EX-99.1 2 q42019earningsrelease-.htm EXHIBIT 99.1 EARNINGS RELEASE Exhibit
Exhibit 99.1

cfblogoleftjustifieda02.jpg
FOR IMMEDIATE RELEASE
 
 CROSSFIRST BANKSHARES, INC. CONTACT:
January 23, 2020
 
     Matt Needham, Director of Investor Relations
(913) 312-6822
https://investors.crossfirstbankshares.com

CrossFirst Bankshares, Inc. Reports Record Fourth Quarter & Full-Year 2019 Operating Revenue and Net Income

LEAWOOD, KS. January 23, 2020 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for CrossFirst Bank, reported its results for the fourth quarter and full-year of 2019, including record net income of $11.4 million, or $0.22 per diluted share, and full-year 2019 net income of $40.6 million, or $0.83 per diluted share. CrossFirst continued to deliver growth in operating revenue and earnings while managing through a declining interest rate environment.

"We are pleased to announce our 23rd consecutive quarter of record operating revenue performance," said CrossFirst CEO and President George F. Jones, Jr. “Despite the headwinds of a declining rate environment, we were able to deliver quarterly operating revenue growth through strong balance sheet growth and by maintaining our net interest margin. Doubling our net income year over year is a tremendous success for our Company. We have built a great organization and I am proud of what we have accomplished during the year.”
2019 Fourth Quarter and Full-Year Highlights:
Approaching $5 billion of assets with 30% operating revenue growth compared to full-year 2018
Record quarterly net income of $11.4 million, an increase of 10% from the fourth quarter of 2018
Record full-year net income of $40.6 million, a year-over-year increase of 107%
Diluted EPS of $0.83 for full-year 2019, a year-over-year increase of 77%
Achieved efficiency ratios of 55.6% for the quarter and 58.4% for the year
Grew loans by $223 million from the previous quarter and $793 million or 26% since year-end December 31, 2018
Grew deposits by $266 million from the previous quarter and $716 million or 22% since year-end December 31, 2018
Book value per share of $11.80 at December 31, 2019 compared to $10.21 at December 31, 2018

 
 
Quarter-to-Date
 
Year-to-Date
 
 
December 31,
 
December 31,
 
 
2018
 
2019
 
2018
 
2019
 
 
(Dollars in millions except per share data)
Operating revenue(1)
 
$
33.5

 
$
39.4

 
$
116.5

 
$
150.2

Net income
 
$
10.3

 
$
11.4

 
$
19.6

 
$
40.6

Diluted EPS
 
$
0.22

 
$
0.22

 
$
0.47

 
$
0.83

 
 
 
 
 
 
 
 
 
Return on average assets
 
1.06
%
 
0.94
%
 
0.56
%
 
0.90
%
Non-GAAP core operating return on average assets(2)
 
0.67
%
 
0.94
%
 
0.57
%
 
0.88
%
Return on average common equity
 
9.03
%
 
7.45
%
 
5.34
%
 
7.67
%
Non-GAAP return on average tangible common equity(2)
 
9.20
%
 
7.55
%
 
5.47
%
 
7.79
%
Net interest margin
 
3.44
%
 
3.17
%
 
3.29
%
 
3.26
%
Net interest margin, fully tax-equivalent(3)
 
3.51
%
 
3.23
%
 
3.39
%
 
3.31
%
Efficiency ratio
 
60.2
%
 
55.6
%
 
73.6
%
 
58.4
%
Non-GAAP core operating efficiency ratio, fully tax-equivalent(2)(3)
 
61.4
%
 
54.7
%
 
67.7
%
 
57.2
%
 
 
 
 
 
 
 
 
 
(1) Net interest income plus non-interest income.
(2) Represents a non-GAAP measure. See "Table 6. Non-GAAP Financial Measures" for a reconciliation of this measure.
(3) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental federal tax rate used is 21.0%.

1

CROSSFIRST BANKSHARES, INC.

Income from Operations
Net Interest Income
The Company produced interest income of $55.2 million for the fourth quarter of 2019, an increase of 17% from the fourth quarter of 2018 and remained flat from the previous quarter due to the declining interest rate environment. Full-year interest income is up 38% year-over- year primarily as a result of continued strong growth in average earning assets. The tax-equivalent yield on earning assets declined from 5.00% to 4.76% during the fourth quarter of 2019 primarily due to the movement of variable rate assets indexed to market rates.

Interest expense for the fourth quarter of 2019 was $18.0 million, or 22% higher than the fourth quarter of 2018 and 9% lower than the third quarter of 2019. Average interest-bearing deposits in the fourth quarter of 2019 totaled $3.3 billion, an increase of $806 million or 33% from the same quarter in 2018. Compared to the third quarter of 2019, interest-bearing deposit mix changes during the quarter were a result of responding to declining rates to lower margin exposure, therefore most of the new deposit growth came from variable rate accounts. Non-deposit funding costs decreased to 1.86% from 1.95% in the third quarter of 2019 while overall cost of funds for the quarter was 1.71%, compared to 1.94% for the third quarter of 2019.

Tax-equivalent net interest margin declined to 3.23% for the quarter compared to 3.51% for the same quarter in 2018, reflecting the impact of the declining rate environment. For full-year 2019, the Company reported a tax equivalent net interest margin of 3.31%, slightly lower than full-year 2018 results. The tax-equivalent adjustment, which accounts for income taxes saved on the interest earned on nontaxable securities and loans, was $0.7 million for the fourth quarter of both 2019 and 2018, and $0.6 million for the third quarter of 2019. Net interest income totaled $37.2 million for the fourth quarter of 2019 or 4% greater than the third quarter of 2019. Full-year 2019 net interest income totaled $141.4 million or 28% higher than the same period of 2018 reflecting the Company's strong balance sheet growth and maintenance of net interest margin.

