Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31, 2023 and December 31, 2022 (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)
March 31, 2023
Recurring fair value measurements:
	Equity securities with a readily determinable fair value:
	Equity securities	$	67	67	—	—
	Mutual funds measured at net asset value	1,219		1,219	—	—
	Debt securities, available-for-sale:
	U.S. Treasury notes	77,897		77,897	—	—
	U.S. Agency notes	79,836		—	79,836	—
	Corporate bonds	6,627		—	6,627	—
	U.S. Agency mortgage-backed securities	78,390		—	78,390	—
	Municipal securities:
	Non-taxable	8,588		—	8,588	—
	Taxable	42,089		—	42,089	—
	Total recurring fair value measurements	$	294,713	79,183	215,530	—
Nonrecurring fair value measurements:
	Individually evaluated loans	$	1,018	—	—	1,018
	Total nonrecurring fair value measurements	$	1,018	—	—	1,018
December 31, 2022
Recurring fair value measurements:
	Equity securities with a readily determinable fair value:
	Equity securities	$	1,039	1,039	—	—
	Mutual funds	41		41	—	—
	Mutual funds measured at net asset value	1,193		1,193	—	—
	Debt securities, available-for-sale:
	U.S. Treasury notes	76,447		76,447	—	—
	U.S. Agency notes	77,976		—	77,976	—
	Corporate bonds	6,685		—	6,685	—
	U.S. Agency mortgage-backed securities	79,440		—	79,440	—
	Municipal securities:
	Non-taxable	8,524		—	8,524	—
	Taxable	40,778		—	40,778	—
	Total recurring fair value measurements	$	292,123	78,720	213,403	—
Nonrecurring fair value measurements:
	Individually evaluated loans	$	923	—	—	923
	Total nonrecurring fair value measurements	$	923	—	—	923

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 March 31, 2023 and December 31, 2022 (dollars in thousands):

					Range
	Fair Value		Valuation Technique	Unobservable Inputs	High		Low		Weighted Average
March 31, 2023
Individually evaluated collateral dependent loans	$	3	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
December 31, 2022
Individually evaluated loans	$	—	Estimated sales price	Adjustments for comparable properties, discounts to reflect current market conditions	Not applicable
Individually evaluated loans	923		Discounted cash flows	Discount rate	8.13	%	4.63	%	6.04	%

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments as of March 31, 2023 and December 31, 2022 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)
March 31, 2023
FINANCIAL ASSETS:
Cash and cash equivalents	$	31,876	31,876	31,876	—	—
Debt securities, held-to-maturity, net	19,763		18,442	—	—	18,442
Loans, net	1,386,972		1,229,404	—	—	1,229,404
Accrued interest receivable	8,005		8,005	—	8,005	—
FINANCIAL LIABILITIES:
Deposits	1,603,881		1,603,113	1,398,992	204,121	—
Short-term borrowings	76,500		76,500	76,500	—	—
Long-term debt	18,598		18,558	—	18,558	—
Accrued interest payable	854		854	—	854	—
December 31, 2022
FINANCIAL ASSETS:
Cash and cash equivalents	$	22,701	22,701	22,701	—	—
Debt securities, held-to-maturity, net	19,878		18,885	—	—	18,885
Loans, net	1,395,632		1,219,112	—	—	1,219,112
Accrued interest receivable	7,482		7,482	—	7,482	—
FINANCIAL LIABILITIES:
Deposits	1,604,970		1,604,380	1,448,470	155,910	—
Short-term borrowings	71,455		71,455	71,455	—	—
Long-term debt	19,072		18,573	—	18,573	—
Accrued interest payable	311		311	—	311	—