Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017 and December 31, 2016 (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, 2017
Recurring fair value measurements:
	Investment securities available-for-sale:
	U.S. Treasury notes	$	21,209	$	21,209	$	—	$	—
	U.S. Agency notes	95,948		—		95,948		—
	U.S. Agency mortgage-backed securities	73,961		—		73,961		—
	Municipal securities:
	Non-taxable	111,795		—		111,795		—
	Taxable	22,603		—		22,603		—
	Mutual fund	1,000		—		1,000		—
	Mutual funds measured at net asset value (a)	1,507
	Trust preferred securities	50		50		—		—
	Equity securities	715		715		—		—
	Total recurring fair value measurements	$	328,788	$	21,974	$	305,307	$	—
Nonrecurring fair value measurements:
	Impaired loans	$	1,932	$	—	$	—	$	1,932
December 31, 2016
Recurring fair value measurements:
	Investment securities available-for-sale:
	U.S. Treasury notes	$	28,145	$	28,145	$	—	$	—
	U.S. Agency notes	85,400		—		85,400		—
	U.S. Agency mortgage-backed securities	71,047		—		71,047		—
	Municipal securities:
	Non-taxable	113,015		—		113,015		—
	Taxable	19,845		—		19,845		—
	Mutual fund	1,000		—		1,000		—
	Mutual funds measured at net asset value (a)	1,482
	Trust preferred securities	48		48		—		—
	Equity securities	677		677		—		—
	Total recurring fair value measurements	$	320,659	$	28,870	$	290,307	$	—
Nonrecurring fair value measurements:
	Impaired loans	$	5,340	$	—	$	—	$	5,340
(a)	In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Condensed Balance Sheets.

Fair Value Measurements 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 June 30, 2017 and December 31, 2016 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
June 30, 2017
Impaired loans	$	1,932	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	8.25	%	3.25	%	6.25	%
December 31, 2016
Impaired loans	$	5,340	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	8.25	%	4.50	%	5.56	%

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments as of June 30, 2017 and December 31, 2016 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, 2017
FINANCIAL ASSETS:
Cash and cash equivalents	$	29,967	$	29,967	$	29,967	$	—	$	—
Investment securities, held-to-maturity	38,437		38,286		—		—		38,286
Federal Reserve Bank stock	2,732		2,732		2,732		—		—
Federal Home Loan Bank stock	3,638		3,638		3,638		—		—
Loans, net	823,551		804,304		—		—		804,304
Accrued interest receivable	3,416		3,416		—		3,416		—
FINANCIAL LIABILITIES:
Deposits	1,143,920		1,145,612		936,054		209,558		—
Short-term borrowings	31,712		31,712		31,712		—		—
Long-term debt	402		410		—		410		—
Accrued interest payable	278		278		—		278		—
December 31, 2016
FINANCIAL ASSETS:
Cash and cash equivalents	$	18,865	$	18,865	$	18,865	$	—	$	—
Investment securities, held-to-maturity	41,003		40,490		—		—		40,490
Federal Reserve Bank stock	2,732		2,732		2,732		—		—
Federal Home Loan Bank stock	3,638		3,638		3,638		—		—
Loans, net	816,228		799,791		—		—		799,791
Accrued interest receivable	3,559		3,559		—		3,559		—
FINANCIAL LIABILITIES:
Deposits	1,110,905		1,113,187		896,147		217,040		—
Short-term borrowings	42,040		42,040		42,040		—		—
Long-term debt	598		614		—		614		—
Accrued interest payable	307		307		—		307		—