- Earnings call transcript Q3 2022

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Operator

Good morning and welcome to CFB's Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded. I would like to turn the call over to Ms. Heather Worley. ahead. go Please

Heather Worley

welcome earnings and Investor CrossFirst third Bankshares Good call. to I’m XXXX conference of Heather quarter morning, the Worley, Relations. Director

differ include actual based about subject uncertainties begin, from this our acquisition and materially future we be are These forward-looking to results current and will statements, that comments expectations performance. are assumptions Before of Central, and including our statements. could business our please statements to financial plans, on cause the risks these call aware and

substitute will quarter or CrossFirst remarks At Mike? turn Slide this GAAP. Mike, of statements Q&A who prepared our of -- are begin in and These We the conclusion superior be presentation found except should We made Rapp, remarks filings to forward-looking release. today's President or and Randy our or obligation the accordance X release of Bankshares. our will as to Nick adjusted to like Bankshares; Our A and Statements the measures be Mike of this of SEC. to presentation call identified measures in These them, session. At non-GAAP financial this to do financial to a are considered on financial the refer of the Bank; for together can will prepared in time, call. operator the call as presentation. non-GAAP third CrossFirst Maddox, measures facilitate Clouse, with I revise not may measures. meant CFO from any our law. Ben this financial with would GAAP date required measures with over of results by regarding not the earnings non-GAAP assume President include financial CEO financial on CrossFirst reconciliation factors update other of earnings risk to

Mike Maddox

quarter operating as joining results. Good third discuss Thank you we Heather. CrossFirst everyone. morning, for you, us Thank

we de to novo assets, like On our Arizona, from looking milestone and $X.X the third assets of $XX company. XXth Before I'd remarkable. with of billion nothing started with details you. Texas, full X, growth dive are million years October celebrated a quarter, in Colorado XX across Oklahoma, historical Mexico our as in in share to to has bank Kansas, XXXX, The of all forward and New What short over organization a X as our to we adding service the locations grown the past into is Missouri, we with anniversary footprint. in

and years, live legacy be I you and this and on day we dynamic put, the startup service had shareholders doing people expanded is new for our founding programs development every advancement, sight best Simply of and thank our and will training shareholders. our I proud businesses, the industry. team, organization. continues the make work and and to and for deliver engagement talent line clients opportunities, and a reward awards hard of coming the As the board who in a ago. the communities extraordinary make lives to day of our invest every our individuals want difference courage congratulate We XX XX to reflect for clients, remain strengths, years first our bank performance top continue and for culture, while professional And extraordinary focused in to regarding our and and we group members recruit competition legacy another, challenge one most of important a to where keenly in I From service. see together a our talented things right our on and all the People must asset. of retain a are stay entrepreneurship and in talent career recognition clear we work. to

announced enhancing shortly the of will and been his comments. leadership bank we July. in the of positioning we team promoted He about instrumental last some during has He President future As our speak growth. changes as Rapp our Randy quarter, company for

reported our to in million income, an $XXX team quarter, the financial growth net our $XX.X Turning loan performance, of which over we of net produced and is rate annualized during million XX%.

will of loan continued of economy, XXXX. optimistic in remainder While the level are a remains through see the uncertainty we growth that we

this far highly is key could on are the credit focused pace quality, sustainable growth have seen that slow to results Although we from year, the earnings. so which we in

quality is We've closely credit rates with We will our impacts monitoring quality for basis made down growth. points. economy. in and assets XX changing of the a improvement nonperforming our to not compromise team The rising

is Our a our long-term monitor of as our while risk value solid another shareholders. build maintained approach investing take our for and we we goal strong position for to With quarter balanced capital future. earnings,

We initiative technology and have stock added in our to talent. and buyback invested

will transaction Central that of a quarter. Bank CrossFirst in fourth optimistic with Bank close the a part are become We

