CFB - Earnings call transcript Q2 2021 | CrossFirst Bankshares, Inc.

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Operator

Thank you for standing by. And welcome to CrossFirst Q2 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference maybe recorded. now Matt hand Relations. Needham, would to conference I host, your Director Instructions] like the to over [Operator of Investor go ahead. Please

Matt Needham

Welcome, today. for you and joining thank us

Dave Maddox, On are Officer; Credit and Chief and our Officer. O'Toole, our Financial our Rapp, and President Former the Chief Chief Mike and Risk call Randy Officer Investment CEO; Chief

call. Our the Q&A during also be new available Chief Financial Officer, Ben of will the Clouse portion

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

discussing call per share Before uncertainties are accompany share a on which over a our get Maddox. Mike remind like on risks forward-looking forward-looking number of that to which point from are we I want measures encourage call presentation, the of comprehensive Slide may differ let underway, that a you I All to and available statement. review. information, and SEC filing, GAAP this to website. financial our to in I’d be out involve and our non-GAAP me update factors IR on which that investor two to cause risk We presentation provide today’ our remarks also release, materially cautionary is the now all available results release this Reconciliations per of actually website. are statements. basis. quarterly Investor Relations metrics slides on to will a afternoon earnings nearest provided are list that discussed call included you we diluted comparable copies measures turn in our the the in of

Mike Maddox

for thank call. And the Matt. joining you, you to everybody Thank

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

much. many critical to success. so him and had George taught a have We and me saddened our are leadership George’s mentorship George’s passing with played of in had and our role company. by lucky we us are deeply company’s

greatest strengths his connect people. to of was with One ability his

years his We family. company across our kids condolences will for deepest our come. to George’s extraordinary industry rest his our We offer entire of the Merriam, remember service and and throughout to

we like am here hiring management that to After nationwide member joining I’d Financial who our us newest our pleased new of team in out Kansas found terrific City. look a well I have Chief team. right of we is a with management begin As introduce qualified today. Officer, our to forward, CFO the search, we conducting filled and the as

new I and first he team. clients. company’s last in with & I’m plus Waddell a XXXX, July years. announce Our our with while our second were key demonstrated will grow history. challenging be joining glad that core and is the leadership quarter was our to a the and years changing needs Ben strategically, Reed, meeting of recently over from in has of be helping experience our of CFO, XXth on Ben Clouse us XX he and us where us also part and will team. started know on evolving Ben instrumental After business XXXX here excited President the Senior Vice in our Ben we best today three and CFO us quarter quarterly strength for operating great earnings have of produced the to

to of of million earnings quarter revenue provisioning and $X.XX. led discussing combined a we $XX.X per results, record net operating income pretax and profit with of our reduced into the grew quarterly As share during X% $XX.X move strong pre-provision our million, second

achieved we on results, average strong return and X.XX% assets the equity a of X.XX%. return of on common With average

laser goals. focused X.XX% that team’s for of the margin I’m focus, and strategic toward reduce to improving can to size improved profitability team interest managed asset progress the in on performance seen has extremely our numbers. our also We sheet and quarter. their our be been efforts the balance which proud The

efficiency communities profitability balance the during improve company’s the serve, strengthened and the local thoughtfully our and we businesses we metrics. second especially to CrossFirst quarter, pandemic. During sheet helping is our committed

our loans economic and PPP led to customers cash into holding to low economy. pumped dedication stimulus Our margin from the excess

institutional During the and C&I reduce million able our the drag have were balance quarter, were forgiveness on our we obtaining In to attaining roll-off our deposits customers deposits, downs, for managing and nearly balance. of PPP a $XXX sheet. non-relationship and cash assist $XXX million allowed excess to we margin of -- loans and that pay

