GlobeNewswire Inc | Oct 18, 2021 06:45PM EDT

October 18, 2021

Third Quarter 2021 Key Financial Performance Metrics

Net Income ROAA Net Interest Margin Diluted EPS ROE (FTE)$21.0 million 1.54% 3.20% $0.41 12.92%

LEAWOOD, Kan., Oct. 18, 2021 (GLOBE NEWSWIRE) -- CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for CrossFirst Bank, today reported its results for the third quarter of 2021, with net income of $21.0 million, or $0.41 per diluted share, and year-to-date net income of $48.6 million, or $0.93 per diluted share. Results this quarter included a $6.2 million asset impairment relating to an equity investment and a $10 million release from reserves due to continuing improvement in credit quality. Subsequent to quarter end, the Board of Directors authorized the repurchase of up to $30 million of common stock over time.

CEO Commentary:

"We had another quarter of strong profitability and have continued our strong earnings momentum as the economy accelerates and credit quality improves from last years low points," said CrossFirsts CEO and President, Mike Maddox. "We continue to take a long-term view that will best serve our constituents well into the future by investing in talent to grow our top-line revenue and by investing in technology to better serve our clients. At the same time, we remain committed to delivering value to our shareholders and are pleased to be able to continue the return of capital with the new buyback program."

2021 Third Quarter Highlights:

-- $5.4 billion of assets with 162% net income growth compared to the third quarter of 2020 -- Return on Average Assets of 1.54% and a Return on Equity of 12.92% with a non-GAAP Core Return on Average Assets of 1.90% and non-GAAP Return on Equity of 15.94% -- Efficiency ratio of 59.06% for the third quarter of 2021 and a non-GAAP core efficiency ratio of 50.45% after adjusting for nonrecurring or non-core items and tax equivalent interest -- Net Interest Margin (Fully Tax-Equivalent) of 3.20% compared to 3.12% in the previous quarter -- Non-interest-bearing deposit growth of 27% from September 30, 2020 which accounts for 22% of total deposits -- Book value per share of $12.79 at September30, 2021 compared to $11.84 at September30, 2020

Quarter-to-Date Year-to-Date September 30, September 30, (Dollars in millions except 2021 2020 2021 2020 per share data)Operating revenue^(1) $ 40.7 $ 43.4 $ 134.1 $ 127.5 Net income $ 21.0 $ 8.0 $ 48.6 $ 4.5 Diluted earnings per share $ 0.41 $ 0.15 $ 0.93 $ 0.09 Return on average assets 1.54 % 0.58 % 1.16 % 0.11 %Return on average common 12.92 % 5.19 % 10.24 % 0.98 %equityNon-GAAP core return onaverage tangible common 15.94 % 5.19 % 10.99 % 2.62 %equity^(2)Net interest margin 3.14 % 2.93 % 3.05 % 3.08 %Net interest margin, fully 3.20 % 2.98 % 3.10 % 3.13 %tax-equivalent^(3)Efficiency ratio 59.06 % 53.03 % 54.18 % 59.44 %Non-GAAP core operatingefficiency ratio, fully 50.45 % 52.23 % 51.15 % 53.14 %tax-equivalent^(2)(3)

^(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-freemunicipal securities are exempt from federal income taxes. The incrementalfederal income tax rate used is 21.0%.

Income from Operations

Net Interest Income

Interest income was $47.3 million for the third quarter of 2021, a decrease of 2% from the third quarter of 2020 and a 1% decrease from the previous quarter. Interest income was down from the third quarter of 2020 as a result of lower average loans outstanding. Average earning assets totaled $5.3 billion for the third quarter of 2021, a decrease of $68 million or 1% from the same quarter in 2020. The tax-equivalent yield on earning assets increased from 3.57% to 3.62% during the third quarter of 2021, and was down from 3.66% in the third quarter of 2020, primarily due to the movement of variable rate assets indexed to market rates. Year-to-date, interest income was $143.9 million, which declined compared to the same period in 2020 primarily due to the yield movements on earning assets.

Interest expense for the third quarter of 2021 was $5.5 million, or 40% lower than the third quarter of 2020 and 10% lower than the previous quarter. Average interest-bearing deposits decreased to $3.5 billion in the third quarter of 2021, or a 3% decrease from the same prior year period. Cost of funds for the quarter was 0.46%, compared to 0.49% for the second quarter of 2021. Year-to-date, interest expense was $18.7 million, a decrease of 47% from the same period in the prior year due to lower market rates.