Non-Interest Income
Non-interest income increased $1.0 million in the fourth quarter of 2019 or 83% compared to the same quarter of 2018 and decreased $1.0 million or 32% lower compared to the third quarter of 2019. While the Company continues to increase fee income commensurate with its growth, during the quarter the Company recorded $0.5 million of bond gains as well as more income from the back to back swap program than in the fourth quarter in 2018. The reduction in non-interest income from the prior quarter was due to increased activity for swap fees and a one-time $0.8 million gain related to a change in derivative valuation in the third quarter of 2019. For full-year 2019, non-interest income increased $2.6 million compared to full-year 2018 primarily due to the increased swap activity, the revaluation of the swap program, and the additional activity derived from additional balance sheet and customer growth.

Non-Interest Expense
Non-interest expense for the fourth quarter of 2019 increased $1.7 million, or 9%, compared to the fourth quarter of 2018 and increased $0.7 million, or 3%, from the third quarter of 2019. Compared to the fourth quarter of 2018, salary and employment-related expenses increased $1.4 million for additional employee headcount required to support growth and data processing costs were higher from the Company's increased volumes of activity from balance sheet growth and a larger customer base. As compared to the third quarter of 2019, salary and employment-related expenses decreased $0.4 million as a result of continuing to manage resource allocation and hiring, FDIC insurance expense increased as a result of a one-time small bank credit in the third quarter and professional fees increased $0.6 million. For full-year 2019, non-interest expense increased 2% or $1.9 million compared to full-year 2018 primarily due to salary and employment expenses to support growth and higher data processing costs.

CrossFirst’s effective tax rate for the twelve months ended December 31, 2019 was 16.6% as compared to (13.9)% for the twelve months ended December 31, 2018. The year-over-year change was due to higher earnings, state tax credits related to our new headquarters, a reduction in tax-exempt income due to average yields on tax exempt securities decreasing, and permanent tax benefits from stock-based compensation awards vested and exercised in 2018 as compared to 2019. The effective tax rate for the fourth quarter of 2019 was 19.4% compared to (16.8)% for the fourth quarter of 2018. For both of the comparable periods, the Company continued to benefit from the tax-exempt municipal bond portfolio creating an effective tax rate lower than the statutory tax rates.

Balance Sheet Performance & Analysis
During the fourth quarter of 2019, total assets increased by $292 million or 6% compared to September 30, 2019 with both strong loan and deposit growth. Asset growth for CrossFirst was $836 million or 20% year-over-year. During the fourth quarter of 2019, total available for sale investment securities increased $9 million to $742 million, while the overall average for the quarter was $745 million. Tax-exempt municipal securities on average increased $35 million and mortgage-backed securities decreased $19 million. Overall, the Company increased the size of the bond portfolio during 2019 by $78 million, or 12% compared to year-end 2018. The increase in investment securities was part of management's strategy to manage liquidity and optimize income.

2

CROSSFIRST BANKSHARES, INC.



Loan Growth Results
The Company continued to maintain a diversified loan portfolio while experiencing strong loan growth of 6% for the fourth quarter of 2019 and 26% since December 31, 2018. Loan yields declined 32 basis points in the overall portfolio commensurate with the adjustable rate loan movements in LIBOR and Prime during the quarter. The Company experienced $174 million in payoffs for the quarter, but funded $255 million in loans to new borrowers to replace and grow the overall portfolio.
(Dollars in millions)
4Q18
 
1Q19
 
2Q19
 
3Q19
 
4Q19
 
% of
Total
 
QoQ
Growth
($)
 
QoQ Growth
(%)
(1)
 
YoY Growth
($)
 
YoY Growth (%)(1)
Average loans (gross)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
1,021

 
$
1,145

 
$
1,224

 
$
1,284

 
$
1,315

 
35
%
 
$
31

 
2
 %
 
$
294

 
29
%
Energy
349

 
367

 
383

 
389

 
400

 
11

 
11

 
3

 
51

 
15

Commercial real estate
810

 
866

 
946

 
974

 
1,007

 
27

 
33

 
3

 
197

 
24

Construction and land development
449

 
444

 
457

 
487

 
599

 
16

 
112

 
23

 
150

 
33

Residential real estate
240

 
310

 
342

 
362

 
384

 
10

 
22

 
6

 
144

 
60

Consumer & Equity Lines
42

 
44

 
46

 
45

 
45

 
1

 

 
(1
)
 
3

 
5

Total
$
2,911

 
$
3,176

 
$
3,398

 
$
3,541

 
$
3,750

 
100
%
 
$
209

 
6
 %
 
$
839

 
29
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield on loans for the period ending
5.56
%
 
5.75
%
 
5.66
%
 
5.53
%
 
5.21
%
 
 
 
 
 
 
 
 
 
 
(1) Actual unrounded values are used to calculate the reported percent disclosed. Accordingly, recalculations using the amounts in millions as disclosed in this release may not produce the same amounts.

Deposit Growth Results
The Company continues to maintain a traditional deposit mix, with the goal of keeping pace with growth in the loan portfolio. Deposit growth was primarily funded with money market accounts during the fourth quarter, which have historically adjusted with movements in Federal Funds rates. During the fourth quarter, the Company added short term wholesale funding and $62 million of brokered deposits to replace the brokered funding that previously rolled off in the third quarter of 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
4Q18
 
1Q19
 
2Q19
 
3Q19
 
4Q19
 
% of
Total
 
QoQ
Growth
($)
 
QoQ Growth
(%)
(1)
 
YoY Growth
($)
 
YoY Growth (%)(1)
Average deposits
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing deposits
$
492

 
$
477

 
$
513

 
$
535

 
$
522

 
14
%
 
$
(13
)
 
(3
)%
 
$
30

 
6
%
Transaction deposits
63

 
104

 
144

 
135

 
200

 
5
%
 
65

 
49

 
137

 
217

Savings and money market deposits
1,498

 
1,544

 
1,560

 
1,744

 
1,854

 
49
%
 
110

 
6

 
356

 
24

Time deposits
913

 
1,165

 
1,305

 
1,277

 
1,226

 
32
%
 
(51
)
 
(4
)
 
313

 
34

Total
$
2,966

 
$
3,290

 
$
3,522

 
$
3,691

 
$
3,802

 
100
%
 
$
111

 
3
 %
 
$
836

 
28
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of deposits for the period ending
1.70
%
 
1.96
%
 
1.99
%
 
1.94
%
 
1.70
%
 
 
 
 
 
 
 
 
 
 
Cost of interest-bearing deposits for
  the period ending
2.04
%
 
2.30
%
 
2.33
%
 
2.26
%
 
1.97
%
 
 
 
 
 
 
 
 
 
 
(1) Actual unrounded values are used to calculate the reported percent disclosed. Accordingly, recalculations using the amounts in millions as disclosed in this release may not produce the same amounts.


