Document

"During the second quarter, we achieved the strongest profitability in the Company's history and I am extremely proud of our team for executing on several key strategic initiatives that provides a foundation for future growth and success," said CrossFirst’s CEO and President, Mike Maddox. "The Company took several steps to improve the efficiency of the balance sheet and reduce excess liquidity, which resulted in stronger performance metrics, improved margin, and stronger core earnings power. We grew our operating revenue 6% from the previous quarter and our asset quality metrics improved with the strengthening of the loan portfolio and economic recovery. We made great progress on our expansion efforts in Arizona and Frisco, which we believe will create long term value for the organization."


	Quarter-to-Date						Year-to-Date
	June 30,						June 30,
(Dollars in millions except per share data)	2020			2021			2020			2021

Operating revenue(1)	$	43.8		$	48.2		$	84.1		$	93.4
Net income (loss)	$	(7.4)		$	15.6		$	(3.5)		$	27.6
Diluted earnings (loss) per share	$	(0.14)		$	0.30		$	(0.07)		$	0.53


Return on average assets	(0.54)		%	1.10		%	(0.14)		%	0.97		%

Return on average common equity	(4.84)		%	9.86		%	(1.15)		%	8.84		%
Non-GAAP core return on average tangible common equity(2)	0.03		%	9.02		%	1.30		%	8.42		%
Net interest margin	3.14		%	3.07		%	3.16		%	3.01		%
Net interest margin, fully tax-equivalent(3)	3.19		%	3.12		%	3.22		%	3.06		%
Efficiency ratio	70.81		%	53.61		%	63.29		%	52.06		%
Non-GAAP core operating efficiency ratio, tax-equivalent(2)(3)	53.09		%	53.34		%	53.61		%	51.51		%

(1) Net interest income plus non-interest income.
(2) Represents a non-GAAP measure. See "Table 5. Non-GAAP Financial Measures" for a reconciliation of these measures.
(3) Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental federal income tax rate used is 21.0%.

During the second quarter of 2021, the Company operated with open lobbies to the public, and it opened offices for employees, but remains flexible to respond to possible changes to federal, state and local requirements in the event of the COVID-19 pandemic's resurgence. As of June 30, 2021, the Company retained $197 million in loans produced through the Paycheck Protection Program ("PPP"), and the Company will continue to work through the forgiveness process for those loans with the Small Business Administration ("SBA"). In addition to PPP loans, we granted loan modifications and payment deferrals for many customers who requested additional relief. As of June 30, 2021, the Company still had several modified loans related to COVID-19, mostly in industries such as hospitality, entertainment, travel or other recreational activities directly impacted from the lockdowns.

The Company produced interest income of $48.5 million for the second quarter of 2021, a decrease of 5% from the second quarter of 2020 and a slight increase from the previous quarter. Interest income was down from the second quarter of 2020 primarily due to the impact of lower market interest rates and increased competition for loans, which led to lower loan and bond yields. Average earning assets totaled $5.5 billion for the second quarter of 2021, an increase of $264 million or 5% from the same quarter in 2020. The tax-equivalent yield on earning assets increased from 3.50% to 3.57% during the second quarter of 2021, and was down from 3.96% recorded in the second quarter of 2020, primarily due to the movement of variable rate assets indexed to lower market rates. Year-to-date, the Company produced interest income of $96.6 million, which declined compared to the same period in 2020 primarily with the yield movements on earning assets.

Interest expense for the second quarter of 2021 was $6.2 million, or 39% lower than the second quarter of 2020 and 13% lower than the previous quarter. While average interest-bearing deposits increased to $3.9 billion in the second quarter of 2021, or a 11% increase from the same prior year period, overall interest expense on interest-bearing deposits continued to decline as a result of repricing due to lower market interest rates. Non-deposit funding costs for the second quarter of 2021 remained at 1.79%, while overall cost of funds for the quarter was 0.49%, compared to 0.56% for the first quarter of 2021. Year-to-date, the Company incurred interest expense of $13.2 million, a decrease of 49% from the same period in the prior year.

