Nature of Operations and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

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”), which 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) Fort Worth, Texas; (viii) Frisco, Texas; (ix) Phoenix, Arizona; (x) Colorado Springs,

Colorado; (xi) Denver, Colorado; and (xii) Clayton, New Mexico. As described in "Note 16: Subsequent Events" below, the Company

added one full-service branch in Tucson, Arizona to the Company’s footprint on August 1, 2023 in connection with an acquisition

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, 2022 and include the accounts of the Company, the Bank, CFI, CFBSA I, LLC

and CFBSA II, LLC. 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, 2022 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, 2022

.

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 $

11

 million and $

13

 million while related party deposits totaled $

85

 million and $

92

 million at June 30, 2023 and December 31,

2022, respectively.