Crossfirst Bankshares (CFB) Q3 2024 earnings summary

Executive summary

• Announced proposed merger with First Busey Corporation, expected to close in Q1 or Q2 2025, expanding regional presence and wealth management capabilities, pending approvals.

• Q3 2024 net income was $19.7M ($0.39 per diluted share), up from $16.9M ($0.34) in Q3 2023; adjusted net income was $21.9M ($0.43 per share), excluding $2.4M in merger costs.

• Operating revenue rose to $67.1M, up from $63.6M in Q2 2024 and $61.1M in Q3 2023.

• Adjusted profitability metrics improved year-over-year, with higher net interest income and margin, and strong capital ratios.

Financial highlights

• Net interest income for Q3 2024 was $61.2M, up $6.0M year-over-year; net interest margin (FTE) rose to 3.29% from 3.19%.

• Loans ended Q3 at $6.3B, up 3% year-to-date and 6% year-over-year; deposits were $6.6B, up 2% year-to-date and 5% year-over-year.

• Non-interest expense for Q3 2024 was $38.6M, up $2.3M year-over-year, including $2.4M in merger-related costs; down $1.5M excluding merger costs.

• Book value per share grew 6% to $15.65; tangible book value per share also up 6% to $14.92.

• Non-performing assets were 0.34% of total assets; annualized net charge-offs at 0.10% of average loans.

Outlook and guidance

• Full-year 2024 net interest margin (FTE) expected at the high end of 3.20%-3.25% guidance.

• Full-year loan growth forecast moderated to 3-5%.

• Non-interest expenses for Q4 2024 projected at $36-37M, excluding merger-related costs.

• Effective tax rate anticipated to remain in the 20%-22% range for the remainder of 2024.