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Investment Securities
 9 Months Ended
Sep. 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 September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
 Amortized CostUnrealized GainsUnrealized LossesFair Value
September 30, 2023
Debt Securities, Available-for-Sale:
U.S. Treasury notes$78,451 — 8,323 70,128 
U.S. Agency notes89,014 — 10,662 78,352 
Corporate bonds7,450 — 944 6,506 
U.S. Agency mortgage-backed securities83,613 — 13,061 70,552 
Municipal securities:
Non-taxable8,809 — 522 8,287 
Taxable46,005 — 5,330 40,675 
 $313,342 — 38,842 274,500 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$15,582 2 1,578 14,006 
Taxable3,431 — 514 2,917 
$19,013 2 2,092 16,923 
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 September 30, 2023 to be immaterial based on the composition of the securities portfolio.
Information concerning debt securities with gross unrealized losses at September 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 ValueUnrealized LossesFair ValueUnrealized Losses
September 30, 2023
Available-for-Sale:
U.S. Treasury notes$— — 70,128 8,323 
U.S. Agency notes— — 78,352 10,662 
Corporate bonds720 30 5,786 914 
U.S. Agency mortgage-backed securities528 3 70,024 13,058 
Municipal securities:
Non-taxable1,965 53 6,322 469 
Taxable180 — 40,495 5,330 
 $3,393 86 271,107 38,756 
Held-to-Maturity:
Municipal securities:
  Non-taxable$5,888 798 7,389 780 
  Taxable— — 2,917 514 
$5,888 798 10,306 1,294 
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 
Securities are reviewed on a quarterly basis to assess declines in fair value for credit losses. For available-for-sale debt securities in an unrealized loss position, LCNB first assesses whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis, which may be at maturity. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income with the establishment of an allowance. If the debt security does not meet the aforementioned criteria, LCNB evaluates whether the decline in fair value is due to credit loss factors. In making this assessment, LCNB considers any changes to the rating of the security by a rating agency and considers if there are any adverse conditions specifically related to the issuer of the security, among other factors. U.S. Treasury notes, U.S. Agency notes, and U.S. Agency mortgage-backed securities are issued or guaranteed by the U.S. federal government or agencies thereof and risk of credit loss is considered minimal for these securities. For available-for-sale debt securities outstanding at September 30, 2023, 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 $143.7 million and $166.4 million at September 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 September 30, 2023.

Contractual maturities of debt securities at September 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 CostFair ValueAmortized CostFair Value
Due within one year$8,904 8,846 280 281 
Due from one to five years172,144 153,515 3,586 3,444 
Due from five to ten years48,681 41,587 2,440 2,184 
Due after ten years— — 12,707 11,014 
 229,729 203,948 19,013 16,923 
U.S. Agency mortgage-backed securities83,613 70,552 — — 
 $313,342 274,500 19,013 16,923 
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 September 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 September 30, 2023 and December 31, 2022 are summarized as follows (in thousands):
September 30, 2023December 31, 2022
 Amortized
Cost		Fair
 Value		Amortized
Cost		Fair
 Value
Mutual Funds$1,406 1,177 1,429 1,234 
Equity Securities10 77 778 1,039 
Total equity securities with a readily determinable fair value$1,416 1,254 2,207 2,273 
Changes in the fair value of equity securities with a readily determinable fair value for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Net losses recognized during the period on equity securities$(33)(80)(78)(384)
Less net losses recognized during the period on equity securities sold during the period— — (61)— 
Net unrealized losses recognized during the reporting period on equity securities still held at period end$(33)(80)(17)(384)