Net interest income totaled $42.3 million for the second quarter of 2021 or 3% higher than the first quarter of 2021, and 3% higher than the second quarter of 2020. Tax-equivalent net interest margin increased to 3.12% in the current quarter, from 3.00% in the previous quarter, and declined from 3.19% in the same quarter in 2020. The lower year-over-year yields reflect the repricing impact from a lower rate environment and lower priced new loans originated in the first quarter of 2021. The reduction of excess cash on the balance sheet improved overall margin during the second quarter of 2021 compared to the first quarter of 2021. During the second quarter of 2021, CrossFirst realized $2.1 million in fees primarily from the forgiveness of $139 million of PPP loans. The PPP loans yielded 3.84% for the current quarter and the Company will continue to recognize fees over the life of the loans or as the loans are forgiven. 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 second quarter of 2021. Year-to-date net interest income grew to $83.4 million, an increase of 5% from the same period in the prior year, while tax-equivalent net interest margin declined to 3.06% from 3.22%.

Non-interest income increased $3.2 million in the second quarter of 2021 or 121% compared to the same quarter of 2020 and increased $1.7 million or 41% compared to the first quarter of 2021. During the second quarter of 2021, the Company recorded an increase of $0.6 million in credit card fees, $0.5 million in service charge income, and recognized a one-time $1.8 million benefit in bank-owned life insurance proceeds compared to the same quarter in 2020, which were the primary drivers of quarterly and year-to-date non-interest income growth. Year-to-date non-interest income was up $5.2 million or 111% compared to the same period in the prior year.

Non-interest expense for the second quarter of 2021 was $25.8 million, which decreased 17% compared to the second quarter of 2020 and increased 13% from the first quarter of 2021. Salaries and benefit costs were higher in the current quarter by $2.1 million compared to the prior quarter and $1.7 million higher than the same quarter in the prior year mainly due to increased hiring for planned expansion efforts and a one-time $0.7 million dollar compensation benefit to a former executive. In addition, the Company recorded a $0.6 million valuation write-down on a foreclosed property held for sale on the balance sheet that increased non-interest expense for the second quarter of 2021. Year-to-date non-interest expense also decreased from the same period in the prior year primarily due to a one-time non-cash expense recorded in the second quarter of 2020. Overall, the Company continues to benefit from reduced travel, entertainment, and other discretionary spending as a result of the COVID-19 pandemic.

CrossFirst’s effective tax rate for the second quarter of 2021 was 17% as compared to 10% for the second quarter of 2020. The 2021 quarter-to-date income tax expense was impacted by a $27.1 million increase in income before income taxes that increased taxes at the statutory rate by $5.7 million. For both of the comparable periods, the Company continued to benefit from the tax-exempt municipal bond portfolio and bank-owned life insurance.

During the second quarter of 2021, total assets decreased by $687 million or 11% compared to March 31, 2021 and $151 million or 3% compared to June 30, 2020. As part of the Company's efforts to improve the efficiency of its balance sheet, $162 million in PPP loans were forgiven and the Company reduced its first quarter cash position by over $400 million through a reduction of non-core wholesale, brokered, and institutional deposits. During the second quarter of 2021, available-for-sale investment securities increased $27 million to $712 million compared to March 31, 2021, while the overall average for the second quarter was $720 million. The securities yields increased 4 basis points to a tax equivalent yield of 2.93% for the second quarter of 2021 compared to the prior quarter.

The Company experienced a decrease in average loans of 2% since March 31, 2021, but increased average loans 1% year-over-year from June 30, 2020. The reduction in average loans was primarily a result of PPP forgiveness and pay downs of lower yielding commercial and industrial lines drawn on through the pandemic, which enhanced the previous quarter loan yields. Loan yields increased 5 basis points to 3.99% during the second quarter and declined 29 basis points over the last twelve months, commensurate with adjustable rate loan movements during 2020, competitive pricing from persistently low interest rates and related loan repricing.



(Dollars in millions)	2Q20			3Q20			4Q20			1Q21			2Q21			% of Total		QoQ Growth ($)		QoQ Growth (%)(1)		YoY Growth ($)		YoY Growth (%)(1)












Average loans (gross)
Commercial and industrial	$	1,381		$	1,308		$	1,367		$	1,329		$	1,221		28	%	$	(108)	(8)	%	$	(160)	(12)	%
Energy	404			393			381			351			341			8		(10)		(3)		(63)		(16)
Commercial real estate	1,115			1,169			1,194			1,183			1,203			27		20		2		88		8
Construction and land development	651			617			585			598			633			14		35		6		(18)		(3)
Residential real estate	517			583			664			688			659			15		(29)		(4)		142		27


Paycheck Protection Program	245			362			258			308			296			7		(12)		(4)		51		21
Consumer	44			45			45			50			56			1		6		12		12		27
Total	$	4,357		$	4,477		$	4,494		$	4,507		$	4,409		100	%	$	(98)	(2)	%	$	52	1	%


Yield on average loans for the period ending	4.28		%	3.90		%	4.00		%	3.94		%	3.99		%
(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.