Net interest income totaled $41.8 million for the third quarter of 2021 or 1% lower than the second quarter of 2021, and 6% higher than the third quarter of 2020. Tax-equivalent net interest margin increased to 3.20% in the current quarter, from 3.12% in the previous quarter, and increased from 2.98% in the same quarter in 2020. During the third quarter of 2021, CrossFirst realized $1.7 million in fees from the forgiveness of $88 million of PPP loans. Including fees recognized, the PPP loans yielded 5.50% 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 third quarter of 2021. Year-to-date net interest income grew to $125.2 million, an increase of 6% from the same period in the prior year, while tax-equivalent net interest margin declined to 3.10% from 3.13% for the same prior year period.

Non-Interest Income

Non-interest income decreased $5.2 million in the third quarter of 2021 or 127% compared to the same quarter of 2020 and decreased $6.9 million compared to the second quarter of 2021. During the third quarter of 2021, the Company recorded a $6.2 million impairment loss related to an equity investment that was received as part of a restructured loan agreement, which was partially offset by increases of $0.3 million in credit card fees and $0.4 million in service charge income as compared to the same quarter of 2020. Year-to-date non-interest income was up $0.1 million or 1% compared to the same period in the prior year.

Non-Interest Expense

Non-interest expense for the third quarter of 2021 was $24.0 million, which increased 4% compared to the third quarter of 2020 and decreased 7% from the second quarter of 2021. Salaries and benefit costs were lower in the current quarter by $0.3 million compared to the prior quarter and $0.8 million higher than the same quarter in the prior year mainly due to increased hiring for market expansion. Year-to-date non-interest expense decreased $3.6 million or 5% from the same period in the prior year primarily due to a $7.4 million goodwill impairment recorded in the second quarter of 2020. This decrease was partly offset by a $1.6 million increase in salary and employee benefits, $1.0 million increase in occupancy, and $1.5 million increase in other non-interest expense as compared to the same period in the prior year.

CrossFirsts effective tax rate for the third quarter of 2021 was 21% as compared to 16% for the third quarter of 2020. The 2021 quarter-to-date income tax expense was impacted by a $17.2 million increase in income before income taxes that increased taxes at the statutory rate by $3.6 million. For both of the comparable periods, the Company continued to benefit from the tax-exempt municipal bond portfolio and bank-owned life insurance. The tax-exempt benefit diminishes as the Companys pre-tax income improves.

Balance Sheet Performance & Analysis

During the third quarter of 2021, total assets increased by $90 million or 2% compared to June30, 2021 and decreased $105 million or 2% compared to September30, 2020. The total assets change was negatively impacted by the $88 million in PPP loans that were forgiven in the third quarter. Non-interest-bearing deposits increased $142 million compared to June 30, 2021, which was the main driver of the cost of funds 3 basis points decrease. During the third quarter of 2021, available-for-sale investment securities decreased $4 million to $708 million compared to June30, 2021, while the overall average for the third quarter was $730million. The securities yields decreased 6 basis points to a tax equivalent yield of 2.87% for the third quarter of 2021 compared to the prior quarter.

Loan Results

The Company experienced a decrease in average loans of 4% since June 30, 2021 and a decrease of 5% year-over-year from September30, 2020. The reduction in average loans was primarily a result of PPP loan forgiveness. Loan yields increased slightly to 4.00% during the third quarter and increased 10 basis points over the last twelve months.

QoQ QoQ YoY YoY 3Q21 2Q21 1Q21 4Q20 3Q20 Growth Growth Growth Growth ($) (%)^(1) ($) (%)^(1) (Dollars in millions)Average loans (gross)Commercial $ 1,233 $ 1,221 $ 1,329 $ 1,367 $ 1,308 $ 12 1 % $ (75 ) (6 ) %Energy 311 341 351 381 393 (30 ) (9 ) (82 ) (21 ) Commercial real 1,213 1,203 1,183 1,194 1,169 10 1 44 4 estateConstruction and 611 633 598 585 617 (22 ) (3 ) (6 ) (1 ) land developmentResidential andmultifamily real 659 659 688 664 583 0 0 76 13 estatePaycheck 147 296 308 258 362 (149 ) (50 ) (215 ) (59 ) Protection ProgramConsumer 57 56 50 45 45 1 2 12 27 Total $ 4,231 $ 4,409 $ 4,507 $ 4,494 $ 4,477 $ (178 ) (4 ) % $ (246 ) (5 ) %Yield on averageloans for the 4.00 % 3.99 % 3.94 % 4.00 % 3.90 % period ending^(1) Actual unrounded values are used to calculate the reported percentdisclosed. Accordingly, recalculations using the amounts in millions asdisclosed in this release may not produce the same amounts.

