Q2 2021 Crossfirst Bankshares Inc Earnings Call

July 22, 2021

If you do not anticipate asking a question via the phone you can alternatively access the call audio via the webcast link provided in a press release or on the IR website.

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'twenty 1 earnings call at this time, all participants are in a listen only mode. After the speaker presentation. There will be a question and answer session to ask a question. During the session you will need to press star 1 on your Touchtone telephone.

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I would now like to hand, the conference over to your host Matt Needham Director of Investor Relations. Please go ahead.

Welcome and thank you for joining us today on the call are Mike <unk>, our president and CEO, Dave or David O'toole, Our Chief investment Officer, and former Chief Financial Officer, and Randy Rapp, our chief credit and Chief Risk Officer, a new Chief Financial Officer, Ben Clouse will also be available during the Q&A portion.

On the call as a reminder, a telephonic replay of this call will be available on our Investor Relations website.

Before we get underway, let me remind you that our release quarterly investor update and presentation slides that accompany this call are available on the Investor Relations website.

2 of the cautionary statement I want to point out and then in our remarks. This afternoon, we will be discussing forward looking information, which involves a number of risks and uncertainties that may cause actual results to differ materially from our forward looking statements. We provide a comprehensive list of risk factors and our SEC filings, which I encourage you to review.

Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures are included and the release and presentation copies of which are also available on our IR website. All earnings per share metrics discussed on today's call are provided on a diluted per share basis I'd now like to turn the call over to Mike Maddox.

Thank you, Matt and thank you to everyone for joining the call.

Before we get into the quarterly performance I do want to take a moment to honor our former CEO George Jones.

We are deeply saddened by Georgia, passing and we are lucky to have had and with our company.

George's leadership and Mentorship.

Played a critical role and our company's success.

<unk> taught me and many of US so much 1 of his greatest strengths with visibility to connect with people. We will remember has extraordinary service across our entire company and throughout our industry for years to come.

We offer our deepest condolences to maryann as kids and the rest of George's family.

As we begin to look forward I'd like to introduce the newest member of our management team who is joining us today I.

And I am pleased debt with the hiring of our new Chief Financial Officer.

We have filled out our management team.

After conducting a nationwide search we found a terrific and well qualified CFO right here in Kansas City.

Our new CFO, Ben Clouse recently start with US on July 12, and will be a key part of our leadership team on.

No Ben will be instrumental and helping us grow strategically while also meeting the evolving and changing needs of our clients.

And then has over 20 years of experience and is joining us from Waddell <unk> Reed, where he was senior vice President and CFO for the last 3 plus years and.

And I had to have been here with us today and on the team.

After a challenging 2020, our first quarter of 2021 demonstrated great strength and our core operating business and we're excited to announce that our second quarter produced the best quarterly earnings and company's history.

As we move into discussing our strong quarterly results. Our operating revenue grew 6% during the second quarter and combined with reduced provisioning led to a record $15.6 million of net income.

And pre tax pre provision profit of $22.3 million.

Earnings per share of <unk> 30.

With these strong results, we achieved a return on average assets of 110% and return on average common equity of 986%.

We also managed our balance sheet to reduce asset size, which improved net interest margin to 3.1% and 2% for the quarter.

And I'm extremely proud of the team's focused performance and progress toward our strategic goals.

The team has been laser focused on improving our profitability and their efforts can be seen and the numbers.

During the second quarter, we thoughtfully and improve the company's balance sheet efficiency and strengthened our profitability metrics.

Cross first is committed to helping our local businesses and communities, we serve especially during the pandemic our.

Our dedication to our customers led to holding.

Low margin and PPP loans, and excess cash from economic stimulus pumped into the economy.

During the quarter, we were able to assist our customers and attainment, obtaining forgiveness for $161 million of PPP loans and.

And had nearly $100 million of C&I paydowns.

And reduced our excess cash balance.

And managing our deposits, we allowed non relationship and institutional deposits that were a drag on margin to roll off the balance sheet.

While our overall growth metrics were impacted we increased our margin by 12 basis points from the previous quarter.

We also continue to execute on our strategy of growing noninterest bearing deposits and were able to increase demand deposits by 3% from the previous quarter and by 9% over last year's second quarter.

These steps contributed to a stronger deposit mix that now has 19% of our total deposits and demand deposit accounts.

While there are still some residual impact on our loan growth from pandemic related activity. We expect our continued expansion efforts to help us drive loan and balance sheet growth and future quarters.

As the economy reopens and oil prices stabilize and we are seeing significant improvement and our credit metrics. While we added to the reserve during the quarter I am pleased to announce a substantial decline and our classified assets low.

Nonperforming assets and reduced charge off activity.

We expect to see continued improvement throughout the second half of the year, which should lead to further upgrades on our loan portfolio.

We also completed the $20 million share repurchase program at a weighted average price of $12.68 per share.

The combination of the share repurchase program ending adjustments to the balance sheet and improved performance led to increased capital ratios during the second quarter.

And our strong capital position allows us to continue to evaluate growth and expansion opportunities.

And our path to success is grounded in the ideals of 1 team 1 bank with a shared vision of success, we remain focused and dedicated to our purpose of serving people and extraordinary ways and to our promise to contribute to the wellbeing of our employees clients and communities.

Attracting and retaining the highest quality talent is of utmost importance. It is the key to our successful execution of our plan.

In June we announced our entry into the Phoenix, Arizona market I am pleased to announce that we recently received regulatory approval for our full service Phoenix location.

Like all of our expansion efforts the decision to enter the market was opportunistic and centered around finding the right talent the people who fit our culture, our relationship banking model and who will effectively compete and grow our presence and the market.

Our new Arizona market President, Kevin Holleran comes to us with over 35 years of experience and the Phoenix banking community.

We were able to take advantage of market disruption that allowed us to land the right leader for the market.

Kevin has also hired 2 experienced commercial bankers with long tenure and Phoenix.

We believe this team can grow to scale and a short period of time.

The decision to go to Arizona was also a natural extension of our current customer base, we already have a number of customers located in Phoenix.

We will continue to expand into other metropolitan markets to fill and our geographic footprint over time.

It will be driven by hiring great talent or through the right strategic acquisition.

We know how to grow organically and that will continue to be our primary focus.

We remain excited about our growth and the Dallas Fort worth area as a part of that growth, we are making progress and Frisco as we build out our team.

