Note 5 - Purchased Credit Deteriorated Loans

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Accounting for Certain Loans and Debt Securities Acquired in Transfer [Text Block]

NOTE 5 - PURCHASED CREDIT DETERIORATED LOANS

LCNB acquired loans through the merger with EFBI for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of these loans at acquisition on April 12, 2024 is as follows (in thousands):

	2024
Purchase price of loans at acquisition	$	2,811
Allowance for credit losses at acquisition		188
Non-credit discount/(premium) at acquisition		253
Par value of acquired loans at acquisition	$	3,252

The following table provides, as of December 31, the major classifications of purchased credit deteriorated loans acquired (in thousands):

	2024
Commercial & industrial	$	176
Commercial, secured by real estate		365
Residential real estate		2,232
Total	$	2,773

Activity during 2024 for the accretable discount related to purchased credit deteriorated loans is as follows (in thousands):

	Twelve Months Ended December 31,
	2024		2023
Accretable discount, beginning of period		1,467		—
Accretable discount acquired during period from merger with CNNB		—		1,486
Accretable discount acquired during period from merger with EFBI		253		—
Less loans transferred to held-for-sale		396		—
Less accretion		211		19
Accretable discount, end of year		1,113		1,467