Executive Summary

Record quarter and full-year results: Q4 2024 net income $22.1M and diluted EPS $0.44; adjusted net income $22.9M and adjusted diluted EPS $0.45, driven by NIM-FTE expansion to 3.41% and lower non-interest expense ex-merger costs .
QoQ improvement vs Q3 2024: operating revenue rose to $68.9M from $67.1M; efficiency ratio improved to 53.99% from 57.52%; ROAA increased to 1.15% from 1.02% .
FY guidance outcomes: FY 2024 NIM-FTE of 3.28% exceeded prior guidance high end (3.20–3.25%), Q4 non-interest expense ex-merger costs came in ~$36.2M (within $36–$37M guidance), while full-year loan growth was 2% (below 3–5% guidance) .
Strategic catalyst: all regulatory approvals obtained for Busey merger; closing targeted March 1, 2025; no earnings call due to pending transaction .

What Went Well and What Went Wrong

What Went Well

Record quarterly and annual earnings; adjusted ROCE reached 11.87% and adjusted ROAA 1.20% in Q4, reflecting improved profitability and operating leverage .
NIM-FTE expanded to 3.41% QoQ, benefiting from asset-liability repricing lag, accelerated loan fees and purchase accounting marks (~3 bps), and rate hedge impact (~2 bps); cost of funds decreased 39 bps QoQ .
Cost discipline: Q4 efficiency ratio improved to 53.99% (adjusted 50.93%); FY 2024 adjusted efficiency ratio-FTE improved to 54.61% vs 55.17% in 2023; deposits grew 3% YoY with higher average deposits .

“We’re excited to have achieved record earnings for the quarter and the year as we approach the next steps in our transformational merger … well on our way to joining Busey” — Mike Maddox, CEO .

What Went Wrong

Asset quality mixed: non-performing assets rose to 0.52% of total assets (from 0.34% in Q3) with NPL and foreclosed assets higher; provision remained $3.5M; allowance/loans increased to 1.26% .
Loan demand remained lower; period-end loans decreased $73M QoQ (-1%), reflecting economic uncertainty, rate environment, and strategic reductions in CRE; full-year loan growth +2% vs 3–5% guidance .
Non-interest income flat QoQ as declines in client-related other income and interchange were offset by higher gain on sale of loans and swap fees; some expense categories (software/communication, professional fees) increased YoY ex-merger .

Financial Results

Key Metrics vs Prior Year and Prior Quarter

Metric	Q4 2023	Q3 2024	Q4 2024
Operating revenue ($USD Millions)	$61.4	$67.1	$68.9
Diluted EPS (GAAP) ($)	$0.35	$0.39	$0.44
Adjusted diluted EPS ($)	$0.39	$0.43	$0.45
NIM - FTE (%)	3.23%	3.29%	3.41%
Efficiency ratio (%)	57.05%	57.52%	53.99%
Adjusted efficiency ratio - FTE (%)	51.87%	52.30%	50.93%
ROAA (%)	0.97%	1.02%	1.15%
ROCE (%)	10.71%	10.54%	11.42%

Loan Portfolio by Segment (Period-End, $USD Millions)

Segment	Q4 2023	Q3 2024	Q4 2024
Commercial & Industrial	$2,160	$2,221	$2,164
Energy	$214	$224	$319
CRE - Owner-Occupied	$567	$583	$552
CRE - Non-Owner-Occupied	$2,686	$2,803	$2,723
Residential Real Estate	$464	$477	$479
Consumer	$37	$23	$21
Total Loans	$6,128	$6,331	$6,258

Deposit Composition (Period-End, $USD Millions)

Category	Q4 2023	Q3 2024	Q4 2024
Non-interest-bearing	$990	$901	$977
Transaction	$800	$812	$821
Savings & Money Market	$2,870	$2,934	$2,985
Time Deposits	$1,831	$1,987	$1,932
Total Deposits	$6,491	$6,634	$6,715

Asset Quality and Capital KPIs

KPI	Q4 2023	Q3 2024	Q4 2024
NPA / Total Assets (%)	0.34%	0.34%	0.52%
ACL / Total Loans (%)	1.20%	1.23%	1.26%
Net charge-offs / Avg loans (%)	0.12%	0.10%	0.10%
CET1 Capital Ratio (%)	11.0% (FY-end)	10.6%	11.0%
Total Risk-Based Capital Ratio (%)	12.3% (FY-end)	11.8%	12.3%
Book Value/Share ($)	$14.35	$15.65	$15.69
Tangible Book Value/Share ($)	$13.56	$14.92	$14.97

Guidance Changes

Metric	Period	Previous Guidance	Current/Actual	Change
NIM - FTE	FY 2024	High end of 3.20%–3.25%	3.28%	Raised/Beat guidance
Non-interest expense (ex-merger), $M	Q4 2024	$36–$37M	~$36.2M (calc: $37.184M GAAP less $1.0M merger costs)	Met guidance
Loan growth	FY 2024	3–5%	+2% YoY	Lower than guided

Note: Company did not host a Q4 call; no forward guidance beyond merger-related timeline disclosed .

