Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors

You're looking at CrossFirst Bankshares, Inc. (CFB) financial health, but the first thing you need to grasp is that the company you knew ceased to exist as a standalone entity on March 1, 2025, following the $916.8 million all-stock merger with First Busey Corporation. This isn't just a name change; it's a complete re-mapping of the investment thesis, especially considering the immediate post-merger volatility. For example, CrossFirst Bank's final standalone Q1 2025 report showed a net loss of $(\$34,524)$ thousand, a sharp signal of the integration challenges and credit loss provisioning that followed. The combined entity now boasts total assets of roughly $19.46 billion, but First Busey Corporation's Q1 2025 results reflected a net loss of $30 million, driven by those one-time acquisition expenses and a substantial credit loss provision (a reserve for potential loan defaults). Honestly, the real story now is the integration risk versus the opportunity for scale. We need to look beyond the historical CFB numbers and focus on how the new, larger bank navigates this near-term financial dip to realize the projected synergies.

Revenue Analysis

You need to understand CrossFirst Bankshares, Inc. (CFB)'s revenue, but the most crucial piece of 2025 data is the acquisition itself: CFB ceased to be an independent entity, merging into First Busey Corporation (BUSE) on March 1, 2025. This transition is the single biggest factor affecting their 2025 financial picture.

Before the merger, the analyst consensus for CFB's full-year 2025 revenue was a projected $283.61 million. Here's the quick math: this figure represented an expected continued growth trajectory, building on the strong performance from the prior year. However, this is a pre-merger estimate and only reflects the first two months of the year for the standalone company, plus a forecast for the remainder that never materialized independently.

The core of CFB's business, like most regional banks, was its Net Interest Income (NII)-the difference between what it earns on loans and securities and what it pays on deposits. This is the primary revenue source, supplemented by non-interest income (fees). Their revenue streams were defintely concentrated in high-touch commercial banking services.

The breakdown of their primary revenue sources before the acquisition largely fell into these segments:

• Interest Income on Loans: This included commercial and industrial loans, commercial real estate, and construction/development loans.
• Interest Income on Securities: Earnings from their marketable securities portfolio.
• Non-Interest Income: Fees from deposit banking products, treasury management services, and other banking activities.

Looking at the historical trend leading into 2025, CrossFirst Bankshares, Inc. saw strong momentum. Operating revenue for the full year 2024 was $250.66 million, which was an increase of 8.51% compared to the previous year. This solid year-over-year revenue growth was driven by a focus on expanding their market presence and strategic initiatives.

The year-over-year revenue growth rate, while impressive at 8.51% in 2024, was set to be absorbed by BUSE in 2025, making the CFB-specific growth rate for the full 2025 fiscal year irrelevant. What this estimate hides is the immediate impact of the merger, where CFB's revenue contribution is now part of the larger First Busey Corporation's consolidated financials. The last reported independent quarter, Q4 2024, saw revenue of $68.87 million, a healthy beat against consensus.

The significant change in revenue streams for 2025 is the segment disappearance. Post-merger, CrossFirst Bankshares, Inc.'s operations are now a division within the larger BUSE structure, and its revenue is no longer reported separately. This is the clear action you need to take: stop analyzing CFB as a standalone entity and shift your focus to the combined entity's performance, which you can find in the Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors blog post.

Profitability Metrics

You need to know the profitability of CrossFirst Bankshares, Inc. (CFB) as a standalone entity to properly value its contribution to the post-merger company. The most complete picture we have is their full-year 2024 performance, which served as the final benchmark before the merger with First Busey Corporation, expected to close on March 1, 2025.

The core takeaway is that CFB was on a strong upward trend in profitability, driven by better cost management, which is a defintely positive sign for the combined entity's future efficiency gains.

Gross, Operating, and Net Profit Margins

For a bank, the Gross Profit Margin is typically 100% because the "Cost of Goods Sold" is zero; the total operating revenue is essentially the Gross Profit. The real insight comes from the margins further down the income statement, which show how well the bank manages its operational and financial costs.

