, including a total capital to risk-weighted assets ratio of at least 8.0%[17]. - The minimum Common Equity Tier 1 (CET1) capital to risk-weighted assets ratio is set at 4.5%[17]. - The Company must maintain a Tier 1 leverage ratio of at least 4.0%[17]. - A capital conservation buffer of 2.5% is required above the regulatory minimum risk-based capital requirements[17]. - As of December 31, 2021, the Company's capital ratios exceeded the minimum capital adequacy requirements under the Basel III Capital Rules[18]. - The Company is classified as "well-capitalized" with a CET1 risk-based capital ratio of 6.5% or more, a tier 1 risk-based capital ratio of 8% or more, and a total risk-based capital ratio of 10% or more[18]. - The Company may need to raise additional capital in the future to support growth and maintain regulatory capital levels[49]. - Failure to meet capital requirements could result in regulatory actions that may limit the Company's growth initiatives and ability to pay dividends[66]. - The Company is subject to increased FDIC deposit insurance premiums, which could adversely affect its financial condition and results of operations[68]. Employee and Organizational Development - As of December 31, 2021, the Company had 360 full-time equivalent employees, with approximately 59% female and 41% male[12]. - The Company promoted over 19% of current employees into roles with increased responsibilities in 2021[16]. - The Company offers a Generous Giving program that matches employee donations up to $500 per employee per year[13]. - The Company provides paid leave for volunteer activities through its CrossFirst Volunteer Time Off program[13]. - The Company has implemented flexible work-from-home options for a large percentage of employees in response to the COVID-19 pandemic[16]. - The Company focuses on diversity and inclusion initiatives to enhance its inclusive culture and attract key talent[13]. - The Company is committed to attracting, retaining, and developing talent to support its growth initiatives[9]. Regulatory Compliance and Risk Management - The Company is subject to regular examination by regulatory agencies, which can affect its business conduct and growth[16]. - The Company is subject to regulation and supervision by the Federal Reserve under the Bank Holding Company Act of 1956[18]. - The Company is required to provide financial assistance to its depository institution subsidiaries in the event of financial distress[19]. - The Federal Reserve has the authority to regulate the debt of bank holding companies, including interest rate ceilings and reserve requirements[19]. - The Company's ability to pay dividends is affected by both corporate law and Federal Reserve regulations, including the Basel III Capital Rules[19]. - The Bank is subject to examination, supervision, and regulation by the Office of the State Bank Commissioner of Kansas and the FDIC[19]. - The Company faces risks related to compliance with the Bank Secrecy Act and anti-money laundering regulations, which could lead to significant penalties and impact its operations[69]. - Regulatory compliance costs are increasing, and failure to comply could result in fines, penalties, or restrictions on business operations[63]. - The risk management framework may not effectively mitigate risks or losses, potentially leading to adverse regulatory consequences[50]. Business Operations and Expansion - The Company opened a new branch in Phoenix, Arizona, expanding its footprint in June 2021[12]. - The Company is transitioning its credit card services in-house, expected to be completed in 2022, eliminating the third-party service provider[12]. - The Company executed a contract with Q2 to implement a unified digital platform for clients, enhancing the digital client experience[12]. - The Company is evaluating opportunities for expansion through de novo branching, which carries significant startup costs and risks[34]. - Mergers and acquisitions are part of the growth strategy, but they involve risks such as integration challenges and potential dilution of existing stockholders[34]. - The Company anticipates opening an additional banking location in Dallas, Texas, in 2022[77]. - The Company operates nine full-service banking centers across multiple states, including Kansas, Missouri, Oklahoma, Texas, and Arizona[77]. - The company has grown organically by establishing eight branches and through two strategic acquisitions since its inception[9]. Economic and Market Conditions - The ongoing COVID-19 pandemic has caused significant disruptions to economic activity, leading to increased unemployment and declines in loan collateral values[33]. - Changes in interest rates can adversely affect the company's net interest income and overall profitability[33]. - The Federal Reserve's monetary policy significantly impacts the operating results of financial institutions, influencing interest rates on loans and deposits[32]. - The company faces risks related to credit quality concerns and reduced demand for banking products due to unfavorable economic conditions[33]. - The ultimate impacts of the pandemic on the company's business remain uncertain and difficult to predict[33]. - A decline in general business and economic conditions could have a material adverse effect on the company's financial position and growth prospects[33]. - The company's profitability is highly sensitive to changes in market interest rates, which can affect net interest income and the value of loan collateral[33]. - The concentration in commercial real estate lending may lead regulators to restrict the company's growth opportunities if certain thresholds are exceeded[38]. Technology and Cybersecurity - The Company is focused on leveraging technology to improve client experience and profitability[9]. - The Company’s technology strategy was strengthened in 2021 to improve the digital experience for clients[10]. - The company is exposed to cybersecurity threats, which could lead to significant increases in operating costs and potential liability[53]. - The company depends on third-party service providers for essential operations, and any difficulties with these providers could materially affect business continuity[57]. - Failure to keep pace with technological change could adversely affect the company's ability to compete effectively in the financial services industry[52]. Market Competition and Challenges - Competition in the banking industry is intense, with significant pressure from larger national and regional financial institutions[49]. - The market price of the Company's common stock may be volatile due to various factors, including quarterly results and regulatory changes[72]. - The Company may face challenges in acquiring or merging with other institutions due to regulatory limitations on changes of control[73]. - Future equity issuances could result in dilution of existing shares, potentially causing a decline in the stock price[74]. - Negative public opinion and reputation risk could adversely impact the company's ability to attract and retain clients[58].

