CrossFirst Bankshares, Inc.

Second-quarter GAAP net income was $18.6 million, or $0.37 per diluted share, up about 2% from Q1. Operating revenue rose 2% quarter over quarter, and non-interest income was $5.7 million, also up 2%. Net interest margin was 3.20%, loan yield increased 7 bps to an earning asset yield of 6.78%, and total deposits increased 2% to $6.7 billion. Credit improved, with non-performing assets to total assets at 22 bps, net charge-offs of $1 million, an ACL of $76.2 million, and ACL to total loans of 1.42%. For 2024, management lowered expected loan growth to 6% to 8%, kept NIM guidance at 3.20% to 3.25%, and said non-interest expense should be around $37 million per quarter for the rest of the year.

Mike Maddox struck an upbeat, growth-with-discipline tone. He emphasized solid earnings growth, better credit quality, improving fee income, and the ability to return capital through opportunistic buybacks, while still moderating loan growth and staying disciplined on pricing and underwriting. He also highlighted investment in new markets, technology, and talent, and said the company remains focused on profitable growth and franchise value.

Ben Clouse focused on margin, expense discipline, capital, and liquidity. He said quarterly net income was $18.6 million with ROAA of 1.0% and ROCE of 10.6%, and that NIM held at 3.20% while the cost of deposits rose to 3.92%. He guided to about $37 million of non-interest expense per quarter for the rest of 2024, cited roughly $2 million of annual run-rate savings from the core contract restructuring, and noted strong liquidity of about $2.6 billion, or 34% of assets. He also highlighted share repurchases of 237,000 shares at $12.78 versus tangible book value per share of $14.02.

Analysts pressed on deposit growth, NIM outlook, CRE concentration, credit reserve coverage, expenses, and capital deployment. Management said deposit mix appears stabilized, Nimbus has not launched yet and is expected in the fourth quarter, and second-quarter deposit growth came from core markets; they also said loan growth is being moderated while they work CRE exposure back below 300% of capital from about 320% at quarter-end. On credit, management said the reserve percentage stayed flat because they are still targeting about a 120 level and did not make significant qualitative-factor changes, while improved classified assets reflected portfolio-wide performance, restructurings with additional equity, and some refinancings.