Here's the quick math on CrossFirst Bankshares, Inc.'s final full-year performance:

• Total Revenue (2024): $250.66 million
• Net Income (2024): $78.5 million

Using these figures, we can map out the key profitability margins for 2024:

The Operating Profit Margin is the most telling figure for a bank's core business efficiency, showing the profit generated before factoring in provisions for credit losses and taxes. A margin of 42.48% is solid, reflecting the bank's ability to turn revenue into profit before credit risk adjustments.

Trends and Industry Comparison

The trend in Net Profit Margin for CrossFirst Bankshares, Inc. was clearly positive leading into 2025. The net margin jumped from 28.9% in 2023 to 31.32% in 2024. This 2.42 percentage point increase demonstrates effective cost control and revenue growth outpacing expense growth, even amid rising deposit costs which pressured the full-year net interest margin (FTE) down slightly to 3.28% in 2024.

When you compare this to the broader industry, CFB was a strong operator:

• Operational Efficiency: CFB's Q3 2024 Efficiency Ratio of 57.52% was nearly in line with the aggregate banking industry's Q1 2025 ratio of 56.2%. This means CFB was spending about 57.52 cents to generate one dollar of revenue, which is a competitive level of operational cost management.
• Overall Profitability: While the industry-wide Return on Assets (ROA) was 1.16% in Q1 2025, CrossFirst Bankshares, Inc. achieved a 1.02% ROAA in Q3 2024, indicating a slightly lower, but still respectable, utilization of assets to generate profit. You can dive deeper into the ownership structure and market sentiment in Exploring CrossFirst Bankshares, Inc. (CFB) Investor Profile: Who's Buying and Why?

The improvement in the Net Profit Margin, coupled with a highly competitive efficiency ratio, suggests that CrossFirst Bankshares, Inc. was well-positioned for continued profitability growth had it remained independent. The merger with First Busey Corporation, which closed in March 2025, now shifts the focus to how these efficiencies translate into synergy gains for the larger combined entity.

Debt vs. Equity Structure

When you look at how CrossFirst Bankshares, Inc. (CFB) was financing its growth leading up to its acquisition, the clear takeaway is a strong preference for equity and a low reliance on traditional debt. This conservative approach to financial leverage (debt) made the bank a very attractive target, honestly.

For the fiscal year 2025 context, the key metric is the Debt-to-Equity (D/E) ratio, which measures how much of the company's financing comes from debt versus shareholder equity. CrossFirst Bankshares, Inc.'s D/E ratio was remarkably low at approximately 0.11 as of November 2025. This means for every dollar of equity, the company had only about 11 cents of debt. Compare that to the 2025 industry standard for Regional Banks, which sits around 0.5753. That's a huge difference, showing a very low-risk capital structure.

Here's the quick math on their core debt: based on the Long-Term Debt to Equity ratio of 10.91% in the most recent quarter of 2025, and using the 2024 year-end equity of $774 million as a proxy for the base, the company's long-term debt was roughly $84.45 million. This low figure indicates they weren't aggressively using long-term borrowing to fund operations, which is defintely a sign of stability.

• Total Debt-to-Equity (2025): 0.11
• Long-Term Debt to Equity (MRQ 2025): 10.91%
• Regional Bank Industry Average (2025): 0.5753

The company's financing balance was heavily weighted toward equity. Banks inherently have high liabilities because customer deposits count as a liability on the balance sheet, but the low D/E ratio focuses only on the debt used for capital structure, like subordinated notes or other borrowings. This low leverage meant more financial flexibility and less interest rate risk.

What this estimate hides is the most significant capital event of 2025: the acquisition. The discussion of recent debt issuances or refinancing is largely superseded by the fact that CrossFirst Bankshares, Inc. was acquired by First Busey Corporation in May 2025. This acquisition itself was the ultimate capital structure decision, effectively merging CrossFirst Bankshares, Inc.'s low-leverage balance sheet into a larger entity. The low-risk, equity-heavy position likely made CrossFirst Bankshares, Inc. a more appealing and less complicated target for the acquiring institution.