Deposit & Other Borrowing Results

The Company experienced a reduction in average deposits of 6% since June 30, 2021, and increased average deposits 2% year-over-year from September30, 2020. The deposit decrease for the quarter was driven by a continued decrease in time deposits and a reduction in money market accounts. In addition, the Company continued to improve the overall cost of deposits, which declined 3 basis points during the third quarter of 2021, reflective of average non-interest-bearing deposit increases. The cost of interest-bearing deposits has declined 33 basis points over the last twelve months primarily as a result of the lower interest rate environment.

QoQ QoQ YoY YoY 3Q21 2Q21 1Q21 4Q20 3Q20 Growth Growth Growth Growth ($) (%)^(1) ($) (%)^(1) (Dollars in millions)Average deposits Non-interest $ 910 $ 802 $ 731 $ 732 $ 714 $ 108 13 % $ 196 27 %bearing depositsTransaction 511 665 717 575 460 (154 ) (23 ) 51 11 depositsSavings andmoney market 2,276 2,385 2,422 2,158 1,995 (109 ) (5 ) 281 14 depositsTime deposits 752 869 972 1,087 1,175 (117 ) (13 ) (423 ) (36 ) Total $ 4,449 $ 4,721 $ 4,842 $ 4,552 $ 4,344 $ (272 ) (6 ) % $ 105 2 % Cost of depositsfor the period 0.38 % 0.41 % 0.48 % 0.58 % 0.67 % endingCost ofinterest-bearing 0.47 % 0.50 % 0.57 % 0.69 % 0.80 % deposits for theperiod ending^(1) Actual unrounded values are used to calculate the reported percentdisclosed. Accordingly, recalculations using the amounts in millions as disclosed in this release may not produce the same amounts.

At September30, 2021, other borrowings totaled $278 million, as compared to $284 million at June 30, 2021, and $351 million at September30, 2020.

Asset Quality Position

Credit quality metrics generally improved during the third quarter of 2021 as classified assets decreased $47 million and the ratio of nonperforming assets to total assets decreased to 0.92% from 1.09% in the previous quarter. The improvements in credit metrics were primarily driven by upgrades in COVID-19 impacted segments and the Energy portfolio. Net charge-offs were $1.3million for the third quarter of 2021 as compared to $2.6 million for the second quarter of 2021. The charge-offs for the current quarter were related to energy and commercial and industrial credits.

The overall decrease in the allowance for loan losses for the current quarter reflects a relatively minor change in net period-end loan balances, stabilization in the Companys economic outlook and improved credit performance. These factors resulted in a $10 million release of reserves during the third quarter. The following table provides information regarding asset quality.

Asset quality(Dollars in 3Q21 2Q21 1Q21 4Q20 3Q20 millions)Non-accrual $ 48.1 $ 54.7 $ 63.3 $ 75.1 $ 75.6 loansOther real 1.1 1.7 2.3 2.3 2.3 estate ownedNonperforming 49.8 58.1 68.9 78.4 82.2 assetsLoans 90+days past due 0.5 1.8 3.2 1.0 4.3 and stillaccruingLoans 30 - 89 37.6 18.8 11.0 18.1 45.4 days past dueNetcharge-offs 1.3 2.6 8.2 11.6 6.0 (recoveries) Asset quality 3Q21 2Q21 1Q21 4Q20 3Q20 metrics (%)Nonperformingassets to 0.92 % 1.09 % 1.15 % 1.39 % 1.49 %total assetsAllowance forloan loss to 1.51 1.78 1.65 1.70 1.70 total loansAllowance forloan loss to 132 134 112 99 95 nonperformingloansNetcharge-offs(recoveries) 0.13 0.23 0.74 1.03 0.54 to averageloans^(1)Provision toaverage loans (0.94 ) 0.32 0.67 0.96 0.97 ^(1)ClassifiedLoans /(Total 17.3 24.0 38.2 40.9 43.2 Capital +ALLL)^(1) Interim periods annualized.

Capital Position

At September30, 2021, stockholders' equity totaled $652 million, or $12.79 per share, compared to $624 million, or $12.08 per share, at December31, 2020. Subsequent to quarter end, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $30 million of common stock over time. The actual timing, number and value of shares of common stock repurchased under the stock repurchase program will be determined by management at its discretion and will depend on a number of factors, including, but not limited to, the market price of the Company's common stock, general market and economic conditions, and applicable legal requirements. Stock repurchases under the program may be modified, suspended or terminated by the Company at any time without prior notice. Under the stock repurchase program, the Company may repurchase its common stock in the open market, through block trades, in privately negotiated transactions, pursuant to a trading plan separately adopted in the future, or by other means, in accordance with federal securities laws and other applicable laws.