We and mortgage all their the be expanded are needs scaled of markets. our and this bring serve clients the professional of what capabilities excited SBA merger will banking across and about to will business that

our excess a work will be to immediately extraordinary add combination will shareholder accelerate to leaders capital market for of to enhance our growth expansion, integrate It clients, usual it We will experienced their portion and strategy puts our work business while become work. be closing, advance systems. After together. and team, accretive to and value. as our bring we This will

philanthropic XXXX, covers the a update complex level ESG of world, rapidly our through for year acceleration surveys those on are of is we employee I CrossFirst inclusion, support. established and to recognized XXXX on to report, the focus positive highlight We Last again calendar Report. of we and oversight proud second ESG lens, a responsibility Impact were As CrossFirst. year we are numerous second annual of employee sustainable us the progress benchmarks as the making long-term of what we across an oversee changing the at am has Journal our ESG ESG share CrossFirst satisfaction develop, diversity, foundation In directors, annual to by to making the growth, and board and Business on type committee we our and which independent In program. place already based a implement confirms our This best sustainability City Kansas committed year been work. a knew. acknowledgement impact. management of

unique. special Our is we culture and building and the are company truly

serve the As newly specialized the the formed we to look we clients in we of leveraging have of tools XXXX. focus the I will place made have sure will President to new and to in to all investments expand personal optimizing I to groups to succeed. and our right our resources over will range shift scale New with our can the to business Mexico platform industry This reach in investments Texas, turn call Arizona, digital our our make the Randy team And that, like and Rapp. has to banking CrossFirst made from XXXX, our to Colorado. I'd Bank, right do

Randy Rapp

good Thanks, and Mike, morning, everyone.

within lead leaders mentioned, Regional Mike Steve expanded promoted As responsibilities has and model, in promotion are company. current the to our announced within roles of Foskin been will our community To banking our who September, President Oklahoma team of and oversee Recruitment on in taking coordinate CrossFirst we Steve several Development. the markets. an President Wichita Steve joined Talent the and Tulsa bankers. and will assist City, as XXXX markets strategy exceptional with Bank Market City and Oklahoma and Business recruited has

Executive who lending as we our small for business expertise President since company relationship extensive Tiffany to on brings in our expansion teams on serve to as knowledge most deposit serving Banking. strategic Oklahoma specific her a and key part This will reflects and currently Tulsa estate Amy Banking. recently our and our commitment real as which has we're the Director, generation. Market and has promoted of have to Bailey our as role serves Amy banking, taking deposit been business, role. enhance a XXXX, banking part and resource responsibilities, Director, new is With integral dedicating To role President. Commercial on Hatcher, team City new Steve's as banking. of a been Managing the focus strong market and XXXX, Relationship of another Oklahoma areas, consumer our Amy focus to and overseeing commercial City relationship market new joined an refer

and as Director, management, coordinate million. Managing role, joined Real estate Estate, deal to relationship and built real guidelines. teams. in Dallas over underwriting $XXX estate are real we also Howard Real taking commercial Estate Kent the estate to our for In resource dedicating portfolio. portfolio a a CrossFirst banking, addition a concentration pricing new Kent expertise will of oversee new Banking In on commercial Bank's serve Executive real has is his Director, structure, XXXX selection, as Kent Bank commercial to as role

our members grow We within are expanded continue as company are and to we recognize taking on to excited who evolve. team these roles

majority estate, $XX at reported decrease markets. million. Total the growth QX and commercial quarter over despite X.X% million. increased also XX% $XXX of ended portfolio, past million quarters. geographically loan of four or was over energy increased Loan Turning our the million diversified or between the to growth a real QX loans balanced highlights, in $XXX Loans we C&I and in which $XXX have the

C&I quarter, quarter, slightly, the above the utilization decreased with portfolio consistent was average but remains During line level. the average and churn XX% prior historical

estate. XX% XX% in XX% real accounting at industry C&I XX%. a concentration segment with of of and owner commercial and for type real CRE the exposure manufacturing diversity property portfolios diversified remains and There's CRE also portfolio the highest good being loan with Our concentration each within in C&I total those largest occupied in estate

our the exists strictly markets that interest economic reflect uncertainty to standards We level adhering and the today. are rate of underwriting to in higher

previous $XXX quarter, For billion, $X.X increased deposits quarter. X% from the million to the up average

deposits. of average upgrade bearing X% strategy. four deposits enhance year, that growth represent digital XX% platform $X.X QX Average decreased XX%. noninterest the banking an Over the billion past moving of our to are quarters, forward our In believe will quarter with have total to during deposit deposits we and we this increased

and for resulting a to total XX.X%, QX of referenced .XX%. upgrades in Moving asset decrease portfolio, of XXXX. $XX.X refinances primarily nonperforming XXXX. QX, of to or to QX, million .XX% from and assets ratio of in and nonperforming XX.X% a was from within was QX due .XX% Classified million drop reserves XX% reported the in combined the we The asset is assets in to QX charge This plus to capital down highlights, in ratio credit down $XX.X in down below.

