FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
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12 Months Ended |
Dec. 31, 2015 |
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| Fair Value Disclosures [Abstract] |
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| 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 December 31 (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) | December 31, 2015 | | | | | | | | Recurring fair value measurements: | | | | | | | | Investment securities available-for-sale: | | | | | | | | U.S. Treasury notes | $ | 72,846 |
| | 72,846 |
| | — |
| | — |
| U.S. Agency notes | 139,889 |
| | — |
| | 139,889 |
| | — |
| U.S. Agency mortgage-backed securities | 29,378 |
| | — |
| | 29,378 |
| | — |
| Certificates of deposit | 249 |
| | — |
| | 249 |
| | — |
| Municipal securities: | |
| | |
| | |
| | |
| Non-taxable | 105,479 |
| | — |
| | 105,479 |
| | — |
| Taxable | 26,941 |
| | — |
| | 26,941 |
| | — |
| Mutual funds | 2,466 |
| | 1,466 |
| | 1,000 |
| | — |
| Trust preferred securities | 50 |
| | 50 |
| | — |
| | — |
| Equity securities | 680 |
| | 680 |
| | — |
| | — |
| Total recurring fair value measurements | $ | 377,978 |
| | 75,042 |
| | 302,936 |
| | — |
| | | | | | | | | Nonrecurring fair value measurements: | |
| | |
| | |
| | |
| Impaired loans | $ | 4,722 |
| | — |
| | — |
| | 4,722 |
| Other real estate owned and repossessed assets | 846 |
| | — |
| | — |
| | 846 |
| Total nonrecurring fair value measurements | $ | 5,568 |
| | — |
| | — |
| | 5,568 |
| | | | | | | | | December 31, 2014 | |
| | |
| | |
| | |
| Recurring fair value measurement: | |
| | |
| | |
| | |
| Investment securities available-for-sale: | |
| | |
| | |
| | |
| U.S. Treasury notes | $ | 62,560 |
| | 62,560 |
| | — |
| | — |
| U.S. Agency notes | 83,637 |
| | — |
| | 83,637 |
| | — |
| U.S. Agency mortgage-backed securities | 38,032 |
| | — |
| | 38,032 |
| | — |
| Certificates of deposit with other banks | 3,086 |
| | — |
| | 3,086 |
| | — |
| Municipal securities: | |
| | |
| | |
| | |
| Non-taxable | 77,395 |
| | — |
| | 77,395 |
| | — |
| Taxable | 16,395 |
| | — |
| | 16,395 |
| | — |
| Mutual funds | 2,461 |
| | 1,461 |
| | 1,000 |
| | — |
| Trust preferred securities | 50 |
| | 50 |
| | — |
| | — |
| Equity securities | 1,749 |
| | 1,749 |
| | — |
| | — |
| Total recurring fair value measurements | $ | 285,365 |
| | 65,820 |
| | 219,545 |
| | — |
| | | | | | | | | Nonrecurring fair value measurements: | |
| | |
| | |
| | |
| Impaired loans | $ | 4,872 |
| | — |
| | — |
| | 4,872 |
| Other real estate owned and repossessed assets | 1,370 |
| | — |
| | — |
| | 1,370 |
| Total nonrecurring fair value measurements | $ | 6,242 |
| | — |
| | — |
| | 6,242 |
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| Fair Value, 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 December 31, 2015 and 2014 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | Range | | | Fair Value | | Valuation Technique | | Unobservable Inputs | | High | | Low | | Weighted Average | 2015 | | | | | | | | | | | | | Impaired loans | | $ | 4,722 |
| | Estimated sales price | | Adjustments for comparable properties, discounts to reflect current market conditions | | Not applicable | | | | | Discounted cash flows | | Discount rate | | 11.00 | % | | 4.00 | % | | 5.27 | % | Other real estate owned | | 846 |
| | Estimated sales price | | Adjustments for comparable properties, discounts to reflect current market conditions | | Not applicable | | | | | | | | | | | | | | 2014 | | | | | | | | | | | | | Impaired loans | | $ | 4,872 |
| | Estimated sales price | | Adjustments for comparable properties, discounts to reflect current market conditions | | Not applicable | | | | | Discounted cash flows | | Discount rate | | 10.50% | | 4.00% | | 5.36% | Other real estate owned | | 1,370 |
| | Estimated sales price | | Adjustments for comparable properties, discounts to reflect current market conditions | | | | | | |
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| Carrying Amounts and Estimated Fair Values of Financial Instruments |
Carrying amounts and estimated fair values of financial instruments as of December 31 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) | 2015 | | | | | | | | | | FINANCIAL ASSETS: | | | | | | | | | | Cash and cash equivalents | $ | 14,987 |
| | 14,987 |
| | 14,987 |
| | — |
| | — |
| Investment securities, held-to-maturity | 22,633 |
| | 22,630 |
| | — |
| | — |
| | 22,630 |
| Federal Reserve Bank stock | 2,732 |
| | 2,732 |
| | 2,732 |
| | — |
| | — |
| Federal Home Loan Bank stock | 3,638 |
| | 3,638 |
| | 3,638 |
| | — |
| | — |
| Loans, net | 767,809 |
| | 761,388 |
| | — |
| | — |
| | 761,388 |
| Accrued interest receivable | 3,380 |
| | 3,380 |
| | 208 |
| | 1,280 |
| | 1,892 |
| | | | | | | | | | | FINANCIAL LIABILITIES: | |
| | |
| | | | | | | Deposits | 1,087,160 |
| | 1,087,914 |
| | 869,940 |
| | 217,974 |
| | — |
| Short-term borrowings | 37,387 |
| | 37,387 |
| | 37,387 |
| | — |
| | — |
| Long-term debt | 5,947 |
| | 6,290 |
| | — |
| | 6,290 |
| | — |
| Accrued interest payable | 345 |
| | 345 |
| | 16 |
| | 329 |
| | — |
| | | | | | | | | | | 2014 | | | | | | | | | | FINANCIAL ASSETS: | | | | | | | | | | Cash and cash equivalents | $ | 15,845 |
| | 15,845 |
| | 15,845 |
| | — |
| | — |
| Investment securities, held-to-maturity | 22,725 |
| | 22,138 |
| | — |
| | — |
| | 22,138 |
| Federal Reserve Bank stock | 2,346 |
| | 2,346 |
| | 2,346 |
| | — |
| | — |
| Federal Home Loan Bank stock | 3,638 |
| | 3,638 |
| | 3,638 |
| | — |
| | — |
| Loans, net | 695,835 |
| | 699,715 |
| | — |
| | — |
| | 699,715 |
| Accrued interest receivable | 2,849 |
| | 2,849 |
| | 178 |
| | 885 |
| | 1,786 |
| | | | | | | | | | | FINANCIAL LIABILITIES: | |
| | |
| | | | | | | Deposits | 946,205 |
| | 947,541 |
| | 731,766 |
| | 215,775 |
| | — |
| Short-term borrowings | 16,645 |
| | 16,645 |
| | 16,645 |
| | — |
| | — |
| Long-term debt | 11,357 |
| | 11,944 |
| | — |
| | 11,944 |
| | — |
| Accrued interest payable | 413 |
| | 413 |
| | 13 |
| | 400 |
| | — |
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