Investment Securities (Tables)

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Realized Gain (Loss) on Investments [Table Text Block]

Certain information concerning the sale of debt securities, available-for-sale for the three months ended March 31, 2019 and 2018 was as follows (in thousands):

	Three Months Ended   March 31,
	2019	2018
Proceeds from sales	21,806	—
Gross realized gains	58	—
Gross realized losses	76	—

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, 2019 and December 31, 2018 are summarized as follows (in thousands):

	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
March 31, 2019
Debt Securities, Available-for-Sale:
U.S. Treasury notes	$	2,276	—	19	2,257
U.S. Agency notes	75,681		—	1,231	74,450
U.S. Agency mortgage-backed securities	55,718		9	1,161	54,566
Municipal securities:
Non-taxable	70,068		163	516	69,715
Taxable	16,635		133	88	16,680
	$	220,378	305	3,015	217,668
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable	$	25,915	68	187	25,796
Taxable	6,448		36	53	6,431
	$	32,363	104	240	32,227
December 31, 2018
Debt Securities, Available-for-Sale:
U.S. Treasury notes	$	2,278	—	43	2,235
U.S. Agency notes	80,708		—	2,368	78,340
U.S. Agency mortgage-backed securities	57,584		7	1,981	55,610
Municipal securities:
Non-taxable	86,059		77	1,422	84,714
Taxable	17,654		102	234	17,522
	$	244,283	186	6,048	238,421
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable	$	26,021	84	635	25,470
Taxable	3,700		—	146	3,554
	$	29,721	84	781	29,024

Securities in a Continuous Loss Position

Information concerning debt securities with gross unrealized losses at March 31, 2019 and December 31, 2018, 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, 2019
Available-for-Sale:
U.S. Treasury notes	$	—	—	2,257	19
U.S. Agency notes	—		—	74,450	1,231
U.S. Agency mortgage-backed securities	111		—	54,245	1,161
Municipal securities:
Non-taxable	619		1	43,862	515
Taxable	—		—	13,001	88
	$	730	1	187,815	3,014
Held-to-Maturity:
Municipal securities:
Non-taxable	$	—	—	18,537	187
Taxable	—		—	3,247	53
	$	—	—	21,784	240
December 31, 2018
Available-for-Sale:
U.S. Treasury notes	$	—	—	2,235	43
U.S. Agency notes	4,988		7	73,351	2,361
U.S. Agency mortgage-backed securities	137		—	55,217	1,981
Municipal securities:
Non-taxable	14,264		49	58,211	1,373
Taxable	—		—	14,407	234
	$	19,389	56	203,421	5,992
Held-to-Maturity:
Municipal securities:
Non-taxable	$	366	1	18,588	634
Taxable	400		1	3,154	145
	$	766	2	21,742	779

Investments Classified by Contractual Maturity Date

Contractual maturities of debt securities at March 31, 2019 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	$	15,455	15,425	2,800	2,799
Due from one to five years	98,030		97,128	6,274	6,270
Due from five to ten years	49,458		48,863	7,982	7,946
Due after ten years	1,717		1,686	15,307	15,212
	164,660		163,102	32,363	32,227
U.S. Agency mortgage-backed securities	55,718		54,566	—	—
	$	220,378	217,668	32,363	32,227

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, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019			December 31, 2018
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Mutual funds	$	1,349	1,299	1,651	1,559
Equity securities	780		886	471	519
Total equity securities with a readily determinable fair value	$	2,129	2,185	2,122	2,078

Schedule of Equity Securities, Changes in Fair Value

quity 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 March 31, 2019 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, 2019 and December 31, 2018 are summarized as follows (in thousands):

	March 31, 2019			December 31, 2018
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Mutual funds	$	1,349	1,299	1,651	1,559
Equity securities	780		886	471	519
Total equity securities with a readily determinable fair value	$	2,129	2,185	2,122	2,078

Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the three months ended March 31, 2019 was as follows (in thousands):

	Three Months Ended   March 31,
	2019			2018
Net gains (losses) recognized	$	93		(23	)
Less net realized gains (losses) on equity securities sold	(6		)	23
Unrealized gains (losses) recognized and still held at period end	$	99		(46	)