The ratio of common equity Tier 1 capital to risk-weighted assets was approximately 13% and the total capital to risk-weighted assets was approximately 14% at September30, 2021. The Company remains well-capitalized.

Conference Call and Webcast

CrossFirst will hold a conference call and webcast to discuss third quarter 2021 results on Tuesday, October 19, 2021, at 10 a.m. CDT / 11 a.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. To access the call, dial toll-free (877) 621-5851 from anywhere in the U.S. or +1 (470) 495-9492 for international callers and provide conference number 8025119. Participants are encouraged to dial into the call or access the webcast approximately 15 minutes prior to the start time.

A replay of the call will be available two hours after the conclusion of the live call. To access the replay, dial (855) 859-2056 and provide conference number 8025119, passcode 9067. International callers should dial +1 (404) 537-3406 and enter the same confirmation number. A replay of the webcast will also be available for 90 days on the companys website https://investors.crossfirstbankshares.com.

Cautionary Notice about Forward-Looking Statements

The financial results in this press release reflect preliminary, unaudited results, which are not final until the Companys 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 managements 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.

About CrossFirst Bank

CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned subsidiary CrossFirst Bank, which is headquartered in Leawood, Kansas. CrossFirst has nine full-service banking locations in Kansas, Missouri, Oklahoma, Texas, and Arizona that offer products and services to businesses, professionals, individuals, and families.

Unaudited Financial Tables

-- Table 1. Consolidated Balance Sheets -- Table 2. Consolidated Statements of Operations -- Table 3. 2020 - 2021 Year-to-Date Analysis of Changes in Net Interest Income -- Table 4. 2020 - 2021 Quarterly Analysis of Changes in Net Interest Income -- Table 5. Non-GAAP Financial Measures

TABLE 1. CONSOLIDATED BALANCE SHEETS

September 30, December 31, 2021 2020 (Unaudited) (Dollars in thousands)Assets Cash and cash equivalents $ 316,722 $ 408,810 Available-for-sale securities - taxable 168,182 177,238 Available-for-sale securities - tax-exempt 539,924 477,350 Loans, net of allowance for loan losses of$64,152 and $75,295 at September 30, 2021 and 4,168,965 4,366,602 December 31, 2020, respectivelyPremises and equipment, net 66,598 70,509 Restricted equity securities 12,885 15,543 Interest receivable 15,928 17,236 Foreclosed assets held for sale 1,148 2,347 Bank-owned life insurance 67,104 67,498 Other 43,695 56,170 Total assets $ 5,401,151 $ 5,659,303 Liabilities and stockholders? equity Deposits Noninterest-bearing $ 960,999 $ 718,459 Savings, NOW and money market 2,774,477 2,932,799 Time 701,121 1,043,482 Total deposits 4,436,597 4,694,740 Federal funds purchased and repurchase agreements - 2,306 Federal Home Loan Bank advances 276,600 293,100 Other borrowings 997 963 Interest payable and other liabilities 34,550 43,766 Total liabilities 4,748,744 5,034,875 Stockholders? equity Common stock, $0.01 par value: authorized - 200,000,000 shares, issued -52,576,504 and 52,289,129 shares at September 30, 526 523 2021 and December 31, 2020, respectivelyTreasury stock, at cost: 1,573,806 and 609,613 shares held at September (20,000 ) (6,061 )30, 2021 and December 31, 2020, respectivelyAdditional paid-in capital 525,676 522,911 Retained earnings 126,299 77,652 Accumulated other comprehensive income 19,906 29,403 Total stockholders? equity 652,407 624,428 Total liabilities and stockholders? equity $ 5,401,151 $ 5,659,303



