CrossFirst Bankshares, Inc. (CFB) Bundle
A Brief History of CrossFirst Bankshares, Inc.
CrossFirst Bankshares, Inc. (CFB) has shown significant growth and resilience in its operations leading up to 2024. The company reported a net income of $19.7 million for Q3 2024, translating to $0.39 per diluted common share, compared to $16.9 million, or $0.34 per share, in Q3 2023. For the nine-month period ending September 30, 2024, net income totaled $56.5 million, or $1.12 per diluted common share, a rise from $49.0 million, or $0.99 per diluted common share, in the same period of 2023.
Total assets reached $7.639 billion as of September 30, 2024, up from $7.114 billion a year earlier. The company’s loan portfolio stood at $6.392 billion, reflecting a year-to-date growth of 3%. Additionally, deposits amounted to $6.6 billion, representing a 2% increase year-to-date, with a notable $156 million increase in time deposits.
Financial Performance Metrics
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $19.7 million | $16.9 million | $56.5 million | $49.0 million |
| Earnings Per Share | $0.39 | $0.34 | $1.12 | $0.99 |
| Total Assets | $7.639 billion | $7.114 billion | $7.639 billion | $7.114 billion |
| Total Loans | $6.392 billion | $5.907 billion | $6.392 billion | $5.907 billion |
| Total Deposits | $6.6 billion | $6.5 billion | $6.6 billion | $6.5 billion |
Asset Quality and Risk Management
As of September 30, 2024, non-performing assets accounted for 0.34% of total assets, with annualized net charge-offs representing 0.10% of average loans. The allowance for credit losses was $77.1 million, reflecting an increase from $69.4 million at the end of Q3 2023.
Capital and Liquidity Position
CrossFirst Bankshares maintained strong capital ratios, achieving a total risk-based capital ratio of 11.8% and a common equity Tier 1 capital ratio of 10.6%. The tangible common equity was reported at $735.3 million, with a tangible book value per common share of $14.92 as of September 30, 2024.
The company’s liquidity position remained robust, with total liquidity amounting to $2.606 billion, equivalent to 34% of total assets. On-balance sheet liquidity was $1.021 billion, reflecting a slight decrease from the previous year.
Mergers and Acquisitions Activity
CrossFirst reported merger-related costs of $2.4 million in Q3 2024, which contributed to the increase in non-interest expenses. The company continues to seek strategic opportunities for growth through acquisitions while focusing on enhancing operational efficiency.
A Who Owns CrossFirst Bankshares, Inc. (CFB)
Major Shareholders
As of 2024, CrossFirst Bankshares, Inc. (CFB) has several significant shareholders, primarily institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 11.5% |
| The Vanguard Group, Inc. | 10.3% |
| Wellington Management Group LLP | 8.7% |
| SSGA Funds Management, Inc. | 7.5% |
| State Street Corporation | 6.8% |
| Other Institutional Investors | 55.2% |
| Insider Holdings (Management & Board) | 0.5% |
Stock Performance
The stock performance of CrossFirst Bankshares, Inc. is a critical aspect of its ownership dynamics. As of September 30, 2024, the stock price was approximately $15.65 per share, reflecting a growth of 6% year-to-date. The market capitalization stood at around $775 million.
Recent Developments
In August 2024, CrossFirst Bankshares announced a merger agreement with Busey Corporation, which could significantly impact ownership structure and shareholder value. The transaction is expected to close in the first or second quarter of 2025, pending regulatory approvals.
Financial Overview
The financial stability and growth of CrossFirst Bankshares are essential for shareholders. As of September 30, 2024, the financial highlights include:
| Financial Metric | Value |
|---|---|
| Total Assets | $7.6 billion |
| Total Deposits | $6.6 billion |
| Net Income (Q3 2024) | $19.7 million |
| Earnings per Share (EPS) | $0.39 |
| Return on Assets (ROA) | 1.02% |
| Return on Equity (ROE) | 10.54% |
| Book Value per Share | $15.65 |
Insider Ownership
Insider ownership in CrossFirst Bankshares is relatively modest, accounting for approximately 0.5% of total shares. This includes shares held by executives and board members, reflecting a governance structure that emphasizes external institutional investment.
Conclusion on Ownership Trends
The ownership landscape of CrossFirst Bankshares, Inc. continues to evolve with the potential merger with Busey Corporation. Institutional investors hold the majority of shares, indicating strong market confidence in the bank's strategic direction and financial performance.
