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


	Nine Months Ended September 30, 2021
	Securities available-for-sale
	States and		Mortgage
	Political		Servicing
	Subdivisions		Rights
Beginning balance January 1, 2021	$	4,319	$	4,224
Total gains or losses
Included in earnings		(7)		840
Included in other comprehensive income		812		-
Purchases, issuances, sales, and settlements
Purchases		748		-
Issuances		-		1,298
Settlements		(312)		(1,042)
Ending balance September 30, 2021	$	5,560	$	5,320


	Nine Months Ended September 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		(16)		(2,463)
Included in other comprehensive income		(216)		-
Purchases, issuances, sales, and settlements
Purchases		12,900		-
Issuances		-		1,813
Settlements		(13,297)		(275)
Ending balance September 30, 2020	$	4,790	$	5,010

Schedule of assets measured at fair value on a nonrecurring basis


	September 30, 2021
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	7,187	$	7,187
Other real estate owned, net²		-		-		1,912		1,912
Total	$	-	$	-	$	9,099	$	9,099

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 $11.0 million and a valuation allowance of $3.8 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.2 million for the nine months ended September 30, 2021.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $1.9 million at September 30, 2021, which is made up of the outstanding balance of $3.1 million, net of a valuation allowance of $1.2 million.


	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 allowance for credit losses on loans of $1.4 for the year December 31, 2020.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.5 million at December 31, 2020, which is made up of the outstanding balance of $4.1 million, net of a valuation allowance of $1.6 million.