Texas continues to be a strategic focus for the company. We will continue to add market talent and look to expand our presence across Texas, where there is tremendous opportunity.

Before we get into the detail of our financial performance I'd again like to thank Dave or tool for his hard work and dedication across first on what will be his last earnings call with the company day.

They will continue to be with the team for the next year as Chief investment Officer, and I look forward to a successful transition of the CFO role to debt. Thank you day for your contributions to the company over the last 13 years.

I'll now turn the call over to Dave to take everyone through the financial details of our results.

Yes.

Good afternoon, everyone and Mike. Thank you for your fun words and comments I appreciate your support.

We had a great quarter and continued to post positive operating revenue performance.

And the second quarter revenue and improved $48 million up 6% from the previous quarter.

And 10% from the same quarter and the prior year.

Revenue growth for the quarter was achieved by a combination of factors, including net interest income of $42.3 million.

While historically, we have had strong balance sheet growth driving our operating revenue performance. This quarter, we focused on improving margin by being prudent with our loan and deposit pricing decisions.

And the strategy allowed us to create a much more efficient balance sheet.

Reduced non core funding concentrate on PPP forgiveness and focus on core customer relationships with the objective to strengthen and grow earnings.

Noninterest income for the quarter was $5.8 million.

A 41% increase from the previous quarter.

We had another solid quarter for service charges and credit card fees compared to the second quarter of 2020 and.

And we recorded a 1 time non taxable insurance recovery.

For the quarter NIM increased to $3, 1 and 2% on a fully tax equivalent basis compared to 3% and the previous quarter.

And when comparing Q2.2021 to the previous quarter, earning.

Earning asset yields improved 7 basis points and cost of funds declined by 7 basis points.

The year over year NIM decline can be attributed to a 39 basis point decline and tax equivalent earning asset yields.

And that were partially offset by a 36 basis point reduction and cost of funds.

During the quarter, we strategically reduced our assets size by nearly $700 million as we continued to adjust for deposit pricing.

These adjustments increased the loan to deposit ratio to 97%, making our balance sheet significantly more efficient.

Historically, we have used wholesale brokered and institutional funding to support our growth initiatives.

Which allowed us to be more nimble with our excess liquidity and the current environment.

The investment portfolio continues to be a great source of revenue for the company.

And we had an unrealized gain at the end of the quarter of nearly $35 million and the portfolio.

Overall, we grew portfolio holdings during the quarter and purchased approximately $49 million of new taxable and tax free securities.

To reinvest the cash flows from the existing portfolio and to deploy some of our excess liquidity.

We continue to maintain our investment strategy and have been increasing and municipal bond allocation as a percentage of the portfolio for several quarters.

At the end of the second quarter. It represented nearly 74% of our $712 million portfolio.

While we have seen some small yield declines and the portfolio. During the last couple of years using municipals has allowed us to limit the decline in yield and maintain duration fairly steady.

Noninterest expenses for the quarter were $25.8 million.

$3 million higher than Q1.

But lower than the second quarter of 2020.

Total expenses increased 13% for the quarter, because we incurred additional charges and the second quarter of 2021 related to the acceleration of approximately 700000 of certain cash and stock based compensation for a former employee.

And another 600000 valuation adjustment that was required for an Oreo property.

Additionally, the Companys operating expenses are normalizing from the lower levels incurred during the pandemic.

Noninterest expense is lower than the second quarter of 2020, primarily due to the onetime $7.4 million goodwill impairment charge.

And that we recorded in 2020.

For 1 time adjustments combined with the balance sheet changes create some noise with our expense ratios this quarter.

For the quarter noninterest expense to average assets increased to 182% and assets per employee decreased to $15.9 million.

As we continue to focus on positive operating leverage we expect those metrics will improve and trimmed back to previous levels.

For the second quarter, we posted a 53, 6% efficiency ratio and a year to date ratio of 52, 1% a significant decline from 63, 3% compared to the same year to date period and 2020.

In addition to the expenses I just discussed during the quarter, we incurred startup and expansion costs for the Phoenix and Frisco and locations.

As Mike indicated we experienced the most profitable quarter and our history of $15.6 million and net income.

Which is an increase of 29, 4% from the previous quarter commensurate with growing operating revenue and inclusive of provisioning $3.5 million and the current quarter.

Quarterly return on average assets continues to improve climbing to 1.1% and.

And a pre tax pre provision return on average assets of 158%.

We are excited to have achieved a greater than 1% return on average assets. This quarter and believe this is a fairly good indication of our earnings momentum.

Capital.

Ratios remained strong and as Mike mentioned, we completed the share repurchase program during the quarter.

For the full program, we repurchased almost 1.6 million shares of stock.

Resulting in tangible book value per share of $12.50 at quarter end and total stockholders' equity on June 32021 of $637 million.

Overall, we feel good about the financial results for the quarter and look forward to continued improvement.

Before I turn it over to Randy for a discussion on credit I would like to share a few parting thoughts since this is my last opportunity.

I'd like to thank our founding board members and shareholders, who funded our startup in 2000 and settlement and supported me as their CFO.

Many of these folks are on this call and are still involved but some have moved on.

I'm also grateful for Ron Baldwin and the late George Jones, who also supported made during their time as CEO.

And they were both a big part of making US who we are today.

I have actually grown to enjoy this day each quarter.

Blaine and cross first financial results to the investment community and our talented analyst without embarrassing myself for my associates was professionally challenging and rewarding.

We'll miss it.

Thanks again, all of you and now let's move on to Randy to take you through a discussion of credit.

Thank you, Dave and good afternoon, everyone as the charts illustrate our overall credit metrics continue to generally improve in Q2 as we experienced significant positive grade migration attributable to the economic recovery and improvement in oil and gas prices.

Classified loans decreased almost $100 million from the prior quarter and we expect that trend to continue and the last half of 2021, assuming that the economy and our customers continue to recover as the pandemic subsides are.

Our classified the total capital and loan loss reserve ratio has decreased from a high of 43% at the end of Q3, 2020% to 24% at the end of Q2.2021, we will continue to work with our clients and we'd like to drive that ratio below 20%.

By the end of the year.

At the end of the second quarter, we have and allowance for loan losses to total loans of $1, 78%, which increased from the prior quarter and is well above historical levels.

We remain on the incurred loss model for calculating the reserve requirement and continue to plan to adopt Cecil on January 1.2020.

2000.22022.

