 LEAWOOD, Kan., July 23, 2020 GLOBE NEWSWIRE -- CrossFirst Bankshares, Inc. Nasdaq: CFB, the bank holding company for CrossFirst Bank, today reported its results for the second quarter of 2020, including a net loss of 7.4 million, or 0.14 per diluted share and year-to-date 2020 net loss of 3.5 million or 0.07 per diluted share. Our overall core operating performance remained strong. We achieved our 25th consecutive quarter of operating revenue growth. However, we also made a prudent decision to increase our allowance for loan loss by 21 million as a result of the COVID-19 pandemic and volatility in energy prices. We remain focused on working with our customers and helping to provide solutions as the virus continues to take its toll on our local economies, said CrossFirsts CEO and President Mike Maddox. In addition, the Companys market value, compared to book value, and adverse trends in economic conditions, caused the Company to record a 7.4 million non-cash impairment charge, fully impairing the goodwill related to a previously acquired branch. Maddox continued, Overall, this is a one-time impairment charge that has no impact on the long term value of our Company. Even with the challenging economy, our Company results reflect quarter over quarter balance sheet and operating revenue growth, increased efficiency, and stronger year-to-date pre-tax, pre-provision profit despite taking a goodwill impairment charge.Second Quarter 2020 Highlights: 5.5 billion of assets with 20 operating revenue growth compared to the second quarter of 2019 Pre-tax, pre-provision profit, a non-GAAP financial measure, for the second quarter of 12.8 million and year-to-date pre-tax, pre-provision profit of 30.9 million, both of which include a one-time 7.4 million goodwill impairment expense for 2020 Achieved an efficiency ratio of 71 for the second quarter of 2020 and a non-GAAP core efficiency ratio of 53 after adjusting for nonrecurring or non-core items Grew loans by 418 million from the previous quarter and 953 million or 27 over the last twelve months; recorded 369 million of PPP loans during the second quarter Grew deposits by 331 million from the previous quarter and 720 million or 20 over the last twelve months Book value per share of 11.66 at June 30, 2020 compared to 11.00 at June 30, 2019 Quarter-to-Date Year-to-Date June 30, June 30, 2019 2020 2019 2020 Dollars in millions except per share data Operating revenue1 36.5 43.8 71.8 84.1 Net income loss 9.4 7.4 18.8 3.5 Diluted earnings loss per share 0.20 0.14 0.40 0.07 Return on average assets 0.86 0.54 0.88 0.14 Non-GAAP core operating return on average assets2 0.89 0.00 0.83 0.15 Return on average common equity 7.78 4.84 7.87 1.15 Non-GAAP return on average tangible common equity2 7.90 4.90 8.00 1.16 Net interest margin 3.30 3.14 3.34 3.16 Net interest margin, fully tax-equivalent3 3.35 3.19 3.40 3.22 Efficiency ratio 60.09 70.81 62.11 63.29 Non-GAAP core operating efficiency ratio, fully tax-equivalent23 58.43 53.09 60.71 53.61 1 Net interest income plus non-interest income. 2 Represents a non-GAAP measure. See Table 5. Non-GAAP Financial Measures for a reconciliation of this measure. 3 Tax exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from federal taxes. The incremental federal tax rate used is 21.0. COVID-19 UpdateThe COVID-19 pandemic and measures taken in response thereto have created economic uncertainty and negatively impacted most of our customers in some capacity. During the second quarter of 2020, we continued to operate in accordance with our comprehensive pandemic plan, which includes social distancing measures for customers and employee interactions. In addition, the Company has continued to support key regulatory relief programs for customers, increased provisions for loan losses, increased monitoring of key loan portfolio segments, modified loans, experienced slower discretionary spending, and elevated its risk management activities. Our branch-lite strategy, technology, and relationship banking model, have allowed us to effectively operate through the pandemic, work remotely to be safe, and have the agility to effectively serve our customers when they need it most. The Company continues to assess and monitor the COVID-19 pandemic and federal and local requirements in evaluating the full re-opening of its offices and remains flexible regarding process and timeline.Coronavirus Aid, Relief, and Economic Security Act CARES Act Programs As a preferred lender with the Small Business Administration SBA, we were in a unique position to respond immediately to the provisions of the CARES Act, specifically the Paycheck Protection Program PPP component. We are committed to helping our local businesses and the communities