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

on We over to to now deposit X% accounts. last quarter increase These X% quarter. stronger non-interest-bearing demand from second has deposit to by that deposits able of our deposits demand previous growing strategy and contributed by year our execute mix in continue also steps of and total a deposits we’re XX% the

efforts sheet While balance and there’s us growth our future to still expansion some pandemic-related loan residual our impact growth expect drive activity, continued on from quarters. help we loan in

economy improvement reopens oil stabilize, prices credit we the are significant As metrics. our seeing and in

quarter, classified assets to pleased charge-off activity. reduced and a lower during substantial to assets, announce I added decline non-performing the we reserve While the am in our

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

at the share led repurchase balance per sheet during the the ending, weighted We share. repurchase ratios price improved also increased million program second $XX.XX to share a to quarter. average adjustments completed capital of The the and combination $XX of program performance

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

to effectively our in to of Our the remain talent dedicated Attracting one of shared our highest communities. is is ways well path retaining contribute location. for utmost announce to received we Like serving extraordinary being a decision to to the market. banking bank of the around to success. was presence approval who the the clients opportunistic one and model promise In and and and pleased the our June, all people We ideals talent, enter efforts, and and the the recently relationships right our expansion culture, plan. Phoenix in into our entry who that I’m regulatory market grounded finding quality we announced of will It compete of in fit service the people with our to of and market. full to our success team, purpose the employees, Arizona is focused execution grow our our Phoenix, importance. successful vision centered our of our key

Phoenix. in natural hired with in has Kevin team two of can We Arizona long the grow base. We the time. for of bankers to current We Our customer to short believe a to located right Arizona take of banking also new XX market land President, tenure a with in allowed Phoenix. us community. comes of a decision mark market this experience were Phoenix scale us of already to able have years leader advantage -- to that over disruption the also was our market. extension Kevin to commercial The customers go in experience period number Halloran

Worth into about our We to know and will over primary by continue footprint to be remain focus. other expand geographic excited to our in organically that be time. grow will We or right driven how will Dallas-Fort metropolitan our area. markets continue strategic hiring It fill through in talent acquisition. the to growth We the great

progress that company. focus be part continues to we growth, for a a as Frisco the making our Texas we are build of strategic As in team. out

continue to expand opportunity. presence will add look there is Texas across our where to and We talent tremendous market

details the earnings Before last our CrossFirst I’d next Dave Officer call will like thank company his of for performance, your I’ll over continue what Dave, CFO team to now the be with Chief work we to the and the over our again of detail everyone results. the at into and through company. Dave successful the the role a his I Thank will to last the get XX year of event. Investment you, as turn contributions for call and to look the take Dave with financial forward be to for transition hard O'Toole to dedication years. financial

Dave O'Toole

million, your post And revenue and quarter the positive growth the I year. your We thank from revenue for quarter In factors had operating afternoon, and of a up performance. a kind you, of income $XX combination quarter the Mike, prior the comments. same X% the interest by Revenue XX% million. $XX.X words achieved previous and net quarter from Good to for continue was improved including everyone. great quarter in appreciate second support.

decisions. previous historically the While sheet, focus card for we growth income quarter strengthen a credit $X.X strong had second us The balance core increase grow reduce was forgiveness on we a more to for fees focused being customer pricing concentrate from driving PPP and on prudent sheet balance to we XX% insurance by performance, revenue the loan have efficient recorded solid Non-interest allowed to on charges We a the relationships much service strategy taxable deposit and quarter million, with our compared objective XXXX quarter and had non this and recovery. margin another a with one-time the earnings. funding, non-core our improving create quarter. quarter of operating and

in on previous NIM equivalent When partially improved X by tax XX-basis-point attributed in can funds. and offset earning in asset points. to fully asset decline basis decline to the a NIM quarter, The XXXX declined tax equivalent of funds comparing cost X a quarter, basis yields For were X.XX% of earning increased that to a X% compared the the to cost quarter. basis QX reduction XX-basis-point previous year-over-year points be yields by

