Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis


	Six Months Ended June 30, 2020
	Securities available-for-sale
	States and		Mortgage
	Political		Servicing
	Subdivisions		Rights
Beginning balance January 1, 2020	$	5,419	$	5,935
Total gains or losses
Included in earnings		(12)		(2,304)
Included in other comprehensive income		(363)		-
Purchases, issuances, sales, and settlements
Purchases		12,800		-
Issuances		-		1,123
Settlements		(13,166)		(275)
Ending balance June 30, 2020	$	4,678	$	4,479


	Six Months Ended June 30, 2019
	Securities available-for-sale
	States and		Mortgage
	Political		Servicing
	Subdivisions		Rights
Beginning balance January 1, 2019	$	8,165	$	7,357
Total gains or losses
Included in earnings		(17)		(1,701)
Included in other comprehensive income		500		-
Purchases, issuances, sales, and settlements
Purchases		17,554		-
Issuances		-		417
Settlements		(19,027)		(254)
Ending balance June 30, 2019	$	7,175	$	5,819

Schedule of assets measured at fair value on a nonrecurring basis


	June 30, 2020
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	8,313	$	8,313
Other real estate owned, net²		-		-		5,082		5,082
Total	$	-	$	-	$	13,395	$	13,395

¹ Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans; had a carrying amount of $10.6 million and a valuation allowance of $2.3 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.1 million for the six months ended June 30, 2020.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $5.1 million, which is made up of the outstanding balance of $12.4 million, net of a valuation allowance of $6.5 million and a participation of $937,000 at June 30, 2020.


	December 31, 2019
	Level 1		Level 2		Level 3		Total
Impaired loans¹	$	-	$	-	$	7,435	$	7,435
Other real estate owned, net²		-		-		5,004		5,004
Total	$	-	$	-	$	12,439	$	12,439

¹ Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans; had a carrying amount of $8.6 million and a valuation allowance of $1.2 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $783,000 for the year December 31, 2019.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $5.0 million, which is made up of the outstanding balance of $12.6 million, net of a valuation allowance of $6.7 million and a participation of $937,000, at December 31, 2019.