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Investment Securities
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
 
The amortized cost and estimated fair value of debt securities and the allowance for credit losses of securities held-to-maturity at June 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
 Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
June 30, 2023
Debt Securities, Available-for-Sale:
U.S. Treasury notes$79,006 — 8,043 70,963 
U.S. Agency notes89,057 — 10,337 78,720 
Corporate bonds7,450 6 953 6,503 
U.S. Agency mortgage-backed securities85,906 — 10,584 75,322 
Municipal securities:
Non-taxable8,829 — 327 8,502 
Taxable46,026 — 4,880 41,146 
 $316,274 6 35,124 281,156 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$15,692 6 1,162 14,536 
Taxable3,431 — 377 3,054 
$19,123 6 1,539 17,590 
December 31, 2022
Debt Securities, Available-for-Sale:
U.S. Treasury notes$84,927 — 8,480 76,447 
U.S. Agency notes89,160 — 11,184 77,976 
Corporate Bonds7,450 13 778 6,685 
U.S. Agency mortgage-backed securities90,746 5 11,311 79,440 
Municipal securities:
Non-taxable8,892 — 368 8,524 
Taxable46,556 1 5,779 40,778 
 $327,731 $19 37,900 289,850 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$16,447 10 594 15,863 
Taxable3,431 — 409 3,022 
$19,878 10 1,003 18,885 

The Company estimated the expected credit losses at June 30, 2023 to be immaterial based on the composition of the securities portfolio.
Information concerning debt securities with gross unrealized losses at June 30, 2023 and December 31, 2022, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):
 Less than Twelve MonthsTwelve Months or Greater
 Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
June 30, 2023
Available-for-Sale:
U.S. Treasury notes$198 1 70,765 8,042 
U.S. Agency notes— — 78,720 10,337 
Corporate bonds— — 5,746 953 
U.S. Agency mortgage-backed securities4,058 110 71,192 10,474 
Municipal securities:  
Non-taxable2,124 21 5,913 306 
Taxable2,030 51 39,116 4,829 
 $8,410 183 271,452 34,941 
Held-to-Maturity:
Municipal securities:
  Non-taxable$6,953 618 6,845 544 
  Taxable— — 3,054 377 
$6,953 618 9,899 921 
December 31, 2022
Available-for-Sale:
U.S. Treasury notes$16,521 931 59,927 7,549 
U.S. Agency notes7,729 543 70,247 10,641 
Corporate Bonds2,667 283 3,255 495 
U.S. Agency mortgage-backed securities41,543 3,597 37,282 7,714 
Municipal securities:   
Non-taxable6,831 248 893 120 
Taxable22,162 1,951 18,435 3,828 
 $97,453 7,553 190,039 30,347 
Held-to-Maturity:
Municipal securities:
  Non-taxable$9,567 593 31 1 
  Taxable2,811 370 212 39 
$12,378 963 243 40 

LCNB has not specifically identified available-for-sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. Securities are reviewed on a quarterly basis to assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. For the three and six months ended June 30, 2023 and 2022, management concluded that, in all instances, fair values were less than carrying values due to market and other factors and that no credit loss provisions were required.
Debt securities with a market value of $123.1 million and $166.4 million at June 30, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and for other purposes required or as permitted by law.

Excluding holdings in U.S. Treasury securities and U.S. Government Agencies, there were no investments in securities of any
issuer that exceeded 10% of LCNB's consolidated shareholders' equity at June 30, 2023.

Contractual maturities of debt securities at June 30, 2023 were as follows (in thousands).  Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
 Available-for-SaleHeld-to-Maturity
Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due within one year$8,913 8,805 280 283 
Due from one to five years152,490 137,092 3,585 3,445 
Due from five to ten years68,234 59,281 2,440 2,252 
Due after ten years731 656 12,818 11,610 
 230,368 205,834 19,123 17,590 
U.S. Agency mortgage-backed securities85,906 75,322 — — 
 $316,274 281,156 19,123 17,590 
Equity 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, 2023 on its investments in equity securities without a readily determinable fair value.

The cost and estimated fair value of equity securities with a readily determinable fair value at June 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
June 30, 2023December 31, 2022
 Amortized CostFair
Value		Amortized CostFair
Value
Mutual funds$1,399 1,207 1,429 1,234 
Equity securities10 72 778 1,039 
Total equity securities with a readily determinable fair value$1,409 1,279 2,207 2,273 

Changes in the fair value of equity securities with a readily determinable fair value for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended 
June 30,
2023202220232022
Net losses recognized during the period$(14)(178)(45)(304)
Less net gains recognized during the period on equity securities sold during the period— — (61)— 
Net unrealized gains (losses) recognized during the reporting period on equity securities still held at period end$(14)(178)16 (304)