3

CROSSFIRST BANKSHARES, INC.

Asset Quality Position
The Company continued to add to the allowance for loan loss in order to support loan growth and changes in relative risk for the overall portfolio, recording a provision expense of $3.4 million for the fourth quarter. Net charge-offs were $5.5 million for the quarter as a result of a partial charge-off of a previously identified non-performing commercial and industrial loan, as compared to charge-offs of $0.2 million for the fourth quarter in 2018. During the quarter, non-performing assets to total assets and overall asset quality remained consistent with the previous quarters asset quality metrics.
Asset quality (Dollars in millions)
4Q18
 
1Q19
 
2Q19
 
3Q19
 
4Q19
Non-accrual loans
$
17.8

 
$
13.0

 
$
50.0

 
$
43.6

 
$
39.7

Other real estate owned

 
2.5

 
2.5

 
2.5

 
3.6

Non-performing assets
17.8

 
15.5

 
52.8

 
46.7

 
47.9

Loans 90+ days past due and still accruing

 

 
0.2

 
0.6

 
4.6

Loans 30 - 89 days past due
3.7

 
31.1

 
23.6

 
64.7

 
4.5

Net charge-offs (recoveries)
0.2

 
0.7

 

 
4.7

 
5.5

Asset quality metrics (%)
4Q18
 
1Q19
 
2Q19
 
3Q19
 
4Q19
Non-performing assets to total assets
0.43
%
 
0.36
%
 
1.18
%
 
1.00
%
 
0.97
%
Allowance for loan loss to total loans
1.23

 
1.22

 
1.24

 
1.18

 
1.06

Allowance for loan loss to non-performing loans
212

 
307

 
85

 
97

 
92

Net charge-offs (recoveries) to average loans(1)
0.03

 
0.09

 

 
0.53

 
0.58

Provision to average loans(1)
0.61

 
0.36

 
0.34

 
0.54

 
0.09

(1) Interim periods annualized.

Capital Position
At December 31, 2019, stockholders’ equity totaled $613 million, or $11.80 per share, compared to $602 million, or $11.59 per share, at September 30, 2019. Tangible common stockholders' equity was $606 million and tangible book value per share was $11.66 at December 31, 2019. The increase in stockholders' equity for the fourth quarter was primarily a result of quarterly earnings and modest movement in accumulated other comprehensive income for unrealized bond gains.

Period-end (Dollars in millions, except per share data)
4Q18
 
1Q19
 
2Q19
 
3Q19
 
4Q19
Total Stockholders' Equity
$
490

 
$
481

 
$
499

 
$
602

 
$
613

 
 
 
 
 
 
 
 
 
 
Book value per share
$
10.21

 
$
10.63

 
$
11.00

 
$
11.59

 
$
11.80

Tangible book value per share(1)
$
10.04

 
$
10.46

 
$
10.83

 
$
11.44

 
$
11.66

 
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital ratio
11.75
%
 
11.23
%
 
11.02
%
 
12.91
%
 
12.19
%
Tier 1 capital ratio
12.53

 
11.23

 
11.04

 
12.93

 
12.21

Total capital ratio
13.51

 
12.20

 
12.04

 
13.90

 
13.08

Leverage ratio
12.43

 
11.15

 
10.87

 
12.57

 
12.08

 
 
 
 
 
 
 
 
 
 
(1) Represents a non-GAAP measure. See "Table 6. Non-GAAP Financial Measures" for a reconciliation of this measure.

During the third quarter of 2019, the Company issued 6,594,362 new shares in its initial public offering, including the over-allotment, bringing its total net proceeds from the offering to approximately $87.0 million. The Company intends to use the net proceeds from the offering to support growth, organically or through mergers and acquisitions, and for general corporate purposes. As previously disclosed, the Company is currently considering using a portion of the net proceeds for the opening of a second smaller full-service branch in the Dallas MSA, in addition to consistently evaluating other strategic opportunities.


4

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Conference Call and Webcast
CrossFirst will hold a conference call and webcast to discuss fourth quarter 2019 and year end results on Thursday, January 23, 2020 at 4 p.m. CDT / 5 p.m. EDT. The conference call and webcast may also include discussion of Company developments, forward-looking statements and other material information about business and financial matters. Investors, news media, and other participants should register for the call or audio webcast at https://investors.CrossFirstbankshares.com. Participants may dial into the call toll-free at (877) 621-5851 from anywhere in the U.S. or (470) 495-9492 internationally, using conference ID no. 5624769. Participants are encouraged to dial into the call or access the webcast approximately 10 minutes prior to the start time.

A replay of the webcast will be available on the Company's website. A replay of the conference call will be available two hours following the close of the call until January 30, 2020, accessible at (855) 859-2056 with conference ID no. 5624769.

Cautionary Notice about Forward-Looking Statements
The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Annual Report on Form 10-K is filed. This earnings release contains forward-looking statements. These forward-looking statements reflect the Company's current views with respect to, among other things, future events and its financial performance. Any statements about management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements.

Accordingly, the Company cautions you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. Such factors include, without limitation, those listed from time to time in reports that the Company files with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

About CrossFirst
CrossFirst Bankshares, Inc., is a Kansas corporation and a registered bank holding company for its wholly-owned subsidiary CrossFirst Bank, which is headquartered in Leawood, Kansas. CrossFirst Bank has seven full-service banking offices primarily along the I-35 corridor in Kansas, Missouri, Oklahoma and Texas.