that we serve during these extremely challenging times and will continue to help customers access regulatory relief and other programs. As of June 30, 2020, we received and funded over 1,000 loans, totaling 369 million. The Company secured short term funding to support the PPP and plans to move the loans through the forgiveness process as quickly as possible. In addition to the PPP, we are granting loan modifications and 90180 day payment deferrals for many customers who have requested additional relief. As of June 30, 2020, the Company has made modifications to 709 million in loans related to COVID-19 on its balance sheet, which, excluding the PPP loans, represents almost 16 of our total loan balances. We are evaluating each modification on a case-by-case basis and assessing the borrowers willingness and capacity to support the loan until maturity. The Company will continue to implement additional governmental assistance programs as more details become available around the processes and procedures for such programs and grant loan modifications when appropriate. Income from OperationsNet Interest IncomeThe Company produced interest income of 51.3 million for the second quarter of 2020, a decrease of 5 from the second quarter of 2019 and a decrease of 5 from the previous quarter. Interest income was down from the second quarter of 2019 primarily from the effect of declining interest rates. Average earning assets totaled 5.3 billion for the second quarter of 2020, an increase of 1 billion or 24 from the same quarter in 2019. The tax-equivalent yield on earning assets declined from 5.18 to 3.96 during the second quarter of 2020, compared to the second quarter of 2019, primarily due to the movement of variable rate assets indexed to declining market rates. Year-to-date the Company produced interest income of 105.5 million, with little change from the same period in the prior year.Interest expense for the second quarter of 2020 was 10.1 million, or 48 lower than the second quarter of 2019 and 37 lower than the previous quarter. While average interest-bearing deposits increased to 3.5 billion in the second quarter of 2020, an increase of 18 from the same quarter in 2019, overall interest expense on interest-bearing deposits declined as a result of declining interest rates. Non-deposit funding costs decreased to 1.35 from 1.72 in the first quarter of 2020 while overall cost of funds for the quarter was 0.85, compared to 1.49 for the first quarter of 2020. Year-to-date, the Company had interest expense of 26.1 million, a decrease of 30 from the same period in the prior year.Tax-equivalent net interest margin decreased from 3.24 to 3.19 in the the current quarter and declined from 3.35 in the same quarter in 2019, reflecting the impact of the declining rate environment. Year-to-date, the Company had a tax equivalent margin of 3.22 compared to 3.40 over the same period in the prior year. As of June 30, 2020, CrossFirst is currently holding 369 million of PPP loans made during 2020 with an average interest rate of 2.35. Second quarter 2020 net interest margin benefited from 2 million of loan fees that the Company will continue to recognize as the loans are forgiven. Over the course of the last several quarters, the Company has continued to shorten the duration of funding and adjusted variable rate accounts with market movements in interest rates, keeping pace with declining variable loan yields. The tax-equivalent adjustment, which accounts for income taxes saved on the interest earned on nontaxable securities and loans, was 0.7 million for the second quarter of 2020. Net interest income totaled 41.2 million for the second quarter of 2020 or 8 higher than the first quarter of 2020, and 18 higher than the second quarter of 2019.Non-Interest IncomeNon-interest income increased 1.0 million in the second quarter of 2020 or 58 compared to the same quarter of 2019 and increased 26 compared to the first quarter of 2020. While the Company continued to increase fee and credit card income commensurate with its growth, during the second quarter of 2020 the Company recorded 0.3 million of securities gains while the back-to-back swap fee income continued to remain low in the current interest rate environment. Year-to-date non-interest income increased 43 compared to the same period in the prior year.Non-Interest ExpenseNon-interest expense for the second quarter of 2020 was 31.0 million which increased 41 compared to the second quarter of 2019 and increased 40 from the first quarter of 2020. The Company recorded a 7.4 million expense related to a non-cash goodwill impairment charge in the second quarter of 2020 primarily as a result of current economic and industry conditions at June 30, 2020. 