free the deposit The had balance cash unrealized we the Historically, us Overall, our adjustments portfolio taxable loan reinvest quarter, end flows quarter liquidity $XXX to by growth liquidity. from have we our we the of more portfolio. of portfolio efficient. holdings excess nearly a more asset we during and million $XX as allowed deploy initiatives, securities to grew the portfolio pricing. and environment. revenue sheet ratio brokered purchased strategically in the adjust support with of in continued used the the During and company be continues million, great we excess nimble current our to XX%, new for which at to making the increase significantly size $XX and approximately nearly funding wholesale, to gain the our to our some These the deposit of tax to be million source and existing of investment quarter reduced institutional to an

and the bond portfolio our nearly municipal the represented increasing our second quarters. investment At as maintain $XXX the the end strategy quarter, to for continue allocation of several have XX% a portfolio. of We percentage it million been of

for maintain seen $XX.X While the million, but to in some years, XX% that additional yield cash second limit and charges related and another of steady. $X decline in because quarter, to increased portfolio expenses QX, municipals has valuation have for the fairly $XXX,XXX we were small employee of lower certain XXXX and adjustment the for quarter of during former couple approximately using than the the was a quarter we million acceleration Total the Non-interest last second than of stock-based quarter declines XXXX. for the duration OREO compensation an property. allowed required yield us expenses higher in of the incurred $XXX,XXX

operating sheet primarily $X.X due to levels Additionally, lower changes during expenses pandemic. quarter. with The the combined some charge in recorded is from are impairment quarter adjustments with than noise the the the the expense expense one-time this one-time balance incurred goodwill lower XXXX normalizing Non-interest million ratios second that company’s create we XXXX. the our of

$XX.X average non-interest million. and to For to assets X.XX% to the increased decreased expense per assets quarter employee

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

quarter, a year-to-date same the of posted ratio XX.X%, XX.X% from significant year-to-date a XXXX. and compared ratio XX.X% we efficiency the period decline For in to second a

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

average from experienced As increase climbing assets Mike net $XX.X improve pretax X.X% provisioning operating million an to revenue we with of and return previous return continues income, X.XX%. in quarter on growing a in average profitable pre-provision our XX.X% quarter, which in assets commensurate $X.X Quarterly of the the indicated, the million and current inclusive is to on history most of quarter.

Mike have achieved assets return as is average to excited this and indication the good quarter. we quarter than our earnings this a momentum. completed and during fairly share ratios on the of Capital repurchase We’re remain greater X% program mentioned, believe strong,

XXXX, of X.X resulting on of end we of and program per almost in XX, total full look about shares financial quarter we the share good tangible quarter stockholders’ million. million Overall, the value For stock, feel book $XX.XX forward at equity results the to for improvement. $XXX continued June and repurchased

but also who each and a CFO. a grown challenging during share discussion CEO. these we opportunity. to a members thank founding have myself to time a our supported were CrossFirst to like and I moved us big for folks as now enjoy Explaining move credit. Randy let’s Ron who have all is it. call talented and and of XXXX embarrassing or quarter. Baldwin credit, me are professionally who in our to this through funded rewarding. Before I making on. their it I this last like would miss and parting analysts, and thoughts Board to I George Thanks They my also are part discussion the to associates Jones, few Many results actually their will you late turn without again and this of of on shareholders on of over my was I’d to for startup grateful take you the me our Randy supported some as community involved, day are today. still of I’m financial since investment both

Randy Rapp

you, afternoon, Thank good and everyone. Dave,

As gas as the significant economic improvement we and charts recovery oil credit experienced to prices. illustrate, in continued metrics grade attributable our and to migration the positive QX, generally overall in improve

$XXX classified XXXX, continue from customers prior of the subsides. pandemic loans to decreased million the the half expect continue to trend our the last that we and economy and quarter almost Our as recover assuming that in

