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


	Year Ended December 31, 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		(20)		(2,483)
Included in other comprehensive income		(628)		-
Purchases, issuances, sales, and settlements
Purchases		13,086		-
Issuances		-		2,288
Settlements		(13,538)		(1,516)
Ending balance December 31, 2020	$	4,319	$	4,224


	Year Ended December 31, 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		(32)		(1,953)
Included in other comprehensive income		726		-
Purchases, issuances, sales, and settlements
Purchases		17,938		-
Issuances		-		1,240
Settlements		(21,378)		(709)
Ending balance December 31, 2019	$	5,419	$	5,935

Schedule of assets measured at fair value on a nonrecurring basis


	December 31, 2020
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	9,675	$	9,675
Other real estate owned, net²		-		-		2,474		2,474
Total	$	-	$	-	$	12,149	$	12,149

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 $12.3 million and a valuation allowance of $2.6 million, resulting in an increase of specific allocations within the provision for credit losses of $1.4 million for the year ending December 31, 2020.

2	OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $2.5 million, which is made up of the outstanding balance of $4.1 million, net of a valuation allowance of $1.6 million at December 31, 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 provision for loan and lease losses of $783,000 for the year ending December 31, 2019.

2	OREO is measured at the lower of carrying or 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 participations of $937,000, at December 31, 2019.