FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Summary of Valuation of LCNB's Assets Recorded at Fair Value by Inputs Level

The following table summarizes the valuation of LCNB’s assets recorded at fair value by input levels as of December 31 (in thousands):

			Fair Value Measurements at the End of the Reporting Period Using
	Fair Value Measurements		Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
December 31, 2014
Recurring fair value measurements:
Investment securities available-for-sale:
U.S. Treasury notes	$	62,560	62,560	—	—
U.S. Agency notes	83,637		—	83,637	—
U.S. Agency mortgage-backed securities	38,032		—	38,032	—
Certificates of deposit	3,086		—	3,086	—
Municipal securities:
Non-taxable	77,395		—	77,395	—
Taxable	16,395		—	16,395	—
Mutual funds	2,461		1,461	1,000	—
Trust preferred securities	50		50	—	—
Equity securities	1,749		1,749	—	—
Total recurring fair value measurements	$	285,365	65,820	219,545	—
Nonrecurring fair value measurements:
Impaired loans	$	4,872	—	—	4,872
Other real estate owned and repossessed assets	1,370		—	—	1,370
Total nonrecurring fair value measurements	$	6,242	—	—	6,242
December 31, 2013
Recurring fair value measurement:
Investment securities available-for-sale:
U.S. Treasury notes	$	12,894	12,894	—	—
U.S. Agency notes	106,675		—	106,675	—
U.S. Agency mortgage-backed securities	40,309		—	40,309	—
Certificates of deposit with other banks	1,501		—	1,501	—
Municipal securities:
Non-taxable	75,333		—	75,333	—
Taxable	17,309		—	17,309	—
Mutual funds	2,380		1,380	1,000	—
Trust preferred securities	147		147	—	—
Equity securities	1,693		1,693	—	—
Total recurring fair value measurements	$	258,241	16,114	242,127	—
Nonrecurring fair value measurements:
Impaired loans	$	8,530	—	773	7,757
Other real estate owned and repossessed assets	1,463		—	1,463	—
Total nonrecurring fair value measurements	$	9,993	—	2,236	7,757

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at December 31, 2014 and 2013 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
2014
Impaired loans	$	4,872	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	10.50	%	4.00	%	5.36	%
Other real estate owned	1,370		Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
2013
Impaired loans	$	7,757	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments as of December 31 were as follows (in thousands):

				Fair Value Measurements at the End of the Reporting Period Using
	Carrying Amount		Fair Value	Quoted Prices in Active  Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
2014
FINANCIAL ASSETS:
Cash and cash equivalents	$	15,845	15,845	15,845
Investment securities, held-to-maturity	22,725		22,138			22,138
Federal Reserve Bank stock	2,346		2,346	2,346
Federal Home Loan Bank stock	3,638		3,638	3,638
Loans, net	695,835		699,715			699,715
FINANCIAL LIABILITIES:
Deposits	946,205		947,541	731,766	215,775
Short-term borrowings	16,645		16,645	16,645
Long-term debt	11,357		11,944		11,944
2013
FINANCIAL ASSETS:
Cash and cash equivalents	$	14,688	14,688	14,688
Investment securities, held-to-maturity	16,323		16,196			16,196
Federal Reserve Bank stock	1,603		1,603	1,603
Federal Home Loan Bank stock	2,854		2,854	2,854
Loans, net	570,766		573,163		773	572,390
FINANCIAL LIABILITIES:
Deposits	785,761		788,096	599,838	188,258
Short-term borrowings	8,655		8,655	8,655
Long-term debt	12,102		12,842		12,842