Nature of Operations and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2022
Nature of Operations and Summary of Significant Accounting Policies [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Note 1: Nature of Operations and Summary of Significant Accounting Policies Organization and Nature of Operations CrossFirst Bankshares, Inc. (the “Company”) 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”) that holds investments in marketable securities, CFBSA I, LLC and CFBSA II, LLC. The Bank is primarily engaged in providing a full range of banking and financial services to individual and corporate customers 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) Frisco, Texas; and (viii) Phoenix, Arizona. On June 13, 2022, the Company announced its entry into an agreement under which the Bank will acquire Farmers & Stockmens Bank, the bank subsidiary of Central Bancorp, Inc. (collectively, Farmers & Stockmens Bank and Central Bancorp, Inc. are herein referred as “Central”), for approximately $ 75 million in cash. Central has branches in Colorado and New Mexico. The transaction is currently expected to close in the second half of 2022, subject to approval by Central shareholders and bank regulatory authorities, as well as the satisfaction of other customary closing conditions. Basis of Presentation The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company, the Bank, CFI, CFBSA I, LLC and CFBSA II, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated interim financial statements are unaudited. Certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted and should be read in conjunction with the Company’s consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”), filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2022. In the opinion of management, the interim financial statements include all adjustments which are of a normal, recurring nature necessary for the fair presentation of the financial position, results of operations, and cash flows of the Company. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the SEC. Refer to the “accounting pronouncements implemented” below for changes in the accounting policies of the Company. No significant changes to the Company’s accounting policies, other than those mentioned under “accounting pronouncements implemented” below, have occurred since December 31, 2021, the most recent date audited financial statements were provided within the Company’s 2021 Form 10-K. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Use of Estimates The Company identified accounting policies and estimates that, due to the difficult, subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of the Company’s financial statements to those judgments and assumptions, are critical to an understanding of the Company’s financial condition and results of operations. Actual results could differ from those estimates. The allowance for credit losses, deferred tax asset, and fair value of financial instruments are particularly susceptible to significant change. Cash Equivalents The Company had $ 174 million of cash and cash equivalents at the Federal Reserve Bank of Kansas City as of June 30, 2022. Emerging Growth Company (“EGC”) The Company is currently an EGC. An EGC may take advantage of reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. Among the reductions and reliefs, the Company elected to extend the transition period for complying with new or revised accounting standards affecting public companies. This means that the financial statements the Company files or furnishes will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as the Company remains an EGC or until the Company affirmatively and irrevocably opts out of the extended transition period under the JOBS Act. Accounting Pronouncements Implemented ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments: Background – ASU 2016-13 and its subsequent amendments provide new guidance on the impairment model for financial assets measured at amortized cost, including loans held-for-investment and off-balance sheet credit exposures. The Current Expected Credit Loss (“CECL”) model requires an estimate of expected credit losses, measured over the contractual life of an instrument, that considers forecasts of future economic conditions in addition to information about past events and current conditions. ASU 2016-13 requires new disclosures, including the use of vintage analysis on the Company’s credit quality indicators. In addition, ASU 2016-13 removes the available-for-sale (“AFS”) securities other-than-temporary-impairment model that reduced the cost basis of the investment and is replaced with an impairment model that will recognize an allowance for credit losses on available-for-sale securities. Implementation – The Company established a CECL committee to formulate and oversee the implementation process including selection, implementation, and testing of third-party software. The Company used a loss-rate ("cohort") method to estimate the expected allowance for credit losses ("ACL") for all loan pools. The cohort method identifies and captures the balance of a pool of loans with similar risk characteristics, as of a particular point in time to form a cohort, then tracks the respective losses