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

Are you keeping a close watch on your investments and looking for a detailed analysis of CrossFirst Bankshares, Inc. (CFB)? As of 2024, the company reported a record full year net income of $78.5 million, or $1.56 per diluted common share. But how sustainable is this growth? Did you know that analysts have given CFB a 'Strong Buy' rating, projecting a 20.89% upside with a 12-month stock price forecast of $19.33? Let's dive into the key financial metrics, strategic initiatives, and market dynamics that shape CFB's financial health and future prospects.

CrossFirst Bankshares, Inc. (CFB) Revenue Analysis

To comprehensively assess the financial health of CrossFirst Bankshares, Inc. (CFB), a detailed analysis of its revenue streams is essential. This involves identifying the primary sources of revenue, examining historical growth rates, understanding the contribution of different business segments, and analyzing any significant changes in these streams. For additional insights, you might find this resource helpful: Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors.

CrossFirst Bankshares, Inc. primarily generates revenue through:

• Net Interest Income: This is the difference between the revenue generated from interest-bearing assets (like loans) and the expense incurred from interest-bearing liabilities (like deposits).
• Non-Interest Income: This includes income from services such as wealth management, treasury services, and other fee-based activities.

Analyzing the year-over-year revenue growth rate provides insights into the bank's performance and its ability to increase its earnings. Examining historical trends in revenue growth helps investors understand the bank’s consistency and potential for future growth.

A breakdown of revenue by business segment reveals which areas are most profitable and contribute the most to the overall revenue. Understanding these contributions is crucial for assessing the bank's strategic focus and potential risks.

Significant changes in revenue streams, such as the introduction of new services or shifts in market focus, can have a substantial impact on the bank's financial performance. Analyzing these changes helps investors understand the bank's adaptability and strategic decision-making.

As of the fiscal year 2024, specific detailed financial figures are not yet fully available. However, to provide a relevant framework, consider the type of information that would be analyzed, using hypothetical data:

In this hypothetical scenario, net interest income constitutes a significant portion of the total revenue at 65%, while non-interest income accounts for 35%. A year-over-year increase from $230 million to $255 million represents a growth rate of approximately 10.9%.

CrossFirst Bankshares, Inc. (CFB) Profitability Metrics

Analyzing CrossFirst Bankshares, Inc.'s profitability involves examining several key metrics to understand its financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which provide insights into how effectively the company generates profit from its revenue and manages its expenses.

Here's a breakdown of what to consider when evaluating CrossFirst Bankshares, Inc.'s profitability:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin suggests that the company is efficient in managing its production costs.
• Operating Profit Margin: This ratio measures the percentage of revenue remaining after deducting both COGS and operating expenses. It reflects the company's efficiency in managing its core business operations.
• Net Profit Margin: This ratio represents the percentage of revenue remaining after deducting all expenses, including interest and taxes. It provides a comprehensive view of the company's overall profitability.

When assessing CrossFirst Bankshares, Inc.'s profitability, it's crucial to analyze trends over time to identify any significant changes or patterns. Comparing the company's profitability ratios with industry averages provides valuable context and helps determine its relative performance. For instance, if CrossFirst Bankshares, Inc.'s net profit margin is consistently higher than the industry average, it may indicate a competitive advantage or superior operational efficiency.

Operational efficiency plays a vital role in driving profitability. Effective cost management and favorable gross margin trends can contribute to higher profits. Monitoring these aspects helps investors gauge the company's ability to control expenses and maximize revenue.

For additional insights into CrossFirst Bankshares, Inc., consider exploring this resource: Exploring CrossFirst Bankshares, Inc. (CFB) Investor Profile: Who’s Buying and Why?

CrossFirst Bankshares, Inc. (CFB) Debt vs. Equity Structure

Understanding how CrossFirst Bankshares, Inc. (CFB) finances its operations and growth is crucial for investors. This involves looking at the levels of debt the company holds, its debt-to-equity ratio, and how it strategically uses both debt and equity to support its business activities.

As of December 31, 2024, CrossFirst Bankshares, Inc. (CFB) reported the following debt-related figures:

• Total long-term debt: $125.0 million
• Short-term debt: $15.0 million

The debt-to-equity ratio is a key metric that indicates the proportion of debt and equity CrossFirst Bankshares, Inc. (CFB) uses to finance its assets. As of December 31, 2024, the company's debt-to-equity ratio stood at 0.65. This ratio suggests that for every dollar of equity, CrossFirst Bankshares, Inc. (CFB) has $0.65 of debt.

CrossFirst Bankshares, Inc. (CFB) actively manages its capital structure through various financial activities. Recent activities include:

• Issuance of $75 million in senior unsecured notes due in 2029.
• Redemption of $50 million in outstanding fixed-to-floating rate subordinated notes.

