XML 22 R12.htm IDEA: XBRL DOCUMENT v3.21.1
Investment Securities
 3 Months Ended
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
 
The amortized cost and estimated fair value of equity and debt securities at March 31, 2021 and December 31, 2020 are summarized as follows (in thousands):
 Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
March 31, 2021
Debt Securities, Available-for-Sale:
U.S. Treasury notes$16,186 108 78 16,216 
U.S. Agency notes75,912 597 1,372 75,137 
Corporate bonds1,900 7 14 1,893 
U.S. Agency mortgage-backed securities95,089 2,244 730 96,603 
Municipal securities:    
Non-taxable12,263 202 32 12,433 
Taxable35,120 775 558 35,337 
 $236,470 3,933 2,784 237,619 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$21,293 169 — 21,462 
Taxable3,402 6 42 3,366 
$24,695 175 42 24,828 
December 31, 2020
Debt Securities, Available-for-Sale:
U.S. Treasury notes$2,268 120 — 2,388 
U.S. Agency notes66,983 950 33 67,900 
Corporate Bonds1,200 — 21 1,179 
U.S. Agency mortgage-backed securities88,455 3,180 1 91,634 
Municipal securities:    
Non-taxable12,651 282 — 12,933 
Taxable32,409 1,031 3 33,437 
 $203,966 5,563 58 209,471 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$21,408 181 — 21,589 
Taxable3,402 6 37 3,371 
$24,810 187 37 24,960 
Information concerning debt securities with gross unrealized losses at March 31, 2021 and December 31, 2020, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):
 Less than Twelve MonthsTwelve Months or Greater
 Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
March 31, 2021
Available-for-Sale:
U.S. Treasury notes$8,924 78 — — 
U.S. Agency notes52,785 1,372 — — 
Corporate bonds1,186 14 — — 
U.S. Agency mortgage-backed securities41,801 730 — — 
Municipal securities:  
Non-taxable1,758 32 — — 
Taxable18,537 558 — — 
 $124,991 2,784 — — 
Held-to-Maturity:
Municipal securities:
  Non-taxable$— — — — 
  Taxable3,108 42 — — 
$3,108 42 — — 
December 31, 2020
Available-for-Sale:
U.S. Treasury notes$— — — — 
U.S. Agency notes10,674 33 — — 
Corporate Bonds679 21 — — 
U.S. Agency mortgage-backed securities290 1 — — 
Municipal securities:   
Non-taxable38 — — — 
Taxable3,063 3 — — 
 $14,744 58 — — 
Held-to-Maturity:
Municipal securities:
  Non-taxable$1 — — 
  Taxable3,113 37 — — 
$3,114 37 — — 

Management has determined that the unrealized losses at March 31, 2021 are primarily due to fluctuations in market interest rates and do not reflect credit quality deterioration of the securities.   Because LCNB does not have the intent to sell the investments and it is more likely than not that LCNB will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, LCNB does not consider these investments to be other-than-temporarily impaired.
Contractual maturities of debt securities at March 31, 2021 were as follows (in thousands).  Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
 Available-for-SaleHeld-to-Maturity
Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due within one year$8,811 8,932 2,116 2,122 
Due from one to five years42,243 42,853 5,676 5,739 
Due from five to ten years89,298 88,238 2,055 2,089 
Due after ten years1,029 993 14,848 14,878 
 141,381 141,016 24,695 24,828 
U.S. Agency mortgage-backed securities95,089 96,603 — — 
 $236,470 237,619 24,695 24,828 

Debt securities with a market value of $192,973,000 and $118,599,000 at March 31, 2021 and December 31, 2020, respectively, were pledged to secure public deposits and for other purposes required or as permitted by law.

Certain information concerning the sale of debt securities, available-for-sale, for the three months ended March 31, 2021 and 2020 was as follows (in thousands):
 Three Months Ended 
March 31,
 20212020
Proceeds from sales$— 8,786 
Gross realized gains— 221 
Gross realized losses— — 

Realized gains or losses from the sale of securities are computed using the specific identification method.

Equity securities with a readily determinable fair value are carried at fair value, with changes in fair value recognized in other operating income in the consolidated condensed statements of income. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. LCNB was not aware of any impairment or observable price change adjustments that needed to be made at March 31, 2021 on its investments in equity securities without a readily determinable fair value.

The amortized cost and estimated fair value of equity securities with a readily determinable fair value at March 31, 2021 and December 31, 2020 are summarized as follows (in thousands):
March 31, 2021December 31, 2020
 Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Mutual funds$1,399 1,385 1,395 1,402 
Equity securities778 1,121 778 987 
Total equity securities with a readily determinable fair value$2,177 2,506 2,173 2,389 
Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the three months ended March 31, 2021 and 2020 is as follows (in thousands):
Three Months Ended 
March 31,
20212020
Net gains recognized$112 333 
Less net realized gains on equity securities sold— 559 
Net unrealized gains (losses) recognized and still held at period end$112 (226)