CrossFirst Bankshares Inc Reports Record Full Year Earnings for 2023
Net Income: Q4 net income of $17.7 million, full year net income of $66.7 million.
Diluted EPS: Q4 EPS at $0.35, full year record EPS at $1.34.
Adjusted Net Income: Q4 adjusted net income of $19.6 million, full year adjusted net income of $72.8 million.
Net Interest Margin: Q4 net interest margin at 3.23%.
Asset Growth: Total assets increased by 12% compared to the previous year.
Loan Growth: Loans increased by 14% year-over-year, including Tucson acquisition.
Capital Position: Tangible book value per share increased by 13% year-over-year.
On January 22, 2024, CrossFirst Bankshares Inc (NASDAQ:CFB) released its 8-K filing, detailing the financial results for the fourth quarter and the full year of 2023. The company, which provides comprehensive banking and financial services, reported a net income of $17.7 million for the fourth quarter, translating to $0.35 per diluted common share, and a record full-year net income of $66.7 million, or $1.34 per diluted common share. Adjusted for specific items, the fourth quarter net income stood at $19.6 million, or $0.39 per diluted common share, with the full year adjusted net income reaching $72.8 million, or $1.47 per diluted common share.
Performance Amid Economic Headwinds
Despite facing a challenging macro-economic environment, including a historic rise in interest rates, CrossFirst Bankshares Inc achieved significant milestones. The company successfully closed the acquisition of Canyon Community Bank, opened two new locations in Texas, and launched a new digital banking platform. These strategic moves contributed to a 6% growth in earnings on an adjusted basis for the year.
CEO Mike Maddox commented on the company's resilience and adaptability in the face of economic pressures, stating,
Despite a challenging macro-economic environment, CrossFirst had an incredible year. We closed on the acquisition of Canyon Community Bank, opened two prominent Texas locations, launched our new digital banking platform, and grew earnings by 6% on an adjusted basis during the year,"
highlighting the company's strategic growth and operational efficiency.
Financial Highlights and Achievements
The fourth quarter saw an increase in net interest income and a decrease in non-interest expense, contributing to the higher net income compared to the previous quarter. Year-over-year, CrossFirst Bankshares Inc experienced an increase in net interest income and non-interest income, outpacing the rise in provision expense and non-interest expense. The company's net interest margin for the quarter remained stable at 3.23%, reflecting a balance between loan yields and the cost of funds.
On the balance sheet, total assets grew by 3% over the previous quarter and by 12% compared to the end of the previous year, primarily driven by an increase in loans, including those acquired from the Tucson acquisition. Deposits also saw a healthy increase, indicative of strong customer trust and business growth.
Asset quality remained robust, with non-performing assets decreasing to 0.34% of total assets. The company's capital position strengthened, with tangible book value per common share increasing by 13% from the previous year, signaling a solid foundation for future growth.
Analysis and Outlook
CrossFirst Bankshares Inc's performance in 2023 demonstrates the company's ability to navigate economic challenges while executing its growth strategy. The increase in net income and earnings per share, coupled with a strong capital position and asset quality, positions the company well for continued success. The strategic acquisitions and expansion into new markets are expected to further enhance CrossFirst's market presence and financial performance in the coming years.
Investors and stakeholders can look forward to the company's continued focus on delivering value through strategic growth initiatives, operational excellence, and prudent risk management. As CrossFirst Bankshares Inc moves into 2024, the company's solid financial results and strategic positioning bode well for its future prospects.
For more detailed information on CrossFirst Bankshares Inc's financial performance and future outlook, interested parties are encouraged to join the conference call and webcast scheduled for January 23, 2024.
Explore the complete 8-K earnings release (here) from CrossFirst Bankshares Inc for further details.
This article first appeared on GuruFocus.