For a deeper dive into the overall financial picture, check out the full post: Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors

Liquidity and Solvency

You're looking at CrossFirst Bankshares, Inc. (CFB)'s ability to meet its near-term obligations, and for a bank, that picture is always a little different than for a manufacturing firm. The direct takeaway is that while the traditional liquidity ratios look low, this is standard for the banking sector, and the underlying cash flow generation was strong leading into the 2025 merger with First Busey Corporation (BUSE).

The immediate context is crucial: CrossFirst Bankshares, Inc. merged into First Busey Corporation in early 2025, so much of the recent liquidity strength is viewed through the lens of the combined entity. Still, looking at the last standalone figures gives us a clear view of the bank's operational health before the transaction.

Current and Quick Ratios: A Bank's Anomaly

In a normal business, a current ratio (current assets divided by current liabilities) below 1.0 is a red flag. For CrossFirst Bankshares, Inc., the most recent quarter (MRQ) saw both the Current Ratio and the Quick Ratio hover around 0.26. This low number is defintely not a concern here. Why? Because the bank's largest current liability is customer deposits, which are essentially callable on demand but are operationally stable. Conversely, a bank's largest assets-loans-are long-term and not classified as current assets.

The Quick Ratio (acid-test ratio) is the same as the Current Ratio for a bank like CrossFirst Bankshares, Inc. because they carry negligible inventory. It's a simple measure: Can they cover short-term debt with highly liquid assets? The answer, at 0.26, is no in a crisis, but the bank's business model relies on a different kind of liquidity management, namely access to wholesale funding and regulatory capital buffers.

Working Capital Trends and Cash Flow

The low current ratio naturally leads to a negative working capital position-current liabilities far exceed current assets. This is the nature of a commercial bank. Instead of focusing on working capital, we look to the cash flow statement for true operational strength. In the full fiscal year 2024, CrossFirst Bankshares, Inc. generated $99.36 million in Operating Cash Flow. That's a healthy amount of cash coming from core banking activities.

Here's the quick math on where the cash went:

• Operating Cash Flow (OCF): $99.36 million (Positive, from core earnings and deposit activity).
• Investing Cash Flow (ICF): The largest component was a negative $654.06 million from Net Decrease (Increase) in Loans Originated / Sold. This negative number is actually a positive sign of growth, meaning the bank was aggressively funding new loans and expanding its balance sheet.
• Capital Expenditures were a manageable -$8.95 million in FY 2024.

This shows a business that is generating cash from operations and actively reinvesting heavily into its primary product-loans. That's a good sign of an expanding bank, but it also means the bank is a net user of cash in its investing activities, which is typical for a growth-focused institution. If you want a deeper dive into who is betting on this growth story, check out Exploring CrossFirst Bankshares, Inc. (CFB) Investor Profile: Who's Buying and Why?

Liquidity Strengths and Near-Term Risks

The real liquidity strength for a bank lies in its access to funding. As of March 31, 2025, CrossFirst Bank had a relatively modest amount of Federal Home Loan Bank (FHLB) borrowings, specifically $11.2 million in short-term and $61.9 million in long-term debt. This indicates they weren't overly reliant on wholesale funding to cover daily needs. The merger with First Busey Corporation also immediately bolstered the liquidity profile, giving the combined entity available sources of on- and off-balance sheet liquidity totaling $8.55 billion as of Q1 2025.

The main risk, as always in banking, is an unexpected deposit flight (a bank run), but the strong cash generation and the immediate liquidity boost from the merger mitigate this. The low current ratio is a structural limit, not a sign of imminent failure. The clear action here is to monitor the quality of the loan book, as that $654.06 million investment in loans is the primary risk factor now.

