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Investment Securities (Tables)
 9 Months Ended
Sep. 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 September 30, 2018 and December 31, 2017 are summarized as follows (in thousands):
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
September 30, 2018
 
 
 
 
 
 
 
Debt Securities, Available-for-Sale:
 
 
 
 
 
 
 
U.S. Treasury notes
$
2,279

 
$
—

 
$
95

 
$
2,184

U.S. Agency notes
80,738

 
—

 
3,566

 
77,172

U.S. Agency mortgage-backed securities
59,734

 
8

 
2,950

 
56,792

Municipal securities:
 

 
 

 
 

 
 

Non-taxable
93,979

 
45

 
2,340

 
91,684

Taxable
19,914

 
80

 
389

 
19,605

 
$
256,644

 
$
133

 
$
9,340

 
$
247,437

 
 
 
 
 
 
 
 
Debt Securities, Held-to-Maturity:
 
 
 
 
 
 
 
Municipal securities:
 
 
 
 
 
 
 
Non-taxable
$
27,979

 
$
30

 
$
827

 
$
27,182

Taxable
3,700

 
—

 
225

 
3,475

 
$
31,679

 
$
30

 
$
1,052

 
$
30,657

 
 
 
 
 
 
 
 
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 September 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
September 30, 2018
 
 
 
 
 
 
 
Available-for-Sale:
 
 
 
 
 
 
 
U.S. Treasury notes
$
948

 
$
37

 
$
1,236

 
$
58

U.S. Agency notes
9,680

 
203

 
67,492

 
3,363

U.S. Agency mortgage-backed securities
4,527

 
88

 
51,948

 
2,862

Municipal securities:
 

 
 

 
 
 
 
Non-taxable
52,974

 
741

 
30,890

 
1,599

Taxable
8,039

 
165

 
8,962

 
224

 
$
76,168

 
$
1,234

 
$
160,528

 
$
8,106

 
 
 
 
 
 
 
 
Held-to-Maturity:
 
 
 
 
 
 
 
Municipal securities:
 
 
 
 
 
 
 
  Non-taxable
$
14,331

 
634

 
6,237

 
193

  Taxable
399

 
1

 
3,076

 
224

 
$
14,730

 
$
635

 
$
9,313

 
$
417

 
 
 
 
 
 
 
 
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 September 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
$
15,203

 
$
15,152

 
$
3,240

 
$
3,245

Due from one to five years
103,857

 
101,130

 
4,066

 
3,971

Due from five to ten years
75,648

 
72,306

 
8,649

 
8,373

Due after ten years
2,202

 
2,057

 
15,724

 
15,068

 
196,910

 
190,645

 
31,679

 
30,657

U.S. Agency mortgage-backed securities
59,734

 
56,792

 
—

 
—

 
$
256,644

 
$
247,437

 
$
31,679

 
$
30,657
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 September 30, 2018 are summarized as follows (in thousands):
 
Amortized
Cost
 
Fair
Value
Mutual funds
$
1,633

 
$
1,547

Trust preferred securities
49

 
50

Equity securities
481

 
603

Total equity securities with a readily determinable fair value
$
2,163

 
$
2,200
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 September 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 September 30, 2018 are summarized as follows (in thousands):
 
Amortized
Cost
 
Fair
Value
Mutual funds
$
1,633

 
$
1,547

Trust preferred securities
49

 
50

Equity securities
481

 
603

Total equity securities with a readily determinable fair value
$
2,163

 
$
2,200








Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the nine months ended September 30, 2018 was as follows (in thousands):
Net gains recognized
 
$
12

Less net realized gains on equity securities sold
 
25

Unrealized losses recognized and still held at period end
 
$
(13
)