Continued improvements and credit quality positive loan grade migration and lower anticipated charge off activity could lead to much lower provisioning in Q3 and Q for the.

And the percentage of classified loans to total loans has declined to 4% at the end of the second quarter and we are actively working with borrowers with a goal of reducing this ratio back to the pre pandemic levels of 2% or lower.

We do continue to carry a small number of modified loans on our balance sheet related to industries heavily impacted by the pandemic, but new deferral requests are minimal and also our non accrual and past due levels are trending positively.

Several industries contributed to the spike and classified loans in 2020 led by the energy portfolio, which experienced significant price decreases starting in Q1.

And other affected portfolios include various C&I related industries, and certain property types and the commercial real estate portfolio, including senior housing and hospitality, which were directly impacted by the pandemic.

During the uncertainty of 2020, we recorded net loan downgrades of $182 million to classified.

At this point and the recovery, we have already had net upgrades to classified loans of $115 million during the first half of 2021.

And if the economic expansion continues and energy prices remained stable, we anticipate seeing continued positive grade migration throughout the remainder of 2021.

Energy related transactions account for 43% of classified loans, but decreased 38% during Q2.

We have only partially completed our spring borrowing base Redetermination and expect to see further positive grade migration in that portfolio in Q3 and Q4.

Nonperforming assets continued to decrease and in Q2 at 1 point on 9% of total assets due primarily to upgrades within our energy and C&I portfolios loan pay offs and or liquidations.

We are diligently working with our customers with the goal of lowering our NPA ratio below 1% and closer to historical levels.

Net charge offs decreased significantly in Q2, 202, and 3% of average loans versus <unk>, 74% reported last quarter, and 1.3% and Q4.2020.

Couple of C&I loans totaling $2.6 million were charged off this quarter, we anticipate the trend of lower charge off activity to continue and the last half of 2021 and.

In closing, we believe that our strong credit culture targeted market and client focus and loan portfolio diversity and position us well for further growth as the economic recovery continues and I'll look forward to answering any questions you might have shortly this wraps up our prepared remarks, and I'll now turn it back over to the <unk>.

Operator to begin the Q&A portion of the call.

As a reminder to ask a question you will need to press star 1 on your Touchtone telephone to withdraw your question press the pound key once again Thats star 1 on your Touchtone telephone to ask a question. Please standby and while we compile the Q&A roster.

Our first question comes from the line of Brady Gailey of K VW. Your line is open.

Hey, good afternoon guys.

Hey, Brady.

So I wanted to start on.

Loan growth ex PPP.

Non PPP loan balances I think were down.

Little over 10% annualized and the quarter.

And normally you guys have such a growth company I'll think we've ever seen.

Non PPP loans down any sort of commentary there I know you all are strategically shrinking.

Asset base and some deposits were there any day.

Shrinkage on the loan side this quarter too.

Well on.

Loan totals were impacted by cleaning up some of our credit quality for sure.

But.

And I think Brian you were on the same boat is a lot of everybody in our industry.

On the CRE side with the low cap rates and the really low permanent loan rates, we've seen our real estate customers selling properties and taking properties to the permanent market, which is probably increase some of our payoff activity and that area and then on the C&I side.

<unk>.

And we're sitting on a pretty sizeable pipeline, but those C&I deals just tend to be being pushed out and taking a little longer to get close so.

I think youre seeing that with a lot of people as loan growth is is tough right now but.

We have a strong pipeline and we continue to believe that the second half of the year will be strong.

Sure.

And then on the expense side I know you guys had a couple of onetime in nature and expenses, but I think if you even backed that out and are expected.

For about 24, and $5 million was a little higher than maybe the $23 million Mark.

And you all had talked about maybe just an update on how you think about the expense run rate from here, especially as youre, adding phoenix into the mix.

Brady, it's Dave and.

In addition to what we disclose their debt was 1 times debt.

We did have some additional costs associated with Phoenix and Frisco, We believe that number is somewhere in the $300000 range that will probably continue on.

The rest of the expenses were just a function of normalizing from the lower levels they were at.

And the pandemic. So I think as you look forward your expense run rate probably the only adjustment.

Realistically is the 2 nonrecurring items.

Okay.

Right and then it's great to see the buyback continue in the quarter now that go on.

With your previous buyback program.

We see a new buyback program coming up soon.

And our Brady.

We do have a lot of capital.

Our first option and our first goal is to really deploy that capital and growth.

So what we're really focused on.

Either either organic growth opportunities, but you are seeing what we're doing and Phoenix.

And we're constantly out there.

We're trying to build relationships and find.

And possible partnering opportunities so.

We don't have any plans to do another buyback today, but but.

And I'm sure, we'll look at all of our options.

Our credit and then just lastly for me.

Saw the couple of million dollars of PPP fees, taking on the quarter, how many PPP fees remain at this point.

We have a couple of million dollars lift for the PPP fees to recognize Brady, but the bulk of those are on the second round of PPP, which those loans have a little longer term, so there'll be a little slower to be.

Returned I think we have somewhere between 5 and 600000 from the first group that most of which will probably come out this quarter.

Okay.

Great well, thank you and good luck for you Dave.

Thank you. Thank you Ray.

Thank you. Our next question comes from Michael Rose of Raymond James Your line is open.

Hey, good afternoon, and thanks for taking my questions and Im just going back to the loan growth and 5.

Look on the back of the presentation. It looks like unfunded commitments were up about $400 million. Mike you just talked about deals taking a little bit longer to close but thats a nice increase.

On a quarter. So maybe can you just talk about.

And what drove that.

And that growth and would you expect for pull through rate pick up as we move into the back half of the year and then layering on to that.

Obviously, the expansion out west what can we expect.

Over the next couple of quarters from that team I know theyre off to a fast start.

From when we talked last but just trying to size up the opportunity and what what actual growth could look like ex PTC as we move over the next couple of quarters.

Yes.

You make a good point.

Our line utilization and our C&I portfolio typically runs around 48, 49% and right now it's about 38. So we're still seeing a lot of customers sitting on a lot of cash and <unk>.

A lot of that from the stimulus.

But we made about 300, a little over $300 million and new commitments on our second quarter and loans and about $100 million of that funded and so.

We believe that debt and thats really divided pretty evenly between commercial real estate and C&I.

We are seeing nice nice growth on our health care portfolio.

And some service industry credit.

And.

And our enterprise value.

Our portfolio continues to perform well so pretty diversified growth.

As I said earlier, we have a strong pipeline and.