of in the net XX primarily basis reserves we substandard resulting total to and For related X.XX%. for rate the unfunded in an for credit of a allowance and previously $X.X an charge-offs rate of we XX-month charge-off identified charge quarter, points. were XX to combined transaction. annualized QX charge-off trailing million, points of down charge-offs reported and The of X.XX% credit C&I allowance loss for reported ratio September of XX, commitments a loss At basis loan

moving are strong and focused portfolio on We credit monitoring forward. good metrics maintaining

the U.S product. many markets states could and We creation, and positive impact rates loan continue fortunate closely migration to rates, changes operate and those in our on interest and in monitor global continued the economies, to to positive population factors We're inflation potential show low portfolio. increasing job domestic local rates and continuing have unemployment gross

our performance. call results our actively and turn more I bankers individual directing and are cover the to having financial macro clients level these are detail. effects in to Ben? We understand to prospects now on with financial better engage their Ben issues will the over to businesses

Ben Clouse

Thanks, morning, Randy, and good everyone.

by $X.XX this quarter growth the deposit per on loan and result X.XX% These ratios expanded were net $XX.X return continued assets to and XX.XX%. was As or on future of share, was and average balance Quarterly income strong solid and average we return million and equity Mike growth. sheet driven maintained margin expanding performance indicated, investments.

billion executing loans, gain and our scale striving strategy $X we in deposits, approach are are grow to ROE and ROA as assets. We to

in income do QX, quarter additional run and $X NIM forward. prior and which and $X.X million. rate million, the X third the quarter, accrual rate included also increases, in not an in million. and the by which and XX% basis driven of day X impacted margin be loan increased quarter by This going we QX accrual from accrual improvements. to QX respectively, improvements improvements million expect interest Our income respectively. for QX These points added to the growth included $X.X $XX.X was Interest in

the quarter average Our XX points. was $X.X increase and quarter-over-quarter basis fund the loan Interest average yield up were up was growth. loan for we X% to rates expense up million balances as deposit

deposits quarter Our deposits driven increased liquidity. by market competitive percentage of primarily. the XX%, some the time demand and rate and money was deployment reflecting Average for environment X% deposits of

Our XXXX. increase $XX declined second brokered and $XX borrowings meaningful were total the quarter quarter, million from declined funding deposits by cost of was FHLB X.X% early rates second down our for from first in quarter. million since

rate about increases with in year total end Our quarter against deposits third the was this the the beta XX our of line through target.

target to beta a We're of the assuming of to rest of around a in year. year range continue the rates XX We for will the XXX end XXX.

moves points, X.XX% would target. not our interest Although it up change on up down margin if beta XX to a tax that Net fully equivalent basis. basis or was necessarily

We expect to partially needed deposit be DDA loan and higher fourth for our yields margin to fund of of offset range from rates by in growth. with XXX a expansion migration XXX to potential quarter away

first the much lower months, with for days. transaction sensitivity the volume and that XX% our lower Our letter and or has in Noninterest earning of with over XX balance was quarter due repricing sheet card million credit XX being declined credit assets to $X.X maturing of fees. income next the of moderate

We card this credit clients of our diversification during quarter volume new decline $XX.X growth expenses million, the down Noninterest $X.X are and focused concentration second quarter. the driving credit range. offset in and million with our were to And on quarter the were for expected within client in part able from card we increasing base.

base very costs. manage range quarter, given the between fourth current for strike additional growing expense in of in competitive million the cost earnings to producers we our balance a environment outside X $XX for million a to the We noninterest quarter and new tightly the plan anticipate investing $XX and to will merger During of We a added future. environment. be

into quarter, Our we low improved it from efficiency ratio the and driving XXs. second the focused are on

year. XX.X% was expect last rate we tax the for quarter, from rest the down of the the Our for quarter range in slightly and

again, environment generated losses moves We earnings the term moved capital as Our believe additional rates and some as term securities we experienced grow. the strong ratios significant in the up to rate remain longer longer the we continue this resolve will as through to unrealized cycle. portfolio interest but