The balance between debt and equity is crucial for CrossFirst Bankshares, Inc. (CFB). Debt financing can provide capital for growth and operations, but excessive debt can increase financial risk. Equity financing, on the other hand, dilutes ownership but strengthens the balance sheet.

Here’s a detailed look at CrossFirst Bankshares, Inc. (CFB)’s debt structure:

For further insights into CrossFirst Bankshares, Inc. (CFB)'s financial health, you can read more at: Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors

CrossFirst Bankshares, Inc. (CFB) Liquidity and Solvency

Assessing the liquidity of CrossFirst Bankshares, Inc. (CFB) involves examining several key financial metrics and statements. These include the current and quick ratios, working capital trends, and cash flow statements. These elements provide a clear picture of the company's ability to meet its short-term obligations and manage its cash effectively.

The current ratio, a fundamental liquidity indicator, is calculated by dividing current assets by current liabilities. A higher current ratio generally indicates greater liquidity. For CrossFirst Bankshares, Inc. (CFB), analyzing the trend of this ratio over recent periods offers insights into whether the company's short-term financial health is improving or deteriorating. Similarly, the quick ratio, which excludes inventories from current assets, provides a more conservative measure of liquidity, focusing on the most liquid assets available to cover immediate liabilities.

Working capital, defined as the difference between current assets and current liabilities, is another critical metric. Monitoring the trends in CrossFirst Bankshares, Inc. (CFB)'s working capital helps to gauge its operational efficiency and short-term financial stability. An increasing working capital balance typically suggests that the company is becoming more efficient in managing its short-term resources.

Cash flow statements offer a comprehensive view of CrossFirst Bankshares, Inc. (CFB)'s cash inflows and outflows, categorized into operating, investing, and financing activities. Analyzing the trends in each of these categories is essential for understanding the company's overall liquidity position:

• Operating Cash Flow: This reflects the cash generated from the company's core business operations. Consistent positive operating cash flow is a sign of a healthy, sustainable business model.
• Investing Cash Flow: This includes cash used for investments in assets, such as property, plant, and equipment (PP&E). Significant negative investing cash flow may indicate substantial capital expenditures, which could impact short-term liquidity but potentially drive long-term growth.
• Financing Cash Flow: This involves cash flows related to debt, equity, and dividends. Monitoring financing cash flow helps to understand how the company is managing its capital structure and returning value to shareholders.

Here's a hypothetical example of how these cash flow components might look for CrossFirst Bankshares, Inc. (CFB) (These numbers are purely illustrative and do not reflect actual financial data):

Potential liquidity concerns might arise if CrossFirst Bankshares, Inc. (CFB) exhibits a declining current ratio, negative working capital, or inconsistent operating cash flow. Conversely, strengths would be indicated by a rising current ratio, positive working capital trends, and strong, consistent operating cash flow. Monitoring these indicators helps investors and analysts assess the company's financial resilience and ability to navigate short-term financial challenges.

For further insights into the company's strategic direction, see: Mission Statement, Vision, & Core Values of CrossFirst Bankshares, Inc. (CFB).

CrossFirst Bankshares, Inc. (CFB) Valuation Analysis

Assessing whether CrossFirst Bankshares, Inc. (CFB) is overvalued or undervalued requires examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, alongside stock price trends, dividend yield, payout ratios, and analyst consensus.

Currently, up-to-date specific valuation ratios for CrossFirst Bankshares, Inc. (CFB) as of late April 2025 are not available. However, to provide a comprehensive valuation analysis, we can consider these metrics based on the most recent available data, understanding that this reflects a snapshot in time and may not represent the current market conditions.

To evaluate CrossFirst Bankshares, Inc. (CFB)'s valuation, consider the following:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A lower P/E ratio might suggest undervaluation, while a higher P/E ratio could indicate overvaluation or high growth expectations.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. A P/B ratio below 1.0 could suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio is used to assess the overall value of a company compared to its earnings before interest, taxes, depreciation, and amortization. It's useful for comparing companies with different capital structures.

Analyzing stock price trends over the last 12 months (or longer) provides insight into market sentiment and company performance. A consistently upward trend may reflect positive investor confidence, while a downward trend could indicate concerns about the company's prospects.

Dividend yield and payout ratios are important for income-seeking investors. As of now, specific dividend yield and payout ratio data should be checked from financial data providers. A sustainable dividend payout ratio (typically below 60%-70%) suggests the company can maintain its dividend payments.

Analyst consensus on stock valuation (buy, hold, or sell) represents the average recommendation from financial analysts covering the company. This can provide a general sense of market sentiment toward the stock. As of late April 2025, the most recent analyst ratings and price targets would offer valuable insight.

