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Investment Securities
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
 
The amortized cost and estimated fair value of debt securities and the allowance for credit losses of securities held-to-maturity at March 31, 2023 and December 31, 2022 are summarized as follows (in thousands):
 Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
March 31, 2023
Debt Securities, Available-for-Sale:
U.S. Treasury notes$84,865 — 6,968 77,897 
U.S. Agency notes89,093 — 9,257 79,836 
Corporate bonds7,450 — 823 6,627 
U.S. Agency mortgage-backed securities88,229 8 9,847 78,390 
Municipal securities:
Non-taxable8,872 — 284 8,588 
Taxable46,533 2 4,446 42,089 
 $325,042 10 31,625 293,427 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$16,339 10 984 15,365 
Taxable3,431 — 354 3,077 
$19,770 10 1,338 18,442 
December 31, 2022
Debt Securities, Available-for-Sale:
U.S. Treasury notes$84,927 — 8,480 76,447 
U.S. Agency notes89,160 — 11,184 77,976 
Corporate Bonds7,450 13 778 6,685 
U.S. Agency mortgage-backed securities90,746 5 11,311 79,440 
Municipal securities:— 
Non-taxable8,892 — 368 8,524 
Taxable46,556 1 5,779 40,778 
 $327,731 $19 37,900 289,850 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$16,447 10 594 15,863 
Taxable3,431 — 409 3,022 
$19,878 10 1,003 18,885 

The Company estimated the expected credit losses at March 31, 2023 to be immaterial based on the composition of the securities portfolio.
Information concerning debt securities with gross unrealized losses at March 31, 2023 and December 31, 2022, 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, 2023
Available-for-Sale:
U.S. Treasury notes$6,577 26 71,321 6,942 
U.S. Agency notes— — 79,835 9,257 
Corporate bonds1,871 79 4,756 744 
U.S. Agency mortgage-backed securities5,891 104 71,902 9,743 
Municipal securities:  
Non-taxable1,579 6 5,959 278 
Taxable5,529 169 36,378 4,277 
 $21,447 384 270,151 31,241 
Held-to-Maturity:
Municipal securities:
  Non-taxable$6,759 508 6,932 476 
  Taxable— — 3,077 354 
$6,759 508 10,009 830 
December 31, 2022
Available-for-Sale:
U.S. Treasury notes$16,521 931 59,927 7,549 
U.S. Agency notes7,729 543 70,247 10,641 
Corporate Bonds2,667 283 3,255 495 
U.S. Agency mortgage-backed securities41,543 3,597 37,282 7,714 
Municipal securities:   
Non-taxable6,831 248 893 120 
Taxable22,162 1,951 18,435 3,828 
 $97,453 7,553 190,039 30,347 
Held-to-Maturity:
Municipal securities:
  Non-taxable$9,567 593 31 1 
  Taxable2,811 370 212 39 
$12,378 963 243 40 

LCNB has not specifically identified available-for-sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. Securities are reviewed on a quarterly basis to assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. For the three months ended March 31, 2023 and 2022, management concluded that, in all instances, fair values were less than carrying values due to market and other factors and that no credit loss provisions were required.
Debt securities with a market value of $129.0 million and $166.4 million at March 31, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and for other purposes required or as permitted by law.

Excluding holdings in U.S. Treasury securities and U.S. Government Agencies, there were no investments in securities of any
issuer that exceeded 10% of LCNB's consolidated shareholders' equity at March 31, 2023.

Contractual maturities of debt securities at March 31, 2023 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$15,219 15,060 755 754 
Due from one to five years145,761 132,899 3,628 3,501 
Due from five to ten years75,103 66,423 2,440 2,290 
Due after ten years730 655 12,947 11,897 
 236,813 215,037 19,770 18,442 
U.S. Agency mortgage-backed securities88,229 78,390 — — 
 $325,042 293,427 19,770 18,442 
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, 2023 on its investments in equity securities without a readily determinable fair value.

The cost and estimated fair value of equity securities with a readily determinable fair value at March 31, 2023 and December 31, 2022 are summarized as follows (in thousands):
March 31, 2023December 31, 2022
 AmortizedCostFair
Value		Amortized CostFair
Value
Mutual funds$1,391 1,219 1,429 1,234 
Equity securities10 67 778 1,039 
Total equity securities with a readily determinable fair value$1,401 1,286 2,207 2,273 


Changes in the fair value of equity securities with a readily determinable fair value for the three months ended March 31, 2023 and 2022 were as follows (in thousands):
Three Months Ended 
March 31,
20232022
Net losses recognized(31)(126)
Less net realized gains on equity securities sold151 — 
Net unrealized losses recognized and still held at period end(182)(126)