generated by that cohort of loans over their remaining lives, or until the loans are “exhausted” (i.e., have reached an acceptable point in time at which a significant majority of all losses are expected to have been recognized). The cohort method closely aligned with the Company's incurred loss model. This allowed the Company to take advantages of the efficiencies of processes and procedures already in practice. The Company began parallel processing with the existing allowance for loan losses model during the first quarter of 2019 recalibrating inputs as necessary. The Company formulated changes to policies, procedures, disclosures, and internal controls that were necessary to transition to the new standard. A third-party completed validation of the completeness, accuracy, and reasonableness of the model in the fourth quarter of 2021. Refer to “Note 4: Loans and Allowance for Credit Losses” for additional information regarding the policies, procedures, and credit quality indicators used by the Company. Impact of adoption – The Company adopted ASU 2016-13 on January 1, 2022 using the modified retrospective approach. All disclosures as of and for the three- and six-month periods ended June 30, 2022 are presented in accordance with ASC 326, Financial Instruments-Credit Losses. The Company did not recast comparative financial periods and has presented those disclosures under previously applicable GAAP. Because the Company chose the cohort method, the model must consider net deferred fees and costs. As a result, the Company transferred the previously disclosed unearned fees into the applicable loan segments. The Company used the prospective transition approach for AFS securities for which other-than-temporary-impairment has been recognized prior to January 1, 2022. As a result, the amortized cost basis remains the same before and after the effective date of ASU 2016-13. The following table illustrates the impact of adopting ASU 2016-13 and details how outstanding loan balances have been reclassified because of changes made to the Company’s loan segments under CECL: In connection with adoption of ASU 2016-13, changes were made to the Company’s loan segments to align with the methodology applied in determining the allowance under CECL. The commercial and industrial loan portfolio was separated into term loans and lines of credit. In addition, the remaining Paycheck Protection Program (“PPP”) loans were consolidated into the commercial and industrial term loan segment due to their declining outstanding balance. The Company also separated the residential and multifamily real estate loan segments. Refer to “Note 4: Loans and Allowance for Credit Losses” for detail on the loan segments. Accounting Policies: The Company updated the below accounting policies due to adoption of ASU 2016-13: Accrued Interest - The Company made an accounting policy election to exclude accrued interest from the amortized cost basis of loans. In addition, the Company elected not to measure an allowance for credit losses for accrued interest receivable, because a timely write-off policy exists. The policy generally requires loans to be placed on non-accrual when principal or interest is 90 days or more past due unless the loan is well-secured and in the process of collection. A well-secured loan means that collateral or a guaranty has sufficient value to pay off the loan in full. When a loan is placed on non-accrual, accrued interest is reversed against interest income. The Company made a policy election to exclude accrued interest from the amortized cost basis of AFS securities. AFS securities are placed on non-accrual status when the Company no longer expects to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on non-accrual status. Accordingly, the Company did not recognize an allowance for credit loss against accrued interest receivable. Available-for-sale Securities in an Unrealized Loss Position – For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the securities’ amortized cost basis is written down to fair value through income. For AFS securities that do not meet the criteria above, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. Management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than amortized cost basis. ASU 2016-02, Leases (Topic 842): Background – ASU 2016-02 and its subsequent amendments require lessees to recognize the assets and liabilities that arise from such leases. This represents a change from previous GAAP that did not require operating leases to be recognized on the lessees’ balance sheet. The purpose of Topic 842 is to increase transparency and comparability between organizations that enter into lease agreements. The update modifies lease disclosure requirements as well. On the lease commencement date (or on the date of adoption), a lessee is required to measure and record a lease liability equal to the present value of the remaining lease payments, discounted using an appropriate discount rate. In addition, a right-of-use asset is recorded that consists of the initial measurement of the lease liability adjusted for certain payments, including lease incentives received and initial direct costs. For operating leases, after lease commencement, the lease liability is reported at the