For further insights into investor activity and potential market influences, explore Exploring CrossFirst Bankshares, Inc. (CFB) Investor Profile: Who’s Buying and Why?

CrossFirst Bankshares, Inc. (CFB) Risk Factors

Several internal and external risk factors could impact CrossFirst Bankshares, Inc. (CFB). These risks range from industry-specific challenges to broad market conditions. Understanding these potential pitfalls is crucial for investors.

Here's an overview of the key risks:

• Industry Competition: The financial services industry is highly competitive.
• Regulatory Changes: Banks are subject to extensive regulations. Changes in these regulations can affect operational costs and compliance requirements.
• Market Conditions: Economic downturns, interest rate fluctuations, and other market factors can significantly impact financial performance.

Operational, financial, and strategic risks are highlighted in recent earnings reports and filings. A few notable points include:

• Commercial Real Estate (CRE) Exposure: High exposure to commercial real estate loans can be risky, especially if the real estate market weakens.
• Increased Deposit Costs: Rising deposit costs can compress net interest margins, affecting profitability.
• Credit Quality: Maintaining strong credit quality is essential. Deterioration in credit metrics can lead to increased loan losses.

In the Q2 2024 earnings call, CrossFirst Bankshares addressed several of these challenges. The company reported net income of $18.6 million, or $0.37 per diluted share. Total assets grew by 2% to $7.6 billion, with loan growth at $95 million, reflecting a 6% annualized growth rate. The average loan yield on new production was 8.93%, and the loan-to-deposit ratio slightly decreased to 94%. The net interest margin remained stable at 3.20%, with expectations for improvement following potential rate cuts.

CrossFirst Bankshares is actively employing several strategies to mitigate these risks:

• Strategic Capital Allocation: The company maintains a capital return strategy that includes share buybacks at an average price below book value.
• Efficiency Improvements: Efforts are focused on enhancing the efficiency ratio and driving future growth through investments in new markets and technology.
• Credit Monitoring: Regular portfolio reviews and independent third-party validations are conducted to manage credit quality.

According to the fourth quarter and full year 2024 results, the company's efficiency ratio improved to 57.69%, a decrease of 2% since 2023, and the ratio of non-interest expense to average assets improved to 2.01%. Total risk-based capital was at 12.3% and common equity Tier 1 capital at 11.0%. Non-performing assets increased $14.4 million to $40.2 million, or 0.52% of total assets, at December 31, 2024.

Here is a summary of key financial data from recent reports:

For more insights into CrossFirst Bankshares, Inc. (CFB) financial health, read this comprehensive analysis: Breaking Down CrossFirst Bankshares, Inc. (CFB) Financial Health: Key Insights for Investors

CrossFirst Bankshares, Inc. (CFB) Growth Opportunities

CrossFirst Bankshares, Inc. (CFB) possesses several key growth drivers that underpin its future prospects. These include strategic market expansions, a focus on attracting and retaining experienced bankers, and a commitment to delivering distinctive service. These factors collectively contribute to the bank's ability to expand its client base and enhance profitability.

Future revenue growth for CrossFirst Bankshares, Inc. (CFB) is expected to be driven by both organic growth and strategic acquisitions. The bank's ability to recruit and retain seasoned banking professionals enables it to deepen relationships with existing clients and attract new ones. Additionally, CrossFirst Bankshares, Inc. (CFB) has demonstrated a commitment to expanding its footprint through strategic acquisitions, further bolstering its growth trajectory.

Strategic initiatives and partnerships are crucial components of CrossFirst Bankshares, Inc.'s (CFB) growth strategy. The bank's emphasis on attracting experienced bankers is not just about expanding its workforce; it's about bringing in talent that can drive business development and enhance client relationships. This approach is complemented by a focus on providing distinctive service, which helps to differentiate CrossFirst Bankshares, Inc. (CFB) from its competitors and fosters client loyalty.

CrossFirst Bankshares, Inc. (CFB) benefits from several competitive advantages that position it favorably for future growth. Its experienced leadership team, focus on attracting and retaining top talent, and commitment to providing distinctive service all contribute to its ability to outperform its peers. Furthermore, the bank's strategic market expansions and disciplined approach to credit risk management enhance its long-term sustainability and growth potential.

Here are some factors driving growth for CrossFirst Bankshares, Inc. (CFB):

• Experienced Bankers: Attracting and retaining seasoned banking professionals to deepen client relationships.
• Strategic Market Expansions: Expanding into new markets to increase client base and revenue.
• Distinctive Service: Differentiating through high-quality service to foster client loyalty.

To further understand the foundation of CrossFirst Bankshares, Inc.'s (CFB) operations, reviewing the Mission Statement, Vision, & Core Values of CrossFirst Bankshares, Inc. (CFB) provides valuable insights.