Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

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, 2014 and December 31, 2013 (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, 2014
Recurring fair value measurements:
Investment securities available-for-sale:
U.S. Treasury notes	$	60,721	60,721	—	—
U.S. Agency notes	117,322		—	117,322	—
U.S. Agency mortgage-backed securities	42,150		—	42,150	—
Certificates of deposit with other banks	3,093		—	3,093	—
Municipal securities:
Non-taxable	84,737		—	84,737	—
Taxable	15,457		—	15,457	—
Mutual funds	2,419		1,419	1,000	—
Trust preferred securities	49		49	—	—
Equity securities	1,792		1,792	—	—
Total recurring fair value measurements	$	327,740	63,981	263,759	—
Nonrecurring fair value measurements:
Impaired loans	$	5,323	—	478	4,845
Other real estate owned and repossessed assets	1,906		—	1,906	—
Total nonrecurring fair value measurements	$	7,229	—	2,384	4,845
December 31, 2013
Recurring fair value measurements:
Investment securities available-for-sale:
U.S. Treasury notes	$	12,894	12,894	—	—
U.S. Agency notes	106,675		—	106,675	—
U.S. Agency mortgage-backed securities	40,309		—	40,309	—
Certificates of deposit with other banks	1,501		—	1,501	—
Municipal securities:
Non-taxable	75,333		—	75,333	—
Taxable	17,309		—	17,309	—
Mutual funds	2,380		1,380	1,000	—
Trust preferred securities	147		147	—	—
Equity securities	1,693		1,693	—	—
Total recurring fair value measurements	$	258,241	16,114	242,127	—
Nonrecurring fair value measurements:
Impaired loans	$	8,530	—	773	7,757
Other real estate owned and repossessed assets	1,463		—	1,463	—
Total nonrecurring fair value measurements	$	9,993	—	2,236	7,757

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments as of June 30, 2014 and December 31, 2013 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)
June 30, 2014
FINANCIAL ASSETS:
Cash and cash equivalents	$	18,881	18,881	18,881	—	—
Investment securities:
Available-for-sale	327,740		327,740	63,981	263,759	—
Held-to-maturity	23,843		23,748	—	—	23,748
Federal Reserve Bank stock	2,346		2,346	2,346	—	—
Federal Home Loan Bank stock	3,638		3,638	3,638	—	—
Loans, net	688,325		692,982	—	478	692,504
FINANCIAL LIABILITIES:
Deposits	986,824		989,291	757,890	231,401	—
Short-term borrowings	23,523		23,523	23,523	—	—
Long-term debt	11,506		12,162	—	12,162	—
December 31, 2013
FINANCIAL ASSETS:
Cash and cash equivalents	$	14,688	14,688	14,688	—	—
Investment securities:
Available-for-sale	258,241		258,241	16,114	242,127	—
Held-to-maturity	16,323		16,196	—	—	16,196
Federal Reserve Bank stock	1,603		1,603	1,603	—	—
Federal Home Loan Bank stock	2,854		2,854	2,854	—	—
Loans, net	570,766		573,163	—	773	572,390
FINANCIAL LIABILITIES:
Deposits	785,761		788,096	599,838	188,258	—
Short-term borrowings	8,655		8,655	8,655	—	—
Long-term debt	12,102		12,842	—	12,842	—