And then Phoenix.

Yes, we are.

We've hired Kevin and he's hired 2 terrific bankers, 1 and we'll focus on C&I lending and 1 and I'll focus on commercial real estate and and we believe we have a tremendous opportunity out there they are already putting points on the board.

And.

We think thats a market that can really perform well for us.

Alright, great and then so the deposit run off and if I look at the kind of average balances versus the period end balances it seems like.

A lot of that.

And that came off and the back half of the.

Quarter, and just trying to think about the impact on the margin obviously was up this quarter, partly because of that but as we.

About the third quarter should we should we actually think about the core margin ex PPP.

And continuing to move higher from here.

<unk>.

Yes, Michael this a day I think that is the right conclusion with margin I think it will move forward and Youre exactly right the average balance of our liquidity.

Is not the same as the quarter and the balance was most of our decline happened towards the end of the quarter. So we had a lot of excess liquidity during the quarter.

That's now gone and so and the third quarter, we will get some benefit from that.

So we like the position of our balance sheet and the rest of our.

Earning assets and our ability yet to lower our cost of funds a little bit further.

Should promote.

Certainly at least 312, but we think probably some improvement on that with NIM and the third quarter.

Loan fees or the item that's hard to determine.

And on a margin calculation and the third quarter and it depends on what the loan activity does but.

And I think you could see margin move a little bit higher.

Alright, Great and then maybe just 1 final 1 for me just on the energy book.

You still have a decent amount that's kind of credit criticized and classified we've seen the price of oil move up.

Whats the outlook, there and you're starting to see some banks talk about actual growth as we move into the back half of the year. So would just love an update on the on the energy book and what we can expect in terms of migration and growth. Thanks.

Hey, Michael this is Randy.

And as we said we saw significant positive grade migration in that portfolio and Q2, we expect that to continue and in Q3.

You're right, we're definitely and a higher price environment that does take a period of time for that to flow through.

From the well to then our borrowers and as we look at our Redetermination. We wanted to see Q1 financials to see that flowing through and we're seeing that and so we saw good upward.

Gration and Q2 and again, we expect to see that in Q3 as it relates to new activity as we stated and overtime, we want that percentage to the book to continue to decline, but that can also happen with the other segments growing up around it and so our stance. There is we're going to be opportunistic on.

And on some new opportunities.

And we think that some of those are out there.

Great. Thanks for taking all my questions.

Thanks, Michael.

Thank you. Our next question comes from Andrew Liesch of Piper Sandler. Please go ahead.

Hi, good afternoon, everyone.

Good afternoon.

Just a follow up question on the improvement of the balance sheet.

Balance sheet efficiency. They are there any other opportunities for for.

A further improvement on that front.

I think we've probably compressed our balance sheet amount as far as we want to there are opportunities, but it would involve going into the investment portfolio and right now we like those earning assets on our books.

There is no reason in my opinion to take them off the books and continue to shrink down the balance sheet. So I think I think it's about as efficient and it's going to get wed like to see it start ramping up.

And the third quarter.

Got it. Thank you that's helpful.

And then just.

Maybe I missed it earlier and the other fee income line through something up it looked like that was up about $700000 is there anything onetime in nature and that and that item.

Not that I recall on top of my head for the 700.

$100000 item.

And it's combination of items that go into that bucket.

Right and.

And then just late last week.

The tax rate for a couple of quarters now has been below what I've been looking for and I think some of that debt.

Benefited from.

And the non taxable gain but what tax rate do you think we should be using going forward.

Yes, <unk> been continuing to tell you all to model. It at 21, and we're not running our effective tax rate has consistently been less than that and probably move to about 19 number what's driving that is we have actually made some investments and attract and some tax.

Credit bonds.

It's helping reduce our tax taxable and our tax liability.

So it's a combination of the tax free items and are on our books right now and some some.

Specific tax credit securities that we purchased so I'd, probably model out at 19% and 19 half rather than 'twenty 1.

Okay.

Thanks for taking the question and stable I missed you on the conference call going forward. Thanks.

Thank you.

Thank you. Our next question comes from Jennifer Denver of Truest. Your line is open.

Thank you and good afternoon and.

General and wondering what hi, Keith.

Just wondering what markets you might be interested in for further de novo expansion and the future beyond price go and and Phoenix and.

Yes.

Well.

We want to continue to grow our presence and taxes and.

And we believe we have more room for expansion and the Dallas.

Fort worth.

For our products.

And there are other.

Our major cities and Texas, like San Antonio Austin, and Houston net.

And if we found the right opportunity would be interesting for us and the future.

And outside of Texas Phoenix was was a market. We had we had been interested and for a while and.

And we think Denver is another market that will fit our model well and may provide us some opportunity and.

We're not uncomfortable doing it and the de novo manner, but if we found the right right opportunity.

And we wouldn't be opposed to doing some things for M&A either.

Okay and.

And what kind of.

What are you seeing out there in terms.

Of wage pressure when you do try and hire new talent.

Well, it's it's.

<unk> unique by market and every market offers different challenges, but theres no question Theres a lot of competition right now for talent and and there is pressure on wages and.

Sure.

We're trying to ensure that we're remaining competitive and and.

And we've been able to hire some really great talent over the last quarter or 2 and we expect we'll be able to continue to do so.

Okay.

Alright, thanks, so much good luck day thanks.

Thank you Jennifer.

Our next question comes from Matt Olney of Stephens. Your question. Please.

Yes, Thanks, guys. Most of my questions have been addressed but.

On credit and we got a gross.

Reported from Randy for the second quarter and it sounds like there's.

More good news on the way and the back half of the year and I don't want to get too far ahead of things, but when thinking about provision expense for loan losses.

Provision expense be.

Zero, and the future or even even negative and the back half of the year.

And Matt This is Randy happy to take that.

Historically, we've carried a lower reserve levels and we have today.

And as we move past the pandemic, we envision moving back towards that historical level as we Dave announced we did reduce our provision in Q2 and as we go into Q3, we will keep all options.

In front of us and available and including a negative provision if warranted.

<unk> will really be based on economic conditions energy prices charge off activity grade migration and loan growth, but again, we will look at all options.

Matt our goal is to grow into our existing provision and ideally.

But.

And as loan growth continues to be challenging for everybody. We're going to have to look at all options as we look at our reserve and.

And Randy and the team are doing a great job on credit and as we expected we expected our credit would improve and it is.