XX% ratio Our loss loan QX to XXXX XX% of total decreased of and at at classified end XXXX. the high a of from QX end capital to the reserve has

total with requirement the and X.XX%, X, X loss work quarter to like is January by incurred below year. from we’d the reserve model historical plan to adopt At to end XX% the drive and increase -- second on an and calculating which We losses the the XXXX allowance for for end levels. to clients continue on to of well above will the -- of loans ratio have our remain that continue we XXXX the CECL of quarter, prior XXXX. -- We loan

including directly commercial C&I-related starting and various portfolio, portfolio, industries and are sheet new significant non-accrual related requests lower. carry experienced to heavily lower but our at could the classified on loans impacted pandemic. quality, in types deferral Other in portfolios we and of which provisioning by reducing Also, total industries a are decreases due declined do levels real the estate anticipated and charge-off We the loans lead industries loans in the credit QX. are X% classified small with price continue led improvement working number and certain of by Continued positive the percentage and trending borrowers The to QX include the second in QX. Several XXXX, migration quarter which in actively in by end the pre-pandemic affected of senior lower to property loans the to were ratio X% has grade loan to to much this to with activity back goal a housing hospitality, energy spike past pandemic, positively. levels minimal. balance of modified contributed impacted or our of

million During migration grade of XXXX, loan XXXX. of uncertainty stable, continued At half to during XX% expansion the XX% recovery continues net of already but the point first economic classified. loans, classified and we net the of energy anticipate account have for $XXX throughout positive QX. remain seeing we downgrade transactions loans during to in Energy-related of remainder decreased XXXX. prices If of a million the classified recorded the had this we $XXX upgrades

that decrease to QX our ending migration We assets OREO to positive portfolios, expect spring total further at upgrade of our liquidations. in and within QX. primarily base and see QX due assets, to Non-performing redeterminations in energy portfolio have continued payoffs and X.XX% grade completed borrowing only partially loan and C&I

in of versus to a credit continues and we We in NPA further goal are position the portion market the call. charge-off of answering I well Net historical of $X.X loans the lowering this to any questions you X% ratio closer closing, half the C&I begin XXXX. might This diligently back Q&A look up now lower have QX significantly forward last targeted charged I’ll A wraps and as turn remarks us working average loan with shortly. reported quarter. with the totaling strong decreased client believe and to it our to X.XX% trend to anticipate economic to last culture, and and portfolio million our focus, In X.XX% diversity prepared were Operator for loans that growth off the and continue over in our customers QX recovery quarter of activity our levels. charge-offs X.XX% of couple We of below XXXX.

Operator

the [Operator Instructions] of comes from Our of KBW. line first question Brady Gailey

is line Your open.

Brady Gailey

guys. afternoon, Good Hey.

Mike Maddox

Hey, Brady.

Brady Gailey

asset think wanted don’t But I company. the non-PPPE loan this commentary So seen a think in Were guys I to PTP, any sort little down here over balances some down. growth are we’re always you there. loan I know strategically XX% your ex Any there I non-PPP start you annualized quarter base ever on a shrinkage side and such growth quarter. the shrinking we’ve the loans loan of deposits? to? on strategic normally

Mike Maddox

I up seen quality, C&I totals real little probably and longer to estate out lot by loan then pushed of sitting area. deals to of taking just with customer we’ve same payoff the our a our low the side, a that in C&I increased taking permanent mean, to be activity those loan a is cap sizable selling our were on in the rates permanent on we’re And credit for and close. properties everybody sure. low get pipeline, really I which market, our boat in and think, cleaning being CRA as Well, of side we’re properties but Brady, impacted But, on the pretty our tend the some some the industry. rates,

seeing is loan So, a we we half continue strong. now. that think, right will I be year the tough But with have you’re of to as a second that people pipeline the of and believe lot growth strong