Unaudited Financial Tables




5

CROSSFIRST BANKSHARES, INC.

TABLE 1. CONSOLIDATED BALANCE SHEETS
 
As of December 31,
 
2018
 
2019
 
 
 
(unaudited)
 
(Dollars in thousands)
Assets
 
 
 
Cash and cash equivalents
$
216,541

 
$
187,320

Available for sale securities - taxable
296,133

 
298,208

Available for sale securities - tax-exempt
367,545

 
443,426

Premises and equipment, held for sale
3,444

 

 Loans, net of allowance for loan losses of $40,896 and $37,826 at December 31, 2019 and 2018, respectively
3,022,921

 
3,811,348

Premises and equipment, net
74,945

 
70,210

Restricted equity securities
14,525

 
17,278

Interest receivable
14,092

 
15,716

Foreclosed assets held for sale

 
3,619

Deferred tax asset
16,316

 
9,560

Goodwill and other intangible assets, net
7,796

 
7,694

Bank-owned life insurance
63,811

 
65,689

Other
9,146

 
12,943

Total assets
$
4,107,215

 
$
4,943,011

Liabilities and stockholders’ equity
 
 
 
Deposits
 
 
 
Non-interest bearing
$
484,284

 
$
521,826

Savings, NOW and money market
1,714,136

 
2,162,187

Time
1,009,677

 
1,239,746

Total deposits
3,208,097

 
3,923,759

Federal funds purchased and repurchase agreements
75,406

 
14,921

Federal Home Loan Bank advances
312,985

 
358,743

Other borrowings
884

 
921

Interest payable and other liabilities
19,507

 
31,245

Total liabilities
3,616,879

 
4,329,589

Stockholders’ equity
 
 
 
Redeemable preferred stock, $0.01 par value, $25 liquidation value:
 
 
 
authorized - 5,000,000 shares, issued - 0 and 1,200,000 shares at December 31, 2019 and 2018, respectively
12

 

Common stock, $0.01 par value:
 
 
 
authorized - 200,000,000 shares, issued - 51,969,203 and 45,074,322 shares at December 31, 2019 and 2018, respectively
451

 
520

Additional paid-in capital
454,512

 
519,870

Retained earnings
38,567

 
76,666

Other
(196
)
 
(85
)
Accumulated other comprehensive income (loss)
(3,010
)
 
16,451

Total stockholders’ equity
490,336

 
613,422

Total liabilities and stockholders’ equity
$
4,107,215

 
$
4,943,011


6

CROSSFIRST BANKSHARES, INC.

TABLE 2. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2018
 
2019
 
2018
 
2019
 
(Dollars in thousands except per share data)
Interest Income
 
 
 
 
 
 
 
Loans, including fees
$
40,813

 
$
49,208

 
$
130,075

 
$
191,527

Available for sale securities
 
 
 
 
 
 
 
Available for sale securities - Taxable
2,243

 
1,894

 
7,972

 
8,540

Available for sale securities - Tax-exempt
3,135

 
3,191

 
14,757

 
12,011

Deposits with financial institutions
615

 
601

 
3,096

 
3,053

Dividends on bank stocks
262

 
286

 
980

 
1,087

Total interest income
47,068

 
55,180

 
156,880

 
216,218

Interest Expense
 
 
 
 
 
 
 
Deposits
12,733

 
16,247

 
39,372

 
67,668

Fed funds purchased and repurchase agreements
440

 
91

 
1,068

 
592

Advances from Federal Home Loan Bank
1,533

 
1,628

 
5,841

 
6,367

Other borrowings
47

 
35

 
231

 
147

Total interest expense
14,753

 
18,001

 
46,512

 
74,774

Net Interest Income
32,315

 
37,179

 
110,368

 
141,444

Provision for Loan Losses
4,500

 
3,350

 
13,500

 
13,900

Net Interest Income after Provision for Loan Losses
27,815

 
33,829

 
96,868

 
127,544

Non-Interest Income
 
 
 
 
 
 
 
Service charges and fees (rebates) on customer accounts
(62
)
 
163

 
444

 
604

Gain (loss) on sale of available for sale securities
(70
)
 
520

 
538

 
987

Impairment of premises and equipment held for sale

 

 
(171
)
 
(424
)
Gain on sale of loans
209

 

 
827

 
207

Income from bank-owned life insurance
458

 
462

 
1,969

 
1,878

Swap fee income, net
(14
)
 
338

 
285

 
2,753

Other non-interest income
674

 
703

 
2,191

 
2,710

Total non-interest income
1,195

 
2,186

 
6,083

 
8,715

Non-Interest Expense
 
 
 
 
 
 
 
Salaries and employee benefits
12,429

 
13,818

 
56,118

 
57,114

Occupancy
2,015

 
2,048

 
8,214

 
8,349

Professional fees
899

 
1,041

 
3,320

 
2,964

Deposit insurance premiums
775

 
767

 
3,186

 
2,787

Data processing
525

 
676

 
1,995

 
2,544

Advertising
709

 
685

 
2,691

 
2,455

Software and communication
672

 
910

 
2,630

 
3,317

Depreciation and amortization
482

 
414

 
1,788

 
1,734

Other non-interest expense
1,660

 
1,526

 
5,813

 
6,384

Total non-interest expense
20,166

 
21,885

 
85,755

 
87,648

Net Income Before Taxes
8,844

 
14,130

 
17,196

 
48,611

Income tax expense (benefit)
(1,490
)
 
2,746

 
(2,394
)
 
8,054

Net Income
$
10,334

 
$
11,384

 
$
19,590

 
$
40,557

Basic Earnings Per Share
$
0.22

 
$
0.22

 
$
0.48

 
$
0.85

Diluted Earnings Per Share
$
0.22

 
$
0.22

 
$
0.47

 
$
0.83


7

CROSSFIRST BANKSHARES, INC.