CrossFirst Bankshares, Inc. (CFB) Mission Statement
Core Values and Purpose
The mission of CrossFirst Bankshares, Inc. (CFB) is to provide exceptional financial services while maintaining a focus on the needs of their clients, communities, and shareholders. The bank emphasizes a commitment to integrity, service, and a strong community presence.
Strategic Goals
- Enhance customer experience through personalized banking solutions.
- Drive growth through strategic partnerships and expansion into new markets.
- Maintain financial stability and robust capital positions.
- Invest in employee development and community engagement.
Financial Performance Metrics
As of September 30, 2024, CrossFirst Bankshares reported the following key financial performance metrics:
| Metric | Value |
|---|---|
| Deposits | $6.6 billion |
| Loans | $6.3 billion |
| Net Income (Q3 2024) | $19.7 million |
| Earnings Per Share (Diluted) | $0.39 |
| Return on Average Assets | 1.02% |
| Return on Average Common Equity | 10.54% |
| Book Value per Share | $15.65 |
| Tangible Book Value per Share | $14.92 |
Market Position and Strategy
CrossFirst Bankshares operates in various states including Kansas, Oklahoma, Texas, Missouri, Arizona, Colorado, and New Mexico, focusing on both commercial and retail banking services. The bank aims to leverage its regional presence to enhance customer relationships and drive business growth.
Community Engagement and Responsibility
CrossFirst Bankshares is dedicated to community involvement, supporting local initiatives and charities. This commitment is reflected in their operational philosophy, which seeks to positively impact the communities they serve.
Recent Developments
On August 26, 2024, CrossFirst Bankshares announced a merger agreement with Busey Corporation, aiming to expand their market presence and enhance service offerings. This merger is expected to close in the first or second quarter of 2025, pending regulatory approvals.
Risk Management and Compliance
The bank adheres to strict regulatory requirements, maintaining a total risk-based capital ratio of 11.8% as of September 30, 2024. The focus on compliance and risk management is integral to their operational strategy.
Conclusion
CrossFirst Bankshares continues to focus on enhancing its mission while adapting to market changes and customer needs, ensuring sustainable growth and community support.
How CrossFirst Bankshares, Inc. (CFB) Works
Financial Overview
As of September 30, 2024, CrossFirst Bankshares, Inc. reported total assets of $7.639 billion, an increase from $7.114 billion at the end of 2023. The company had total liabilities of $6.919 billion and stockholders' equity of $720.785 million.
Income Statement Highlights
For the three months ended September 30, 2024, CrossFirst Bankshares generated net income of $19.649 million, or $0.39 per diluted common share, compared to $16.863 million, or $0.34 per diluted common share in the same period in 2023.
For the nine months ended September 30, 2024, net income totaled $56.494 million, or $1.12 per diluted common share, up from $49.018 million, or $0.99 per diluted common share for the same period in 2023.
| Period | Net Income (in millions) | Diluted Earnings per Share |
|---|---|---|
| Q3 2024 | $19.649 | $0.39 |
| Q3 2023 | $16.863 | $0.34 |
| 9M 2024 | $56.494 | $1.12 |
| 9M 2023 | $49.018 | $0.99 |
Net Interest Income
Net interest income for the third quarter of 2024 was $129.161 million, compared to $113.363 million for the same period in 2023. The net interest margin (FTE) was reported at 3.29% for Q3 2024.
For the nine months ended September 30, 2024, net interest income was $377.230 million, an increase from $370.141 million in the same nine-month period of 2023.
| Period | Net Interest Income (in millions) | Net Interest Margin |
|---|---|---|
| Q3 2024 | $129.161 | 3.29% |
| Q3 2023 | $113.363 | 3.19% |
| 9M 2024 | $377.230 | 3.23% |
| 9M 2023 | $370.141 | 3.36% |
Asset Quality
As of September 30, 2024, non-performing assets represented 0.34% of total assets. The annualized net charge-offs were 0.10% of average loans.
The allowance for credit losses increased to $78 million, reflecting a provision expense of $3.5 million for the quarter.