C ROSSFIRST Q4 and Full Year 2021 Earnings Presentation J a n u a r y 2 4 , 2 0 2 2 M i k e M a d d o x , P r e s i d e n t & C E O B e n C l o u s e , C F O R a n d y R a p p , C C O & C R O H e a t h e r W o r l e y , D i r e c t o r o f I R FORWARD-LOOKING STATEMENTS. The financial results in this presentation reflect preliminary, unaudited results, which are not final until the Company's Annual Report on Form 10-K is filed. This presentation and oral statements made during this meeting contain forward-l ...

CrossFirst Bankshares, Inc. (NASDAQ:CFB) Q4 2021 Earnings Conference Call January 25, 2022 11:00 AM ET Company Participants Heather Worley - Director, Investor Relations Mike Maddox - President and Chief Executive Officer Ben Clouse - Chief Financial Officer Randy Rapp - Chief Risk and Chief Credit Officer Conference Call Participants Michael Rose - Raymond James Jennifer Demba - Truist Securities Matt Olney - Stephens Brady Gailey - KBW Operator Good day and thank you for standing by. Welcome to the CrossF ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-39028 | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------- ...

CrossFirst Bankshares, Inc. (NASDAQ:CFB) Q3 2021 Earnings Conference Call October 19, 2021 11:00 AM ET Company Participants Heather Worley - Director, Investor Relations Mike Maddox - President and Chief Executive Officer Ben Clouse - Chief Financial Officer Randy Rapp - Chief Risk and Chief Credit Officer Conference Call Participants Brady Gailey - KBW Jennifer Demba - Truist Securities Michael Rose - Raymond James Andrew Liesch - Piper Sandler Matt Olney - Stephens Operator Hello. Welcome to the Third Qua ...

