Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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)
September 30, 2016
Recurring fair value measurements:
	Investment securities available-for-sale:
	U.S. Treasury notes	$	45,911	45,911	—	—
	U.S. Agency notes	108,963		—	108,963	—
	U.S. Agency mortgage-backed securities	50,322		—	50,322	—
	Certificates of deposit with other banks	—		—	—	—
	Municipal securities:
	Non-taxable	117,676		—	117,676	—
	Taxable	20,270		—	20,270	—
	Mutual funds	1,000		—	1,000	—
	Mutual funds measured at net asset value (a)	1,508
	Trust preferred securities	49		49	—	—
	Equity securities	692		692	—	—
	Total recurring fair value measurements	$	346,391	46,652	298,231	—
Nonrecurring fair value measurements:
	Impaired loans	$	4,121	—	—	4,121
	Other real estate owned and repossessed assets	270		—	—	270
	Total nonrecurring fair value measurements	$	4,391	—	—	4,391
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 Condensed 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 September 30, 2016 and December 31, 2015 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
September 30, 2016
Impaired loans	$	4,121	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	8.25	%	4.45	%	5.48	%
Other real estate owned	270		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 September 30, 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)
September 30, 2016
FINANCIAL ASSETS:
Cash and cash equivalents	$	33,213	33,213	33,213	—	—
Investment securities, held-to-maturity	42,037		42,879	—	—	42,879
Federal Reserve Bank stock	2,732		2,732	2,732	—	—
Federal Home Loan Bank stock	3,638		3,638	3,638	—	—
Loans, net	807,864		800,499	—	—	800,499
Accrued interest receivable	4,449		4,449	—	4,449	—
FINANCIAL LIABILITIES:
Deposits	1,158,921		1,161,419	940,294	221,125	—
Short-term borrowings	16,989		16,989	16,989	—	—
Long-term debt	662		681	—	681	—
Accrued interest payable	282		282	—	282	—
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	—	3,380	—
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	—	345	—