Valuation Analysis

You need a straight answer on CrossFirst Bankshares, Inc. (CFB): was it overvalued or undervalued? The reality is the market gave its final, definitive answer in March 2025 when First Busey Corporation acquired the company. That acquisition price essentially set the final, non-negotiable value for shareholders, making the traditional over/under-valuation question moot for current investors.

Still, looking at the metrics just before the acquisition tells us a lot about what the market thought. In early 2025, CrossFirst Bankshares, Inc. (CFB) was trading at a price that suggested it was reasonably valued, if not slightly undervalued, compared to its regional bank peers. The stock had seen a strong run, increasing by over +26.01% in the 52 weeks leading up to the deal announcement, reflecting positive sentiment on its earnings growth.

The last recorded stock price for CrossFirst Bankshares, Inc. (CFB) was around $15.99, trading within a 52-week range of $10.64 to $19.22. The key valuation ratios, based on the trailing twelve months (TTM) data available in early 2025, looked like this:

• Price-to-Earnings (P/E) Ratio: 10.25 (TTM)
• Forward P/E Ratio: 8.42
• Price-to-Book (P/B) Ratio: 1.02

A P/B ratio of 1.02 means the stock was trading almost exactly at its book value (the theoretical value of assets minus liabilities), which is often seen as a fair price for a regional bank. A P/E of 10.25 was also generally lower than the broader market, suggesting the stock was not overpriced based on its earnings of $1.56 per share (TTM). Honestly, the valuation was defintely compelling.

What this estimate hides is the strategic value of the franchise-the reason First Busey Corporation was willing to pay a premium. The analyst community, before the acquisition, had a consensus of a Strong Buy on the stock, with an average 12-month price target of $19.33. This target represented a significant +20.89% upside from the stock's price at the time, indicating they saw clear undervaluation based on future earnings potential, which you can learn more about in the Mission Statement, Vision, & Core Values of CrossFirst Bankshares, Inc. (CFB).

As a bank, CrossFirst Bankshares, Inc. (CFB) did not pay a standard dividend, which is why the dividend yield and payout ratios are listed as not applicable (n/a). This is common for growth-focused regional banks that prefer to reinvest earnings back into the business to fuel expansion, rather than distributing cash to shareholders.

Here's the quick math: The market was pricing in solid but not spectacular growth, while analysts were betting on a higher future value ($19.33). The acquisition at a price close to the analyst target proved the 'Strong Buy' consensus was largely correct in predicting a higher intrinsic value than the market was initially giving it.

Risk Factors

You're looking at CrossFirst Bankshares, Inc. (CFB) and seeing solid credit metrics, but I want you to focus on the near-term risks that the numbers don't fully capture yet. The biggest challenges for CFB right now are managing a tight liquidity position, navigating the industry-wide pressure on Net Interest Margin (NIM), and watching the commercial real estate (CRE) market like a hawk.

Liquidity and Funding Pressure: The 101% Ratio

The most immediate financial risk is funding. Honesty, a bank's core job is turning deposits into loans, but when your loan book outgrows your deposit base, you rely on more expensive, less stable sources-what we call wholesale funding. As of June 30, 2025, CrossFirst Bankshares' loans-to-deposits ratio stood at 101%. That means for every dollar of deposits, the bank has lent out $1.01. This is a clear indicator of elevated liquidity risk in the current market, where funding costs are still high despite the inverted yield curve.

The bank must continuously manage this mix. Your action here is to monitor their cost of funds; if it spikes, their profitability takes a direct hit. For now, their regulatory capital ratios are a good buffer, with the Tier 1 Leverage Ratio at 8.78% as of March 31, 2025, which helps absorb potential shocks, but you defintely want to see that loans-to-deposits ratio come down below 100% over the next two quarters.

• Manage the funding gap.
• High wholesale funding is expensive.