Earnings Call Themes & Trends

(Company did not host Q3 or Q4 calls due to pending merger; themes based on press releases.)

Topic	Previous Mentions (Q-2 and Q-1 proxy via Q3 tables)	Current Period (Q4 2024)	Trend
Macro/rates & NIM	Q3: NIM-FTE expanded to 3.29% post Sept rate cut; balance sheet slightly liability-sensitive (+1% NII for -100 bps rates) .	NIM-FTE 3.41%; cost of funds -39 bps; continued benefits from rate hedge and repricing lag .	Improving NIM trajectory as rates decline .
Loan demand & mix	Q3: Weaker demand; CRE concentration reduction underway .	Loan demand lower; CRE reductions continue; Energy balances increased .	Muted demand; continued de-risking of CRE .
Deposits & liquidity	Q3: Deposits -1% QoQ; average deposits +2% QoQ; liquidity ~34% of assets .	Deposits +1% QoQ; liquidity increased to 37% of assets on higher cash .	Stable to improving deposit base and liquidity .
Technology initiatives	Q3: Core system renegotiation; digital banking platform implementation underway .	Higher software/communication and other expenses linked to digital platform implementation .	Modernization progressing .
Asset quality	Q3: NPA 0.34%; classified loans ratio improved to 10.7% .	NPA rose to 0.52%; provision $3.5M; ACL/loans 1.26% .	Watchlist: rising NPA but charge-offs stable .
Strategic/M&A	Q3: Announced proposed Busey merger .	All regulatory approvals obtained; expected close Mar 1, 2025 .	Merger execution nearing close .

Management Commentary

Strategy and merger: “Record earnings for the quarter and the year … with the receipt of regulatory approval, we are well on our way to joining Busey in a partnership that is an ideal fit …” — Mike Maddox, CEO .
Q3 context: “Expanded earnings and continued advancement of our operating leverage … reducing our CRE concentration and driving operating leverage with the trough in our NIM behind us” — Mike Maddox .
Profit drivers: NIM expansion aided by repricing lag, accelerated loan fees, purchase accounting marks (~$0.5M, ~~3 bps) and rate hedge impact (~~$0.4M, ~2 bps); cost of funds fell 39 bps QoQ .
Cost discipline: FY efficiency ratio improved to 57.69%; adjusted ratio-FTE to 54.61%; stronger fee income growth (~11% YoY in service charges and interchange) .

Q&A Highlights

No Q4 earnings call or webcast due to the pending Busey transaction; therefore, no Q&A session or further guidance clarifications beyond disclosed press release commentary .

Estimates Context

Wall Street consensus estimates via S&P Global for Q4 2024 EPS and revenue were unavailable due to missing CIQ mapping for CFB at time of query. As a result, a direct comparison to consensus could not be provided (values unavailable via S&P Global).
Given the outperformance vs internal guidance (FY NIM-FTE above guided range; Q4 non-interest expense ex-merger within guided range), sell-side models may need to adjust NIM trajectory upward and reassess credit cost outlook amid higher NPAs .

Key Takeaways for Investors

Profitability inflection: NIM-FTE expansion to 3.41% and improved efficiency ratio drove record Q4 and FY earnings; operating leverage is strengthening .
Guidance scorecard: FY NIM-FTE exceeded prior range; Q4 non-interest expense ex-merger met guidance; but loan growth undershot at +2% vs 3–5%, reflecting cautious demand and strategic CRE reductions .
Credit watch: NPAs increased to 0.52% with specific C&I additions to non-accruals; provision steady; maintain focus on credit trends as CRE de-risking continues .
Liquidity/Deposits: Deposits +1% QoQ and +3% YoY; liquidity rose to 37% of assets, supporting balance sheet resilience into merger close .
Merger catalyst: All regulatory approvals secured; closing targeted March 1, 2025—a potential near-term stock catalyst and strategic pivot to Busey’s broader platform .
Expense trajectory: Core processing savings realized in Q3 continued; digital platform implementation drove some cost line increases but overall efficiency improved .
Trading lens: Near-term sentiment likely hinges on merger execution and any further NIM benefits from rate cuts; medium-term thesis shifts to combined entity scale and fee growth opportunities (wealth management, payments) noted in Q3 commentary .

CROSSFIRST BANKSHARES, INC. (CFB)·Q4 2024 Earnings Summary