Okay.

And I guess switching gears.

You guys added a nice disclosure on slide 22.

With respect to interest rate sensitivity.

And it looks like you are relatively neutral at this point.

For futures curve and forecast.

Fed tightening sometime in late 'twenty, 2 early 'twenty 3 and.

And assuming that's right.

Do you expect and maintained its current neutral profile or would you consider many more oriented being asset sensitive over the next year.

We're pretty comfortable currently being close to neutral Matt on a sensitivity, but clearly as we look forward.

We may want to start extending some liabilities at some point in time, either doing doing that with a swap on the balance sheet or.

Looking for other means to do that to make us a little more asset sensitive, but I wouldn't be in a rush to do that at this stage of the game.

But we're not opposed to doing it if we feel like the signs are out there.

For increasing rates and we think we're flexible enough that we can make that decision.

Easily.

Okay.

Alright.

That's helpful. Congrats on the quarter and Dave.

Thank you Matt.

Thank you at this time I would like to turn the call back over to Matt Needham for closing remarks, Sir.

Thank you for joining us today on the call as a quick reminder of this call can be accessed via replay on our website and as always you can contact me with any follow up questions. You might have again, we appreciate your interest or continued investment and our company and thank you for joining us this afternoon and take care.

This concludes today's conference call. Thank you for participating you may now disconnect.

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Yes.

Okay.

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Yes.

And.

Yes.

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Thank you for standing by and welcome to Cross first Q2.2021 earnings call. At this time all participants are in a listen only mode. After the speaker presentation. There will be a question and answer session to ask a question. During the session you will need to press star 1 on your Touchtone telephone.

Please be advised that today's conference maybe recorded.

Should you require any further assistance please press star zero.

And I would now like to hand, the conference over to your host Matt Needham Director of Investor Relations. Please go ahead.

Welcome and thank you for joining us today on the call are Mike <unk>, our president and CEO, Dave or David tool, our Chief investment Officer, and former Chief Financial Officer, and Randy Rapp, Our chief credit and Chief Risk Officer, and Chief Financial Officer, Ben Clouse will also be available during the Q&A portion.

On the call as a reminder, a telephonic replay of this call will be available on our Investor Relations website.

Before we get underway, let me remind you that our release quarterly investor update and presentation slides that accompany this call are available on the Investor Relations website for 2 of the cautionary statement I want to point out and then and our remarks. This afternoon, we will be discussing forward looking information and which involves a number of risks and uncertainties that may cause actual.

And our results to differ materially from our forward looking statements. We provide a comprehensive list of risk factors and our SEC filings, which I encourage you to review reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures are included in the release and presentation copies of which are also available on our IR website all.

Earnings per share metrics discussed on today's call are provided on a diluted per share basis I'd now like to turn the call over to Mike Maddox.

Thank you, Matt and thank you to everyone for joining the call for.

Before we get into the quarterly performance I do want to take a moment to honor our former CEO George Jones.

We are deeply saddened by Georgia, passing and we are lucky to have him with our company.

George and his leadership and Mentorship.

A critical role and our company's success.

<unk> taught me and many of US so much 1 of his greatest strengths with his ability to connect with people. We will remember has extraordinary service across our entire company and throughout our industry for years to come.

Offer our deepest condolences to maryann as kids and the rest of George's family.

Yeah.

As we begin to look forward I'd like to introduce the newest member of our management team who is joining us today I.

I am pleased debt with the hiring of our new Chief Financial Officer, as we have filled out our management team.

After conducting a nationwide search we found a terrific and well qualified CFO right here in Kansas City.

Our new CFO Ben class recently start with US on July 12, and will be a key part of our leadership team and.

And no debt will be instrumental and helping us grow strategically while also meeting the evolving and changing needs of our clients.

And that has over 20 years of experience and is joining us for motto and read where he was senior vice President and CFO for the last 3 plus years I'm glad to have been here with us today and on the team.

As we move into discussing our strong quarterly results. Our operating revenue grew 6% during the second quarter and combined with reduced provisioning led to a record $15.6 million of net income.

And pre tax pre provision profit of $22.3 million.

Earnings per share of 30.

With these strong results, we achieved a return on average assets of 110% and return on average common equity of 986%.

We also managed our balance sheet to reduce asset size, which improved net interest margin to 312% for the quarter I.

And I'm extremely proud of the team's focused performance and progress toward our strategic goals the.

And the team has been laser focused on improving our profitability and their efforts can be seen and the numbers.

During the second quarter, we thoughtfully improve the company's balance sheet efficiency and strengthened our profitability metrics.

Cross first is committed to helping our local businesses and communities, we serve especially during the pandemic our.

Our dedication to our customers led to holding that.

Low margin and PPP loans, and excess cash from economic stimulus pumped into the economy.

During the quarter, we were able to assist our customers and attainment, obtaining forgiveness for $161 million of PPP loans and.

And have nearly $100 million of C&I paydowns.

And reduced our excess cash balance.

And managing our deposits, we allowed non-religious ship and institutional deposits that were a drag on margin to roll off the balance sheet.

While our overall growth metrics were impacted we increased our margin by 12 basis points from the previous quarter.

These steps contributed to a stronger deposit mix that now has 19% of our total deposits and demand deposit accounts.

We expect to see continued improvement throughout the second half of the year, which should lead to further upgrades on our loan portfolio.

We also completed the $20 million share repurchase program at a weighted average price of $12.68 per share.

The combination of the share repurchase program ending adjustments to the balance sheet and improved performance led to increased capital ratios during the second quarter.

Our strong capital position allows us to continue to evaluate growth and expansion opportunities.

Our path to success is grounded in the ideals of 1 team 1 bank with a shared vision of success, we remain focused and dedicated to our purpose of serving people and extraordinary ways and to our promise to contribute to the wellbeing of our employees clients and communities.

Attracting and retaining the highest quality talent is of utmost importance. It is the key to our successful execution of our plan.

In June we announced our entry into the Phoenix, Arizona market.

I am pleased to announce that we recently received regulatory approval for our full service Phoenix location.

Our new Arizona market, President and Kevin Holleran comes to us with over 35 years of experience and the Phoenix banking community.

We were able to take advantage of market disruption that allow us to land the right leader for the market.

Kevin has also hired 2 experienced commercial bankers with long tenure and Phoenix.

We believe this team can grow to scale and a short period of time.

The decision to go to Arizona was also a natural extension of our current customer base, we already have a number of customers located in Phoenix.

