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

worked
	Year Ended December 31, 2022
	Securities available-for-sale
			Collateralized		States and		Mortgage
	Asset-backed		Mortgage		Political		Servicing
	Securities		Obligations		Subdivisions		Rights
Beginning balance January 1, 2022	$	-	$	-	$	15,236	$	7,097
Transfers into Level 3		15,012		6,770		-		-
Transfers out of Level 3		-		-		-		-
Total gains or losses
Included in earnings		-		-		(136)		4,106
Included in other comprehensive loss		-		-		(86)		-
Purchases, issuances, sales, and settlements
Purchases		-		-		519		-
Issuances		-		-		-		915
Settlements		-		-		(1,304)		(929)
Ending balance December 31, 2022	$	15,012	$	6,770	$	14,229	$	11,189


	Year Ended December 31, 2021
	Securities available-for-sale
			Collateralized		States and		Mortgage
	Asset-backed		Mortgage		Political		Servicing
	Securities		Obligations		Subdivisions		Rights
Beginning balance January 1, 2021	$	-	$	-	$	4,319	$	4,224
Transfers into Level 3		-		-		-		-
Transfers out of Level 3		-		-		-		-
Total gains or losses
Included in earnings		-		-		(20)		2,420
Included in other comprehensive income		-		-		801		-
Purchases, issuances, sales, and settlements
Purchases		-		-		11,063		-
Issuances		-		-		-		1,612
Settlements		-		-		(927)		(1,159)
Ending balance December 31, 2021	$	-	$	-	$	15,236	$	7,097

Schedule of assets measured at fair value on a nonrecurring basis


	December 31, 2022
	Level 1		Level 2		Level 3		Total
Individually evaluated loans¹	$	-	$	-	$	47,700	$	47,700
Other real estate owned, net²		-		-		1,561		1,561
Total	$	-	$	-	$	49,261	$	49,261

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, had a carrying amount of $65.3 million and a valuation allowance of $17.6 million, resulting in an increase of specific allocations within the provision for credit losses of $12.2 million for the year ending December 31, 2022.

2

OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $1.6 million, which is made up of the outstanding balance of $2.5 million, net of a valuation allowance of $856,000 and purchase accounting adjustments of $131,000 at December 31, 2022.


	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 loan and lease losses of $2.7 million 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.