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]
CrossFirst Bankshares(CFB) - 2021 Q1 - Quarterly Report