We will continue to expand into other metropolitan markets to fill on our geographic footprint over time.

And there will be driven by hiring great talent or through the right strategic acquisition.

We know how to grow organically and that will continue to be our primary focus.

We remain excited about our growth and the Dallas Fort worth area as a part of that growth, we are making progress on Frisco as we build out our team.

Texas continues to be a strategic focus for the company. We will continue to add market talent and look to expand our presence across Texas, where there is tremendous opportunity.

Before we get into the detail of our financial performance I would again like to thank Dave O'toole for his hard work and dedication across first on what will be his last earnings call with the company day.

I'll now turn the call over to Dave to take everyone through the financial details of our results.

Yes.

Good afternoon, everyone and Mike. Thank you for your fun words and comments I appreciate your support.

We had a great quarter and continued to post positive operating revenue performance.

And the second quarter revenue and improved to $48 million up 6% from the previous quarter and 10% from the same quarter and the prior year.

Revenue growth for the quarter was achieved by a combination of factors, including net interest income of $42.3 million.

And historically, we have had strong balance sheet growth driving our operating revenue performance. This quarter, we focused on improving margin by being prudent with our loan and deposit pricing decisions.

This strategy allowed us to create a much more efficient balance sheet.

Reduced non core funding and concentrate on PPP forgiveness and focus on core customer relationships with the objective to strengthen and grow earnings.

Noninterest income for the quarter was $5.8 million.

A 41% increase from the previous quarter.

We had another solid quarter for service charges and credit card fees compared to the second quarter of 2020, and we recorded a 1 time non taxable insurance recovery.

For the quarter NIM increased to $3, 1 and 2% on a fully tax equivalent basis compared to 3% and the previous quarter.

When comparing Q2.2021 to the previous quarter.

<unk> asset yields improved 7 basis points and cost of firms declined by 7 basis points.

The year over year NIM decline can be attributed to a 39 basis point decline and tax equivalent earning asset yields.

And that were partially offset by a 36 basis point reduction and cost of funds.

During the quarter, we strategically reduced our asset size by nearly $700 million.

As we continued to adjust deposit pricing.

These adjustments increase the loan to deposit ratio to 97%, making our balance sheet significantly more efficient.

Historically, we have used wholesale brokered and institutional funding to support our growth initiatives.

Which allowed us to be more nimble with our excess liquidity and the current environment.

The investment portfolio continues to be a great source of revenue for the company and.

And we had an unrealized gain at the end of the quarter of nearly $35 million and and the portfolio.

Overall, we grew portfolio holdings during the quarter and purchased approximately $49 million of new taxable and tax free securities.

And to reinvest the cash flows from the existing portfolio and to deploy some of our excess liquidity.

We continue to maintain our investment strategy and have been increasing the municipal bond allocation as a percentage of the portfolio for several quarters.

At the end of the second quarter. It represented nearly 74% of our $712 million portfolio.

While we have seen some small yield declines and the portfolio. During the last couple of years using municipals has allowed us to limit the decline in yield and maintain duration fairly steady.

Noninterest expenses for the quarter were $25.8 million.

$3 million higher than Q1.

But lower than the second quarter of 2020.

And another 600000 valuation adjustment that was required for an Oreo property.

Additionally, the Companys operating expenses are normalizing from the lower levels incurred during the pandemic.

Noninterest expense is lower than the second quarter of 2020, primarily due to the onetime $7.4 million goodwill impairment charge.

We recorded in 2020.

For 1 time adjustments combined with the balance sheet changes create some noise with our expense ratios this quarter.

For the quarter noninterest expense to average assets increased to 182% and assets per employee decreased to $15.9 million.

As we continue to focus on positive operating leverage we expect those metrics will improve and trimmed back to previous levels.

For the second quarter, we posted a 53, 6% efficiency ratio and a year to date ratio of 52, 1% a significant decline from 63, 3% compared to the same year to date period and 2020.

In addition to the expenses I just discussed during the quarter, we incurred startup and expansion costs for the Phoenix and prisco locations.

As Mike indicated we experienced the most profitable quarter and our history of $15.6 million and net income.

Which is an increase of 29, 4% from the previous quarter commensurate with growing operating revenue and inclusive of provisioning $3.5 million and the current quarter.

Quarterly return on average assets continues to improve climbing to 1.1% and.

And a pretax pre provision return on average assets of 158%.

We are excited to have achieved a greater than 1% return on average assets. This quarter and believe this is a fairly good indication of our earnings momentum.

Capital ratios remained strong and as Mike mentioned, we completed the share repurchase program during the quarter.

For the full program, we repurchased almost 1.6 million shares of stock.

Resulting in tangible book value per share of $12.50 at quarter end and total stockholders' equity on June 32021 of $637 million.

Overall, we feel good about the financial results for the quarter and look forward to continued improvement.

Before I turn it over to Randy for a discussion on credit I would like to share a few parting thoughts since this is my last opportunity.

I would like to thank our founding board members and shareholders, who funded our startup in 2000 and settlement and supported me as their CFO.

Many of these folks are on this call and are still involved but some have moved on.

I'm also grateful for Ron Baldwin and the late George Jones, who also supported made during their time as CEO.

They were both a big part of making US who we are today.

I have actually grown to enjoy this day each quarter.

Blaine and cross first financial results to the investment community and our talented analyst without embarrassing myself for my associates was professionally challenging and rewarding.

I will miss it.

Thanks again, all of you and now let's move on to Randy to take you through a discussion of credit.

<unk> almost $100 million from the prior quarter, and we expect that trend to continue and the last half of 2021, assuming that the economy and our customers continue to recover as the pandemic subsides.

By the end of the year.

At the end of the second quarter, we have on allowance for loan losses to total loans of $1, 78%, which increased from the prior quarter and is well above historical levels.

We remain on the incurred loss model for calculating the reserve requirement and continue to plan to adopt Cecil on January 1.2020.

2020 for 2020 to continue.

Continued improvements and credit quality positive loan grade migration and lower anticipated charge off activity could lead to much lower provisioning in Q3 and Q4.

The percentage of classified loans to total loans has declined to 4% at the end of the second quarter and we are actively working with borrowers with a goal of reducing this ratio back to the pre pandemic levels of 2% or lower.

We do continue to carry a small number of modified loans on our balance sheet related to industries heavily impacted by the pandemic, but new deferral requests are minimal also are non accrual and past due levels are trending positively.