We to the regulatory have the unrealized capital. option loss elected exclude from

million and losses, to was provide collateral XXX,XXX use the unrealized above for Our our regulatory continue purposes needed. quarter our third quarter, of median deposit we quarter they XX%. Even of total peers to liquidity borrowing with our serve shares buyback With AFS decreased remains loan excess growth our as that above if authorization. XX%. we end, ratio total for and our in intend weighted slightly at common to the existing securities loan this the assets can as We XX.X XX% for in well tangible capital ratio risk growth repurchased to under significant $XX equity -- million board and ratio deposit

we quarter funding, of now begin are the deposit portion we growth for loans and another are question-and-answer Operator, had We well-positioned on driving We capacity call. the to to year. focused the great or have borrowing wholesale fund significant end into of the and needed. if going are ready

Operator

go question First Please Instructions] from Gailey, Brady ahead. comes [Operator KBW.

Brady Gailey

Thanks. morning, Good guys.

Mike Maddox

morning, Brady. Good

Ben Clouse

morning. Good

Brady Gailey

start I kind outlook with next for wanted year. growth the to of

on are high high at guys side You of can funding growth growing a nowadays. a the be but company, kind is painful pace

bit? I was slow And little that you how wondering to growth a see next about So you just think year? growth do start

Mike Maddox

what's and to going opportunities this Yes, believe that we funding to is what economy pace we've but becoming will don't provided at year. we're to more it asking, rising Obviously, continue that We I grow, going question will the rates us. I and challenging expensive. be and to the all grown the with know out -- trying mean, be figure it's that's happen are

still us. of new to we're driving for quality the pretty growth. is a happens for Dallas, continue what in. in a of factor credit said So at that markets markets, to will some still something about closely. growing And those Having investments think excited some Phoenix, the and with some looking pretty room obviously, Denver there's XXXX we provide are that, amount economy still we're be us we're in dynamic of And in quality made reasonable markets. the we've

Randy Rapp

Randy. is this Brady,

other we're the would The churn said what thing is portfolio. watching things of within add the Mike to one is, I

of year We estate this real have that quite a are commitments bit unfunded.

sitting an The next we're the that So a well. at definitely fund rate growth that that has elevated the impact will level. CRE to year. unfunded were and decent, with been churn book as If will that slow, rate

So we're we -- watching are that. that

Worth, good other new Frisco, we've hit expect said, addition some As in to Fort our to some we made some and markets. markets, next Mike also stride year that in investments

Brady Gailey

acquisition. just announcement All moved Any from Then I updates is kind on today have Central know second around of right. day. question to the That's helpful. my relative there? rates

So about you I remind us tangible where accretion before you're think EPS approval heard any those? the updates guys dilution? still to you book I have on how you can value the you're at point are close per deal planning on say, or And just thinking regulatory year-end. you some Do share all process?

Mike Maddox

Ben let something we ninth I'll with metrics. of future. near in FDIC we're all hear information provided the that process. the may believe But hopeful that asked financial the address of some regulatory in we they've It's for, gone the the and a smoothly. that standpoint, we're inning from requested We've

pace, Ben, you we So can …? the about roadblocks. talk that continue move we're don't to big reasonable hopeful and foresee process any want to at forward we a But,

Ben Clouse

outlined, moved, bit with because our little XX% change the Good perform are tangible ratios assumptions. Central for our moved still through in of pro capital Definitely dilution change Brady. value quarter. projections our to book capital line to track third have ratios continues In No a the but have that XX% our sure. we amount accretion in forma XXXX. morning, the aspects, no which between we and there, regard on Yes, for financial was

Brady Gailey

right. for All last me. then And question

of company. You X% been guys the last Year-to-date pretty repurchase the have on active the for buyback over years. couple of you've

head does a buyback? that recession, your As potentially into change we on the stance

Mike Maddox

will stock be we going pretty as continue to at relates drive strong a conservative low long continues trade we that's back we're to as a as earnings. prudent to is do everything think buy to our a undervalued, But it capital positions. continue Well, it think very at level we'd we our -- And to price. to

it been So we're We've very relates levels conservative as capital. way we'll an eye beginning. and keeping from to on be the capital always that

company are important understand capital us for good and faster that to We a we keep it's growing levels.

Ben Clouse

would just I is thing and to flexibility buyback. we Yes, Brady, add have complete which the one that reminder a with that

So as prudent. it adjust Mike if said, ongoing we will monitor accordingly obviously that feels that and

Brady Gailey

guys. Thanks, great. Okay,

Mike Maddox

Brady. Thanks,

Operator

Thank you.