Deposits and Loans
Total deposits as of September 30, 2024, reached $6.6 billion, a slight decrease of $100 million from the previous quarter but an increase of $143 million year-to-date. The composition of deposits included:
- Time deposits: $1.987 billion
- Non-interest bearing deposits: $903.625 million
- Interest-bearing deposits: $5.657 billion
Gross loans totaled $6.392 billion as of September 30, 2024, with a year-to-date increase of $203 million.
| Deposit Type | Amount (in billions) |
|---|---|
| Time Deposits | $1.987 |
| Non-Interest Bearing Deposits | $0.904 |
| Interest-Bearing Deposits | $5.658 |
| Total Deposits | $6.600 |
Capital Ratios
As of September 30, 2024, CrossFirst Bankshares maintained total risk-based capital of 11.8% and common equity Tier 1 capital of 10.6%. The book value per common share increased by 6% to $15.65.
Merger and Acquisition Activity
On August 26, 2024, CrossFirst Bankshares announced a merger agreement with Busey Corporation. The merger is expected to close in the first or second quarter of 2025, pending regulatory and stockholder approvals.
How CrossFirst Bankshares, Inc. (CFB) Makes Money
Net Interest Income
CrossFirst Bankshares, Inc. generates a significant portion of its revenue through net interest income, which is the difference between interest earned on loans and interest paid on deposits and other borrowings. For the three months ended September 30, 2024, net interest income was $177.2 million compared to $170.1 million for the same period in 2023. The net interest margin on a fully tax-equivalent (FTE) basis was 3.29%, up from 3.19% year-over-year.
| Period | Net Interest Income (in $ thousands) | Net Interest Margin (FTE) |
|---|---|---|
| Q3 2024 | $177,230 | 3.29% |
| Q3 2023 | $170,141 | 3.19% |
Loan Portfolio
As of September 30, 2024, CrossFirst's gross loans totaled $6.33 billion, reflecting a 3% increase from $6.13 billion at the end of 2023. The loan portfolio is diversified across various sectors, with significant exposure to commercial and industrial loans, as well as commercial real estate.
| Loan Type | Balance (in $ thousands) | % Change (2023-2024) |
|---|---|---|
| Commercial and Industrial | $2,221,014 | 3% |
| Energy | $224,036 | 5% |
| Commercial Real Estate - Owner-Occupied | $583,305 | 3% |
| Commercial Real Estate - Non-Owner-Occupied | $2,802,954 | 4% |
| Residential Real Estate | $476,336 | 3% |
| Consumer | $23,404 | (37%) |
Deposits and Funding
As of September 30, 2024, total deposits stood at $6.6 billion, reflecting a year-to-date growth of $143 million, or 2%. The composition of deposits includes a mix of time deposits, savings, and non-interest-bearing accounts.
| Deposit Type | Balance (in $ thousands) | % Change (2023-2024) |
|---|---|---|
| Time Deposits | $1,986,670 | Increased |
| Non-Interest-Bearing Deposits | $903,625 | Decreased |
| Average Deposits | $6.6 billion | Increased 2% |
Non-Interest Income
Non-interest income contributes to CrossFirst's revenue through service fees, mortgage banking income, and other sources. For the three months ended September 30, 2024, CrossFirst reported non-interest income of $26.3 million, up from $24.5 million in the same quarter of 2023.
| Period | Non-Interest Income (in $ thousands) |
|---|---|
| Q3 2024 | $26,300 |
| Q3 2023 | $24,500 |
Provision for Credit Losses
The provision for credit losses reflects CrossFirst's efforts to manage risk within its loan portfolio. For Q3 2024, the provision was $3.5 million, compared to $3.3 million in Q3 2023, indicating a slight increase due to economic factors and net charge-offs.
| Period | Provision for Credit Losses (in $ thousands) |
|---|---|
| Q3 2024 | $3,500 |
| Q3 2023 | $3,300 |
Financial Performance Metrics
Key financial metrics for CrossFirst Bankshares as of September 30, 2024, include:
| Metric | Value |
|---|---|
| Net Income | $19,649,000 |
| Diluted Earnings Per Share | $0.39 |
| Return on Average Assets | 1.02% |
| Return on Average Equity | 10.54% |
Capital Position
CrossFirst maintains a strong capital position with total risk-based capital at 11.8% and common equity Tier 1 capital at 10.6% as of September 30, 2024. The book value per share increased by 6% to $15.65 during the same period.
| Capital Ratio | Value |
|---|---|
| Total Risk-Based Capital | 11.8% |
| Common Equity Tier 1 Capital | 10.6% |
| Book Value Per Share | $15.65 |
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Article updated on 8 Nov 2024
Resources:
- CrossFirst Bankshares, Inc. (CFB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CrossFirst Bankshares, Inc. (CFB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CrossFirst Bankshares, Inc. (CFB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.