present value of the unpaid lease payments discounted using the discount rate established at lease commencement. The lease expense is calculated by summing all future lease payments in the lease term and lease incentives not yet recognized. The sum is then amortized on a straight-line basis over the lease term. The right-of-use asset is amortized as the difference between the straight-line expense and the amortizing lease liability. Implementation – The Company’s lease agreements to which Topic 842 has been applied primarily relate to branch real estate properties located in the Kansas City, Missouri; Tulsa, Oklahoma; Dallas, Texas; Frisco, Texas; and Phoenix, Arizona markets. The remaining lease terms range from two to twenty years with potential renewal terms. The leases include various payment terms including fixed payments with annual increases to variable payments. In addition, several of the leases include lease incentives. The discount rates were not readily determinable in the lease agreements. As a result, the Company used the incremental borrowing rate in accordance with Topic 842. The Company used the Federal Home Loan Bank (“FHLB”) yield curve as the incremental borrowing rate. The Company elected several practical expedients that are listed below: Impact of Adoption – The Company adopted ASU 2016-02 on January 1, 2022 using the modified retrospective approach. The Company did not recast comparative financial periods and has presented those disclosures under previously applicable GAAP. The following table illustrates the impact of adopting ASU 2016-02 on the Company’s financial statements: Recent Accounting Pronouncements ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Background – ASU 2022-02 provides new guidance on (i) troubled debt restructurings (“TDRs”) and (ii) vintage disclosures for gross write-offs. The update eliminates the accounting guidance for TDRs and requires a company to determine if a modification results in a new loan or a continuation of an existing loan. The update enhances the required disclosures for certain modifications made to borrowers experiencing financial difficulty. In addition, the update requires disclosure of current-period gross charge -offs by year of origination for financing receivables. For the Company, the amendments are effective as of January 1, 2023, but early adoption is permitted and would be applied as of the beginning of the fiscal year of adoption. Impact of adoption – The Company anticipates adopting ASU 2022-02 as of January 1, 2023. At this time, an estimate of the impact cannot be established. January 1, 2022 As Reported under ASU 2016-13 Pre-ASU 2016-13 Impact of ASU 2016-13 Adoption (Dollars in thousands) Assets: Loans (outstanding balance) Commercial and Industrial $ 843,024 $ 1,401,681 $ (558,657) Commercial and Industrial lines of credit 617,398 - 617,398 Energy 278,579 278,860 (281) Commercial real estate 1,278,479 1,281,095 (2,616) Construction and land development 574,852 578,758 (3,906) Residential real estate 360,046 600,816 (240,770) Multifamily real estate 240,230 - 240,230 PPP - 64,805 (64,805) Consumer 63,605 63,605 - Gross Loans 4,256,213 4,269,620 (13,407) Net deferred loan fees and costs - 13,407 (13,407) Allowance for credit losses on loans 56,628 58,375 (1,747) Loans, net of the allowance for credit losses on loans 4,199,585 4,197,838 1,747 Deferred tax asset $ 13,647 $ 14,474 $ (827) Liabilities Allowance for credit losses on off-balance sheet exposures $ 5,184 $ - $ 5,184 Stockholders' equity Retained earnings $ 144,489 $ 147,099 $ (2,610) January 1, 2022 As Reported under ASU 2016-02 Pre-ASU 2016-02 Impact of ASU 2016-02 Adoption (Dollars in thousands) Assets: Right-of-use asset $ 23,589 $ - $ 23,589 Liabilities: Lease incentive - 2,125 (2,125) Accrued rent payable - 904 (904) Lease liability $ 26,618 $ - $ 26,618 Practical Expedient Elected Impact to Lease Accounting Implementation An entity need not reassess whether any expired or existing contracts are or contain leases. The Company was not required to re-evaluate previously identified leases, including embedded leases, that existed as of the adoption date. An entity need not reassess the lease classification for an expired or existing leases. The Company was not required to re-classify previously identified operating leases that existed as of the adoption date. The Company did not have any capital leases as of December 31, 2021. An entity need not reassess initial direct costs for any existing leases. The Company was not required to review previously established lease agreements as of the adoption date for initial direct costs. Initial direct costs increase the right-of-use asset and do not impact the lease liability. An entity may combine lease and non-lease components. If not elected, the Company would be required to allocate the total consideration in a lease contract to lease and non-lease components based on their relative standalone price. The election results in higher right-of-use assets and lease liabilities. Short-term lease exemption. The Company is not required to record a right-of-use asset and lease liability for a lease whose term is 12 months or less and does not include a purchase option that the lessee is reasonably certain to exercise.