UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from  _______  to _______

Commission file number 001-39028

CROSSFIRST BANKSHARES, INC.

(Exact Name of Registrant as Specified in its Charter)

Kansas			26-3212879
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
11440 Tomahawk Creek Parkway
Leawood	,	KS	66211
(Address of principal executive offices)			(Zip Code)

(913) 901-4516

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	CFB	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒  No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒  No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No ☒

As of April 26, 2024, the registrant had 49,292,977 shares of common stock, par value $0.01, outstanding.

CROSSFIRST BANKSHARES, INC.

Form 10-Q for the Quarter Ended March 31, 2024

Index

Part I. Financial Information
Item 1. Consolidated Financial Statements
Cautionary Note Regarding Forward-Looking Information	3
Consolidated Statements of Financial Condition – Unaudited	4
Consolidated Statements of Operations – Unaudited	5
Consolidated Statements of Comprehensive Income – Unaudited	6
Consolidated Statements of Stockholders’ Equity – Unaudited	7
Consolidated Statements of Cash Flows – Unaudited	8
Notes to Consolidated Financial Statements – Unaudited	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3. Quantitative and Qualitative Disclosures about Market Risk	52
Item 4. Controls and Procedures	54
Part II. Other Information
Item 1. Legal Proceedings	54
Item 1A. Risk Factors	54
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 5. Other Information	55
Item 6. Exhibit Index	56
Signature	57

2

Cautionary Note Regarding Forward-Looking Information

All statements contained in this quarterly report on Form 10-Q that do not directly and exclusively relate to historical facts constitute forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized,” “position” and “outlook,” or the negative of these words or other comparable words or phrases of a future or forward-looking nature. For example, our forward-looking statements include, without limitation, statements regarding our business plans, expectations, or opportunities for growth; our expense control initiatives and the results expected to be realized from those initiatives; our anticipated financial results, expenses, cash requirements and sources of liquidity; our capital allocation strategies and plans; and our anticipated future financial performance.

Unless we state otherwise or the context otherwise requires, references in this Form 10-Q to “we,” “our,” “us,” and the “Company” refer to CrossFirst Bankshares, Inc., and its consolidated subsidiaries. References in this Form 10-Q to “CrossFirst Bank” and the “Bank” refer to CrossFirst Bank, our wholly owned consolidated bank subsidiary.

These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s belief, certain assumptions made by management, and financial trends that may affect our financial condition, results of operations, business strategy or financial needs, many of which, by their nature, are inherently uncertain and beyond our control. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors, including, without limitation: uncertain or unfavorable business or economic conditions and any regulatory responses thereto, including uncertainty and volatility in the financial markets, possible slowing or recessionary economic conditions and continuing or increasing inflation; geographic concentration of our markets; changes in market interest rates that affect the pricing of our products and our net interest income; our ability to effectively execute our growth strategy and manage our growth, including identifying, consummating and integrating suitable mergers, acquisitions or other business combinations, entering new lines of business or offering new or enhanced services or products; fluctuations in the fair value of our investments; our ability to successfully manage our credit risk, particularly in our commercial real estate, energy and commercial-based loan portfolios, and the sufficiency of our allowance for credit losses; declines in the values of the real estate and other collateral securing loans in our portfolio; an increase in non-performing assets; borrower and depositor concentration risks; risks associated with originating Small Business Administration loans; our dependence on our management team, including our ability to attract, hire and retain key employees and their client and community relationships; our ability to raise and maintain sufficient liquidity and capital; competition from banks, credit unions, FinTech companies and other financial services providers; the effectiveness of our risk management framework; accounting estimates; our ability to maintain effective internal control over financial reporting; our ability to keep pace with technological changes; system failures, service denials, cyber incidents or other failures, disruptions or security breaches; employee error, employee or client misconduct, fraud committed against the Company or our clients, or incomplete or inaccurate information about clients and counterparties; disruptions to our business caused by our third-party service providers; our ability to maintain our reputation; environmental liability or failure to comply with regulatory requirements affecting foreclosed properties; costs and effects of litigation, investigations or similar matters to which we may be subject; risk exposure from transactions with financial counterparties; severe weather, natural disasters, pandemics or other health crises, acts of war or terrorism, climate change and responses thereto, or other external events; compliance with (and changes in) laws, rules, regulations, interpretations or policies relating to or affecting financial institutions, including stringent capital requirements, higher FDIC insurance premiums and assessments, consumer protection laws and privacy laws and accounting, tax, trade, monetary and fiscal matters, including the policies of the Federal Reserve and as a result of government initiatives; systemic risks across the banking industry associated with the soundness of other financial institutions; volatility in our stock price and other risks associated with our common stock; changes in our dividend or share repurchase policies and practices; or other external events. Additional discussion of these and other risk factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“2023 Form 10-K”), filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024, and in our other filings with the SEC.