The Company experienced an average reduction in deposits of 2% since March 31, 2021, and increased average deposits 10% year-over-year from June 30, 2020. After improving the efficiency of the balance sheet, the Company ended the quarter with a loan to deposit ratio of 97% at the end of the quarter compared to 89% at the end of the previous quarter. The deposit decrease for the quarter was primarily driven by a reduction in wholesale and institutional funded time deposits, transaction deposits, and money market accounts. In addition, the Company continued to improve the overall cost of deposits as the cost of interest bearing deposits declined 7 basis points during the second quarter of 2021, reflective of changes made to deposit pricing. The cost of interest bearing deposits has declined 45 basis points over the last twelve months primarily as a result of the lower interest rate environment.



(Dollars in millions)	2Q20			3Q20			4Q20			1Q21			2Q21			% of Total		QoQ Growth ($)		QoQ Growth (%)(1)		YoY Growth ($)		YoY Growth (%)(1)










Average deposits
Non-interest bearing deposits	$	746		$	714		$	732		$	731		$	802		17	%	$	71	10	%	$	56	8	%
Transaction deposits	414			460			575			717			665			14	%	(52)		(7)	%	251		61	%
Savings and money market deposits	1,933			1,995			2,158			2,422			2,385			51	%	(37)		(2)	%	452		23	%
Time deposits	1,195			1,175			1,087			972			869			18	%	(103)		(11)	%	(326)		(27)	%
Total	$	4,288		$	4,344		$	4,552		$	4,842		$	4,721		100	%	$	(121)	(2)	%	$	433	10	%

Cost of deposits for the period ending	0.79		%	0.67		%	0.58		%	0.48		%	0.41		%
Cost of interest-bearing deposits for the period ending	0.95		%	0.80		%	0.69		%	0.57		%	0.50		%
(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.

Credit quality metrics generally improved during the second quarter of 2021 as classified assets decreased nearly $100 million and nonperforming assets to total assets decreased to 1.09% from 1.15% in the previous quarter. The improvement in credit metrics were primarily derived from upgrades in COVID-19 impacted segments and the Energy portfolio. Net charge-offs were $2.6 million for the second quarter of 2021 as compared to $8.2 million for the first quarter of 2021. The charge-offs for the current quarter were primarily related to several commercial and industrial credits partially impacted by COVID-19.




Asset quality metrics (%)	2Q20		3Q20		4Q20		1Q21		2Q21
Nonperforming assets to total assets	0.74	%	1.49	%	1.39	%	1.15	%	1.09	%
Allowance for loan loss to total loans	1.61		1.70		1.70		1.65		1.78
Allowance for loan loss to nonperforming loans	189		95		99		112		134
Net charge-offs (recoveries) to average loans(1)	0.12		0.54		1.03		0.74		0.23
Provision to average loans(1)	1.94		0.97		0.96		0.67		0.32
Classified Loans / (Total Capital + ALLL)	34.9		43.2		40.9		38.2		24.0
(1) Interim periods annualized.

CrossFirst will hold a conference call and webcast to discuss second quarter 2021 results on Thursday, July 22, 2021, 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. 9690426. Participants are encouraged to dial into the call or access the webcast approximately 10 minutes prior to the start time.

The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Quarterly Report on Form 10-Q 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 its 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 as well as the uncertain impact of the COVID-19 pandemic. 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.


