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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, we utilize valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820 establishes a three-level fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. See our 2022 Form 10-K for additional information regarding the fair value hierarchy and a description of our valuation techniques. Financial Assets and Financial Liabilities. The tables below summarize financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy of ASC Topic 820 utilized to measure fair value.
| Level 1 Inputs |  | Level 2 Inputs |  | Level 3 Inputs |  | Total Fair Value
September 30, 2023 |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |
U.S. Treasury | $ | 5,043,152 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,043,152 |
Residential mortgage-backed securities | — |  |  | 6,306,634 |  |  | — |  |  | 6,306,634 |
States and political subdivisions | — |  |  | 4,724,633 |  |  | — |  |  | 4,724,633 |
Other | — |  |  | 42,670 |  |  | — |  |  | 42,670 |
Trading account securities: |  |  |  |  |  |  |
U.S. Treasury | 29,065 |  |  | — |  |  | — |  |  | 29,065 |
States and political subdivisions | — |  |  | 276 |  |  | — |  |  | 276 |
Derivative assets: |  |  |  |  |  |  |
Interest rate swaps, caps, and floors | — |  |  | 110,097 |  |  | — |  |  | 110,097 |
Commodity swaps and options | — |  |  | 76,019 |  |  | — |  |  | 76,019 |
Derivative liabilities: |  |  |  |  |  |  |
Interest rate swaps, caps, and floors | — |  |  | 110,097 |  |  | — |  |  | 110,097 |
Commodity swaps and options | — |  |  | 74,607 |  |  | — |  |  | 74,607 |
December 31, 2022 |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |
U.S. Treasury | $ | 5,051,587 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,051,587 |
Residential mortgage-backed securities | — |  |  | 6,376,236 |  |  | — |  |  | 6,376,236 |
States and political subdivisions | — |  |  | 6,773,355 |  |  | — |  |  | 6,773,355 |
Other | — |  |  | 42,427 |  |  | — |  |  | 42,427 |
Trading account securities: |  |  |  |  |  |  |
U.S. Treasury | 25,879 |  |  | — |  |  | — |  |  | 25,879 |
States and political subdivisions | — |  |  | 2,166 |  |  | — |  |  | 2,166 |
Derivative assets: |  |  |  |  |  |  |
Interest rate swaps, caps, and floors | — |  |  | 86,793 |  |  | — |  |  | 86,793 |
Commodity swaps and options | — |  |  | 106,685 |  |  | — |  |  | 106,685 |
Foreign currency forward contracts | 11 |  |  | — |  |  | — |  |  | 11 |
Derivative liabilities: |  |  |  |  |  |  |
Interest rate swaps, caps, and floors | — |  |  | 95,533 |  |  | — |  |  | 95,533 |
Commodity swaps and options | — |  |  | 105,392 |  |  | — |  |  | 105,392 |
Foreign currency forward contracts | 11 |  |  | — |  |  | — |  |  | 11 |
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis during the reported periods include certain collateral dependent loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. The following table presents collateral dependent loans that were remeasured and reported at fair value through a specific allocation of the allowance for credit losses on loans based upon the fair value of the underlying collateral during the reported periods.
| Nine Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2022
| Level 2 |  | Level 3 |  | Level 2 |  | Level 3
Carrying value before allocations | $ | 20,051 |  |  | $ | 24,921 |  |  | $ | 7,999 |  |  | $ | 2,087 |
Specific (allocations) reversals of prior allocations | (1,452) |  |  | (4,849) |  |  | (1,742) |  |  | 4,881 |
Fair value | $ | 18,599 |  |  | $ | 20,072 |  |  | $ | 6,257 |  |  | $ | 6,968 |
Non-Financial Assets and Non-Financial Liabilities. We do not have any non-financial assets or non-financial liabilities measured at fair value on a recurring basis. From time to time, non-financial assets measured at fair value on a non-recurring basis may include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. There were no such fair value measurements during the reported periods. Financial Instruments Reported at Amortized Cost. The estimated fair values of financial instruments that are reported at amortized cost in our consolidated balance sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows:
| September 30, 2023 |  | December 31, 2022
| Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Financial assets: |  |  |  |  |  |  |
Level 2 inputs: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 7,618,083 |  |  | $ | 7,618,083 |  |  | $ | 12,028,132 |  |  | $ | 12,028,132 |
Securities held to maturity | 3,628,123 |  |  | 3,231,691 |  |  | 2,639,083 |  |  | 2,467,865 |
Accrued interest receivable | 199,344 |  |  | 199,344 |  |  | 243,682 |  |  | 243,682 |
Level 3 inputs: |  |  |  |  |  |  |
Loans, net | 18,157,024 |  |  | 17,496,332 |  |  | 16,927,348 |  |  | 16,343,417 |
Financial liabilities: |  |  |  |  |  |  |
Level 2 inputs: |  |  |  |  |  |  |
Deposits | 40,992,235 |  |  | 40,971,688 |  |  | 43,954,196 |  |  | 43,920,741 |
Federal funds purchased | 25,950 |  |  | 25,950 |  |  | 51,650 |  |  | 51,650 |
Repurchase agreements | 3,722,245 |  |  | 3,722,245 |  |  | 4,660,641 |  |  | 4,660,641 |
Junior subordinated deferrable interest debentures | 123,112 |  |  | 123,712 |  |  | 123,069 |  |  | 123,712 |
Subordinated notes | 99,452 |  |  | 94,311 |  |  | 99,335 |  |  | 97,014 |
Accrued interest payable | 51,468 |  |  | 51,468 |  |  | 18,444 |  |  | 18,444 |
Under ASC Topic 825, entities may choose to measure eligible financial instruments at fair value at specified election dates. The fair value measurement option (i) may be applied instrument by instrument, with certain exceptions, (ii) is generally irrevocable and (iii) is applied only to entire instruments and not to portions of instruments. Unrealized gains and losses on items for which the fair value measurement option has been elected must be reported in earnings at each subsequent reporting date. During the reported periods, we had no financial instruments measured at fair value under the fair value measurement option.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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