Brady Gailey

you’re you about Okay. from expenses than run maybe maybe that I know That update an million you the into And even $XX had talked out, especially million. here, Phoenix mark expense But as the in higher side, couple think just back about, one-time you was the about I guys then mix? rate a were on the you expenses. on your that if a how little think nature have expense $XX.X of adding

Dave O'Toole

Dave. it’s Brady,

In was that a addition disclose additional to some $XXX,XXX just costs what in from Frisco. there, we associated expenses range normalizing with numbers at of Phoenix have continue on. levels of believe We were they that somewhere step. the pandemic. that will the probably one-time did the rest were the The lower that We in and function

the as two adjustment So look I run only non-recurring your probably, is you think items. rate, realistically expense forward, the

Brady Gailey

done we buyback soon? Okay. buyback to program a previous And quarter, coming new see the continuing buyback your great now see program, then it’s up the with will that you’re

Mike Maddox

do capital. Brady, have we lot of a

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

And you’re and so there we’re doing we’re trying build in partnering either out really we’re possible what which Phoenix find focused growth to relationships and opportunities, organic opportunities. on constantly seeing

plans any we have at sure but buyback So, I’m today, all of our do options. look don’t another we’ll to

Brady Gailey

in remain quarter. PPPs million this for How of PPP the taken I Okay. just saw fees many at the And couple then me, lastly point?

Dave O'Toole

fees of term. Brady. recognize, at a But bulk on have those round of PPP longer little the couple a million second the which loans dollars left of to those PPP, have are We

be slower little So there’ll a be returned. to

first from probably I think that will quarter. which and this between most somewhere come $XXX,XXX out $XXX,XXX of we have the group

Brady Gailey

and good Okay. to luck Great. Well, you, you, Dave. thank

Dave O'Toole

Thank you.

Mike Maddox

Brady. you, Thank

Operator

you. Thank

of James. next comes Our Michael Rose Raymond from question

Your open. line is

Michael Rose

thanks my Hey. Good and taking questions. afternoon for

growth, I commitments But Just to unfunded look of about going longer about million. increase a the the were the loan talked back up a quarter-on-quarter. that’s taking it back close. $XXX you to if nice little just presentation, in deals bit like looks Mike

you that, the next West, quarters you back just couple quarters? into to we look from can layering obviously, and they’re the ex talk like last would pull-through know I size we maybe next the but then that we expect actual of growth over when the and that year? talk So out move to up expect as couple what And pick the half from drove Thanks. just team. what the PPP growth rate opportunity expansion to trying on about can could as we fast off what over start a up the move

Mike Maddox

Yeah.

good a point. make You

around Our it’s XX%, line utilization now, about XX%. XX%. and our C&I portfolio runs Right typically

seeing $XXX stimulus. quarter in lot little So on customers and lot from in made that a about over the in a $XXX, about But a of a probably we of of that we’re and of still commitments lot the loans second sitting $XXX million new funded. cash million

really we seen estate our value pretty divided well. enterprise but some And growth our so -- industry believe that between and We’ve healthcare and in commercial evenly and real portfolio nice service perform C&I. that’s portfolio, to credit continues

one he’s really on we a pretty that So, Kevin we we and And bankers, well growth. They’re can real we Phoenix, a think focus have putting the will have C&I a will us. said we lending pipeline. one -- diversified and perform I earlier, and for and estate. market on terrific out that’s -- opportunity focus Board And commercial two hired tremendous points we’ve as We strong there. already believe on hired then,

Michael Rose

PPP continuing margin, higher here? as think Thanks. the obviously because this think think about then, a off we right. the try to versus if run-off, average the but about in so Great. the seems the kind deposit to that end half ex up was that, should core quarter. I came from the quarter, balances And third move look lot about the impact at And we just margin of quarter, All period of of actually like of back partly the the on balances