Financial Performance - Net income for the second quarter of 2021 was $15.6 million, representing a return on average assets of 1.10% and a return on average equity of 9.86%[122] - The efficiency ratio for the second quarter of 2021 was 53.6%[122] - Total non-interest income for the quarter ended June 30, 2021, was $5,825 thousand, a 121% increase from $2,634 thousand in the same quarter of 2020[151] - Total non-interest expense for the quarter ended June 30, 2021, was $25,813 thousand, a decrease of 17% compared to $31,010 thousand for the same period in 2020[159] Asset and Loan Growth - Total interest-earning assets increased to $5,536,722 thousand in 2021 from $5,272,310 thousand in 2020, reflecting a growth of 5.03%[138] - Gross loans, net of unearned income, amounted to $4,409,280 thousand in 2021, up from $4,357,055 thousand in 2020, representing a growth of 1.20%[138] - The outstanding loan balance for PPP loans at the end of June 2021 was $197.1 million, down from $336.4 million at the beginning of the period[128] - Total gross loans amounted to $4,252,325, with commercial loans at $1,187,824 and residential loans at $641,669[180] Credit Quality - Credit quality metrics improved, with classified assets declining by $99 million and the ratio of nonperforming assets to total assets decreasing to 1.09% from 1.15% in the previous quarter[129] - Provision for loan losses for the quarter ended June 30, 2021, was $3,500, a decrease from $7,500 in the previous quarter[182] - The allowance for loan losses stood at $75,493, representing 100% of total loans[184] - Nonperforming assets include nonaccrual loans, loans past due 90 days or more, and foreclosed assets[194] Interest Income and Expense - Net interest income - tax-equivalent rose to $43,062 thousand in 2021 compared to $41,842 thousand in 2020, an increase of 2.91%[138] - Total interest income for the three months ended June 30, 2021, was $834 thousand, a decrease of $3,555 thousand compared to the same period in 2020[1] - Total interest expense for the three months ended June 30, 2021, was $1,405 thousand, a decrease of $2,536 thousand compared to the same period in 2020[1] Deposits and Liquidity - The company's deposits totaled $4 billion as of June 30, 2021, a decrease of $338 million or 7% from December 31, 2020[203] - On-balance sheet liquidity was $918,959 thousand as of June 30, 2021, down from $1,046,110 thousand as of December 31, 2020[207] - Total liquidity as a percentage of assets was 30% as of June 30, 2021, compared to 32% as of December 31, 2020[207] Operational Changes - The company expanded its operations to Phoenix, Arizona during the second quarter[122] - The company hired Ben Clouse as Chief Financial Officer, who previously served in the same role at Waddell & Reed Financial, Inc.[122] Cost Management - Salary and employee benefits increased by $1,656 thousand or 12% for the three months ended June 30, 2021, compared to the same period in 2020, primarily due to performance-based awards[160] - Occupancy costs rose by $352 thousand or 17% for the three months ended June 30, 2021, attributed to new locations in Frisco, Texas, and Kansas City, Missouri[165] - Professional fees decreased by $157 thousand or 12% for the three months ended June 30, 2021, mainly due to reduced legal fees[166] Interest Rate Risk Management - Interest rate risk management is a key focus, with strategies in place to maximize income while minimizing risk exposure[217] - The Funds Management Committee (FMC) employs three systems to manage interest rate risk: gap reports, earnings simulation, and economic value of equity[218] - Approximately 65% of the company's earning assets are set to reprice or mature within the next 12 months, indicating a potential for increased net interest income[220] Future Outlook - The company plans to invest up to $3 million into a venture capital fund aimed at accelerating technology adoption for community banks[208] - The company anticipates continued fluctuations in credit card activity and related income in connection with changes in COVID-19 cases and the vaccine rollout[157]

CROSSFIRST Q2 2021 Earnings Presentation J u l y 2 2 , 2 0 2 1 2 LEGAL DISCLAIMER 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 forwardlooking statements reflect our current views with respect to, among other things, future events and our financial performance. ...

CrossFirst Bankshares, Inc. (NASDAQ:CFB) Q2 2021 Earnings Conference Call July 22, 2021 5:00 PM ET Company Participants Matt Needham - Director, Investor Relations Mike Maddox - President and CEO Dave O'Toole - Chief Investment Officer and Former CFO Randy Rapp - Chief Risk and Chief Credit Officer Ben Clouse - Chief Financial Officer Conference Call Participants Brady Gailey - KBW Michael Rose - Raymond James Andrew Liesch - Piper Sandler Jennifer Demba - Truist Matt Olney - Stephens Operator Thank you for ...