	December 31, 2020		June 30, 2021
			(unaudited)
	(Dollars in thousands)
Assets


Cash and cash equivalents	$	408,810	$	220,814
Available-for-sale securities - taxable	177,238		187,553
Available-for-sale securities - tax-exempt	477,350		524,664


Loans, net of allowance for loan losses of $75,295 and $75,493 at December 31, 2020 and June 30, 2021, respectively	4,366,602		4,162,451
Premises and equipment, net	70,509		67,918
Restricted equity securities	15,543		13,329
Interest receivable	17,236		15,816
Foreclosed assets held for sale	2,347		1,718


Bank-owned life insurance	67,498		66,676
Other	56,170		50,495
Total assets	$	5,659,303	$	5,311,434
Liabilities and stockholders’ equity
Deposits
Noninterest bearing	$	718,459	$	818,887
Savings, NOW and money market	2,932,799		2,733,693
Time	1,043,482		804,047
Total deposits	4,694,740		4,356,627
Federal funds purchased and repurchase agreements	2,306		—
Federal Home Loan Bank advances	293,100		283,100

Other borrowings	963		986
Interest payable and other liabilities	43,766		33,531
Total liabilities	5,034,875		4,674,244
Stockholders’ equity


Common stock, $0.01 par value:
authorized - 200,000,000 shares, issued - 52,289,129 and 52,532,486 shares at December 31, 2020 and June 30, 2021, respectively	523		525
Treasury stock, at cost:
609,613 and 1,573,806 shares held at December 31, 2020 and June 30, 2021, respectively	(6,061)		(20,000)
Additional paid-in capital	522,911		524,637

Retained earnings	77,652		105,299

Accumulated other comprehensive income	29,403		26,729
Total stockholders’ equity	624,428		637,190
Total liabilities and stockholders’ equity	$	5,659,303	$	5,311,434


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2021		2020		2021
	(Dollars in thousands except per share data)
Interest Income
Loans, including fees	$	46,323	$	43,846	$	94,662	$	87,604

Available for sale securities - Taxable	1,358		869		3,132		1,620
Available for sale securities - Tax-exempt	3,260		3,497		6,572		6,848
Deposits with financial institutions	45		110		536		238
Dividends on bank stocks	268		162		560		327
Total interest income	51,254		48,484		105,462		96,637
Interest Expense
Deposits	8,405		4,850		22,677		10,578
Fed funds purchased and repurchase agreements	46		2		108		3
Advances from Federal Home Loan Bank	1,620		1,280		3,231		2,563
Other borrowings	26		24		61		48
Total interest expense	10,097		6,156		26,077		13,192
Net Interest Income	41,157		42,328		79,385		83,445
Provision for Loan Losses	21,000		3,500		34,950		11,000
Net Interest Income after Provision for Loan Losses	20,157		38,828		44,435		72,445
Non-Interest Income
Service charges and fees on customer accounts	647		1,177		1,155		2,134
Realized gain (loss) on available-for-sale securities	320		(13)		713		(3)


Income from bank-owned life insurance	453		2,245		909		2,661
Swap fees and credit valuation adjustments, net	(32)		(30)		(41)		125
ATM and credit card interchange income	896		1,506		1,381		3,834
Other non-interest income	350		940		612		1,218

Total non-interest income	2,634		5,825		4,729		9,969

Non-Interest Expense
Salaries and employee benefits	14,004		15,660		28,394		29,213
Occupancy	2,045		2,397		4,130		4,891
Professional fees	1,295		1,138		1,966		1,920
Deposit insurance premiums	1,039		917		2,055		2,068
Data processing	721		720		1,413		1,436
Advertising	223		435		723		738
Software and communication	937		1,034		1,813		2,099

Foreclosed assets, net	1,135		665		1,154		715
Goodwill impairment	7,397		—		7,397		—
Other non-interest expense	2,214		2,847		4,188		5,551
Total non-interest expense	31,010		25,813		53,233		48,631
Net Income (Loss) Before Taxes	(8,219)		18,840		(4,069)		33,783
Income tax expense (benefit)	(863)		3,263		(570)		6,171
Net Income (Loss)	(7,356)		15,577		$	(3,499)	$	27,612
Basic Earnings (Loss) Per Share	$	(0.14)	$	0.30	$	(0.07)	$	0.54
Diluted Earnings (Loss) Share	$	(0.14)	$	0.30	$	(0.07)	$	0.53