Dave O'Toole

Yeah. Michael, Dave. this is

margin. is with that think the right conclusion I

I think forward. it will move

balance our was. end quarter. right liquidity exactly of Most the happened not of balance quarter the of decline the the average You’re the is end towards same our as

quarter a of the excess now gone. liquidity lot had during that’s So we

get third from the that. some benefit we’ll in so quarter, And

and fees we little kind on quarter. to our of certainly, item cost the the quarter our sheet position promote, think to improvement the in X.XX%. on earning the activity depends yet of third balance that margin of should our third NIM But see like of our But hard rest further higher. probably we So of the I assets least with move ability are bit lower the at and funds some think can what in margin Loan determine loan little our does. that’s a bit calculation a you

Michael Rose

All energy you’re right. We’ve Great. And that’s then there maybe in and we the year. me half the of amount oil have the actual decent as starting of the and talk moved back up. some just price one just to the final a kind about see growth one What’s on criticized still outlook seen you for book, classified. banks move of

update So just we of can love on and growth? migration an energy Thanks. what expect the book we’ll terms in in

Randy Rapp

is Hey. this Michael, Randy.

that in saw grade in QX. migration positive we a we said, significant portfolio As

the continue higher we that borrowers. see you’re environment QX. We time flowing and that in does in so that -- through definitely to for look saw financials flow and again, period see take migration at We we’ve that a of expect then from to through that in see we’re expect price that good as in our QX. redeterminations, And to well we’re QX, right to to to seeing QX we we upward and our wanted a

other activity, to can book we of that continue new we up stated, segments to to over decline. But want relates to growing as also the percentage happen that it. around -- As with time it the

-- of we’re out on opportunities there. stances going be we new some to those opportunistic are so And that and our some we’re think

Michael Rose

my taking Great. Thanks questions. for all

Mike Maddox

Michael. Thanks,

Operator

you. Thank

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

Andrew Liesch

Hi. Good afternoon, everyone.

Mike Maddox

afternoon. Good

Andrew Liesch

the up there, that of front? the opportunities there question for efficiency are further any the follow kind on of on improvement sheet improvement balance Just other

Mike Maddox

books. the shrink think in we’ve want on portfolio assets earning as right off balance the going into those involve reason our to. balance opportunities, like now no are investment our the my books but sheet as continue them sheet. opinion about far and and to There it would probably to compressed we There’s I take down we

get. in see I it’s up the it’s third like So about efficient as think quarter. We’d start going to as ramping to it

Andrew Liesch

it. the up line, then up Got earlier, missed one-time Thank That’s Is income just like fee to maybe that about just item? there something other $XXX,XXX. in you. I it look that nature helpful. -- in And anything was

Mike Maddox

recall the into item. top the I that off of go head items my is that for $XXX,XXX There of combination Not bucket. that

Andrew Liesch

Right. gains. And rate from Right. some the couple what going rates now quarters, just lastly, below benefited should then was for be we think, you looking tax been what forward? has of been using that -- I the I’ve that of what But for, tax a do think non-taxable

Mike Maddox

Yeah. to I’ve been and running. continuing not to it tell XX% all you model we’re

tracked in we That’s tax been move consistently made investments have has -- XX% some some rate than I’d is that tax credit our our tax -- bonds. liability. effective that. and less Our probably tax to helping a taxable about driving reduce actually number. What’s

tax So purchased. specific are it’s tax and some credit right items a we combination free now on of that our the that books securities

or So rather I’d probably model out XX%. than XX.X% at XX%

Andrew Liesch

you the on conference Thanks. for we miss I taking questions. call forward. going Okay. Dave, will Thanks the

Dave O'Toole

you. Thank

Operator

you. Thank

question Truist. Demba from next of Our comes Jennifer

Your is open. line

Jennifer Demba

Good you. Thank afternoon.

Mike Maddox

Hi, Jennifer.

