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Investment Securities (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2018 and December 31, 2017 are summarized as follows (in thousands):
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
June 30, 2018
 
 
 
 
 
 
 
Debt Securities, Available-for-Sale:
 
 
 
 
 
 
 
U.S. Treasury notes
$
2,280

 
$
—

 
$
78

 
$
2,202

U.S. Agency notes
83,774

 
—

 
3,226

 
80,548

U.S. Agency mortgage-backed securities
62,752

 
17

 
2,571

 
60,198

Municipal securities:
 

 
 

 
 

 
 

Non-taxable
96,853

 
112

 
1,933

 
95,032

Taxable
19,935

 
104

 
298

 
19,741

 
$
265,594

 
$
233

 
$
8,106

 
$
257,721

 
 
 
 
 
 
 
 
Debt Securities, Held-to-Maturity:
 
 
 
 
 
 
 
Municipal securities:
 
 
 
 
 
 
 
Non-taxable
$
27,910

 
$
51

 
$
715

 
$
27,246

Taxable
3,700

 
—

 
150

 
3,550

 
$
31,610

 
$
51

 
$
865

 
$
30,796

 
 
 
 
 
 
 
 
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 June 30, 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
June 30, 2018
 
 
 
 
 
 
 
Available-for-Sale:
 
 
 
 
 
 
 
U.S. Treasury notes
$
2,202

 
$
78

 
$
—

 
$
—

U.S. Agency notes
31,616

 
867

 
48,932

 
2,359

U.S. Agency mortgage-backed securities
19,555

 
483

 
39,827

 
2,088

Municipal securities:
 

 
 

 
 
 
 
Non-taxable
54,493

 
691

 
23,525

 
1,242

Taxable
13,898

 
215

 
3,214

 
83

 
$
121,764

 
$
2,334

 
$
115,498

 
$
5,772

 
 
 
 
 
 
 
 
Held-to-Maturity:
 
 
 
 
 
 
 
Municipal securities:
 
 
 
 
 
 
 
  Non-taxable
$
17,229

 
618

 
3,539

 
97

  Taxable
399

 
1

 
3,151

 
149

 
$
17,628

 
$
619

 
$
6,690

 
$
246

 
 
 
 
 
 
 
 
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 June 30, 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
$
15,287

 
$
15,278

 
$
3,240

 
$
3,245

Due from one to five years
102,178

 
100,308

 
4,084

 
3,996

Due from five to ten years
83,168

 
79,860

 
8,474

 
8,232

Due after ten years
2,209

 
2,077

 
15,812

 
15,323

 
202,842

 
197,523

 
31,610

 
30,796

U.S. Agency mortgage-backed securities
62,752

 
60,198

 
—

 
—

 
$
265,594

 
$
257,721

 
$
31,610

 
$
30,796
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 June 30, 2018 are summarized as follows (in thousands):
 
Amortized
Cost
 
Fair
Value
Mutual funds
$
1,623

 
$
1,545

Trust preferred securities
49

 
50

Equity securities
478

 
593

Total equity securities with a readily determinable fair value
$
2,150

 
$
2,188
Schedule of Equity Securities, Changes in Fair Value
Beginning January 1, 2018, equity securities with a readily determinable 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 June 30, 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 June 30, 2018 are summarized as follows (in thousands):
 
Amortized
Cost
 
Fair
Value
Mutual funds
$
1,623

 
$
1,545

Trust preferred securities
49

 
50

Equity securities
478

 
593

Total equity securities with a readily determinable fair value
$
2,150

 
$
2,188








Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the six months ended June 30, 2018 was as follows (in thousands):
Net gains recognized
 
$
11

Less net gains recognized on equity securities sold
 
23

Unrealized losses recognized and still held at period end
 
$
(12
)