TABLE 2. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (Dollars in thousands except per share data)Interest Income Loans, including fees $ 42,664 $ 43,929 $ 130,268 $ 138,591Available-for-sale 803 1,042 2,423 4,174securities - taxableAvailable-for-salesecurities - 3,562 3,186 10,410 9,758tax-exemptDeposits withfinancial 121 47 359 583institutionsDividends on bank 161 248 488 808stocksTotal interest income 47,311 48,452 143,948 153,914Interest Expense Deposits 4,211 7,298 14,789 29,975Fed funds purchasedand repurchase - 54 3 162agreementsFederal Home Loan 1,275 1,749 3,838 4,980Bank AdvancesOther borrowings 24 24 72 85Total interest 5,510 9,125 18,702 35,202expenseNet Interest Income 41,801 39,327 125,246 118,712Provision for Loan (10,000 ) 10,875 1,000 45,825LossesNet Interest Incomeafter Provision for 51,801 28,452 124,246 72,887Loan LossesNon-Interest Income (Loss)Service charges andfees on customer 1,196 792 3,330 1,947accountsRealized gains onavailable-for-sale 1,046 1,012 1,043 1,725securitiesUnrealized gains(losses), net on (6,210 ) - (6,243 ) 53equity securitiesIncome frombank-owned life 427 464 3,088 1,373insuranceSwap fees and creditvaluation 31 121 156 80adjustments, netATM and credit card 1,735 1,482 5,569 2,863interchange incomeOther non-interest 670 192 1,921 751incomeTotal non-interest (1,105 ) 4,063 8,864 8,792income (loss)Non-Interest Expense Salaries and employee 15,399 14,628 44,612 43,022benefitsOccupancy 2,416 2,144 7,307 6,274Professional fees 618 1,132 2,538 3,098Deposit insurance 927 1,096 2,995 3,151premiumsData processing 700 652 2,136 2,065Advertising 596 147 1,334 870Software and 999 959 3,098 2,772communicationForeclosed assets, (35 ) 20 680 1,174netGoodwill impairment - - - 7,397Other non-interest 2,416 2,233 7,967 6,421expenseTotal non-interest 24,036 23,011 72,667 76,244expenseNet Income Before 26,660 9,504 60,443 5,435TaxesIncome tax expense 5,660 1,498 11,831 928Net Income $ 21,000 $ 8,006 $ 48,612 $ 4,507Basic Earnings Per $ 0.41 $ 0.15 $ 0.95 $ 0.09ShareDiluted Earnings Per $ 0.41 $ 0.15 $ 0.93 $ 0.09Share

TABLE 3. YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTERESTINCOME(UNAUDITED)

Nine Months Ended September 30, 2021 2020 Interest Average Interest Average Average Income / Yield / Average Income / Yield / Balance Expense Rate^ Balance Expense Rate^ (3) (3) (Dollars in thousands) Interest-earning assets:Securities - taxable $ 207,691 $ 2,911 1.87 % $ 285,363 $ 4,982 2.33 %Securities - 507,986 12,596 3.32 443,506 11,807 3.56 tax-exempt^(1)Federal funds sold - - - 1,364 18 1.73 Interest-bearingdeposits in other 390,588 359 0.12 170,316 566 0.44 banksGross loans, net of 4,381,213 130,268 3.98 4,248,520 138,591 4.36 unearned income^(2)Totalinterest-earning 5,487,478 $ 146,134 3.56 % 5,149,069 $ 155,964 4.05 %assets^(1)Allowance for loan (76,726 ) (64,896 ) lossesOthernon-interest-earning 214,752 218,797 assetsTotal assets $ 5,625,504 $ 5,302,970 Interest-bearing liabilitiesTransaction deposits $ 629,959 $ 936 0.20 % $ 404,967 $ 1,391 0.46 %Savings and money 2,360,559 6,402 0.36 1,938,669 11,689 0.81 market depositsTime deposits 863,592 7,451 1.15 1,178,632 16,895 1.91 Totalinterest-bearing 3,854,110 14,789 0.51 3,522,268 29,975 1.14 depositsFHLB and short-term 285,371 3,841 1.80 456,048 5,145 1.51 borrowingsTrust preferredsecurities, net of 976 72 9.80 933 82 11.81 fair valueadjustmentsNon-interest-bearing 814,924 - - 668,208 - - depositsCost of funds 4,955,381 $ 18,702 0.50 % 4,647,457 $ 35,202 1.01 %Other liabilities 35,385 42,731 Stockholders? equity 634,738 612,782 Total liabilitiesand stockholders' $ 5,625,504 $ 5,302,970 equityNet interest income^ $ 127,432 $ 120,762 (1)Net interest spread^ 3.06 % 3.04 %(1)Net interest margin^ 3.10 % 3.13 %(1)

(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)