Financial Performance - Total assets reached $6 billion, an increase of $339 million or 6% from December 31, 2020, driven by deposit growth[116] - Loan growth of $68 million from the previous quarter and $512 million or 13% over the last twelve months, primarily due to PPP loan funding[116] - Deposit growth of $357 million from the previous quarter and $1 billion or 27% over the last twelve months[116] - Book value per share increased to $12.17 at March 31, 2021, compared to $11.75 at March 31, 2020[116] - The efficiency ratio improved to 50.4% for the first quarter of 2021, down from 53.35% in the previous year[130] - Return on average assets was 0.84% for the first quarter of 2021, up from 0.31% in the same quarter of the previous year[130] - Return on average equity increased to 7.80% for the first quarter of 2021, compared to 2.53% in the same quarter of the previous year[130] Loan and Deposit Metrics - The company had approximately $96 million of loans modified and not considered troubled debt restructurings as of March 31, 2021[125] - Outstanding PPP loan balance increased to $336.4 million as of March 31, 2021, with loan originations of $110.96 million during the quarter[123] - As of March 31, 2021, gross loans increased by $68 million or 2% from December 31, 2020, with PPP loans rising by $44 million or 15%[157] - The allowance for loan losses (ALLL) was $74,551 thousand as of March 31, 2021, a slight decrease from $75,295 thousand at the end of 2020[163] - Provision for loan losses for the quarter was $7,500 thousand, down from $10,875 thousand in the previous quarter[163] - Total charge-offs for the quarter were $8,266,000, significantly lower than $19,460,000 in the prior year[167] - Net charge-offs for the quarter were $8,244,000, compared to $19,388,000 for the same period in 2020[167] - Nonaccrual loans decreased to $63,319,000 as of March 31, 2021, down from $75,051,000 at December 31, 2020[179] - Total nonperforming assets were $68,849,000, a decrease from $78,422,000 at the end of the previous quarter[179] - Classified loans totaled $268,879,000 as of March 31, 2021, down from $286,057,000 at December 31, 2020[180] - The ratio of ALLL to total loans was 1.65% as of March 31, 2021, compared to 1.70% at December 31, 2020[179] Income and Expenses - Total interest-earning assets increased to $5,656,332 thousand, with net interest income at $41,821 thousand for the period ending March 31, 2021, compared to $38,923 thousand in the same period of 2020[134] - Non-interest income rose to $4,144 thousand for the quarter ended March 31, 2021, a 99% increase from $2,087 thousand in the same period of 2020[142] - Service charges and fees on customer accounts increased by 88% to $957 thousand compared to $508 thousand in the same quarter of 2020[142] - The cost of funds decreased to 0.56% from 1.49% in the same period of 2020, reflecting strategic rate changes in deposit products[134] - Total non-interest expense for the quarter ended March 31, 2021, was $22,818 thousand, a 3% increase from $22,215 thousand in the same period of 2020[147] - Salary and employee benefits decreased by $837 thousand or 6% to $13,553 thousand compared to $14,390 thousand in the prior year, primarily due to optimized staffing levels[147] - Occupancy costs increased by $409 thousand or 20% to $2,494 thousand, driven by new locations in Frisco, Texas, and Kansas City, Missouri[148] - Professional fees rose by $111 thousand or 17% to $782 thousand, mainly due to increased legal fees related to PPP loans and loan workouts[149] Investments and Capital - The company became a limited partner in a $150 million venture capital investment fund, committing $3 million to accelerate technology adoption at community banks[128] - Available-for-sale investments totaled $685 million, an increase of $31 million from December 31, 2020[156] - The Company had approximately $3 billion of uninsured deposits, with current capital ratios and liquidity deemed sufficient to mitigate associated risks[185] - On-balance sheet liquidity increased to $1,304,002 thousand, up from $1,046,110 thousand as of December 31, 2020, representing 22% of assets[187] - Total liquidity reached $2,052,179 thousand, up from $1,802,435 thousand, representing 34% of assets[187] - The Company plans to invest up to $3 million into a venture capital fund aimed at accelerating technology adoption for community banks[188] Interest Rate and Risk Management - The company had over $1.5 billion in loans tied to LIBOR as of March 31, 2021, and is transitioning away from LIBOR in its loan documentation[140] - Net interest margin slightly decreased to 3.00% from 3.24% year-over-year, impacted by quicker repricing of earning assets compared to interest-bearing liabilities[139] - The company anticipates a slight decline in the cost of funds throughout 2021 as it continues to reduce rates on deposits and longer-term borrowings[139] - Approximately 67% of the Company's earning assets are set to reprice or mature over the next 12 months, indicating potential for improved net interest income[201] - The Company’s interest rate risk management involves measuring the interest rate risk position and implementing strategic reviews[197] - The hypothetical change in net interest income under a +100 basis point shock is projected to be a decrease of 0.6%[201] Future Outlook - The company anticipates improving credit metrics in the next quarter as the economy rebounds[176] - The decline in impaired loans was driven by an $8 million loan upgrade and payments made by borrowers, resulting in a net reduction of $1 million in the ALLL[174]