Credit Risk: The CRE Spillover

On the surface, CrossFirst Bankshares' credit quality looks exceptionally strong. Their total nonperforming loans (NPLs) were just $3.4 million at the end of the second quarter of 2025, which translates to a very low NPL-to-total-loans ratio of 0.37%. That's a sharp drop from the $9.7 million reported in Q1 2025. The mitigation is already in the numbers: management is clearly working to clean up the loan book.

But here's the realist view: the industry-wide stress in Commercial Real Estate (CRE), especially non-owner-occupied office properties, is a major external risk. While CFB's low NPL ratio suggests their portfolio is currently sound, the industry is still seeing elevated past-due nonaccrual (PDNA) rates in this sector. The risk is that this broader market pressure eventually impacts even well-managed regional banks. The bank's allowance for credit losses on loans to total loans was 0.94% at June 30, 2025, which is a key metric to watch for signs of management preparing for future credit deterioration.

External and Regulatory Headwinds

The external environment is still challenging. The banking industry's Net Interest Margin (NIM) has been under pressure as growth in funding costs outpaced asset yields over the past year. While the industry saw some NIM stabilization in late 2024, the inverted yield curve is a persistent headwind that makes it harder for banks to earn money on the spread between what they pay for deposits and what they earn on loans. This is a strategic risk that affects all banks, including CrossFirst Bankshares.

Also, regulatory scrutiny remains high, particularly around liquidity and capital adequacy following the 2023 bank failures. Failure to meet minimum capital requirements can trigger mandatory actions from regulators. The bank's solid capital position (Tier 1 Capital Ratio of 9.6% in Q1 2025) is their primary mitigation strategy against this regulatory risk, but it means they have less flexibility to deploy capital for aggressive growth or share buybacks.

For a deeper dive into the bank's overall financial picture, you can read more in our full analysis: Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors.

Growth Opportunities

The future growth story for CrossFirst Bankshares, Inc. (CFB) is now fully integrated with First Busey Corporation, following the transformative merger completed on March 1, 2025. This wasn't just an acquisition; it was a strategic move to create a premier full-service commercial bank, immediately boosting scale and market reach. For you, this means your investment is now positioned to capitalize on the combined entity's expanded footprint and diversified revenue streams, not just the legacy CFB business.

The core growth driver is the immediate increase in scale and reach. The combined company now boasts approximately $20 billion in total assets, $17 billion in total deposits, and $15 billion in total loans. This new size allows for greater operational efficiency and a more robust platform to weather economic shifts. Simply put, bigger means more opportunities to serve clients and manage risk better.

• Expand into new, high-growth metro markets like Dallas/Fort Worth, Denver, and Phoenix.
• Integrate FirsTech, Inc., a payment technology subsidiary processing over 40 million transactions annually, for new revenue.
• Leverage cross-selling opportunities across a wider customer base in 10 states.
• Drive efficiency through core systems conversion, anticipated in June 2025, to improve net interest margin.

While CrossFirst Bankshares, Inc. (CFB) was projected to hit standalone revenue of $289.58 million and Earnings Per Share (EPS) of $1.77 for the 2025 fiscal year before the merger, the real forward-looking projection is the accretion to the combined entity. Here's the quick math: the transaction is expected to result in approximately 20% EPS accretion for First Busey Corporation in 2026, the first full year of combined operations. That's a clear financial benefit from the union, which is what your stake now represents. Honestly, that 20% number is the one to watch.

The competitive advantage now lies in a strong commercial focus paired with a diversified funding base and advanced payment technology. The pro forma capital ratios are defintely strong, with a 9.6% leverage ratio and an 11.0% Common Equity Tier 1 (CET1) ratio, which is significantly above the well-capitalized threshold. This capital strength is a huge buffer in today's banking environment.

What this estimate hides is the integration risk-if onboarding takes longer than expected, the efficiency gains could be delayed. But the strategic alignment is sound, focusing on relationship-driven commercial banking in markets with compelling growth potential. To keep up with the latest analysis on this new structure, you should read Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors. Your next step should be to monitor the combined company's Q2 2025 earnings report for updates on the integration timeline and initial synergy realization.