TABLE 3. YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTEREST INCOME
(UNAUDITED)
 
Twelve Months Ended
 
December 31,
 
2018
 
2019
 
Average Balance
 
Interest Income / Expense
 
Average Yield / Rate(3)
 
Average Balance
 
Interest Income / Expense
 
Average Yield / Rate(3)
 
(Dollars in thousands)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Securities - taxable
$
281,709

 
$
8,952

 
3.18
%
 
$
330,051

 
$
9,627

 
2.92
%
Securities - tax-exempt(1)
459,231

 
17,856

 
3.89

 
390,908

 
14,533

 
3.72

Federal funds sold
16,377

 
339

 
2.07

 
15,195

 
364

 
2.40

Interest-bearing deposits in other banks
159,279

 
2,757

 
1.73

 
139,538

 
2,689

 
1.93

Gross loans, net of unearned income(2)
2,435,424

 
130,075

 
5.34

 
3,468,079

 
191,527

 
5.52

Total interest-earning assets(1)
3,352,020

 
$
159,979

 
4.77
%
 
4,343,771

 
$
218,740

 
5.04
%
Allowance for loan losses
(30,921
)
 
 
 
 
 
(41,971
)
 
 
 
 
Other non-interest-earning assets
173,556

 
 
 
 
 
197,963

 
 
 
 
Total assets
$
3,494,655

 
 
 
 
 
$
4,499,763

 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Transaction deposits
$
56,321

 
$
175

 
0.31
%
 
$
146,109

 
$
1,742

 
1.19
%
Savings and money market deposits
1,410,727

 
23,405

 
1.66

 
1,676,417

 
35,385

 
2.11

Time deposits
835,595

 
15,792

 
1.89

 
1,243,304

 
30,541

 
2.46

Total interest-bearing deposits
2,302,643

 
39,372

 
1.71

 
3,065,830

 
67,668

 
2.21

FHLB and short-term borrowings
395,825

 
7,004

 
1.77

 
366,577

 
6,959

 
1.90

Trust preferred securities, net of fair value
  adjustments
864

 
136

 
15.69

 
899

 
147

 
16.34

Non-interest-bearing deposits
425,243

 

 

 
512,142

 

 

Cost of funds
3,124,575

 
$
46,512

 
1.49
%
 
3,945,448

 
$
74,774

 
1.90
%
Other liabilities
12,634

 
 
 
 
 
25,708

 
 
 
 
Stockholders’ equity
357,446

 
 
 
 
 
528,607

 
 
 
 
Total liabilities and stockholders' equity
$
3,494,655

 
 
 
 
 
$
4,499,763

 
 
 
 
Net interest income(1)
 
 
$
113,467

 
 
 
 
 
$
143,966

 
 
Net interest spread(1)
 
 
 
 
3.28
%
 
 
 
 
 
3.14
%
Net interest margin(1)
 
 
 
 
3.39
%
 
 
 
 
 
3.31
%
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%.
(2) Average loan balances include nonaccrual loans.
(3) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this release may not produce the same amounts.



8

CROSSFIRST BANKSHARES, INC.

YEAR-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
 
Twelve Months Ended
 
December 31, 2019 over 2018
 
Average Volume
 
Yield/Rate
 
Net Change(2)
 
(Dollars in thousands)
Interest Income
 
 
 
 
 
Securities - taxable
$
1,449

 
$
(774
)
 
$
675

Securities - tax-exempt(1)
(2,568
)
 
(755
)
 
(3,323
)
Federal funds sold
(26
)
 
51

 
25

Interest-bearing deposits in other banks
(365
)
 
297

 
(68
)
Gross loans, net of unearned income
56,927

 
4,525

 
61,452

Total interest income(1)
55,417

 
3,344

 
58,761

Interest Expense
 
 
 
 
 
Transaction deposits
564

 
1,003

 
1,567

Savings and money market deposits
4,911

 
7,069

 
11,980

Time deposits
9,115

 
5,634

 
14,749

Total interest-bearing deposits
14,590

 
13,706

 
28,296

FHLB and short-term borrowings
(538
)
 
493

 
(45
)
Trust preferred securities, net of fair value adjustments
5

 
6

 
11

Total interest expense
14,057

 
14,205

 
28,262

Net interest income(1)
$
41,360

 
$
(10,861
)
 
$
30,499

 
 
 
 
 
 
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%.
(2) The change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate.


9

CROSSFIRST BANKSHARES, INC.

TABLE 4. 2018 - 2019 QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME (UNAUDITED)
 
Three Months Ended
 
December 31,
 
2018
 
2019
 
Average Balance
 
Interest Income / Expense
 
Average Yield / Rate(3)
 
Average Balance
 
Interest Income / Expense
 
Average Yield / Rate(3)
 
(Dollars in thousands)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Securities - taxable
$
305,995

 
$
2,505

 
3.25
%
 
$
317,524

 
$
2,180

 
2.72
%
Securities - tax-exempt(1)
385,463

 
3,793

 
3.90

 
427,280

 
3,861

 
3.59

Federal funds sold
9,239

 
58

 
2.49

 
4,750

 
19

 
1.61

Interest-bearing deposits in other banks
113,403

 
558

 
1.95

 
152,917

 
582

 
1.51

Gross loans, net of unearned income(2) (3)
2,911,350

 
40,812

 
5.56

 
3,749,865

 
49,208

 
5.21

Total interest-earning assets(1)
3,725,450

 
$
47,726

 
5.08
%
 
4,652,336

 
$
55,850

 
4.76
%
Allowance for loan losses
(34,818
)
 
 
 
 
 
(43,877
)
 
 
 
 
Other non-interest-earning assets
194,010

 
 
 
 
 
201,117

 
 
 
 
Total assets
$
3,884,642

 
 
 
 
 
$
4,809,576

 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Transaction deposits
$
63,223

 
$
74

 
0.46
%
 
$
200,480

 
$
603

 
1.19
%
Savings and money market deposits
1,498,075

 
7,747

 
2.05

 
1,854,042

 
8,059

 
1.72

Time deposits
912,882

 
4,912

 
2.13

 
1,225,752

 
7,585

 
2.46

Total interest-bearing deposits
2,474,180

 
12,733

 
2.04

 
3,280,274

 
16,247

 
1.97

FHLB and short-term borrowings
439,322

 
1,984

 
1.79

 
366,190

 
1,719

 
1.86

Trust preferred securities, net of fair value
  adjustments
876

 
36

 
16.34

 
913

 
35

 
15.18

Non-interest-bearing deposits
491,689

 

