Financial Performance - Net income for the three months ended June 30, 2023, was $16,047,000, an increase from $15,545,000 in the same period of 2022, representing a growth of 3.2%[23] - Comprehensive income for the six months ended June 30, 2023, was $33,850,000, compared to a loss of $38,545,000 in the same period of 2022[23] - Net income for the six months ended June 30, 2023, was $32,155, compared to $32,373 for the same period in 2022, reflecting a slight decrease of 0.7%[47] - The company reported a net income before taxes of $20,266,000 for the three months ended June 30, 2023, compared to $19,572,000 for the same period in 2022, reflecting a growth of 3.5%[41] - Net income available to common stockholders for the three months ended June 30, 2023, was $15,944 thousand, compared to $15,545 thousand in 2022, marking an increase of 2.6%[205] Asset and Liability Management - Total assets as of June 30, 2023, were $1,123,000,000, reflecting a growth from $1,100,000,000 as of March 31, 2023[23] - As of June 30, 2023, the total assets amounted to $651.483 million, an increase from $608.599 million at December 31, 2022, reflecting a growth of approximately 7%[26] - Total financial assets included cash and cash equivalents of $342.497 million and available-for-sale securities of $743.900 million as of June 30, 2023[186] - Total deposits amounted to $6.100 billion, with a significant portion attributed to wholesale funding sources[186] - The company’s total borrowings as of June 30, 2023, amounted to $2,115,483 thousand, with time deposits contributing $1,709,991 thousand and FHLB borrowings at $95,544 thousand[146] Loan Portfolio and Credit Quality - As of June 30, 2023, the total loan portfolio amounts to $679,232,000, a decrease from $1,402,306,000 in December 31, 2022[63] - The "Pass" category loans total $645,342,000, representing approximately 95% of the total loan portfolio[63] - Special mention loans are at $22,314,000, which is an increase from $11,656,000 in December 31, 2022[63] - The total amount of substandard loans (both accrual and non-accrual) is $20,742,000, compared to $2,583,000 in December 31, 2022[63] - The overall risk rating indicates a stable credit risk profile, with the majority of loans classified as "Pass"[62] Income and Expense Analysis - Total interest income for the three months ended June 30, 2023, was $107,148,000, an increase of 102.5% compared to $52,840,000 for the same period in 2022[41] - Total non-interest income for the six months ended June 30, 2023, was $10,200,000, compared to $9,143,000 for the same period in 2022, marking an increase of 11.6%[41] - Total non-interest expense for the six months ended June 30, 2023, was $75,504,000, an increase from $56,869,000 for the same period in 2022, reflecting a rise of 32.8%[41] - The company reported stock-based compensation of $2.503 million during the period[26] - The total comprehensive income included a gain of $3.298 million from available-for-sale securities and a loss of $1.603 million from cash flow hedges[26] Strategic Initiatives and Growth Plans - The company plans to continue its growth strategy through potential mergers and acquisitions, particularly following the acquisition of Canyon Bancorporation, Inc.[20] - The company aims to enhance its service offerings and expand into new markets as part of its strategic initiatives[20] - The company anticipates maintaining its capital allocation strategies to support future growth and manage risks effectively[20] - The company completed the acquisition of Canyon Bancorporation, Inc. on August 1, 2023, paying approximately $9.1 million in cash and issuing 597,645 shares of common stock[188] - The company anticipates continued focus on market expansion and new product development in the upcoming quarters[90] Risk Management and Credit Losses - The allowance for credit losses (ACL) is estimated at $67,567,000, representing a percentage of loans at 1.18%[82] - The company recorded no credit loss impairment during the six months ended June 30, 2023, indicating stable credit quality[51] - The provision for credit losses was $3,040,000, reflecting the company's strategy to strengthen its financial position amid market uncertainties[105] - The total allowance for credit losses increased to $67,567,000, up from $65,130,000, indicating a proactive approach to managing credit risk[105] - The company continues to monitor risk ratings on an ongoing basis to ensure timely adjustments based on borrower performance[59] Shareholder and Capital Management - The company declared dividends of $103 thousand related to the Series A Non-Cumulative Perpetual Preferred Stock during the three months ended June 30, 2023[155] - The aggregate number of shares authorized for future issuance under the Omnibus Plan is 1,275,410 shares as of June 30, 2023[151] - The company had 49,290,990 shares of common stock outstanding as of August 1, 2023[37] - The company reported a total of 522,567 unvested restricted stock units as of June 30, 2023, with a weighted-average fair value of $13.68[176] - The company granted 128,005 performance-based restricted stock units (PBRSUs) during the six-month period ended June 30, 2023[175] Tax and Regulatory Compliance - The effective tax rate remained stable at 21% for both 2023 and 2022, influenced by investments in tax-advantaged assets and state tax credits[199] - The actual tax expense for the three months ended June 30, 2023, was $4.219 million, compared to $4.027 million for the same period in 2022, representing a year-over-year increase of 4.8%[171] - The Company and the Bank met all capital adequacy requirements as of June 30, 2023[172] - As of June 30, 2023, the consolidated total capital to risk-weighted assets ratio was 10.7%, exceeding the required 10.5%[173] - The Company’s Tier I capital to risk-weighted assets ratio was 9.6% for both consolidated and Bank levels as of June 30, 2023[173]
CrossFirst Bankshares(CFB) - 2023 Q2 - Quarterly Report