Several industries contributed to the spike and classified loans in 2020 led by the energy portfolio, which experienced significant price decreases starting in Q1.

Other affected portfolios include various C&I related industries, and certain property types and the commercial real estate portfolio, including senior housing and hospitality, which were directly impacted by the pandemic.

During the uncertainty of 2020, we recorded net loan downgrades of $182 million to classified.

At this point and the recovery, we have already had net upgrades to classified loans of $115 million during the first half of 2021.

The economic expansion continues and energy prices remained stable, we anticipate seeing continued positive grade migration throughout the remainder of 2021.

Energy related transactions account for 43% of classified loans, but decreased 38%. During Q2, we have only partially completed our spring borrowing base Redetermination and expect to see further positive grade migration in that portfolio in Q3 and Q4.

Nonperforming assets continued to decrease ending Q2 at 1.19% of total assets due primarily to upgrades within our energy and C&I portfolios loan pay offs and or liquidations.

We are diligently working with our customers with the goal of lowering our NPA ratio below 1% and closer to historical levels.

Net charge offs decreased significantly in Q2, 202, and 3% of average loans versus <unk>, 74% reported last quarter and 1.3% in Q4.2020.

Couple of C&I loans totaling $2.6 million were charged off this quarter, we anticipate the trend of lower charge off activity to continue and the last half of 2021 and.

Operator to begin the Q&A portion of the call.

Our first question comes from the line.

Brady Gailey of <unk> Your line is open.

Hey, good afternoon guys.

Friday.

So I wanted to start on.

Loan growth ex PPP.

Non PPP loan balances I think were down.

Little over 10% annualized on the quarter.

And normally you guys have such a growth company I don't think we've ever seen.

Non PPP loans down any sort of commentary there I know you all were strategically shrinking.

And some deposits where there any.

Shrinkage on the loan side this quarter too.

Well on <unk>.

Loan totals were impacted by cleaning up some of our credit quality for sure.

But.

And I think we're on the same boat is a lot of everybody in our industry.

And <unk>.

And we're sitting on a pretty sizeable pipeline, but those C&I deals just tend to be being pushed out and taking a little longer to get close so.

Yes, I think youre seeing that with a lot of people as loan growth is is tough right now but.

We have a strong pipeline and we continue to believe that the second half for the year will be strong.

Okay.

And then on the expense side I know you guys had a couple of onetime in nature and expenses, but I think if you even.

Back that out.

And those were about 24 and $5 million, a little higher than maybe the $23 million Mark.

And I talked about maybe just an update on how you think about the expense run rate from here, especially as youre, adding phoenix into the mix.

Brady, it's Dave and.

In addition to what we disclose their debt was 1 times debt.

We did have some additional costs associated with Phoenix, and Frisco, we believe that number's somewhere and the $300000 range that will probably continue on.

The rest of the expenses or just a function of normalizing from the lower levels they were at.

And the pandemic and so I think as you look forward your expense run rate probably the only adjustment.

Realistically is the 2 nonrecurring items.

Okay.

Alright, and then it's great to see the buyback continue and the quarter now that you're on.

With your previous buyback program.

We see a new buyback program coming up soon.

And our body.

We do have a lot of cap on our first option and our first goal is to really deploy that capital and growth.

And so what we're really focused on.

On either either organic growth opportunities for what Youre seeing what we're doing and Phoenix.

And we're constantly out there.

I'm trying to build relationships and find.

And possible partnering opportunities so.

Yeah.

We don't have any plans to do another buyback today, but but.

And I'm sure, we'll look at all of our options.

Our credit and then just lastly for me.

Solve a couple million dollars of PPP fees taken on the quarter, how many PDP fees remain at this point.

Returned I think we have somewhere between 5 and 600000 from the first group that most of which will probably come out this quarter.

Okay.

Great well, thank you and good luck for your day.

Thank you. Thank you Ray.

Thank you. Our next question comes from Michael Rose of Raymond James Your line is open.

Hey, good afternoon, and thanks for taking my questions and Im just going back to the loan growth. If I look on the back of the presentation. It looks like unfunded commitments were up about 400 million and Mike you just talked about deals taking a little bit longer to close but thats a nice increase.

On a quarter. So maybe can you just talk about.

And what drove that.

And that growth and would you expect the pull through rate pick up as we move into back half of the year and then layering on to that.

Obviously, the expansion out west what can we expect.

Over the next couple of quarters from that team I know theyre off to a fast start from.

And from when we talked last but just trying to size up the opportunity and what what actual growth could look like ex PTC as we move over the next couple of quarters. Thanks.

Yes.

You're right you make a good point.

And our line utilization and our C&I portfolio typically runs around 48, 49% right now it's about 38. So we're still seeing a lot of customers sitting on a lot of cash and <unk>.

Really a lot of that from the stimulus.

But we made about 300, a little over $300 million and new commitments on our second quarter and loans and about $100 million of that funded and so.

We believe that debt and thats really divided pretty evenly between commercial real estate and C&I.

And we've seen nice nice growth on our healthcare portfolio.

Some service industry credit and.

And.

Our enterprise value.

Portfolio continues to perform well so pretty diversified growth.

And as I said earlier, we have a strong pipeline and.

And then Phoenix.

We hired Kevin and he's hired 2 terrific bankers, 1 and we'll focus on C&I lending and 1 and I'll focus on commercial real estate and and we believe we have a tremendous opportunity out there they are already putting points on the board and.

And we think that's a market that can really perform well for us.

Alright, great and then so the deposit run off and if I look at the kind of average balances versus the period end balances seems like.

A lot of that.

And that came off and the back half of the.

Quarter, and just trying to think about the impact on the margin obviously was up this quarter, partly because of that but as we think about the third quarter should we should we actually think about the core margin ex PPP.

Continuing to move higher from here. Thanks.

Yes, Michael was the day I think that is the right conclusion with margin and I think it will move forward and Youre exactly right the average balance of our liquidity.

And as is not the same as the quarter and the balance was most of our decline happened towards the end of the quarter. So we had a lot of excess liquidity during the quarter.

And that's now gone and so and the third quarter, we will get some benefit from that.

So we like the position of our balance sheet and the rest of our.

Earning assets and our ability yet to lower our cost of funds a little bit further should promote.

Certainly at least 312, but we think probably some improvement on that with NIM and the third quarter low.

Loan fees or the item that's hard to determine.

