CrossFirst Bankshares Inc (CFB) Reports Q3 2023 Earnings, Showcases Growth Amid Economic Challenges

• CFB reports Q3 2023 net income of $16.9 million, or $0.34 per diluted common share, and adjusted net income of $18.6 million, or $0.37 per diluted common share.

• Operating revenue, core deposits, and earnings show growth despite a challenging macroeconomic environment for banking.

• CFB completes the acquisition of Canyon Bancorporation, Inc. and its subsidiary, Canyon Community Bank, N.A.

• Non-performing assets increased to 0.50% of total assets but were contained within a few relationships of manageable size.

Released on October 16, 2023, CrossFirst Bankshares Inc (NASDAQ:CFB)'s Q3 2023 earnings report showcases a resilient performance amid a challenging macroeconomic environment. The bank holding company reported a net income of $16.9 million, or $0.34 per diluted common share, and an adjusted net income of $18.6 million, or $0.37 per diluted common share.

Financial Performance and Key Metrics

CFB's Q3 2023 key financial performance metrics show a net income of $16.9 million, a net interest margin of 3.19%, and a diluted EPS of $0.34. The adjusted metrics reveal an adjusted net income of $18.6 million, an adjusted net interest margin of 3.19%, and an adjusted diluted EPS of $0.37.

CEO Commentary and Strategic Moves

CFB's CEO and President, Mike Maddox, commented on the company's performance, stating,

We continued to execute on our strategic plans with growth in operating revenue, core deposits, and earnings this quarter in a difficult macroeconomic environment for banking. We remain focused on driving scale and gaining operating leverage through our high-growth, dynamic markets and verticals all while remaining diligent on credit quality."

Financial Highlights and Acquisition

CFB's Q3 2023 highlights include improved profitability, increased operating revenue, and adjusted diluted earnings per common share. The company also completed the previously announced acquisition of Canyon Bancorporation, Inc. and its wholly owned subsidiary, Canyon Community Bank, N.A.

Loan and Deposit Growth

CFB reported that loans grew by $149 million, or 2.6%, for the quarter and grew 10.7% year-to-date. Deposits grew by $232 million, or 3.8%, for the quarter and grew 12.0% year-to-date.

Asset Quality and Provision for Credit Losses

Non-performing assets increased to 0.50% of total assets but were contained within a few relationships of manageable size. Net charge-offs of $1.3 million were previously reserved and represented an annualized rate of 0.09% of average loans.

Capital Position

At the end of Q3 2023, CFB's stockholders' equity totaled $643 million, or $13.04 of book value per common share, compared to $651 million, or $13.39 of book value per common share, at the end of Q2 2023.

For more detailed information, readers can join the conference call and webcast discussing the Q3 2023 financial results on Tuesday, October 17, 2023, at 10 a.m. CT / 11 a.m. ET.

This article first appeared on GuruFocus.