Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019 and December 31, 2018 (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, 2019
Recurring fair value measurements:
	Equity securities with a readily determinable fair value:
	Equity securities	$	925	925	—	—
	Mutual funds	42		42	—	—
	Mutual funds measured at net asset value	1,299		1,299	—	—
	Debt securities, available-for-sale:
	U.S. Treasury notes	2,312		2,312	—	—
	U.S. Agency notes	49,043		—	49,043	—
	U.S. Agency mortgage-backed securities	85,062		—	85,062	—
	Municipal securities:
	Non-taxable	38,291		—	38,291	—
	Taxable	16,522		—	16,522	—
	Total recurring fair value measurements	$	193,496	4,578	188,918	—
Nonrecurring fair value measurements:
	Impaired loans	$	3,123	—	—	3,123
	Other real estate owned and repossessed assets	197		—	—	197
	Total nonrecurring fair value measurements	$	3,320	—	—	3,320
December 31, 2018
Recurring fair value measurements:
	Equity securities with a readily determinable fair value:
	Equity securities	$	519	519	—	—
	Mutual funds	39		39	—	—
	Mutual funds measured at net asset value	1,520		1,520	—	—
	Debt securities, available-for-sale:
	U.S. Treasury notes	2,235		2,235	—	—
	U.S. Agency notes	78,340		—	78,340	—
	U.S. Agency mortgage-backed securities	55,610		—	55,610	—
	Municipal securities:
	Non-taxable	84,714		—	84,714	—
	Taxable	17,522		—	17,522	—
	Total recurring fair value measurements	$	240,499	4,313	236,186	—
Nonrecurring fair value measurements:
	Impaired loans	$	1,039	—	—	1,039
	Other real estate owned and repossessed assets	244		—	—	244
	Total nonrecurring fair value measurements	$	1,283	—	—	1,283

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, 2019 and December 31, 2018 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
September 30, 2019
Impaired loans	$	2,010	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
	1,113		Discounted cash flows	Discount rate	8.25	%	4.50	%	6.79	%
Other real estate owned	197		Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
December 31, 2018
Impaired loans	$	45	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
	994		Discounted cash flows	Discount rate	8.25	%	4.50	%	6.86	%
Other real estate owned	244		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, 2019 and December 31, 2018 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, 2019
FINANCIAL ASSETS:
Cash and cash equivalents	$	22,826	22,826	22,826	—	—
Interest-bearing time deposits	249		249	—	249	—
Debt securities, held-to-maturity	34,031		34,416	—	—	34,416
Federal Reserve Bank stock	4,652		4,652	4,652	—	—
Federal Home Loan Bank stock	5,203		5,203	5,203	—	—
Loans, net	1,221,725		1,239,377	—	—	1,239,377
Accrued interest receivable	4,868		4,868	—	4,868	—
FINANCIAL LIABILITIES:
Deposits	1,355,383		1,359,835	1,019,796	340,039	—
Short-term borrowings	—		—		—	—
Long-term debt	41,990		42,536	—	42,536	—
Accrued interest payable	714		714	—	714	—
December 31, 2018
FINANCIAL ASSETS:
Cash and cash equivalents	$	20,040	20,040	20,040	—	—
Interest-bearing time deposits	996		996	—	996	—
Debt securities, held-to-maturity	29,721		29,024	—	—	29,024
Federal Reserve Bank stock	4,653		4,653	4,653	—	—
Federal Home Loan Bank stock	4,845		4,845	4,845	—	—
Loans, net	1,194,577		1,183,041	—	—	1,183,041
Accrued interest receivable	4,317		4,317	—	4,317	—
FINANCIAL LIABILITIES:
Deposits	1,300,919		1,301,298	1,004,057	297,241	—
Short-term borrowings	56,230		56,230	56,230	—	—
Long-term debt	47,032		48,255	—	48,255	—
Accrued interest payable	690		690	—	690	—