Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015 (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)
March 31, 2016
Recurring fair value measurements:
	Investment securities available-for-sale:
	U.S. Treasury notes	$	53,592	53,592	—	—
	U.S. Agency notes	128,302		—	128,302	—
	U.S. Agency mortgage-backed securities	33,768		—	33,768	—
	Certificates of deposit with other banks	249		—	249	—
	Municipal securities:
	Non-taxable	104,642		—	104,642	—
	Taxable	27,305		—	27,305	—
	Mutual funds	1,016		16	1,000	—
	Mutual funds measured at net asset value (a)	1,476
	Trust preferred securities	49		49	—	—
	Equity securities	702		702	—	—
	Total recurring fair value measurements	$	351,101	54,359	295,266	—
Nonrecurring fair value measurements:
	Impaired loans	$	3,527	—	—	3,527
	Other real estate owned and repossessed assets	846		—	—	846
	Total nonrecurring fair value measurements	$	4,373	—	—	4,373
December 31, 2015
Recurring fair value measurements:
	Investment securities available-for-sale:
	U.S. Treasury notes	$	72,846	72,846	—	—
	U.S. Agency notes	139,889		—	139,889	—
	U.S. Agency mortgage-backed securities	29,378		—	29,378	—
	Certificates of deposit with other banks	249		—	249	—
	Municipal securities:
	Non-taxable	105,479		—	105,479	—
	Taxable	26,941		—	26,941	—
	Mutual funds	1,018		18	1,000	—
	Mutual funds measured at net asset value (a)	1,448
	Trust preferred securities	50		50	—	—
	Equity securities	680		680	—	—
	Total recurring fair value measurements	$	377,978	73,594	302,936	—
Nonrecurring fair value measurements:
	Impaired loans	$	4,722	—	—	4,722
	Other real estate owned and repossessed assets	846		—	—	846
	Total nonrecurring fair value measurements	$	5,568	—	—	5,568
(a)	In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.

Fair Value Measurements 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 March 31, 2016 and December 31, 2015 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
March 31, 2016
Impaired loans	$	3,527	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	11.00	%	4.50	%	5.61	%
Other real estate owned	846		Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
December 31, 2015
Impaired loans	$	4,722	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	11.00	%	4.00	%	5.27	%
Other real estate owned	846		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 March 31, 2016 and December 31, 2015 are 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)
March 31, 2016
FINANCIAL ASSETS:
Cash and cash equivalents	$	21,089	21,089	21,089	—	—
Investment securities, held-to-maturity	36,505		36,948	—	—	36,948
Federal Reserve Bank stock	2,732		2,732	2,732	—	—
Federal Home Loan Bank stock	3,638		3,638	3,638	—	—
Loans, net	775,564		770,069	—	—	770,069
Accrued interest receivable	4,279		4,279	256	1,879	2,144
FINANCIAL LIABILITIES:
Deposits	1,120,208		1,120,932	902,813	218,119	—
Short-term borrowings	11,668		11,668	11,668	—	—
Long-term debt	789		817	—	817	—
Accrued interest payable	305		305	16	289	—
December 31, 2015
FINANCIAL ASSETS:
Cash and cash equivalents	$	14,987	14,987	14,987	—	—
Investment securities, held-to-maturity	22,633		22,630	—	—	22,630
Federal Reserve Bank stock	2,732		2,732	2,732	—	—
Federal Home Loan Bank stock	3,638		3,638	3,638	—	—
Loans, net	767,809		761,388	—	—	761,388
Accrued interest receivable	3,380		3,380	208	1,280	1,892
FINANCIAL LIABILITIES:
Deposits	1,087,160		1,087,914	869,940	217,974	—
Short-term borrowings	37,387		37,387	37,387	—	—
Long-term debt	5,947		6,290	—	6,290	—
Accrued interest payable	345		345	16	329	—