Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018 and December 31, 2017 (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, 2018
Recurring fair value measurements:
	Equity securities with a readily determinable fair value:
	Trust preferred securities	$	50	$	50	$	—	$	—
	Equity securities	603		603		—		—
	Mutual funds	36		36		—		—
	Mutual funds measured at net asset value	1,511		1,511		—		—
	Debt securities available-for-sale:
	U.S. Treasury notes	2,184		2,184		—		—
	U.S. Agency notes	77,172		—		77,172		—
	U.S. Agency mortgage-backed securities	56,792		—		56,792		—
	Municipal securities:
	Non-taxable	91,684		—		91,684		—
	Taxable	19,605		—		19,605		—
	Total recurring fair value measurements	$	249,637	$	4,384	$	245,253	$	—
Nonrecurring fair value measurements:
	Impaired loans	$	963	$	—	$	—	$	963
	Other real estate owned and repossessed assets	35		—		—		35
	Total nonrecurring fair value measurements	$	998	$	—	$	—	$	998
December 31, 2017
Recurring fair value measurements:
	Equity securities with a readily determinable fair value:
	Trust preferred securities	$	50	$	50	$	—	$	—
	Equity securities	568		568		—		—
	Mutual funds	23		23		—		—
	Mutual funds measured at net asset value	1,519		1,519		—		—
	Debt securities available-for-sale:
	U.S. Treasury notes	2,259		2,259		—		—
	U.S. Agency notes	83,261		—		83,261		—
	U.S. Agency mortgage-backed securities	67,153		—		67,153		—
	Municipal securities:
	Non-taxable	102,174		—		102,174		—
	Taxable	20,366		—		20,366		—
	Total recurring fair value measurements	$	277,373	$	4,419	$	272,954	$	—
Nonrecurring fair value measurements:
	Impaired loans	$	3,359	$	—	$	—	$	3,359

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, 2018 and December 31, 2017 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
September 30, 2018
Impaired loans	$	71	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
	892		Discounted cash flows	Discount rate	8.25	%	4.50	%	6.94	%
Other real estate owned	35		Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
December 31, 2017
Impaired loans	$	1,753	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
	1,606		Discounted cash flows	Discount rate	8.25	%	3.25	%	6.27	%
Other real estate owned	—		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, 2018 and December 31, 2017 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, 2018
FINANCIAL ASSETS:
Cash and cash equivalents	$	19,812	$	19,812	$	19,812	$	—	$	—
Equity securities without a readily determinable fair value:
Equity security	99		99		—		—		99
Mutual fund	2,000		2,000		—		—		2,000
Investment securities, held-to-maturity	31,679		30,657		—		—		30,657
Federal Reserve Bank stock	4,653		4,653		4,653		—		—
Federal Home Loan Bank stock	4,845		4,845		4,845		—		—
Loans, net	1,158,309		1,104,951		—		—		1,104,951
Accrued interest receivable	5,602		5,602		—		5,602		—
FINANCIAL LIABILITIES:
Deposits	1,371,023		1,371,030		1,071,476		299,554		—
Long-term debt	23,079		24,234		—		24,234		—
Accrued interest payable	582		582		—		582		—
December 31, 2017
FINANCIAL ASSETS:
Cash and cash equivalents	$	25,386	$	25,386	$	25,386	$	—	$	—
Equity securities without a readily determinable fair value:
Equity security	99		99		—		—		99
Mutual fund	1,000		1,000		—		—		1,000
Investment securities, held-to-maturity	32,571		32,350		—		—		32,350
Federal Reserve Bank stock	2,732		2,732		2,732		—		—
Federal Home Loan Bank stock	3,638		3,638		3,638		—		—
Loans, net	845,657		813,368		—		—		813,368
Accrued interest receivable	3,511		3,511		—		3,511		—
FINANCIAL LIABILITIES:
Deposits	1,085,821		1,087,086		894,046		193,040		—
Short-term borrowings	47,000		47,000		47,000		—		—
Long-term debt	303		307		—		307		—
Accrued interest payable	329		329		—		329		—