Nine Months Ended September 30, 2021 over 2020 Average Yield/Rate Net Change^ Volume (2) (Dollars in thousands)Interest Income Securities - taxable $ (1,200 ) $ (871 ) $ (2,071 )Securities - tax-exempt^(1) 1,627 (838 ) 789 Federal funds sold (18 ) - (18 )Interest-bearing deposits in 390 (597 ) (207 )other banksGross loans, net of unearned 4,176 (12,499 ) (8,323 )incomeTotal interest income^(1) 4,975 (14,805 ) (9,830 )Interest Expense Transaction deposits 555 (1,010 ) (455 )Savings and money market 2,185 (7,472 ) (5,287 )depositsTime deposits (3,795 ) (5,649 ) (9,444 )Total interest-bearing deposits (1,055 ) (14,131 ) (15,186 )FHLB and short-term borrowings (2,169 ) 865 (1,304 )Trust preferred securities, net 4 (14 ) (10 )of fair value adjustmentsTotal interest expense (3,220 ) (13,280 ) (16,500 )Net interest income^(1) $ 8,195 $ (1,525 ) $ 6,670

^(1) Tax exempt income is calculated on a tax-equivalent basis. Tax-freemunicipal securities are exempt from federal income income taxes. Theincremental income income tax rate used is 21.0%.^(2) The change in interest not due solely to volume or rate has been allocatedin proportion to the respective absolute dollar amounts of the change in volumeor rate.

TABLE 4. 2020 - 2021 QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME (UNAUDITED)

Three Months Ended September 30, 2021 2020 Interest Average Interest Average Average Income / Yield / Average Income / Yield / Balance Expense Rate^ Balance Expense Rate^ (3) (3) (Dollars in thousands) Interest-earning assets:Securities - taxable $ 194,929 $ 964 1.96 % $ 257,637 $ 1,290 1.99 %Securities - 534,917 4,310 3.20 440,669 3,855 3.48 tax-exempt^(1)Federal funds sold - - - - - - Interest-bearingdeposits in other 313,188 121 0.15 166,423 47 0.11 banksGross loans, net of 4,230,553 42,664 4.00 4,477,211 43,929 3.90 unearned income^(2)Totalinterest-earning 5,273,587 $ 48,059 3.62 % 5,341,940 $ 49,121 3.66 %assets^(1)Allowance for loan (75,103 ) (75,970 ) lossesOthernon-interest-earning 210,500 220,282 assetsTotal assets $ 5,408,984 $ 5,486,252 Interest-bearing liabilitiesTransaction deposits $ 510,823 $ 259 0.20 % $ 460,420 $ 260 0.22 %Savings and money 2,276,436 1,907 0.33 1,995,307 2,301 0.46 market depositsTime deposits 752,012 2,045 1.08 1,174,555 4,737 1.60 Totalinterest-bearing 3,539,271 4,211 0.47 3,630,282 7,298 0.80 depositsFHLB and short-term 278,154 1,275 1.82 479,475 1,803 1.50 borrowingsTrust preferredsecurities, net of 988 24 9.63 944 24 10.19 fair valueadjustmentsNon-interest-bearing 909,750 - - 714,337 - - depositsCost of funds 4,728,163 $ 5,510 0.46 % 4,825,038 $ 9,125 0.75 %Other liabilities 36,106 47,304 Stockholders? equity 644,715 613,910 Total liabilitiesand stockholders' $ 5,408,984 $ 5,486,252 equityNet interest income^ $ 42,549 $ 39,996 (1)Net interest spread^ 3.16 % 2.91 %(1)Net interest margin^ 3.20 % 2.98 %(1)

^(1) Tax exempt income is calculated on a tax-equivalent basis. Tax-freemunicipal securities are exempt from federal income taxes. The incrementalincome 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 ratedisclosed. Accordingly, recalculations using the amounts in thousands asdisclosed in this release may not produce the same amounts.

QUARTER-TO-DATE VOLUME & RATE VARIANCE TO NET INTEREST INCOME (UNAUDITED)

Three Months Ended September 30, 2021 over 2020 Average Yield/Rate Net Change^ Volume (2) (Dollars in thousands)Interest Income Securities - taxable $ (307 ) $ (19 ) $ (326 )Securities - tax-exempt^(1) 782 (327 ) 455 Federal funds sold - - - Interest-bearing deposits in other 51 23 74 banksGross loans, net of unearned (2,403 ) 1,138 (1,265 )incomeTotal interest income^(1) (1,877 ) 815 (1,062 )Interest Expense Transaction deposits 26 (27 ) (1 )Savings and money market deposits 304 (698 ) (394 )Time deposits (1,414 ) (1,278 ) (2,692 )Total interest-bearing deposits (1,084 ) (2,003 ) (3,087 )FHLB and short-term borrowings (863 ) 335 (528 )Trust preferred securities, net of 1 (1 ) - fair value adjustmentsTotal interest expense (1,946 ) (1,669 ) (3,615 )Net interest income^(1) $ 69 $ 2,484 $ 2,553

^(1) Tax exempt income is calculated on a tax-equivalent basis. Tax-freemunicipal securities are exempt from federal income taxes. The incrementalincome tax rate used is 21.0%.^(2) The change in interest not due solely to volume or rate has been allocatedin proportion to the respective absolute dollar amounts of the change in volumeor rate.