These forward-looking statements are made as of the date hereof, and the Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in our business, results of operations or financial condition over time, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

3

PART I - FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

CROSSFIRST BANKSHARES, INC.

Consolidated Statements of Financial Condition - Unaudited

	March 31, 2024		December 31, 2023
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	206,773	$	255,229
Available-for-sale securities - taxable		441,157		413,217
Available-for-sale securities - tax-exempt		345,446		353,436
Loans, net of unearned fees		6,249,187		6,127,690
Allowance for credit losses on loans		74,856		73,462
Loans, net of the allowance for credit losses on loans		6,174,331		6,054,228
Premises and equipment, net		70,580		70,869
Restricted equity securities		3,752		3,950
Interest receivable		37,833		37,294
Foreclosed assets held for sale		5,377		—
Goodwill and other intangible assets, net		30,404		31,335
Bank-owned life insurance		71,266		70,810
Other		92,813		90,312
Total assets	$	7,479,732	$	7,380,680
Liabilities and stockholders’ equity
Deposits
Non-interest-bearing	$	954,240	$	990,458
Savings, NOW and money market		3,795,770		3,669,726
Time		1,837,136		1,831,092
Total deposits		6,587,146		6,491,276
Federal Home Loan Bank advances		77,840		77,889
Other borrowings		8,911		8,950
Interest payable and other liabilities		90,864		94,422
Total liabilities		6,764,761		6,672,537
Stockholders’ equity
Preferred stock, $0.01 par value: Authorized - 5,000,000 shares; issued - 7,750 at March 31, 2024 and December 31, 2023		—		—
Common stock, $0.01 par value: Authorized - 200,000,000 shares; issued - 53,503,391 and 53,326,641 shares at March 31, 2024 and December 31, 2023 respectively		535		533
Treasury stock, at cost: 4,102,925 and 3,990,753 shares held at March 31, 2024 and December 31, 2023 respectively		(59,720)		(58,251)
Additional paid-in capital		544,206		543,556
Retained earnings		290,419		272,351
Accumulated other comprehensive loss		(60,469)		(50,046)
Total stockholders’ equity		714,971		708,143
Total liabilities and stockholders’ equity	$	7,479,732	$	7,380,680

See Notes to Consolidated Financial Statements - Unaudited

4

CROSSFIRST BANKSHARES, INC.

Consolidated Statements of Operations - Unaudited

	Three Months Ended March 31,
	2024		2023
Interest Income
Loans, including fees	$	110,099	$	89,618
Available-for-sale securities - taxable		4,528		1,849
Available-for-sale securities - tax-exempt		2,553		3,794
Deposits with financial institutions		1,981		2,014
Dividends on bank stocks		78		262
Total interest income		119,239		97,537
Interest Expense
Deposits		62,111		36,725
Fed funds purchased and repurchase agreements		—		46
Federal Home Loan Bank Advances		471		2,391
Other borrowings		63		154
Total interest expense		62,645		39,316
Net Interest Income		56,594		58,221
Provision for Credit Losses		1,655		4,421
Net Interest Income after Provision for Credit Losses		54,939		53,800
Non-Interest Income
Service charges and fees on client accounts		2,104		1,829
ATM and credit card interchange income		1,487		1,264
Gain on sale of loans		537		187
Income from bank-owned life insurance		456		411
Swap fees and credit valuation adjustments, net		158		90
Other non-interest income		847		640
Total non-interest income		5,589		4,421
Non-Interest Expense
Salaries and employee benefits		23,585		22,622
Occupancy		3,206		2,974
Professional fees		972		2,618
Deposit insurance premiums		1,906		1,531
Data processing		970		1,242
Advertising		558		752
Software and communication		1,824		1,651
Foreclosed assets, net		229		149
Core deposit intangible amortization		931		822
Other non-interest expense		3,324		3,731
Total non-interest expense		37,505		38,092
Net Income Before Taxes		23,023		20,129
Income tax expense		4,800		4,021
Net Income	$	18,223	$	16,108
Basic Earnings Per Common Share	$	0.36	$	0.33
Diluted Earnings Per Common Share	$	0.36	$	0.33

See Notes to Consolidated Financial Statements - Unaudited

5

CROSSFIRST BANKSHARES, INC.

