Crossfirst Bankshares (CFB) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $18.6 million ($0.37 per diluted share), up from $16.0 million in Q2 2023 and $18.2 million in Q1 2024, driven by higher net interest and fee income, lower provision expense, and improved credit quality.

• Loans and deposits each grew 2% sequentially and 4% year-to-date, with growth led by Texas, Colorado, and Arizona.

• Maintained strong credit quality, with non-performing assets down to 0.22% of total assets and annualized net charge-offs at 0.07%.

• Returned $3.0 million to shareholders via share buybacks at an average price of $12.78 per share, totaling $4.5 million year-to-date.

• Book value per share rose 2% to $14.78; tangible book value per share also up 2% to $14.02.

Financial highlights

• Net interest margin (FTE) held steady at 3.20% for the fourth consecutive quarter, with loan yields rising to 6.78% and new loan production at 8.93%.

• Operating revenue increased 2% sequentially to $63.6 million, with noninterest income at $5.7 million.

• Efficiency ratio improved to 59.32% from 62.02% in Q2 2023; adjusted efficiency ratio (FTE) at 57.41%.

• Return on average assets was 1.00%, and return on average common equity was 10.59%.

• Allowance for credit losses to total loans at 1.20%; combined allowance and reserve at 1.28%.

Outlook and guidance

• 2024 core loan growth guidance revised to 6–8%; net interest margin expected to remain in the 3.20–3.25% range.

• Noninterest expense projected at ~$37 million per quarter for the remainder of 2024, including contract savings.

• Tax rate expected to remain in the 20%–22% range.

• Management remains focused on scaling markets, expanding net interest and fee income, and increasing operating leverage.

• Forward-looking statements caution on economic and regulatory uncertainties, interest rate changes, and credit risk management.