Our Michael James. be question Rose, next go Raymond ahead. will from Please

Michael Rose

morning, taking good Hey, questions. my guys. for Thanks

Mike Maddox

Michael. Hi,

Michael Rose

-- Just circle wanted hey, back to good morning.

I to the between brokerage were think sounds talk there fund the I [ph] ability higher circle Can you increasingly rates. kind you kind NIM? deposit will about posted growth positive some of about just out. at to you It basis but think kind how interplay of come the came the rates, that of some said X back wanted in the I should think out quarter specials down, we recoveries interest of to accrual and saw some of comments. like and the maybe this loan market, in did points of Just

And quarter. forward? of kind to near think think funding way we as it about a about we're we that the fourth So for how margin then should the Is at seems going into the peak me get that the it? Thanks. strategies deposit probably or to

Ben Clouse

X but opportunity I of a XXX that's think and Michael, XXX the I about think reinforce suggest to some in for it. range to great quarter points accrual we expansion NIM, the this think deal. right you're gain don't way would see gave to correct. basis I

is I accurate. your assumption think

nearing We would are we top or near see. that probably the

our Our way with do will with decisions we fund number make can. -- fund that the goal, with operate. deposits, of the will one we That's we every we to course loan which mix continue and best And relationship what is to our growth growth day. we relationship

hope have brokered need we to goal, Our great or deposits core safety amount borrowing of we number you in we had quarter momentum. as that huge think a say but as flexibility but course this continue being growth so should and go wholesale and or deposits, to a [indiscernible] us that we about heard one of we there,

Mike Maddox

also the opportunity Michael, on we pricing. loan I to side that more think going for are see

more opportunities last than seeing the We better have favorably are we that couple priced in of are years.

the are credit And taking a lenders the think so little a power. little side on approach maybe and I to of being we're get starting more the pricing selective

Randy Rapp

going I looking thing Mike sorry, add add, -- deposit There's on just strategy was big to forward. Mike, oh would no one I Final thing.

together. that things on to focus bankers I she'll do bunch and make just Two make on of is, deposit our guide of bankers laser deposit our Tiffany put that. my as to is it just is conversion strategy. in think aligned, putting platform growth help that strategy. new enhance everybody's into a I one But sure four, part will is do sure smaller making then incentive put Hatcher it's the Three focused go-to-market just of is, building And think our banking digital sure role, we comments, help model DDA our in they're that things expansion. focused and her are the

is thinking combined QX things looking into those all think deposit I is about really into 'XX. we're what our So strategy

Michael Rose

credit gears separate Maybe helpful. Very a looks great. switching on just topic,

maybe were I think of some whether of you heard great lending, sized energy here. you've you little lending. get we Thanks. can of was definitely a [ph] or portfolio, value And looks there verticals I kind it concerns some into everything of you would right though those waters in, there when value, you like here? tribal then give the portfolios, kind us IPOed, just are bit a some that around that be guys more enterprise update Obviously, just an And [indiscernible] choppier energy voice cetera? of cautious et kind enterprise on lending, but as

Mike Maddox

let I'll Well, Randy in. fill I'll start yes, and

quality. credit proud very our We of are

we're it's the sure downward hard movement We, think deep and and with our portfolio in worked issues. on very into diving any bank, of and to nonperformings. like and at assets in improved trying stay classified that mean, dramatically top we're every I I we're rising pleased we've making

so as And small some business lending it seeing a lot tribal, we're of relates verticals, good. far, far is of And yet. a just our part portfolio of tribal It's to today. as not our problems our

As you know, is very to under that's energy with portfolio they're today at. some we prices well probably performing down and And an maybe I growth. our think, commodity think where see opportunity of X%

Our franchise lending portfolio is performing well. I talked can't think of about. any other words you

