CrossFirst Bankshares, Inc (NASDAQ:CFB) Q3 2020 Earnings Conference Call - Final Transcript

Oct 20, 2020 • 05:00 pm ET


CrossFirst Bankshares, Inc (NASDAQ:CFB) Q3 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the CrossFirst Third Quarter 2020 Earnings Conference Call. At this time, all participants lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Matt Needham. Thank you and please go ahead, sir.

Matt Needham

Welcome and thank you for joining us today. On the call today are Mike Maddox, President and CEO; Dave O'Toole, Chief Financial Officer; and Randy Rapp, our Chief Credit Officer. As a reminder, a telephonic replay of this call along with our earnings release and presentation will be available on our Investor Relations website for an extended period of time.

Before we begin, let me remind everyone that this call may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that actual results may differ materially from the expectations indicated or implied in our forward-looking information. We provide a comprehensive list of risk factors in our SEC filings, which I highly encourage you to review. Any forward-looking statements apply only as of today and we undertake no obligation to update them except as required by applicable securities laws.

Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures are included in the release and presentation, copies of which are all available on our Investor Relations website. All earnings per share metrics discussed today are provided on a diluted per share basis. I'd now like to turn the call over to Mike Maddox.

Mike Maddox

Thank you, Matt. I'm excited to be here today as we discuss our third quarter results on what has been an unprecedented and challenging 2020 for our industry and our customers. At CrossFirst, the health and safety of our employees, clients, shareholders, and the communities remain a top priority and I'd like to wish them all the best in the hopes that they are staying safe and healthy. As we work through a difficult macroeconomic climate, I'm proud of our third quarter performance. We continue to improve our operating leverage, we have maintained strong capital levels, and increased our earnings power through efficiency initiatives, all of which I believe will make the company stronger as we navigate through the current downturn.

The bank reported positive income and prudently added another $10.9 million to the loan loss reserves, bringing our allowance to loans ratio to 1.7%. We expect to continue building our reserves for the remainder of 2020 in order to continue strengthening our balance sheet and position us for a stronger 2021. To offset the impact of elevated provisioning and margin compression, we are focused on creating operational efficiencies by optimizing our staffing levels, investing in technology, and controlling discretionary expenses. Our markets, technology focus, and branch-wide strategy have allowed us to continue to grow and serve our customers effectively during the pandemic. In contrast to other areas of the country,