TABLE 5. NON-GAAP FINANCIAL MEASURES

Non-GAAP Financial MeasuresIn 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.

CrossFirst provides reconciliations of these non-GAAP measures below. The measures used in this release include the following:

-- We calculate non-GAAP core operating income as net income adjusted to remove non-recurring or non-core income and expense items related to:Goodwill impairment - We performed an interim review of goodwill as of June 30, 2020. The book value of goodwill exceeded its fair market value and resulted in a full $7.4 million impairment. Charges and adjustments associated with the full vesting of a former executive - We incurred additional charges in the second quarter of 2021 related to the acceleration of $0.7 million of certain cash, stock-based compensation, and employee costs.Bank Owned Life Insurance - We obtain bank owned life insurance on key employees throughout the organization and received a $1.8 million benefit in the second quarter of 2021.Unrealized loss on equity security During the quarter ended September 30, 2021, the Company recorded a $6.2 million impairment loss related to an equity investment that was received as part of a restructured loan agreement.

The most directly comparable GAAP financial measure for non-GAAP core operating income is net income.

-- We calculate "core return on average tangible common equity" as Non-GAAP core operating income (as defined above) divided by average tangible common equity. Average tangible common equity is calculated as average common equity less average goodwill and intangibles and average preferred equity. The most directly comparable GAAP measure is return on average common equity. -- We calculate "Non-GAAP core operating return on average assets" as non-GAAP core operating income (as defined above) divided by average assets. The most directly comparable GAAP financial measure is return on average assets, which is calculated as net income divided by average assets. -- We calculate non-GAAP core operating return on average common equity as non-GAAP core operating income (as defined above) less preferred dividends divided by average common equity. The most directly comparable GAAP financial measure is return on average common equity, which is calculated as net income less preferred dividends divided by average common equity. -- We calculate "tangible common stockholders' equity" as total stockholders' equity less goodwill and intangibles and preferred equity. The most directly comparable GAAP measure is total stockholders' equity. -- We calculate tangible book value per share as tangible common stockholders' equity (as defined above) divided by the total number of shares outstanding. The most directly comparable GAAP measure is book value per share. -- 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. -- We calculate "non-GAAP pre-tax pre-provision profit" as net income before taxes plus the provision for loan losses.

Quarter Ended Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/ 9/30/ 9/30/2021 9/30/2020 2020 2020 (Dollars in thousands) Non-GAAPcore operatingincome:Net income $ 21,000 $ 15,577 $ 12,035 $ 8,094 $ 8,006 $ 48,612 $ 4,507 Add:Unrealizedloss on 6,200 - - - - 6,200 - equitysecurityLess: Tax 1,302 - - - - 1,302 - effect^(2)Unrealizedloss onequity 4,898 - - - - 4,898 - security,net of taxAdd:Goodwill - - - - - - 7,397 impairment^(1)Add:Accelerated - 719 - - - 719 - employeebenefitsLess: Tax - 210 - - - 210 - effect^(3)Acceleratedemployee - 509 - - - 509 - benefits,net of taxLess: BOLIsettlement - 1,841 - - - 1,841 - benefits^(1)Non-GAAPcore $ 25,898 $ 14,245 $ 12,035 $ 8,094 $ 8,006 $ 52,178 $ 11,904 operatingincome^(1) No tax effect. ^(2) Represents the tax impact of the adjustments at a tax rate of 21.0%. ^(3) 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 Nine Months Ended 9/30/ 6/30/ 3/31/ 12/31/ 9/30/ 9/30/ 9/30/ 2021 2021 2021 2020 2020 2021 2020 (Dollars in thousands) Non-GAAP core returnon average tangible common equity:Net incomeavailable to $ 21,000 $ 15,577 $ 12,035 $ 8,094 $ 8,006 $ 48,612 $ 4,507 commonstockholdersNon-GAAP core 25,898 14,245 12,035 8,094 8,006 52,178 11,904 operating incomeAverage common 644,715 633,417 625,875 620,496 613,910 634,738 612,782 equityLess: averagegoodwill and 160 179 199 218 238 179 5,138 intangiblesAverage tangible $ 644,555 $ 633,238 $ 625,676 $ 620,278 $ 613,672 $ 634,559 $ 607,644 common equityReturn on average 12.92 % 9.86 % 7.80 % 5.19 % 5.19 % 10.24 % 0.98 %common equityNon-GAAP corereturn on average 15.94 % 9.02 % 7.80 % 5.19 % 5.19 % 10.99 % 2.62 %tangible commonequity

