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


	Year Ended December 31, 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		(20)		2,420
Included in other comprehensive income		801		-
Purchases, issuances, sales, and settlements
Purchases		9,919		-
Issuances		-		1,612
Settlements		(927)		(1,159)
Ending balance December 31, 2021	$	14,092	$	7,097


	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

Schedule of assets measured at fair value on a nonrecurring basis


	December 31, 2021
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	13,138	$	13,138
Other real estate owned, net²		-		-		2,356		2,356
Total	$	-	$	-	$	15,494	$	15,494

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 $18.5 million and a valuation allowance of $5.4 million, resulting in an increase of specific allocations within the provision for credit losses of $2.7 for the year ending December 31, 2021.

2

OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $2.4 million, which is made up of the outstanding balance of $3.7 million, net of a valuation allowance of $1.2 million and purchase accounting adjustments of $131,000 at December 31, 2021.


	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 loan and lease 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.