 

 
521,799

 

 

Cost of funds
3,406,067

 
$
14,753

 
1.72
%
 
4,169,176

 
$
18,001

 
1.71
%
Other liabilities
17,694

 
 
 
 
 
34,443

 
 
 
 
Total stockholders' equity
460,881

 
 
 
 
 
605,957

 
 
 
 
Total liabilities and stockholders' equity
$
3,884,642

 
 
 
 
 
$
4,809,576

 
 
 
 
Net interest income(1)
 
 
$
32,973

 
 
 
 
 
$
37,849

 
 
Net interest spread(1)
 
 
 
 
3.36
%
 
 
 
 
 
3.05
%
Net interest margin(1)
 
 
 
 
3.51
%
 
 
 
 
 
3.23
%
 
 
 
 
 
 
 
 
 
 
 
 
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%.
(2) Average loan balances include non-accrual loans.
(3) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this release may not produce the same amounts.


10

CROSSFIRST BANKSHARES, INC.

QUARTER TO DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
 
Three Months Ended
 
December 31, 2019 over 2018
 
Average Volume
 
Yield/Rate
 
Net Change(2)
 
(Dollars in thousands)
Interest Income
 
 
 
 
 
Securities - taxable
$
93

 
$
(418
)
 
$
(325
)
Securities - tax-exempt(1)
387

 
(319
)
 
68

Federal funds sold
(23
)
 
(16
)
 
(39
)
Interest-bearing deposits in other banks
167

 
(143
)
 
24

Gross loans, net of unearned income
11,105

 
(2,709
)
 
8,396

Total interest income(1)
11,729

 
(3,605
)
 
8,124

Interest Expense
 
 
 
 
 
Transaction deposits
305

 
224

 
529

Savings and money market deposits
1,672

 
(1,360
)
 
312

Time deposits
1,841

 
832

 
2,673

Total interest-bearing deposits
3,818

 
(304
)
 
3,514

FHLB and short-term borrowings
(340
)
 
75

 
(265
)
Trust preferred securities, net of fair value adjustments
1

 
(2
)
 
(1
)
Total interest expense
3,479

 
(231
)
 
3,248

Net interest income(1)
$
8,250

 
$
(3,374
)
 
$
4,876

 
 
 
 
 
 
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%
(2) The change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate.


11

CROSSFIRST BANKSHARES, INC.

TABLE 5. LINKED QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME (UNAUDITED)
 
Three Months Ended
 
September 30, 2019
 
December 31, 2019
 
Average Balance
 
Interest Income / Expense
 
Average Yield / Rate(3)
 
Average Balance
 
Interest Income / Expense
 
Average Yield / Rate(3)
 
(Dollars in thousands)
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Securities - taxable
$
335,045

 
$
2,263

 
2.68
%
 
$
317,524

 
$
2,180

 
2.72
%
Securities - tax-exempt(1)
392,644

 
3,592

 
3.63

 
427,280

 
3,861

 
3.59

Federal funds sold
16,315

 
89

 
2.16

 
4,750

 
19

 
1.61

Interest-bearing deposits in other banks
171,913

 
881

 
2.03

 
152,917

 
582

 
1.51

Gross loans, net of unearned income(2) (3)
3,540,707

 
49,327

 
5.53

 
3,749,865

 
49,208

 
5.21

Total interest-earning assets(1)
4,456,624

 
$
56,152

 
5.00
%
 
4,652,336

 
$
55,850

 
4.76
%
Allowance for loan losses
(43,327
)
 
 
 
 
 
(43,877
)
 
 
 
 
Other non-interest-earning assets
197,661

 
 
 
 
 
201,117

 
 
 
 
Total assets
$
4,610,958

 
 
 
 
 
$
4,809,576

 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Transaction deposits
$
134,987

 
$
386

 
1.13
%
 
$
200,480

 
$
603

 
1.19
%
Savings and money market deposits
1,743,575

 
9,553

 
2.17

 
1,854,042

 
8,059

 
1.72

Time deposits
1,276,571

 
8,064

 
2.51

 
1,225,752

 
7,585

 
2.46

Total interest-bearing deposits
3,155,133

 
18,003

 
2.26

 
3,280,274

 
16,247

 
1.97

FHLB and short-term borrowings
345,794

 
1,703

 
1.95

 
366,190

 
1,719

 
1.86

Trust preferred securities, net of fair value
adjustments
904

 
37

 
16.06

 
913

 
35

 
15.18

Non-interest-bearing deposits
535,467

 

 

 
521,799

 

 

Cost of funds
4,037,298

 
$
19,743

 
1.94
%
 
4,169,176

 
$
18,001

 
1.71
%
Other liabilities
29,833

 
 
 
 
 
34,443

 
 
 
 
Total stockholders' equity
543,827

 
 
 
 
 
605,957

 
 
 
 
Total liabilities and stockholders' equity
$
4,610,958

 
 
 
 
 
$
4,809,576

 
 
 
 
Net interest income(1)
 
 
$
36,409

 
 
 
 
 
$
37,849

 
 
Net interest spread(1)
 
 
 
 
3.06
%
 
 
 
 
 
3.05
%
Net interest margin(1)
 
 
 
 
3.24
%
 
 
 
 
 
3.23
%
 
 
 
 
 
 
 
 
 
 
 
 
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%.
(2) Average loan balances include nonaccrual loans.
(3) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this release may not produce the same amounts.
 


12

CROSSFIRST BANKSHARES, INC.

