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:


		Three Months Ended March 31, 2025
	Securities available-for-sale
			States and		Mortgage
	Asset-backed		Political		Servicing
	Securities		Subdivisions		Rights
Beginning balance January 1, 2025	$	3,254	$	11,896	$	10,374
Transfers out of Level 3		-		-		-
Total gains or losses
Included in earnings		-		-		(488)
Included in other comprehensive income		(36)		(466)		-
Purchases, issuances, sales, and settlements
Purchases		461		-		-
Issuances		-		-		134
Settlements		(96)		(42)		(82)
Ending balance March 31, 2025	$	3,583	$	11,388	$	9,938


		Three Months Ended March 31, 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 into Level 3		-		-		-
Transfers out of Level 3		-		-		-
Total gains or losses
Included in earnings		-		(33)		172
Included in other comprehensive income		(29)		(89)		-
Purchases, issuances, sales, and settlements
Purchases		259		-		-
Issuances		-		-		126
Settlements		(15)		(34)		(78)
Ending balance March 31, 2024	$	2,485	$	12,903	$	10,564

Schedule of assets measured at fair value on a nonrecurring basis


	March 31, 2025
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	25,409	$	25,409
Other real estate owned, net²		-		-		2,878		2,878
Total	$	-	$	-	$	28,287	$	28,287

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 $30.8 million and a valuation allowance of $5.3 million, resulting in a decrease of specific allocations within the allowance for credit losses on loans of $1.9 million for the three months ended March 31, 2025.

² OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $2.9 million at March 31, 2025, which is made up of the outstanding balance of $3.7 million, net of a valuation allowance of $853,000.


	December 31, 2024
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	19,058	$	19,058
Other real estate owned, net²		-		-		21,617		21,617
Total	$	-	$	-	$	40,675	$	40,675

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 and to a lesser extent the discounted cash flow, which had a carrying amount of $26.2 million and a valuation allowance of $7.2 million, resulting in a decrease of specific allocations within the allowance for credit losses on loans of $3.9 million for the year December 31, 2024.

² OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $21.6 million at December 31, 2024, which is made up of the outstanding balance of $23.5 million, net of a valuation allowance of $1.9 million.