	Six Months Ended
	June 30,
	2020						2021
	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	$	299,456	$	3,692	2.48	%	$	214,178	$	1,947	1.83	%
Securities - tax-exempt(1)	444,948		7,952		3.59		494,297		8,286		3.38
Federal funds sold	2,057		18		1.74		—		—		—
Interest-bearing deposits in other banks	172,294		518		0.60		429,930		238		0.11
Gross loans, net of unearned income(2)	4,132,279		94,662		4.61		4,457,792		87,604		3.96
Total interest-earning assets(1)	5,051,034		$	106,842	4.25	%	5,596,197		$	98,075	3.53	%
Allowance for loan losses	(59,267)						(77,552)
Other non-interest-earning assets	218,043						216,913
Total assets	$	5,209,810					$	5,735,558
Interest-bearing liabilities
Transaction deposits	$	377,883	$	1,131	0.60	%	$	690,514	$	677	0.20	%
Savings and money market deposits	1,909,881		9,388		0.99		2,403,318		4,495		0.38
Time deposits	1,180,704		12,158		2.07		920,307		5,406		1.18
Total interest-bearing deposits	3,468,468		22,677		1.31		4,014,139		10,578		0.53
FHLB and short-term borrowings	444,141		3,342		1.51		289,039		2,566		1.79
Trust preferred securities, net of fair value adjustments	928		58		12.64		971		48		9.89
Non-interest-bearing deposits	643,659		—		—		766,725		—		—
Cost of funds	4,557,196		$	26,077	1.15	%	5,070,874		$	13,192	0.52	%
Other liabilities	40,406						35,017
Stockholders’ equity	612,208						629,667
Total liabilities and stockholders' equity	$	5,209,810					$	5,735,558
Net interest income(1)			$	80,765					$	84,883
Net interest spread(1)					3.10	%					3.01	%
Net interest margin(1)					3.22	%					3.06	%

(1) Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental income 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.


YEAR-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
	Six Months Ended
	June 30, 2021 over 2020
	Average Volume		Yield/Rate		Net Change(2)
	(Dollars in thousands)
Interest Income
Securities - taxable	$	(909)	$	(836)	$	(1,745)
Securities - tax-exempt(1)	825		(491)		334
Federal funds sold	(18)		—		(18)
Interest-bearing deposits in other banks	361		(641)		(280)
Gross loans, net of unearned income	7,019		(14,077)		(7,058)
Total interest income(1)	7,278		(16,045)		(8,767)
Interest Expense
Transaction deposits	579		(1,033)		(454)
Savings and money market deposits	1,968		(6,861)		(4,893)
Time deposits	(2,289)		(4,463)		(6,752)
Total interest-bearing deposits	258		(12,357)		(12,099)
FHLB and short-term borrowings	(1,312)		536		(776)
Trust preferred securities, net of fair value adjustments	3		(13)		(10)
Total interest expense	(1,051)		(11,834)		(12,885)
Net interest income(1)	$	8,329	$	(4,211)	$	4,118

(1) Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income income taxes. The incremental income income 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.




	Three Months Ended
	June 30,
	2020						2021
	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	$	290,342	$	1,626	2.25	%	$	211,158	$	1,031	1.96	%
Securities - tax-exempt(1)	438,525		3,945		3.62		508,483		4,231		3.34
Federal funds sold	—		—		—		—		—		—
Interest-bearing deposits in other banks	186,388		45		0.10		407,801		110		0.11
Gross loans, net of unearned income(2) (3)	4,357,055		46,323		4.28		4,409,280		43,846		3.99
Total interest-earning assets(1)	5,272,310		$	51,939	3.96	%	5,536,722		$	49,218	3.57	%
Allowance for loan losses	(60,889)						(76,741)
Other non-interest-earning assets	230,092						213,657
Total assets	$	5,441,513					$	5,673,638
Interest-bearing liabilities
Transaction deposits	$	413,870	$	266	0.26	%	$	664,552	$	313	0.19	%
Savings and money market deposits	1,932,723		2,653		0.55		2,385,074		2,107		0.35
Time deposits	1,195,445		5,486		1.85		869,176		2,430		1.12
Total interest-bearing deposits	3,542,038		8,405		0.95		3,918,802		4,850		0.50
FHLB and short-term borrowings	496,556		1,668		1.35		287,904		1,282		1.79
Trust preferred securities, net of fair value adjustments	933		24		10.61		976		24		9.82
Non-interest-bearing deposits	745,864		—		—		801,591		—		—
Cost of funds	4,785,391		$	10,097	0.85	%	5,009,273		$	6,156	0.49	%
Other liabilities	44,656						30,948
Total stockholders' equity	611,466						633,417
Total liabilities and stockholders' equity	$	5,441,513					$	5,673,638
Net interest income(1)			$	41,842					$	43,062
Net interest spread(1)					3.11	%					3.08	%
Net interest margin(1)					3.19	%					3.12	%

(1) Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental income tax rate used is 21.0%.
(2) Average gross 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.