Consolidated Statements of Comprehensive Income - Unaudited

	Three Months Ended March 31,
	2024		2023
Net Income	$	18,223	$	16,108
Other Comprehensive (Loss) Income
Unrealized (loss) gain on available-for-sale securities		(10,870)		14,951
Less: income tax (benefit) expense		(2,196)		3,657
Unrealized (loss) gain on available-for-sale securities		(8,674)		11,294
Reclassification adjustment for realized gain included in income		2		63
Less: income tax expense		—		15
Less: reclassification adjustment for realized gain included in income, net of income tax		2		48
Unrealized (loss) gain on cash flow hedges		(3,205)		1,540
Less: income tax (benefit) expense		(744)		369
Unrealized (loss) gain on cash flow hedges, net of income tax		(2,461)		1,171
Reclassification adjustment for loss on cash flow hedges		(928)		—
Less: income tax benefit		(214)		—
Less: reclassification adjustment for loss on cash flow hedges, net of income tax		(714)		—
Other comprehensive (loss) income		(10,423)		12,417
Comprehensive Income	$	7,800	$	28,525

See Notes to Consolidated Financial Statements - Unaudited

6

CROSSFIRST BANKSHARES, INC.

Consolidated Statements of Stockholders’ Equity - Unaudited

													Accumulated
									Additional				Other
	Preferred Stock			Common Stock			Treasury		Paid-in		Retained		Comprehensive
	Shares	Amount		Shares	Amount		Stock		Capital		Earnings		Loss			Total
	(Dollars in thousands)
Balance at December 31, 2022	—	$	—	48,448,215	$	530	$	(64,127)	$	530,658	$	206,095	$	(64,557)	$	608,599
Net income	—		—	—		—		—		—		16,108		—		16,108
Other comprehensive gain - available-for-sale securities	—		—	—		—		—		—		—		11,246		11,246
Other comprehensive gain - cash flow hedges	—		—	—		—		—		—		—		1,171		1,171
Issuance of preferred shares	7,750		—	—		—		—		7,750		—		—		7,750
Issuance of shares from equity-based awards	—		—	152,403		2		—		(623)		—		—		(621)
Stock-based compensation	—		—	—		—		—		1,238		—		—		1,238
Balance at March 31, 2023	7,750	$	—	48,600,618	$	532	$	(64,127)	$	539,023	$	222,203	$	(52,140)	$	645,491

													Accumulated
									Additional				Other
	Preferred Stock			Common Stock			Treasury		Paid-in		Retained		Comprehensive
	Shares	Amount		Shares	Amount		Stock		Capital		Earnings		Loss		Total
	(Dollars in thousands)
Balance at December 31, 2023	7,750	$	—	49,335,888	$	533	$	(58,251)	$	543,556	$	272,351	$	(50,046)	$	708,143
Net income	—		—	—		—		—		—		18,223		—		18,223
Other comprehensive loss - available-for-sale securities	—		—	—		—		—		—		—		(8,676)		(8,676)
Other comprehensive loss - cash flow hedges	—		—	—		—		—		—		—		(1,747)		(1,747)
Preferred dividends $20.00 per share	—		—	—		—		—		—		(155)		—		(155)
Issuance of shares from equity-based awards	—		—	176,750		2		—		(620)		—		—		(618)
Open market common shares repurchases	—		—	(112,172)		—		(1,469)		—		—		—		(1,469)
Stock-based compensation	—		—	—		—		—		1,270		—		—		1,270
Balance March 31, 2024	7,750	$	—	49,400,466	$	535	$	(59,720)	$	544,206	$	290,419	$	(60,469)	$	714,971

See Notes to Consolidated Financial Statements - Unaudited

7

CROSSFIRST BANKSHARES, INC.