Quarter Ended Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/ 9/30/2020 9/30/2021 9/30/2020 2020 (Dollars in thousands) Non-GAAP coreoperating return onaverage assets:Net income $ 21,000 $ 15,577 $ 12,035 $ 8,094 $ 8,006 $ 48,612 $ 4,507 Non-GAAP coreoperating 25,898 14,245 12,035 8,094 8,006 52,178 11,904 incomeAverage assets $ 5,408,984 $ 5,673,638 $ 5,798,167 $ 5,523,196 $ 5,486,252 $ 5,625,504 $ 5,302,970 Return on 1.54 % 1.10 % 0.84 % 0.58 % 0.58 % 1.16 % 0.11 %average assetsNon-GAAP coreoperating 1.90 % 1.01 % 0.84 % 0.58 % 0.58 % 1.24 % 0.30 %return onaverage assets

Quarter Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 (Dollars in thousands except per share data)Tangible commonstockholders' equity:Totalstockholders' $ 652,407 $ 637,190 $ 628,834 $ 624,428 $ 617,883equityLess: goodwilland other 149 169 188 208 227intangibleassetsTangible commonstockholders' $ 652,258 $ 637,021 $ 628,646 $ 624,220 $ 617,656equityTangible bookvalue per share:Tangible commonstockholders' $ 652,258 $ 637,021 $ 628,646 $ 624,220 $ 617,656equitySharesoutstanding at 51,002,698 50,958,680 51,678,669 51,679,516 52,195,778end of periodBook value per $ 12.79 $ 12.50 $ 12.17 $ 12.08 $ 11.84shareTangible book $ 12.79 $ 12.50 $ 12.16 $ 12.08 $ 11.83value per share

Quarter Ended Nine Months Ended 9/30/2021 6/30/ 3/31/ 12/31/ 9/30/ 9/30/ 9/30/ 2021 2021 2020 2020 2021 2020 (Dollars in thousands) Non-GAAP CoreOperatingEfficiency Ratio - Fully TaxEquivalent (FTE)Non-interest $ 24,036 $ 25,813 $ 22,818 $ 23,732 $ 23,011 $ 72,667 $ 76,244 expenseLess: Accelerated - 719 - - - 719 - employee benefitsLess: goodwill - - - - - - 7,397 impairmentAdjustedNon-interest $ 24,036 $ 25,094 $ 22,818 $ 23,732 $ 23,011 $ 71,948 $ 68,847 expense(numerator)Net interest 41,801 42,328 41,117 41,537 39,327 125,246 118,712 incomeTax equivalentinterest income^ 748 734 704 683 669 2,186 2,050 (1)Non-interest (1,105 ) 5,825 4,144 2,949 4,063 8,864 8,792 income (loss)Add: Unrealizedloss on equity 6,200 - - - - 6,200 - securityLess: BOLIsettlement - 1,841 - - - 1,841 - benefitsTotaltax-equivalent $ 47,644 $ 47,046 $ 45,965 $ 45,169 $ 44,059 $ 140,655 $ 129,554 income(denominator)Efficiency Ratio 59.06 % 53.61 % 50.41 % 53.35 % 53.03 % 54.18 % 59.44 %Non-GAAP CoreOperatingEfficiency Ratio - 50.45 % 53.34 % 49.64 % 52.54 % 52.23 % 51.15 % 53.14 %Fully TaxEquivalent (FTE)^(1) Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%.

Quarter Ended Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/ 9/30/2020 9/30/2021 9/30/2020 2020 (Dollars in thousands) Non-GAAP Pre-TaxPre-Provision ProfitNet income $ 26,660 $ 18,840 $ 14,943 $ 9,879 $ 9,504 $ 60,443 $ 5,435 before taxesAdd: Provision (10,000 ) 3,500 7,500 10,875 10,875 1,000 45,825 for loan lossesNon-GAAP Pre-TaxPre-Provision $ 16,660 $ 22,340 $ 22,443 $ 20,754 $ 20,379 $ 61,443 $ 51,260 Profit

CROSSFIRST BANKSHARES, INC. CONTACT:Heather Worley, Investor Relations / Media ContactHeather@crossfirst.com / (214) 442-5898 https://investors.crossfirstbankshares.com