QUARTER-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)
	Three Months Ended
	June 30, 2021 over 2020
	Average Volume		Yield/Rate		Net Change(2)
	(Dollars in thousands)
Interest Income
Securities - taxable	$	(404)	$	(191)	$	(595)
Securities - tax-exempt(1)	604		(318)		286
Federal funds sold	—		—		—
Interest-bearing deposits in other banks	59		6		65
Gross loans, net of unearned income	575		(3,052)		(2,477)
Total interest income(1)	834		(3,555)		(2,721)
Interest Expense
Transaction deposits	133		(86)		47
Savings and money market deposits	541		(1,087)		(546)
Time deposits	(1,249)		(1,807)		(3,056)
Total interest-bearing deposits	(575)		(2,980)		(3,555)
FHLB and short-term borrowings	(831)		445		(386)
Trust preferred securities, net of fair value adjustments	1		(1)		—
Total interest expense	(1,405)		(2,536)		(3,941)
Net interest income(1)	$	2,239	$	(1,019)	$	1,220

(1) Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal income taxes. The incremental income 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.

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.

•We calculate "non-GAAP core operating efficiency ratio - fully tax equivalent (FTE)" as non-interest expense adjusted to remove non-recurring, or non-core, 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, or non-core, non-interest income as defined above under non-GAAP core operating income. The most directly comparable financial measure is the efficiency ratio.


	Quarter Ended										Six Months Ended


	06/30/2020		09/30/2020		12/31/2020		03/31/2021		06/30/2021		06/30/2020		06/30/2021
	(Dollars in thousands)
Non-GAAP core operating income:
Net income (loss)	$	(7,356)	$	8,006	$	8,094	$	12,035	$	15,577	$	(3,499)	$	27,612






Add: Goodwill impairment(1)	7,397		—		—		—		—		7,397		—
Add: Accelerated employee benefits	—		—		—		—		719		—		719
Less: Tax effect(2)	—		—		—		—		210		—		210
Accelerated employee benefits, net of tax	—		—		—		—		509		—		509
Less: BOLI settlement benefits(1)	—		—		—		—		1,841		—		1,841
Non-GAAP core operating income	$	41	$	8,006	$	8,094	$	12,035	$	14,245	$	3,898	$	26,280


(1) No tax effect.
(2) Represents the tax impact of the adjustments above at a tax rate of 21.0%, plus a permanent tax benefit associated with stock-based grants.


	Quarter Ended															Six Months Ended


	06/30/2020			09/30/2020			12/31/2020			03/31/2021			06/30/2021			06/30/2020			06/30/2021
	(Dollars in thousands)
Non-GAAP core return on average tangible common equity:
Net income (loss) available to common stockholders	$	(7,356)		$	8,006		$	8,094		$	12,035		$	15,577		$	(3,499)		$	27,612

Non-GAAP core operating income	41			8,006			8,094			12,035			14,245			3,898			26,280
Average common equity	611,466			613,910			620,496			625,875			633,417			612,208			629,667
Less: average goodwill and intangibles	7,576			238			218			199			179			7,629			189
Average tangible common equity	603,890			613,672			620,278			625,676			633,238			604,579			629,478
Return on average common equity	(4.84)		%	5.19		%	5.19		%	7.80		%	9.86		%	(1.15)		%	8.84		%
Non-GAAP core return on average tangible common equity	0.03		%	5.19		%	5.19		%	7.80		%	9.02		%	1.30		%	8.42		%


	Quarter Ended															Six Months Ended
	06/30/2020			09/30/2020			12/31/2020			03/31/2021			06/30/2021			06/30/2020			06/30/2021
	(Dollars in thousands)
Non-GAAP core operating return on average assets:
Net income (loss)	$	(7,356)		$	8,006		$	8,094		$	12,035		$	15,577		$	(3,499)		$	27,612
Non-GAAP core operating income	41			8,006			8,094			12,035			14,245			3,898			26,280
Average assets	$	5,441,513		$	5,486,252		$	5,523,196		$	5,798,167		$	5,673,638		$	5,209,810		$	5,735,558
Return on average assets	(0.54)		%	0.58		%	0.58		%	0.84		%	1.10		%	(0.14)		%	0.97		%
Non-GAAP core operating return on average assets	—		%	0.58		%	0.58		%	0.84		%	1.01		%	0.15		%	0.92		%