LINKED QUARTER VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
 
Three Months Ended
 
December 31, 2019 over September 30, 2019
 
Average Volume
 
Yield/Rate
 
Net Change(2)
 
(Dollars in thousands)
Interest Income
 
 
 
 
 
Securities - taxable
$
(118
)
 
$
35

 
$
(83
)
Securities - tax-exempt(1)
310

 
(41
)
 
269

Federal funds sold
(51
)
 
(19
)
 
(70
)
Interest-bearing deposits in other banks
(90
)
 
(209
)
 
(299
)
Gross loans, net of unearned income
2,825

 
(2,944
)
 
(119
)
Total interest income(1)
2,876

 
(3,178
)
 
(302
)
Interest Expense
 
 
 
 
 
Transaction deposits
195

 
22

 
217

Savings and money market deposits
576

 
(2,070
)
 
(1,494
)
Time deposits
(319
)
 
(160
)
 
(479
)
Total interest-bearing deposits
452

 
(2,208
)
 
(1,756
)
FHLB and short-term borrowings
97

 
(81
)
 
16

Trust preferred securities, net of FV adjustments

 
(2
)
 
(2
)
Total interest expense
549

 
(2,291
)
 
(1,742
)
Net interest income(1)
$
2,327

 
$
(887
)
 
$
1,440

 
 
 
 
 
 
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%.
(2) The change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate.


13

CROSSFIRST BANKSHARES, INC.

TABLE 6. NON-GAAP FINANCIAL MEASURES

Non-GAAP Financial Measures
In addition to disclosing financial measures determined in accordance with GAAP, the Company discloses non-GAAP financial measures in this release. The Company believes that the non-GAAP financial measures presented in this release reflect industry conventions, or standard measures within the industry, and provide useful information to the Company's management, investors and other parties interested in the Company's operating performance. These measurements should be considered in addition to, but not as a substitute for, financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use in this release, but these measures may not be synonymous to similar measurement terms used by other companies.

CrossFirst provides reconciliations of these non-GAAP measures below. The measures used in this release include the following:
We calculate "return on average tangible common equity" as net income available to common stockholders divided by average tangible common equity. Average tangible common equity is calculated as average common equity less average goodwill and intangibles and average preferred equity. The most directly comparable GAAP measure is return on average common equity.
We calculate ‘‘non-GAAP core operating income’’ as net income adjusted to remove non-recurring or non-core income and expense items related to:
Restructuring charges and adjustments associated with the transition of a former executive - we incurred restructuring charges in the second quarter of 2018 related to the acceleration of certain stock-based compensation and employee costs, some of which were adjusted in the fourth quarter of 2018.

Impairment charges associated with two buildings that were held-for-sale - We acquired a new, larger corporate headquarters to accommodate our business needs, which eliminated the need for two smaller support buildings. The two smaller support buildings had been acquired recently and were extensively remodeled, which resulted in a difference between book and market value for those assets. We sold one of the buildings in 2018. The remaining building was sold during the second quarter of 2019.

State tax credits as a result of the purchase and improvement of our new corporate headquarters. We acquired a new, larger corporate headquarters to accommodate our business needs. Our purchase and improvement of the new headquarters resulted in state tax credits.

The most directly comparable GAAP financial measure for non-GAAP core operating income is net income.
We calculate "Non-GAAP core operating return on average assets" as as non-GAAP core operating income (as defined above) divided by average assets. The most directly comparable GAAP financial measure is return on average assets, which is calculated as net income divided by average assets.
We calculate ‘‘non-GAAP core operating return on average common equity’’ as non-GAAP core operating income (as defined above) less preferred dividends divided by average common equity. The most directly comparable GAAP financial measure is return on average common equity, which is calculated as net income less preferred dividends divided by average common equity.
We calculate "tangible common stockholders' equity" as total stockholders' equity less goodwill and intangibles and preferred equity. The most directly comparable GAAP measure is total stockholders' equity.
We calculate ‘‘tangible book value per share’’ as tangible common stockholders' equity (as defined above) divided by the total number of shares outstanding. The most directly comparable GAAP measure is book value per share.
We calculate "non-GAAP core operating efficiency ratio - fully tax equivalent" as non-interest expense adjusted to remove non-recurring non-interest expenses as defined above under non-GAAP core operating income divided by net interest income on a fully tax-equivalent basis plus non-interest income adjusted to remove non-recurring non-interest income as defined above under non-GAAP core operating income. The most directly comparable financial measure is the efficiency ratio.

14

CROSSFIRST BANKSHARES, INC.

 
Quarter Ended
 
Twelve Months Ended
 
12/31/2018
 
03/31/2019
 
06/30/2019
 
09/30/2019
 
12/31/2019
 
12/31/2018
 
12/31/2019
 
(Dollars in thousands)
Non-GAAP return on average tangible common equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income available to common stockholders
$
9,809

 
$
9,175

 
$
9,439

 
$
10,384

 
$
11,384

 
$
17,490

 
$
40,382

Average common equity
430,881

 
466,506

 
486,880

 
543,827

 
605,957

 
327,446

 
526,224

Less: average goodwill and intangibles
7,810

 
7,784

 
7,759

 
7,733

 
7,708

 
7,847

 
7,746

Average tangible common equity
423,071

 
458,722

 
479,121

 
536,094

 
598,249

 
319,599

 
518,478

Return on average common equity
9.03
%
 
7.98
%
 
7.78
%
 
7.58
%
 
7.45
%
 
5.34
%
 
7.67
%
Non-GAAP Return on average tangible common equity
9.20
%
 
8.11
%
 
7.90
%
 
7.68
%

7.55
%

5.47
%

7.79
%
 
Quarter Ended
 
Twelve Months Ended
 
12/31/2018
 
03/31/2019
 
06/30/2019
 
09/30/2019
 
12/31/2019
 
12/31/2018
 
12/31/2019
 
(Dollars in thousands)
Non-GAAP core operating income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
10,334

 
$
9,350

 
$
9,439

 
$
10,384

 
$
11,384

 
$
19,590

 
$
40,557

Add: restructuring charges
(815
)
 

 

 

 

 
4,733

 

Less: tax effect(1)
(210
)
 

 

 

 

 
1,381

 

Restructuring charges, net of tax
(605
)
 

 

