Investment Securities (Tables)

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2019 and 2018 was as follows (in thousands):

	Three Months Ended   June 30,			Six Months Ended   June 30,
	2019		2018	2019	2018
Proceeds from sales	$	28,496	3,343	50,302	3,343
Gross realized gains	70		7	128	7
Gross realized losses	69		8	145	8

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

	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
June 30, 2019
Debt Securities, Available-for-Sale:
U.S. Treasury notes	$	2,275	28	—	2,303
U.S. Agency notes	77,915		204	292	77,827
U.S. Agency mortgage-backed securities	62,283		297	441	62,139
Municipal securities:
Non-taxable	39,927		131	155	39,903
Taxable	16,215		284	11	16,488
	$	198,615	944	899	198,660
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable	$	26,065	105	30	26,140
Taxable	7,278		125	—	7,403
	$	33,343	230	30	33,543
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 June 30, 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
June 30, 2019
Available-for-Sale:
U.S. Treasury notes	$	—	—	—	—
U.S. Agency notes	—		—	39,413	292
U.S. Agency mortgage-backed securities	69		—	32,554	441
Municipal securities:
Non-taxable	—		—	21,330	155
Taxable	—		—	4,553	11
	$	69	—	97,850	899
Held-to-Maturity:
Municipal securities:
Non-taxable	$	72	—	3,490	30
Taxable	—		—	—	—
	$	72	—	3,490	30
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 June 30, 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	$	14,317	14,308	2,535	2,538
Due from one to five years	80,797		80,884	7,074	7,150
Due from five to ten years	39,508		39,626	8,517	8,535
Due after ten years	1,710		1,703	15,217	15,320
	136,332		136,521	33,343	33,543
U.S. Agency mortgage-backed securities	62,283		62,139	—	—
	$	198,615	198,660	33,343	33,543

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

	June 30, 2019			December 31, 2018
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Mutual funds	$	1,356	1,324	1,651	1,559
Equity securities	781		922	471	519
Total equity securities with a readily determinable fair value	$	2,137	2,246	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 June 30, 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 June 30, 2019 and December 31, 2018 are summarized as follows (in thousands):

	June 30, 2019			December 31, 2018
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Mutual funds	$	1,356	1,324	1,651	1,559
Equity securities	781		922	471	519
Total equity securities with a readily determinable fair value	$	2,137	2,246	2,122	2,078

Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the six months ended June 30, 2019 and 2018 is as follows (in thousands):

	Six Months Ended   June 30,
	2019			2018
Net gains recognized	$	147		11
Less net realized gains (losses) on equity securities sold	(6		)	23
Unrealized gains (losses) recognized and still held at period end	$	153		(12	)