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


	Three Months Ended March 31, 2022
	Securities available-for-sale
	States and		Mortgage
	Political		Servicing
	Subdivisions		Rights
Beginning balance January 1, 2022	$	14,092	$	7,097
Total gains or losses
Included in earnings		(33)		3,228
Included in other comprehensive income		(938)		-
Purchases, issuances, sales, and settlements
Purchases		1,076		-
Issuances		-		301
Settlements		(364)		(250)
Ending balance March 31, 2022	$	13,833	$	10,376


	Three Months Ended March 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		(3)		1,485
Included in other comprehensive income		299		-
Purchases, issuances, sales, and settlements
Purchases		58		-
Issuances		-		552
Settlements		(32)		(372)
Ending balance March 31, 2021	$	4,641	$	5,889

Schedule of assets measured at fair value on a nonrecurring basis


	March 31, 2022
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	21,990	$	21,990
Other real estate owned, net²		-		-		2,374		2,374
Total	$	-	$	-	$	24,364	$	24,364

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, which had a carrying amount of $33.6 million and a valuation allowance of $11.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $6.2 million for the three months ended March 31, 2022.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.4 million at March 31, 2022, which is made up of the outstanding balance of $3.7 million, net of a purchase accounting adjustment of $131,000 and a valuation allowance of $1.2 million.


	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, which 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 allowance for credit losses on loans of $2.7 million for the year December 31, 2021.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.4 million at December 31, 2021, which is made up of the outstanding balance of $3.7 million, net of a purchase accounting adjustment of $131,000 and a valuation allowance of $1.2 million.