Consolidated Statements of Cash Flows - Unaudited

		For the Three Months Ended March 31,
	2024		2023
	(Dollars in thousands)
Operating Activities
Net income	$	18,223	$	16,108
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,414		2,318
Provision for credit losses		1,655		4,421
Accretion of discounts on loans		(488)		(547)
Accretion of discounts and amortization of premiums on securities		285		926
Stock-based compensation		1,270		1,238
Gain on disposal of fixed assets		—		(4)
Loss on sale of foreclosed assets and related impairments		—		102
Gain on sale of loans		(537)		(187)
Origination of loans held for sale		(1,612)		—
Proceeds from sale of loans held for sale		2,913		—
Deferred income taxes		3,224		1,640
Net increase in bank owned life insurance		(456)		(411)
Net realized gains on equity securities		(22)		—
Net realized gains on available-for-sale securities		(2)		(63)
Dividends on FHLB stock		(71)		(261)
Changes in:
Interest receivable		(539)		(878)
Other assets		1,762		2,615
Other liabilities		(8,218)		(2,693)
Net cash provided by operating activities		19,801		24,324
Investing Activities
Net change in loans		(128,665)		(275,817)
Purchases of available-for-sale and equity securities		(45,693)		(93,488)
Proceeds from maturities of available-for-sale securities		13,465		5,714
Proceeds from sale of available-for-sale and equity securities		—		37,069
Proceeds from the sale of foreclosed assets		—		173
Purchase of premises and equipment		(1,114)		(2,662)
Proceeds from the sale of premises and equipment and related insurance claims		—		4
Purchase of restricted equity securities		—		(8,226)
Proceeds from sale of restricted equity securities		291		4,334
Terminated cash flow hedges		(122)		—
Net cash used in investing activities		(161,838)		(332,899)
Financing Activities
Net increase (decrease) in demand deposits, savings, NOW and money market accounts		89,826		(244,454)
Net increase in time deposits		6,044		430,407
Net decrease in federal funds sold		—		(20,000)
Repayment of Federal Home Loan Bank advances		(114)		(12,643)
Net proceeds of lines of credit		—		110,969
Proceeds from issuance of preferred shares, net of issuance cost		—		7,750
Issuance of common shares, net of issuance cost		2		2
Proceeds from employee stock purchase plan		240		167
Repurchase of common stock		(1,402)		—
Acquisition of common stock for tax withholding obligations		(860)		(790)
Dividends paid on preferred stock		(155)		—
Net cash provided by financing activities		93,581		271,408
Decrease in Cash and Cash Equivalents		(48,456)		(37,167)
Cash and Cash Equivalents, Beginning of Period		255,229		300,138
Cash and Cash Equivalents, End of Period	$	206,773	$	262,971
Supplemental Cash Flows Information
Interest paid	$	61,253	$	35,459
Income taxes paid		—		24
Repossessed assets in settlement of loans		5,377		—

See Notes to Consolidated Financial Statements - Unaudited

8

CROSSFIRST BANKSHARES, INC.

Notes to Consolidated Financial Statements - Unaudited

Note 1:   Nature of Operations and Summary of Significant Accounting Policies

Organization and Nature of Operations

CrossFirst Bankshares, Inc. (“Bankshares”) is a bank holding company whose principal activities are the ownership and management of its wholly-owned subsidiary, CrossFirst Bank (the “Bank”). In addition, the Bank has three subsidiaries, including CrossFirst Investments, Inc. (“CFI”), which holds investments in marketable securities, CFBSA I, LLC and CFBSA II, LLC.

The Bank is engaged in providing a full range of banking and financial services to individual and corporate clients primarily through its branches in: (i) Leawood, Kansas; (ii) Wichita, Kansas; (iii) Kansas City, Missouri; (iv) Oklahoma City, Oklahoma; (v) Tulsa, Oklahoma; (vi) Dallas, Texas; (vii) Fort Worth, Texas; (viii) Frisco, Texas; (ix) Phoenix, Arizona; (x) Tucson, Arizona; (xi) Colorado Springs, Colorado; (xii) Denver, Colorado; and (xiii) Clayton, New Mexico.

Basis of Presentation

The accompanying interim unaudited consolidated financial statements serve to update the CrossFirst Bankshares, Inc. Annual Report on Form 10-K for the year ended December 31, 2023 and include the consolidated accounts of Bankshares, the Bank, CFI, CFBSA I, LLC and CFBSA II, LLC (together, referred to herein as the “Company”). The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and where applicable, with general practices in the banking industry or guidelines prescribed by bank regulatory agencies. However, they may not include all information and notes necessary to constitute a complete set of financial statements under GAAP applicable to annual periods and accordingly should be read in conjunction with the financial information contained in the Company's most recent Annual Report on Form 10-K. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results presented. All such adjustments are of a normal recurring nature. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications of prior years' amounts are made whenever necessary to conform to current period presentation. The results of operations for the interim period are not necessarily indicative of the results that may be expected for the full year or any other interim period. All amounts are in thousands, except share data, or as otherwise noted.

