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

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows:


		Nine Months Ended September 30, 2024
	Securities available-for-sale
			States and		Mortgage
	Asset-backed		Political		Servicing
	Securities		Subdivisions		Rights
Beginning balance January 1, 2024	$	2,270	$	13,059	$	10,344
Transfers out of Level 3		-		-		-
Total gains or losses
Included in earnings		-		(98)		(706)
Included in other comprehensive income		(68)		18		-
Purchases, issuances, sales, and settlements
Purchases		1,209		-		-
Issuances		-		-		490
Settlements		(111)		(111)		(402)
Ending balance September 30, 2024	$	3,300	$	12,868	$	9,726


		Nine Months Ended September 30, 2023
		Securities available-for-sale
			Collateralized		States and		Mortgage
	Asset-backed		Mortgage		Political		Servicing
	Securities		Obligations		Subdivisions		Rights
Beginning balance January 1, 2023	$	16,740	$	6,770	$	12,501	$	11,189
Transfers into Level 3		-		-		-		-
Transfers out of Level 3		(14,885)		(6,764)		-		-
Total gains or losses
Included in earnings		(11)		-		(99)		232
Included in other comprehensive income		168		(6)		(74)		-
Purchases, issuances, sales, and settlements
Purchases		406		-		-		-
Issuances		-		-		-		420
Settlements		(572)		-		(108)		(380)
Ending balance September 30, 2023	$	1,846	$	-	$	12,220	$	11,461

Schedule of assets measured at fair value on a nonrecurring basis


	September 30, 2024
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	42,005	$	42,005
Other real estate owned, net²		-		-		8,202		8,202
Total	$	-	$	-	$	50,207	$	50,207

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 $50.2 million and a valuation allowance of $8.2 million resulting in a decrease of specific allocations within the allowance for credit losses on loans of $2.9 million for the nine months ended September 30, 2024.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $8.2 million at September 30, 2024, which is made up of the outstanding balance of $8.3 million, net of a valuation allowance of $118,000.


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	66,180	$	66,180
Other real estate owned, net²		-		-		5,123		5,123
Total	$	-	$	-	$	71,303	$	71,303

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 $77.3 million and a valuation allowance of $11.1 million resulting in a decrease of specific allocations within the allowance for credit losses on loans of $6.5 million for the year December 31, 2023.

² OREO is measured at fair value, less costs to sell, and had a net carrying amount of $5.1 million at December 31, 2023, which is made up of the outstanding balance of $5.2 million, net of a valuation allowance of $118,000.