XML 34 R23.htm IDEA: XBRL DOCUMENT v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
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). 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 2025 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 June 30, 2026 and December 31, 2025, segregated by the level of the valuation inputs within the fair value hierarchy of ASC Topic 820 utilized to measure fair value.
Level 1 InputsLevel 2 InputsLevel 3 InputsTotal Fair Value
June 30, 2026
Securities available for sale:
U.S. Treasury$2,925,951 $— $— $2,925,951 
Residential mortgage-backed securities— 9,819,310 — 9,819,310 
States and political subdivisions— 5,302,145 — 5,302,145 
Other— 42,567 — 42,567 
Trading account securities:
U.S. Treasury38,037 — — 38,037 
States and political subdivisions— 1,116 — 1,116 
Derivative assets:
Interest rate swaps, caps, and floors— 55,257 — 55,257 
Commodity swaps and options— 62,313 — 62,313 
Derivative liabilities:
Interest rate swaps, caps, and floors— 54,846 — 54,846 
Commodity swaps and options— 60,177 — 60,177 
December 31, 2025
Securities available for sale:
U.S. Treasury$2,456,517 $— $— $2,456,517 
Residential mortgage-backed securities— 8,121,794 — 8,121,794 
States and political subdivisions— 5,349,857 — 5,349,857 
Other— 42,428 — 42,428 
Trading account securities:
U.S. Treasury36,650 — — 36,650 
States and political subdivisions— 954 — 954 
Derivative assets:
Interest rate swaps, caps, and floors— 58,663 — 58,663 
Commodity swaps and options— 52,364 — 52,364 
Derivative liabilities:
Interest rate swaps, caps, and floors— 58,665 — 58,665 
Commodity swaps and options— 50,598 — 50,598 
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, these 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.
Six Months Ended
June 30, 2026		Six Months Ended
June 30, 2025
Level 2Level 3Level 2Level 3
Carrying value before allocations$61,352 $7,401 $6,691 $15,830 
Specific (allocations) reversals of prior allocations(2,191)(771)(528)(1,921)
Fair value$59,161 $6,630 $6,163 $13,909 
In June 2026, we transferred certain loans with an aggregate amortized cost of approximately $11.5 million from held-for-investment to held-for-sale in connection with a planned sale of the loans during the third quarter of 2026. Upon transfer, the loans were measured at the lower of amortized cost or fair value, resulting in loan charge-offs to the allowance for credit losses on loans totaling $2.1 million. The fair value measurement of the loans utilized Level 3 inputs under the fair value hierarchy of ASC Topic 820 and was primarily based on an independent broker valuation estimate. The resulting loans held for sale totaled $9.4 million and were reported as a component of other assets in the consolidated balance sheet as of June 30, 2026.
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 credit losses on loans, 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.
The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods:
Six Months Ended
June 30,
20262025
Foreclosed assets remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement$867 $— 
Write-downs included in other non-interest expense(212)— 
Fair value$655 $— 
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 of ASC 820 utilized to measure fair value, were as follows:
June 30, 2026December 31, 2025
Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Financial assets:
Level 2 inputs:
Cash and cash equivalents$6,467,194 $6,467,194 $8,874,055 $8,874,055 
Securities held to maturity3,385,507 3,250,816 3,431,179 3,295,431 
Accrued interest receivable255,130 255,130 256,093 256,093 
Level 3 inputs:
Loans, net22,691,946 22,509,277 21,610,317 21,559,335 
Financial liabilities:
Level 2 inputs:
Deposits43,334,015 43,320,873 42,917,864 42,908,091 
Federal funds purchased25,500 25,500 18,775 18,775 
Repurchase agreements4,886,598 4,886,598 4,525,855 4,525,855 
Junior subordinated deferrable interest debentures123,271 123,712 123,242 123,712 
Subordinated notes99,883 99,832 99,804 100,053 
Accrued interest payable43,694 43,694 45,737 45,737 
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.