Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

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, 2017 and December 31, 2016 (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, 2017
Recurring fair value measurements:
	Investment securities available-for-sale:
	U.S. Treasury notes	$	16,152	$	16,152	$	—	$	—
	U.S. Agency notes	86,946		—		86,946		—
	U.S. Agency mortgage-backed securities	70,721		—		70,721		—
	Municipal securities:
	Non-taxable	110,723		—		110,723		—
	Taxable	22,622		—		22,622		—
	Mutual funds	1,022		22		1,000		—
	Mutual funds measured at net asset value (a)	1,517
	Trust preferred securities	50		50		—		—
	Equity securities	651		651		—		—
	Total recurring fair value measurements	$	310,404	$	16,875	$	292,012	$	—
Nonrecurring fair value measurements:
	Impaired loans	$	3,712	$	—	$	—	$	3,712
December 31, 2016
Recurring fair value measurements:
	Investment securities available-for-sale:
	U.S. Treasury notes	$	28,145	$	28,145	$	—	$	—
	U.S. Agency notes	85,400		—		85,400		—
	U.S. Agency mortgage-backed securities	71,047		—		71,047		—
	Municipal securities:
	Non-taxable	113,015		—		113,015		—
	Taxable	19,845		—		19,845		—
	Mutual fund	1,000		—		1,000		—
	Mutual funds measured at net asset value (a)	1,482
	Trust preferred securities	48		48		—		—
	Equity securities	677		677		—		—
	Total recurring fair value measurements	$	320,659	$	28,870	$	290,307	$	—
Nonrecurring fair value measurements:
	Impaired loans	$	5,340	$	—	$	—	$	5,340
(a)	In accordance with FASB ASC 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, 2017 and December 31, 2016 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
September 30, 2017
Impaired loans	$	3,712	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	8.25	%	3.25	%	6.25	%
December 31, 2016
Impaired loans	$	5,340	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	8.25	%	4.50	%	5.56	%

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments as of September 30, 2017 and December 31, 2016 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, 2017
FINANCIAL ASSETS:
Cash and cash equivalents	$	21,203	$	21,203	$	21,203	$	—	$	—
Investment securities, held-to-maturity	36,860		36,805		—		—		36,805
Federal Reserve Bank stock	2,732		2,732		2,732		—		—
Federal Home Loan Bank stock	3,638		3,638		3,638		—		—
Loans, net	830,797		808,212		—		—		808,212
Accrued interest receivable	4,639		4,639		—		4,639		—
FINANCIAL LIABILITIES:
Deposits	1,121,523		1,122,920		920,534		202,386		—
Short-term borrowings	30,000		30,000		30,000		—		—
Long-term debt	363		389		—		389		—
Accrued interest payable	303		303		—		303		—
December 31, 2016
FINANCIAL ASSETS:
Cash and cash equivalents	$	18,865	$	18,865	$	18,865	$	—	$	—
Investment securities, held-to-maturity	41,003		40,490		—		—		40,490
Federal Reserve Bank stock	2,732		2,732		2,732		—		—
Federal Home Loan Bank stock	3,638		3,638		3,638		—		—
Loans, net	816,228		799,791		—		—		799,791
Accrued interest receivable	3,559		3,559		—		3,559		—
FINANCIAL LIABILITIES:
Deposits	1,110,905		1,113,187		896,147		217,040		—
Short-term borrowings	42,040		42,040		42,040		—		—
Long-term debt	598		614		—		614		—
Accrued interest payable	307		307		—		307		—