Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and December 31, 2021 (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)
June 30, 2022
Recurring fair value measurements:
	Equity securities with a readily determinable fair value:
	Equity securities	$	978	978	—	—
	Mutual funds	41		41	—	—
	Mutual funds measured at net asset value	1,231		1,231	—	—
	Debt securities, available-for-sale:
	U.S. Treasury notes	78,640		78,640	—	—
	U.S. Agency notes	80,766		—	80,766	—
	Corporate bonds	6,049		—	6,049	—
	U.S. Agency mortgage-backed securities	84,682		—	84,682	—
	Municipal securities:
	Non-taxable	8,954		—	8,954	—
	Taxable	42,141		—	42,141	—
	Total recurring fair value measurements	$	303,482	80,890	222,592	—
Nonrecurring fair value measurements:
	Impaired loans	$	970	—	—	970
	Total nonrecurring fair value measurements	$	970	—	—	970
December 31, 2021
Recurring fair value measurements:
	Equity securities with a readily determinable fair value:
	Equity securities	$	1,167	1,167	—	—
	Mutual funds	51		51	—	—
	Mutual funds measured at net asset value	1,328		1,328	—	—
	Debt securities, available-for-sale:
	U.S. Treasury notes	74,744		74,744	—	—
	U.S. Agency notes	87,246		—	87,246	—
	Corporate bonds	5,152		—	5,152	—
	U.S. Agency mortgage-backed securities	96,676		—	96,676	—
	Municipal securities:
	Non-taxable	9,066		—	9,066	—
	Taxable	35,293		—	35,293	—
	Total recurring fair value measurements	$	310,723	77,290	233,433	—
Nonrecurring fair value measurements:
	Impaired loans	$	1,011	—	—	1,011
	Total nonrecurring fair value measurements	$	1,011	—	—	1,011

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 June 30, 2022 and December 31, 2021 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
June 30, 2022
Impaired loans	$	—	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
Impaired loans	$	970	Discounted cash flows	Discount rate	8.125	%	4.625	%	6.06	%
December 31, 2021
Impaired loans	$	—	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
Impaired loans	1,011		Discounted cash flows	Discount rate	8.25	%	4.00	%	6.07	%

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments as of June 30, 2022 and December 31, 2021 were 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)
June 30, 2022
FINANCIAL ASSETS:
Cash and cash equivalents	$	31,815	31,815	31,815	—	—
Debt securities, held-to-maturity	22,516		21,535	—	—	21,535
Federal Reserve Bank stock	4,652		4,652	4,652	—	—
Federal Home Loan Bank stock	5,203		5,203	5,203	—	—
Loans, net	1,367,644		1,251,238	—	—	1,251,238
Accrued interest receivable	7,448		7,448	—	7,448	—
FINANCIAL LIABILITIES:
Deposits	1,658,825		1,659,540	1,483,564	175,976	—
Short-term borrowings	5,000		5,000	5,000	—	—
Long-term debt	25,000		24,746	—	24,746	—
Accrued interest payable	287		287	—	287	—
December 31, 2021
FINANCIAL ASSETS:
Cash and cash equivalents	$	18,136	18,136	18,136	—	—
Debt securities, held-to-maturity	22,972		23,087	—	—	23,087
Federal Reserve Bank stock	4,652		4,652	4,652	—	—
Federal Home Loan Bank stock	5,203		5,203	5,203	—	—
Loans, net	1,363,939		1,333,840	—	—	1,333,840
Accrued interest receivable	7,999		7,999	—	7,999	—
FINANCIAL LIABILITIES:
Deposits	1,628,819		1,630,158	1,435,487	194,671	—
Long-term debt	10,000		10,292	—	10,292	—
Accrued interest payable	277		277	—	277	—