GAAP requires management to make estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosures of contingent assets and liabilities. By their nature, estimates are based on judgment and available information. Management has made significant estimates in certain areas, such as the fair values of financial instruments, and the allowance for credit losses (“ACL”). Because of the inherent uncertainties associated with any estimation process and future changes in market and economic conditions, it is possible that actual results could differ significantly from those estimates.

The Company's significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited financial statements and notes for the year ended December 31, 2023 and are contained in the Company's Annual Report on Form 10-K for that period. There have been no significant changes to the application of significant accounting policies since December 31, 2023.

Related Party Transactions

The Bank extends credit and receives deposits from related parties. In management’s opinion, the loans and deposits were made in the ordinary course of business and made on similar terms as those prevailing at the time with other persons. Related party loans totaled $10 million and $12 million, while related party deposits totaled $105 million and $106 million, at March 31, 2024 and December 31, 2023, respectively. Related parties also owned $6 million of the

9

Company’s Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share (“Series A Preferred Stock”), at March 31, 2024.

Recent Accounting Pronouncements

Accounting pronouncements not yet adopted by the Company

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures on both an annual and interim basis about significant segment expenses, including for companies with only one reportable segment. This ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which requires updates to rate reconciliation disclosures and information on income taxes paid on an annual basis. This ASU is effective on a prospective basis with retrospective application permitted for annual periods beginning after December 15, 2024. The Company is evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.

Note 2:   Securities

Available-for-Sale (“AFS”) Securities

AFS securities are summarized as follows as of the dates indicated:

	March 31, 2024
			Gross		Gross
			Unrealized		Unrealized		Approximate
	Amortized Cost		Gains		Losses		Fair Value
	(Dollars in thousands)
Federal agency obligations	$	9,989	$	42	$	—	$	10,031
Mortgage-backed - GSE residential		251,994		280		23,614		228,660
Collateralized mortgage obligations - GSE residential		71,105		301		1,138		70,268
State and political subdivisions		394,166		297		46,680		347,783
Small Business Administration loan pools		123,224		325		2,256		121,293
Corporate bonds		9,731		—		1,163		8,568
Total available-for-sale securities	$	860,209	$	1,245	$	74,851	$	786,603

	December 31, 2023
			Gross		Gross
			Unrealized		Unrealized		Approximate
	Amortized Cost		Gains		Losses		Fair Value
	(Dollars in thousands)
Federal agency obligations	$	9,988	$	84	$	—	$	10,072
U.S. Treasury securities		4,965		3		—		4,968
Mortgage-backed - GSE residential		233,203		629		21,370		212,462
Collateralized mortgage obligations - GSE residential		50,125		493		674		49,944
State and political subdivisions		396,349		497		40,949		355,897
Small Business Administration loan pools		125,017		722		961		124,778
Corporate bonds		9,740		—		1,208		8,532
Total available-for-sale securities	$	829,387	$	2,428	$	65,162	$	766,653

The carrying value of securities pledged as collateral was $46 million and $40 million at March 31, 2024 and December 31, 2023, respectively.

10

As of March 31, 2024 and December 31, 2023, the AFS securities had $6 million and $7 million, respectively, of accrued interest, excluded from the amortized cost basis, and presented in “interest receivable” on the consolidated statements of financial condition.

The following tables summarize the gross realized gains and losses from sales or maturities of AFS securities as of the dates shown:

	For the Three Months Ended
	March 31, 2024
	Gross Realized Gains		Gross Realized Losses		Net Realized Gain
	(Dollars in thousands)
Available-for-sale securities	$	2	$	—	$	2

	For the Three Months Ended
	March 31, 2023
	Gross Realized Gains		Gross Realized Losses		Net Realized Gain
	(Dollars in thousands)
Available-for-sale securities	$	193	$	(130)	$	63

The following tables summarize AFS securities gross unrealized losses, as of the dates shown, along with the length of time in an unrealized loss position:

March 31, 2024
Less than 12 Months			12 Months or More			Total
Fair	Unrealized	Number of	Fair	Unrealized	Number of	Fair	Unrealized	Number of
Value