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


	Nine Months Ended September 30, 2022
	Securities available-for-sale
	States and		Mortgage
	Political		Servicing
	Subdivisions		Rights
Beginning balance January 1, 2022	$	15,236	$	7,097
Total gains or losses
Included in earnings		(98)		4,384
Included in other comprehensive loss		(1,333)		-
Purchases, issuances, sales, and settlements
Purchases		-		-
Issuances		519		756
Settlements		(1,015)		(776)
Ending balance September 30, 2022	$	13,309	$	11,461


	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

Schedule of assets measured at fair value on a nonrecurring basis


	September 30, 2022
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	51,354	$	51,354
Other real estate owned, net²		-		-		1,561		1,561
Total	$	-	$	-	$	52,915	$	52,915

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 $68.1 million and a valuation allowance of $16.7 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $11.3 million for the nine months ended September 30, 2022.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $1.6 million at September 30, 2022, which is made up of the outstanding balance of $2.5 million, net of a purchase accounting adjustment of $131,000 and a valuation allowance of $856,000.


	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.