Randy Rapp

you the number about I'd pretty that, portfolio, it's that's add million to ever not that level. really had [indiscernible] lower us, at a that that's specifically when asked about been for been consistently big $XXX and

issues You feel transactions, one-off about of we the of really what us. those feel like those are we and and the were behind communicated have that's credit a talked some like we around and IPO couple

economy, don't of so we And in the year. portfolios. on some I I next noise today, a early I but consumer is larger as and look there portfolio uncertainty consumer think mean, on look with banks have the the into at is the portfolio hearing the we big you're

type do. There's portion quality in a and of slowed, been publicity is very things some of its that inventories, about markets, spec a vertical we're to has CRE grow lot big portfolio reduced what there of X% are profitable. that There's in have back but in probably there's lately, great we're about X% very -- is what a the and The homebuilding. loan next we in very range. sheet recession. builders down but think very balance a lot our good some homebuilding Our good low honestly, in low level. are that the portfolio. of inventory, the activity seeing energy healthy year, to is are Mike to still have said, but feel on issues we XXXX Quite portfolio to They which created sitting very opportunity the in is

a So you Mike diversified good on small. about is portfolio. But builder feel portfolio. hit a C&I the of the as is couple, Tribal, had we said health

eye lending we leverage about million $XXX Our that's is on. and an number the portfolio keep

And had at so the obviously another loan any did just not with grades. very of our looking third-party time a visiting portfolio, that successful accuracy. borrowers, spending monitoring review we're change loan We lot great

about accuracy. So the we grading And of just overall good head and next monitoring portfolio as again, our year. diversity feel internal into we the

Michael Rose

color. guys, appreciate all Thanks, I the

Mike Maddox

Yes.

Operator

Thank you.

Demba Our from Truist. of go ahead. next question Jennifer Please will be

Jennifer Demba

Mike, much growth so you just loan as the growth over is to you a loan you as Do mentioned, for think my selective? to moderate taking Thanks get curious think questions. going near-term. slower more you will be bit

Mike Maddox

in the Jennifer, -- to we're just can't lot strategic be. there. still visibility is number of on We're talking economies on markets that where markets. I and pretty those not about as enough it. give be exact today, the remains prepared over last fairly give what I'm guidance middle in strong going just into But on to we'll a things process. are I we you of our Well, planning good really But XXXX, in pipeline out going lot seen that. And keep remain right we -- with couple quarters. a just strong going. There's to And our look an eye we're and uncertainty now consistent believe what But we've of

we're So, continue to hopeful see growth. that we'll solid

Randy Rapp

do process. budgeting Jennifer, bottom we a up

leaders in We're like market up as next And year. we, vertical asking for Mike to the what looks that our they leaders process. so with think middle of that and said, come we're

future that can give So we're guidance and process the assembling that in on in better of call. really

Jennifer Demba

in year. But hired new you you producers said to third mentioned I your you investments quarter. And X believe next the you optimize were going

fewer in hires new that versus assuming 'XX? I'm 'XX means So

Mike Maddox

Fort in Jennifer. made Denver investments some Yes, I and Colorado be Phoenix We've Mexico. bringing and on fair think that's New and a Springs assumption, and Worth Frisco and we'll

it want to to as We investments we've done scale. we hiring we continue let of lot entrepreneurial but really, talented a scale bankers, to in year So this to relates those be 'XX. to want that really hope

Jennifer Demba

Okay. so much. you Thank

Mike Maddox

Thanks.

Operator

Thank you.

will ahead. go Andrew Next Liesch, Piper Sandler. from Please be question

Andrew Liesch

for morning. taking this the Hey, everyone. Thanks question

Mike Maddox

Hey, Andrew.

Andrew Liesch

referenced in [indiscernible] you've thoughts question a the anything the year? change management any provision going in your for quality was model? recession potential qualitative just here So back been Is have next on just that own presentation a there part the of to factors. Or in credit

Randy Rapp

Hi, is of This adjustments Andrew. Randy. a There quarter. were factor substantial lot this Q

we're are to drivers other the and as of of CECL One the with there. learning banks and seeing the live drivers Andrew, many

heading just, us this reserve. the drivers the increase an There of But estate to adjustments the it a the overall, of commitments be into then larger said, one were as driver a One as commitments. to unfunded of of uncertainty. portfolio our bit in was economic unfunded some for relates more a the that real there. And was conservative I in trying was future looking quarter increase few drivers, part into

Andrew Liesch

helpful. rate new [indiscernible]? Got That's market XX? September funds just margin All the money here, Or, you wondering with outlook And right. back have some at I'm -- of current the if if of accounts cost then the spot you going like on it. know to new is really what the of the rate

Randy Rapp

at spot the Andrew, the -- overall mix it's on quarter the of was end XXX. our rate about been

Andrew Liesch

Okay.