	Quarter Ended


	06/30/2020		09/30/2020		12/31/2020		03/31/2021		06/30/2021
	(Dollars in thousands except per share data)
Tangible common stockholders' equity:
Total stockholders' equity	$	608,092	$	617,883	$	624,428	$	628,834	$	637,190
Less: goodwill and other intangible assets	247		227		208		188		169

Tangible common stockholders' equity	$	607,845	$	617,656	$	624,220	$	628,646	$	637,021
Tangible book value per share:
Tangible common stockholders' equity	$	607,845	$	617,656	$	624,220	$	628,646	$	637,021
Shares outstanding at end of period	52,167,573		52,195,778		51,679,516		51,678,669		50,958,680
Book value per share	$	11.66	$	11.84	$	12.08	$	12.17	$	12.50
Tangible book value per share	$	11.65	$	11.83	$	12.08	$	12.16	$	12.50


	Quarter Ended															Six Months Ended


	06/30/2020			09/30/2020			12/31/2020			03/31/2021			06/30/2021			06/30/2020			06/30/2021
	(Dollars in thousands)
Non-GAAP Core Operating Efficiency Ratio - Fully Tax Equivalent (FTE)
Non-interest expense	$	31,010		$	23,011		$	23,732		$	22,818		$	25,813		$	53,233		$	48,631
Less: Accelerated employee benefits	—			—			—			—			719			—			719


Less: goodwill impairment	7,397			—			—			—			—			7,397			—
Adjusted Non-interest expense (numerator)	$	23,613		$	23,011		$	23,732		$	22,818		$	25,094		$	45,836		$	47,912


Net interest income	41,157			39,327			41,537			41,117			42,328			79,385			83,445
Tax-equivalent interest income(1)	685			669			683			704			734			1,380			1,438

Non-interest income	2,634			4,063			2,949			4,144			5,825			4,729			9,969
Less: BOLI settlement benefits	—			—			—			—			1,841			—			1,841

Total tax-equivalent income (denominator)	$	44,476		$	44,059		$	45,169		$	45,965		$	47,046		$	85,494		$	93,011
Efficiency Ratio	70.81		%	53.03		%	53.35		%	50.41		%	53.61		%	63.29		%	52.06		%
Non-GAAP Core Operating Efficiency Ratio - Fully Tax Equivalent (FTE)	53.09		%	52.23		%	52.54		%	49.64		%	53.34		%	53.61		%	51.51		%
(1) Tax exempt income (tax-free municipal securities) is calculated on a tax-equivalent basis. The incremental tax rate used is 21.0%.
(2) Represents the tax impact of the adjustments above at a tax rate of 21.0%, plus a permanent tax benefit associated with stock-based grants.


	Quarter Ended										Six Months Ended
	06/30/2020		09/30/2020		12/31/2020		03/31/2021		06/30/2021		06/30/2020		06/30/2021
	(Dollars in thousands)
Non-GAAP Pre-Tax Pre-Provision Profit
Net income (loss) before taxes	$	(8,219)	$	9,504	$	9,879	$	14,943	$	18,840	$	(4,069)	$	33,783
Add: Provision for loan losses	21,000		10,875		10,875		7,500		3,500		34,950		11,000
Non-GAAP Pre-Tax Pre-Provision Profit	$	12,781	$	20,379	$	20,754	$	22,443	$	22,340	$	30,881	$	44,783


FOR IMMEDIATE RELEASE						CROSSFIRST BANKSHARES, INC. CONTACT:
July 22, 2021						Matt Needham, Investor Relations / Media Contact



Asset quality (Dollars in millions)	2Q20		3Q20		4Q20		1Q21		2Q21
Non-accrual loans	$	37.5	$	75.6	$	75.1	$	63.3	$	54.7
Other real estate owned	2.5		2.3		2.3		2.3		1.7
Nonperforming assets	40.3		82.2		78.4		68.9		58.1
Loans 90+ days past due and still accruing	0.2		4.3		1.0		3.2		1.8
Loans 30 - 89 days past due	34.9		45.4		18.1		11.0		18.8

Net charge-offs (recoveries)	1.3		6.0		11.6		8.2		2.6