FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 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 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, 2017
Recurring fair value measurements:
Investment securities available-for-sale:
U.S. Treasury notes		$	2,259	2,259	—	—
U.S. Agency notes		83,261		—	83,261	—
U.S. Agency mortgage-backed securities		67,153		—	67,153	—
Municipal securities:
Non-taxable		102,174		—	102,174	—
Taxable		20,366		—	20,366	—
Mutual funds		1,023		23	1,000	—
Mutual funds measured at net asset value (a)		1,519
Trust preferred securities		50		50	—	—
Equity securities		667		667	—	—
Total recurring fair value measurements		$	278,472	2,999	273,954	—
Nonrecurring fair value measurements:
Impaired loans		$	3,359	—	—	3,359
December 31, 2016
Recurring fair value measurement:
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 funds		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 Balance Sheets.

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, 2017 and 2016 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
2017
Impaired loans	$	3,359	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
			Discounted cash flows	Discount rate	8.25	%	3.25	%	6.27	%
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 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)
2017
FINANCIAL ASSETS:
Cash and cash equivalents	$	25,386	25,386	25,386	—	—
Investment securities, held-to-maturity	32,571		32,350	—	—	32,350
Federal Reserve Bank stock	2,732		2,732	2,732	—	—
Federal Home Loan Bank stock	3,638		3,638	3,638	—	—
Loans, net	845,657		813,368	—	—	813,368
Accrued interest receivable	3,511		3,511	—	3,511	—
FINANCIAL LIABILITIES:
Deposits	1,085,821		1,087,086	894,046	193,040	—
Short-term borrowings	47,000		47,000	47,000	—	—
Long-term debt	303		307	—	307	—
Accrued interest payable	329		329	—	329	—
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	—