XML 36 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost and Fair Value of Available-for-Sale Investment Securities
The amortized cost and estimated fair value of equity and debt securities at March 31, 2018 and December 31, 2017 are summarized as follows (in thousands):
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
March 31, 2018
 
 
 
 
 
 
 
Debt Securities, Available-for-Sale:
 
 
 
 
 
 
 
U.S. Treasury notes
$
2,281

 
$
—

 
$
63

 
$
2,218

U.S. Agency notes
84,806

 
4

 
2,900

 
81,910

U.S. Agency mortgage-backed securities
65,412

 
23

 
2,212

 
63,223

Municipal securities:
 

 
 

 
 

 
 

Non-taxable
102,625

 
131

 
2,050

 
100,706

Taxable
19,957

 
123

 
243

 
19,837

 
$
275,081

 
$
281

 
$
7,468

 
$
267,894

 
 
 
 
 
 
 
 
Debt Securities, Held-to-Maturity:
 
 
 
 
 
 
 
Municipal securities:
 
 
 
 
 
 
 
Non-taxable
$
28,802

 
$
31

 
$
614

 
$
28,219

Taxable
3,700

 
—

 
197

 
3,503

 
$
32,502

 
$
31

 
$
811

 
$
31,722

 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
Equity Securities with a Readily Determinable Fair Value:
 
 
 
 
 
 
 
Mutual funds
$
1,586

 
2

 
46

 
1,542

Trust preferred securities
49

 
1

 
—

 
50

Equity securities
$
475

 
97

 
4

 
568

 
2,110

 
$
100

 
$
50

 
$
2,160

 
 
 
 
 
 
 
 
Debt Securities, Available-for-Sale:
 
 
 
 
 
 
 
U.S. Treasury notes
$
2,283

 
$
—

 
$
24

 
$
2,259

U.S. Agency notes
84,837

 
57

 
1,633

 
83,261

U.S. Agency mortgage-backed securities
68,347

 
33

 
1,227

 
67,153

Municipal securities:
 

 
 

 
 

 
 

Non-taxable
102,849

 
343

 
1,018

 
102,174

Taxable
20,313

 
175

 
122

 
20,366

 
$
278,629

 
$
608

 
$
4,024

 
$
275,213

 
 
 
 
 
 
 
 
Debt Securities, Held-to-Maturity:
 
 
 
 
 
 
 
Municipal securities:
 
 
 
 
 
 
 
Non-taxable
$
28,871

 
$
101

 
$
227

 
$
28,745

Taxable
3,700

 
—

 
95

 
3,605

 
$
32,571

 
$
101

 
$
322

 
$
32,350
Securities in a Continuous Loss Position
Information concerning debt securities with gross unrealized losses at March 31, 2018 and December 31, 2017, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):
 
Less than Twelve Months
 
Twelve Months or Greater
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
March 31, 2018
 
 
 
 
 
 
 
Available-for-Sale:
 
 
 
 
 
 
 
U.S. Treasury notes
$
2,218

 
$
63

 
$
—

 
$
—

U.S. Agency notes
33,216

 
778

 
43,696

 
2,122

U.S. Agency mortgage-backed securities
23,495

 
462

 
38,760

 
1,750

Municipal securities:
 

 
 

 
 
 
 
Non-taxable
57,079

 
815

 
23,598

 
1,235

Taxable
15,808

 
225

 
1,381

 
18

 
$
131,816

 
$
2,343

 
$
107,435

 
$
5,125

 
 
 
 
 
 
 
 
Held-to-Maturity:
 
 
 
 
 
 
 
Municipal securities:
 
 
 
 
 
 
 
  Non-taxable
$
17,357

 
514

 
3,535

 
100

  Taxable
400

 
—

 
3,104

 
197

 
$
17,757

 
$
514

 
$
6,639

 
$
297

 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
Available-for-Sale:
 
 
 
 
 
 
 
U.S. Treasury notes
$
2,259

 
$
24

 
$
—

 
$
—

U.S. Agency notes
33,651

 
344

 
44,560

 
1,289

U.S. Agency mortgage-backed securities
24,433

 
142

 
41,080

 
1,085

Municipal securities:
 

 
 

 
 

 
 
Non-taxable
36,348

 
315

 
24,197

 
703

Taxable
11,068

 
114

 
1,032

 
8

 
$
107,759

 
$
939

 
$
110,869

 
$
3,085

 
 
 
 
 
 
 
 
Held-to-Maturity:
 
 
 
 
 
 
 
Municipal securities:
 
 
 
 
 
 
 
  Non-taxable
$
9,824

 
$
133

 
$
3,542

 
$
94

  Taxable
—

 
—

 
3,205

 
95

 
$
9,824

 
$
133

 
$
6,747

 
$
189
Investments Classified by Contractual Maturity Date
Contractual maturities of debt securities at March 31, 2018 were as follows (in thousands).  Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
 
Available-for-Sale
 
Held-to-Maturity
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Due within one year
$
14,575

 
$
14,576

 
$
4,023

 
$
4,022

Due from one to five years
94,912

 
93,591

 
4,111

 
4,020

Due from five to ten years
97,963

 
94,408

 
8,469

 
8,261

Due after ten years
2,219

 
2,096

 
15,899

 
15,419

 
209,669

 
204,671

 
32,502

 
31,722

U.S. Agency mortgage-backed securities
65,412

 
63,223

 
—

 
—

 
$
275,081

 
$
267,894

 
$
32,502

 
$
31,722
Schedule of Debt Securities, Trading, and Equity Securities, FV-NI
The amortized cost and estimated fair value of equity securities with a readily determinable fair value at March 31, 2018 are summarized as follows (in thousands):
 
Amortized
Cost
 
Fair
Value
Mutual funds
$
1,613

 
$
1,548

Trust preferred securities
49

 
50

Equity securities
478

 
546

Total equity securities with a readily determinable fair value
$
2,140

 
$
2,144
Schedule of Equity Securities, Changes in Fair Value
Beginning January 1, 2018, equity securities with a readily determanable fair value are carried at fair value, with changes in fair value recognized in other operating income in the consolidated condensed statements of income. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. LCNB was not aware of any impairment or observable price change adjustments that needed to be made at March 31, 2018 on its investments in equity securities without a readily determinable fair value.

The amortized cost and estimated fair value of equity securities with a readily determinable fair value at March 31, 2018 are summarized as follows (in thousands):
 
Amortized
Cost
 
Fair
Value
Mutual funds
$
1,613

 
$
1,548

Trust preferred securities
49

 
50

Equity securities
478

 
546

Total equity securities with a readily determinable fair value
$
2,140

 
$
2,144



Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the three months ended March 31, 2018 was as follows (in thousands):
Net gains (losses) recognized
$
(23
)
Less: net gains (losses) recognized on equity securities sold
23

Unrealized gains (losses) recognized and still held at period end
$
(46
)