Jennifer Demba

Just wondering hi. -- what

be you interested Just for and… de the and in future might in what further beyond wondering novo markets in expansion Frisco Phoenix

Mike Maddox

for the would if want and be that we interesting other more And found in opportunity Texas right we expansion the Worth Dallas-Fort Well, San major are and for in there presence in Antonio, Houston, in been have Yeah, future. to Austin of Texas, grow to like cities we the Yeah. our us room we continue believe opposed Texas to metroplex. then our outside that either. may market But will provide and de found a right Denver we’re while manner. in we in doing opportunity, through interested it market us novo we the fit opportunity. another And be doing a for M&A we was something some well uncomfortable if had Phoenix not we is wouldn’t a and think model

Jennifer Demba

what you seeing of there out try what are and new in do wage pressure And terms Okay. of hire -- kind when you talent?

Mike Maddox

market to talent is or on and hire over every trying and we’ve no to so. ensure do of And continue question. that last there we’re offers two, talent Well, we’re now been remaining challenges. competitive quarter by we different the unique a some and to really competition we’ll for able be There’s and wages. great able right market pressure to expect lot But there’s it’s

Jennifer Demba

Okay. luck, Good Thanks. much. All Dave. right. Thanks so

Dave O'Toole

Thank you, Jennifer.

Mike Maddox

Thanks, Jennifer.

Operator

of Olney next question Our from comes Matt Stephens.

Your question please.

Matt Olney

guys. sounds in I too second about year. news in the loan things, a when the on to great have even in negative it for for future back And don’t the credit, Most quarter the year? like is be or the half Thanks, But zero see expense of the questions way we provision from been of and Yeah. good my get of report the half there’s want but this addressed. back of it got Randy ahead to far losses, provision expense possible to in more thinking

Randy Rapp

reserve is This than to Matt. Matt, carried level Randy. Happy take historically, we that. lower Hey, a we’ve today. have

move we that back level. As past historical moving we the pandemic towards envision

But on prices, we That provision and QX. And in including charge-off us we QX, all go we growth. negative of we will front will be we grade loan will a Dave as As energy at provision activity, decision and our if announced, migration options. keep into warranted. -- options in based reduce economic really conditions, all look available did and again

Mike Maddox

improve our have continues great team and options at we’re to we loan Matt, Randy And is to are challenging reserve. our provision growth is. at we as to to grow into for the going our expected, job as look existing look and credit our as ideally. credit, with be and would goal we a everybody, expected it But doing all

Matt Olney

slide relatively nice XX this at switching disclosure you’re with a and guys And Okay. point. added gears, on interest sensitivity respect rate it like looks neutral I rate you to guess

so? futures points meaning I that’s you to curve this would XXXX. sensitive think into sometime the do XXXX, consider assuming fed year the to and in more profile late neutral maintain current next asset over tightening And being forecast or early you or right, expect

Mike Maddox

sheet a But in doing this that make We’re with some do being of on sensitive. start forward, sensitivity. pretty wouldn’t time we swap in may looking more rush look to But little some the liabilities that to for that at as stage close balance the to us do our I comfortable a means a either or to on neutral, asset point be other game. we Matt, extending clearly, want to currently at

doing We’re easily. signs feel we’re it for flexible out if make not we we that and there decision increasing the are that like can rates to opposed we think enough

Matt Olney

right. All quarter on retirement. helpful. wishes that’s Well, best Dave on congrats and Okay. Well, the

Dave O'Toole

Thank you, Matt.

Operator

the to I’d closing this you. Needham back for remarks. turn At Sir? like Thank time, to Matt call over

Matt Needham

joining Thank us you on the call. for today

this reminder, on in via with follow call as me always, Again, you accessed quick company appreciate investment might And Take and be continued As afternoon. can us this we or website. any joining replay questions your can interest thank our for our care. a have. contact you you up

Operator

today’s Well, call. conference this concludes participating. Thank for you

You may now disconnect.

CrossFirst Bankshares (CFB) 22 Jul 212021 Q2 Earnings call transcript