Randy Rapp

that our for off the jump quarter. call I'd

Andrew Liesch

you millennials? on far guess opportunity new to Perfect. there's where what and a All right. That's up during the improvement trending of then I loan new like pressure of coming have and did helpful bit guess some as the pricing there. pace loans what there. activity And I the sounds then quite quarter as see

Randy Rapp

fairly moved we're a the looking margins where at it it fee potential. Yes, see more this book, [ph] have a been on did quickly actually and with handle we might XXX seeing especially Randy as that to previously, relates We CRE again. three now a margin little is margin widening

more his during so, what's funding of referenced And periods. booked was competitive the in now Ben some comments,

you're the a pricing more think banking. the industry across power little I seeing within

things -- wider so the than opportunities at things we're last today booking today, fees seeing -- the are the XX the are at seen months. over and And we're definitely higher we've margins

Ben Clouse

little that, I on that. Andrew, just maybe color to would Yes, add put to a

move a that was little As Randy, for has see quarter I you started was will with added agree bit. for XXX, yields And we loans say, XXX. but average heard expand that our to the us quarter the new weighted now pricing in loan the

Andrew Liesch

That’s run that it benefits course, going million there. fourth on Central, good All salaries run costs call into Not forward I'm [indiscernible] XX.X you. then but jumping the helpful from expense rate? rate the a curious of Got hit line. right. really off quarter? just where's severance and just including this, And

Randy Rapp

QX Yes, XX and million, between I expected our would million is Andrew, XX say rate.

Andrew Liesch

Great. That's so Thanks much all the questions. picking for up.

Mike Maddox

Andrew. Thanks,

Operator

Thank you. Stephens. of Please will Olney from [Operator Instructions] Next go question ahead. Matt be

Matt Olney

year quarter. And Hey, can like Bank as didn't bank the to the their growth Corp. growth? for maybe I anymore from add of or far the the back early Central on Good back saw around them XQ front. Curious the you as to appreciate go expectations momentum in a growth to the Looks half in the strong I had Thanks. thanks. pretty bank color the wanted second growth we any discussion morning. their

Ben Clouse

would and with think they Maybe said trajectory I'll start, their in I'll I deposits. in let remind to loans add. or I Denver, and add, continue Mike what new modeled is In Randy regard But the to two and example. Randy have we they opportunity, I'll good growth, quarters are relatively both or for let line Mike earlier, right you, just I through last

there's market. opportunity in And that expect -- guys if So would to growth we you there. want supplement add that. I outsized know don't huge

Mike Maddox

of mean, see really I a and only think $XXX maybe Denver that's million, expand. we right. assets million still that to opportunity in I great as there's $XXX

able economy fee franchise. about to thing to be scale which well. about this as really they've And their the make business And to is a the the that. for the in and will across thing scaled much other today expenses But to to mortgage we lot those nice with is growth is think profitable. adjust excited incremental SBA is. income bit Obviously, we're platforms The our operations, we platform volume don't add generate it and where there's a opportunity acquisition the very to we mortgage slower believe have very

those So we also things big are two think drivers.

Matt Olney

be been guess, thinking I on SBA Mike. of this for will initially? combined the note, the term impact and initiative mortgage Okay, then Or that more is a front, company? the about very Central of on that's helpful, that longer impactful And the

Mike Maddox

on environment their and more organization our And to based lift didn't now. near-term currently assume a modeling, markets. due SBA, the there from think definitely mortgage across deploy right regard there's in rates similar that right already projections seeing opportunity our they sized the their housing situation. volumes team lower And I we're In in we that's although that all existing have as there and process their any we, Matt, longer initiative. know we We mortgage, to our On significant mortgage. the term

think opportunity more I SBA. near-term in there's

Matt Olney

that's you very much. helpful. Thank Okay, guys

Mike Maddox

Matt. Thanks,

Operator

question-and-answer remarks. like for the Mike you. turn over I'd Thank the to concludes closing conference session. This Maddox back Mr. to

Mike Maddox

thank Well, everybody improvement a I our to great for joining our worked we're thank this want our today. pleased I and job quarter quality Colorado and as just they've hard on done and CrossFirst and about them team, very in the and really with really to want improvement continued bring of a New in part our Mexico, our members the margin bring opportunity in in excited credit to and team. team us

joining you. be So to to it'll I and forward thank look guess you in January. all for us talking

So take care.

Operator

Thank concludes you. This conference. the

You disconnect. may now

CrossFirst Bankshares (CFB) 18 Oct 222022 Q3 Earnings call transcript