And our margin calculation and the third quarter and depends on what the loan activity does but.

Thank you could see margin move a little bit higher.

Alright, Great and then maybe just 1 final 1 for me just on the energy book.

Still have a decent amount that's kind of credit criticized and classified we've seen the price of oil move up.

Whats the outlook, there and youre starting to see some banks talk about actual growth as we move into the back half of the year. So would just love an update on the on the energy book and what we can expect in terms of migration and growth. Thanks.

Hey, Michael this is Randy and.

As we said we saw significant positive grade migration in that portfolio in Q2, we expect that to continue and in Q3.

Right, we are definitely and a higher price environment, but it does take a period of time for that to flow through.

From the well to then our borrowers and as we look at our Redetermination. We wanted to see Q1 financials to see that flowing through and we're seeing that and so we saw good upward migration in Q2 and again, we expect to see that in Q3 as it relates to new activity as we've stated and overtime we want.

That percentage to the book to continue to decline, but that can also happen with the other segments growing up around it and so our stance. There is we're going to be opportunistic on on some new opportunities.

And we think that some of those are out there.

Great. Thanks for taking all my questions.

Thanks, Michael.

Thank you. Our next question comes from Andrew Liesch of Piper Sandler. Please go ahead.

Hi, good afternoon, everyone.

Good afternoon.

Yes.

Follow up question on the improvement and the balance sheet.

Balance sheet efficiency. They are there any other opportunities for for <unk>.

Further improvement on that front.

I think we have probably compressed our balance sheet amount as far as we want to there are opportunities, but it would involve going into the investment portfolio and right now we like those earning assets on our books.

And the third quarter.

Got it. Thank you that's helpful.

And then just.

Maybe I missed it earlier and the other fee income lines.

And being able to look like that was up about $700000 or is there anything onetime in nature and that and that item.

Not that I recall on top of my head for the 707.

$700000 item.

And it's a combination of items that go into that bucket.

Right right.

And then just slight lastly, what.

On the tax rate and for a couple of quarters now has been below what I've been looking for and I think some of that was benefited from.

And the non taxable gain but what tax rate you think is for using going forward.

Yes, I have been continuing to tell you all to model. It at 21, and we're not running our effective tax rate has consistently been less than that and probably move to about a 19 number what's driving that is we have actually made some investment subtract and some tax.

Credit bonds, that's helping reduce our tax taxable and on our tax liability.

So it's a combination of the tax free items that are on our books right now and some some.

And specific tax credit securities that we purchased so I'd, probably model out at 19% 19 and half rather and 21.

Okay.

Thanks for taking the question and stable I missed you on the conference call going forward. Thanks.

Thank you.

Thank you. Our next question comes from Jennifer Denver of Truest. Your line is open.

Thank you good afternoon.

And in general and wondering what hi, just wondering what markets you might be interested in for.

Further de Novo expansion and the feature beyond Frisco and.

And Phoenix and.

Yes.

Well.

We want to continue to grow our presence and taxes and.

And we believe we have more room for expansion and the Dallas.

For or not.

Metroplex.

Yes, there are other major cities and Texas like San Antonio Austin, and Houston net.

If we found the right opportunity would be interesting for us and the future.

And then outside of Texas Phoenix was a market. We had we had been interested and for a while and.

We think Denver is another market that will fit our model well and may provide us some opportunity and.

Yes.

We're not uncomfortable doing it on a de novo manner, but if we found the right right opportunity.

We wouldn't be opposed to doing some things for M&A either.

Okay.

And what kind of.

What are you seeing out there in terms.

Of wage pressure when you do try and hire new talent.

Well.

It's unique by market and every market offers different challenges, but theres no question Theres a lot of competition right now for talent and and there is pressure on wages and.

And.

We're trying to ensure that we're remaining competitive and and.

And we've been able to hire some really great talent over the last quarter or 2 and we expect we'll be able to continue to do so.

Okay.

Alright, thanks, so much good luck day thanks.

Thank you Jeff.

Our next question comes from Matt Olney of Stephens. Your question. Please.

Yes, Thanks, guys. Most of my questions have been addressed but.

On credit and we got a grip.

Reported from Randy for the second quarter and it sounds like there's.

More good news on the way and the back half of the year and I don't want to get too far ahead of things, but when thinking about provision expense for loan losses.

Provision expense be.

Zero, and the future or even and even negative and the back half of the year.

And Matt this Randy happy to take that Matt Historically, we've carried a lower reserve levels and we have today.

As we move past the pandemic, we envision moving back towards that historical level as we Dave announced we did reduce our provision in Q2 and as we go into Q3, we will keep all options.

In front of us and available and including a negative provision if warranted.

Susan will really be based on economic conditions energy prices charge off activity grade migration and loan growth, but again, we will look at all options.

And our Matt our goal is to grow into our existing provision and ideally.

But.

And as loan growth continues to be challenging for everybody. We're going to have to look at all options as we look at our reserve and and.

Randy and the team are doing a great job on credit and as we expected we expected our credit would improve and it is.

Okay.

And I guess switching gears.

<unk> added a nice disclosure on slide 22.

With respect to interest rate sensitivity.

And it looks like you are relatively neutral at this point.

I think the futures curve and forecast points to fed tightening sometime in late 'twenty 2 early 'twenty 3 and.

And assuming that's right.

Do you expect to maintain its current neutral profile or would you consider leaning more oriented being asset sensitive over the next year.

We're pretty comfortable currently being close to neutral Matt on a sensitivity, but clearly as we look forward.

We may want to start extending some liabilities at some point in time, either doing doing that with a swap on the balance sheet or.

Looking for other means to do that to make us a little more asset sensitive, but I wouldn't be in a rush to do that at this stage of the game.

We're not opposed to doing it if we feel like the signs are out there.

And for increasing rates and we think we're flexible enough that we can make that decision.

Easily.

Okay.

Alright.

That's helpful. Congrats on the quarter and Dave Best.

Which is.

Thank you Matt.

Thank you at this time I would like to turn the call back over to Matt Needham for closing remarks, Sir.

Thank you for joining us today on the call as a quick reminder, this call can be accessed via replay on our website and as always you can contact me with any follow up questions. You might have again, we appreciate your interest or continued investment and our company and thank you for joining us this afternoon and take care.

This concludes today's conference call. Thank you for participating you may now disconnect.

Q2 2021 Crossfirst Bankshares Inc Earnings Call

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