Bad loan erases fourth-quarter profit at CrossFirst in Kansas
CrossFirst Bancshares in Leawood, Kan., disclosed that a bad loan had turned its solid fourth quarter into an unprofitable one.
The $4.1 billion-asset company revised its financial results on Monday after recording an additional $16 million loan-loss provision tied to a $27 million commercial loan. The decision turned quarterly earnings of $11.4 million into a net loss of $700,000.
The previously reported profit had been a quarterly record for the 12-year-old CrossFirst.
CrossFirst’s 2019 earnings fell to $28.5 million from $40.6 million after the provision. The company earned $19.6 million in 2018.
CrossFirst’s initial fourth-quarter results included $5.5 million in net charge-offs, largely the result of a partial write-down on the commerical loan.
"The provision had a negative impact on our fourth quarter and 2019 results, but it does not change our strong outlook for 2020 earnings," CrossFirst President and CEO George Jones Jr. said a press release. "I continue to remain very proud of our teams and what we have accomplished for the year.”
CrossFirst completed an initial public offering in August, raising $87 million after selling 6.6 million shares of common stock.