CrossFirst IPO: What You Need To Know

With the Fed having cut interest rates for the first time in 11 years, it might to be prudent to weigh in the prospects and pitfalls of this regional bank, which is testing the IPO waters this week.

The IPO Terms

Kansas-based CrossFirst Bankshares, Inc. is planning a 7.11-million share IPO, with the company offering 5.75 million shares and certain selling shareholders another 1.36 million shares, according to an amendment to the preliminary prospectus.

The company expects to price the offering at $15-$17 per share.

At the midpoint of the estimated price range, the offering is expected to raise gross proceeds of $113.76 million.

The company has applied for listing its shares on the Nasdaq under the ticker symbol CFB.

Keefe, Bruyette & Woods – a Stifel company, Raymond James, Stephens and Sandler O'Neill are the underwriters for the offering.

The Company

CrossFirst Bankshares is the holding company for CrossFirst Bank, which provides a full suite of financial services to businesses, business owners, professionals and their personal networks throughout its five primary markets – Kansas, Missouri, Oklahoma and Texas.

As of June 30, the company had assets of $4.5 billion, loans amounting to $3.5 billion, total deposits of $3.6 billion and total stockholder's equity.

The company has grown its assets at a compounded annual growth rate of 48.8% between 2008 and 2018, raising over $400 million in capital to fund such growth.

The Finances

For the 12 months ended Dec. 31, 2018, CrossFirst reported net interest income of $110.37 million, up about 48% year-over-year. The net income more than trebled to $19.59 million.

For the six months ended June 30, net interest income rose about 40% to $68.48 million and net income surged up from $1.85 million to $18.61 million.

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