 

 

 
3,352

 

Add: fixed asset impairments

 

 
424

 

 

 
171

 
424

Less: tax effect(1)

 

 
109

 

 

 
44

 
109

Fixed asset impairments, net of tax

 

 
315

 

 

 
127

 
315

Add: state tax credit(2)
(3,129
)
 
(1,361
)
 

 

 

 
(3,129
)
 
(1,361
)
Non-GAAP core operating income
$
6,600

 
$
7,989

 
$
9,754

 
$
10,384

 
$
11,384

 
$
19,940

 
$
39,511

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents the tax impact of the adjustments above at a tax rate of 25.73%
(2) No tax effect
 
Quarter Ended
 
Twelve Months Ended
 
12/31/2018
 
03/31/2019
 
06/30/2019
 
09/30/2019
 
12/31/2019
 
12/31/2018
 
12/31/2019
 
(Dollars in thousands)
Non-GAAP core operating return on average assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
10,334

 
9,350

 
9,439

 
10,384

 
11,384

 
19,590

 
40,557

Non-GAAP core operating income
6,600

 
7,989

 
9,754

 
10,384

 
11,384

 
19,940

 
39,511

Average assets
3,884,642

 
4,168,243

 
4,402,002

 
4,610,958

 
4,809,576

 
3,494,655

 
4,499,763

Return on average assets
1.06
%
 
0.91
%
 
0.86
%
 
0.89
%
 
0.94
%
 
0.56
%
 
0.90
%
Non-GAAP core operating return on average assets
0.67
%
 
0.78
%
 
0.89
%
 
0.89
%
 
0.94
%
 
0.57
%
 
0.88
%

15

CROSSFIRST BANKSHARES, INC.

 
Quarter Ended
 
Twelve Months Ended
 
12/31/2018
 
03/31/2019
 
06/30/2019
 
09/30/2019
 
12/31/2019
 
12/31/2018
 
12/31/2019
 
(Dollars in thousands)
Non-GAAP core operating return on common equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
10,334

 
$
9,350

 
$
9,439

 
$
10,384

 
$
11,384

 
$
19,590

 
$
40,557

Non-GAAP core operating income
6,600

 
7,989

 
9,754

 
10,384

 
11,384

 
19,940

 
39,511

Less: Preferred stock dividends
525

 
175

 

 

 

 
2,100

 
175

Net income available to common stockholders
9,809

 
9,175

 
9,439

 
10,384

 
11,384

 
17,490

 
40,382

Non-GAAP core operating income available to common stockholders
6,075

 
7,814

 
9,754

 
10,384

 
11,384

 
17,840

 
39,336

Average common equity
$
430,881

 
$
466,506

 
$
486,880

 
$
543,827

 
$
605,957

 
$
327,446

 
$
526,224

GAAP return on average common equity
9.03
%
 
7.98
%
 
7.78
%
 
7.58
%
 
7.45
%
 
5.34
%
 
7.67
%
Non-GAAP core operating return on common equity
5.59
%
 
6.79
%
 
8.04
%
 
7.58
%
 
7.45
%
 
5.45
%
 
7.48
%

 
Quarter Ended
 
12/31/2018
 
03/31/2019
 
06/30/2019
 
09/30/2019
 
12/31/2019
 
(Dollars in thousands except per share data)
Tangible common stockholders' equity:
 
 
 
 
 
 
 
 
 
Total stockholders' equity
$
490,336

 
$
480,514

 
$
499,195

 
$
602,435

 
$
613,422

Less: goodwill and other intangible assets
7,796

 
7,770

 
7,745

 
7,720

 
7,694

Less: preferred stock
30,000

 

 

 

 

Tangible common stockholders' equity
$
452,540

 
$
472,744

 
$
491,450

 
$
594,715

 
$
605,728

Tangible book value per share:
 
 
 
 
 
 
 
 
 
Tangible common stockholders' equity
$
452,540

 
$
472,744

 
$
491,450

 
$
594,715

 
$
605,728

Shares outstanding at end of period
45,074,322

 
45,202,370

 
45,367,641

 
51,969,203

 
51,969,203

Book value per share
$
10.21

 
$
10.63

 
$
11.00

 
$
11.59

 
$
11.80

Tangible book value per share
$
10.04

 
$
10.46

 
$
10.83

 
$
11.44

 
$
11.66

 
Quarter Ended
 
Twelve Months Ended
 
12/31/2018
 
03/31/2019
 
06/30/2019
 
09/30/2019
 
12/31/2019
 
12/31/2018
 
12/31/2019
 
(Dollars in thousands)
Non-GAAP Core Operating Efficiency Ratio - Fully Tax Equivalent
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest expense
$
20,166

 
$
22,631

 
$
21,960

 
$
21,172

 
$
21,885

 
$
85,755

 
$
87,648

Less: restructuring charge
$
(815
)
 
$

 
$

 
$

 
$

 
$
4,733

 
$

Non-GAAP non-interest expense
(numerator)
20,981

 
22,631

 
21,960

 
21,172

 
$
21,885

 
$
81,022

 
$
87,648

Net interest income
32,315

 
33,605

 
34,874

 
35,786

 
37,179

 
110,368

 
141,444

Tax equivalent interest income
658

 
616

 
612

 
624

 
670

 
3,099

 
2,522

Non-interest income
1,195

 
1,645

 
1,672

 
3,212

 
2,186

 
6,083

 
8,715

Add: fixed asset impairments
$

 
$

 
$
424

 
$

 
$

 
$
171

 
$
424

Total tax-equivalent income (denominator)
$
34,168


$
35,866


$
37,582


$
39,622


$
40,035


$
119,721


$
153,105

Efficiency Ratio
60.18
%
 
64.20
%
 
60.09
%
 
54.29
%
 
55.60
%
 
73.64
%
 
58.37
%
Non-GAAP Core Operating Efficiency Ratio - Fully Tax Equivalent
61.41
%
 
63.10
%
 
58.43
%
 
53.43
%

54.66
%
 
67.68
%
 
57.25
%

16