Q2 2024 CrossFirst Bankshares Inc Earnings Call Transcript
Key Points
- CrossFirst Bankshares Inc (CFB) reported solid earnings growth with net income increasing to $18.6 million or $0.37 per diluted share.
- The company maintained strong credit quality, with improvements in past-dues, non-accruals, nonperforming assets, and classified assets.
- Total assets grew to $7.6 billion, a 2% increase from the previous quarter, driven by loan growth in Texas, Colorado, and Arizona markets.
- Fee income from service charges and credit card revenues grew by a combined 17% year over year for the first six months.
- The company successfully renegotiated its core services contract, which is expected to result in meaningful savings and improve the efficiency ratio.
- The increased cost of deposits remains a challenge, although the company has seen steady performance in fee lines.
- Provision expense was modestly higher compared to the previous quarter, impacting overall financial performance.
- The commercial real estate (CRE) portfolio remains a focus area, with the company aiming to reduce total CRE exposure below 300% of capital in the next several quarters.
- The deposit market remains highly competitive, and tax payments in April historically provide pressure on deposits in Q2.
- Noninterest expense increased slightly, driven by the core contract restructuring and incremental costs, which could impact profitability.
Good day and welcome to the CrossFirst Bankshares Inc. second quarter 2024 conference call (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mike Daley Chief Accounting Officer and Head of Investor Relations. Please go ahead.
Good morning and welcome to CrossFirst Bankshares second quarter earnings conference call. Before we begin, please be aware this call will include forward-looking statements, including statements about our business plans, growth opportunities, expense control initiatives, cash requirements and sources of liquidity, capital allocation strategies and plans, and our future financial performance. These comments are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from these statements.
Our forward looking statements are as of the date of this call, and we do not assume any obligation to update or revise them,
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