CrossFirst Bankshares (CFB)

Friday

10:31 AM

ThesisThe bank's strong loan growth and improving net interest margins are driving positive sentiment among investors, suggesting a favorable outlook for profitability.

Revenue Outlook

Metric	FY2023	FY2024E	FY2025E
Revenue	$231M	$262M	$282M
Rev. Growth	+299921%	+13.6%	+7.3%
EPS	$1.35	$1.59	$1.82
EPS Growth	+8.9%	+17.5%	+15.0%
P/E (fwd)	11.8×	10.1×	8.8×

★ Analysts see FY2024 revenue reaching $262M — +13.6% growth in a single year.

The Bull Case for Growth

01CrossFirst's commercial loan portfolio has expanded by 25% YoY, indicating strong demand in its target markets.
02The bank's net interest margin has improved to 3.5%, driven by rising interest rates and effective asset-liability management.
03CrossFirst has launched a new digital banking platform, expected to increase customer acquisition by 15% over the next year.
04The bank's non-performing loan ratio has decreased to 0.5%, reflecting improved credit quality and risk management practices.
05Digital banking transformation
06Regional economic recovery post-pandemic
07Changes in the Federal Funds Rate impacting net interest margins
08Growth in commercial loan demand in target markets

FY2023 Snapshot

Revenue: $231M
Rev. Growth: +299921%
Gross Margin: 100%
Op. Margin: 36.4%
Net Margin: 28.9%
Net Income: $67M
NI Growth: +8.2%
EPS: $1.35
1Y Return: -9.2%

My Notes

"Management noted, 'Our focus on commercial lending is paying off, with demand outpacing expectations.'"
Moat: CrossFirst's competitive advantage lies in its strong regional presence and personalized customer service…
value - the bank's low valuation metrics (P/B of 1.1x) and stable earnings growth appeal to value-oriented investors.
Rising interest rates typically enhance net interest margins for banks, allowing CrossFirst to earn more on loans compared to what it pays…
Watch on earnings: Federal Funds Rate, Loan growth rate, Net interest margin.

One Sentence Summary:

The bull case is simple: analysts see revenue climbing from $262M to $282M as crossfirst's commercial loan portfolio has expanded by 25% yoy, indicating strong demand in its target markets.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

Writing up the research noteFirst read for a new ticker takes about 20-30 seconds while we build the analysis from the latest fundamentals, estimates, and intelligence. It's saved after this, so future visits are instant.