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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
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Dec. 31, 2014
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, 2014 |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | 62,560 |  |  | 62,560 |  |  | — |  |  | — |
U.S. Agency notes | 83,637 |  |  | — |  |  | 83,637 |  |  | — |
U.S. Agency mortgage-backed securities | 38,032 |  |  | — |  |  | 38,032 |  |  | — |
Certificates of deposit | 3,086 |  |  | — |  |  | 3,086 |  |  | — |
Municipal securities: |  |  |  |  |  |  |  |  |  |  |
Non-taxable | 77,395 |  |  | — |  |  | 77,395 |  |  | — |
Taxable | 16,395 |  |  | — |  |  | 16,395 |  |  | — |
Mutual funds | 2,461 |  |  | 1,461 |  |  | 1,000 |  |  | — |
Trust preferred securities | 50 |  |  | 50 |  |  | — |  |  | — |
Equity securities | 1,749 |  |  | 1,749 |  |  | — |  |  | — |
Total recurring fair value measurements | $ | 285,365 |  |  | 65,820 |  |  | 219,545 |  |  | — |
Nonrecurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |
Impaired loans | $ | 4,872 |  |  | — |  |  | — |  |  | 4,872 |
Other real estate owned and repossessed assets | 1,370 |  |  | — |  |  | — |  |  | 1,370 |
Total nonrecurring fair value measurements | $ | 6,242 |  |  | — |  |  | — |  |  | 6,242 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurement: |  |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury notes | $ | 12,894 |  |  | 12,894 |  |  | — |  |  | — |
U.S. Agency notes | 106,675 |  |  | — |  |  | 106,675 |  |  | — |
U.S. Agency mortgage-backed securities | 40,309 |  |  | — |  |  | 40,309 |  |  | — |
Certificates of deposit with other banks | 1,501 |  |  | — |  |  | 1,501 |  |  | — |
Municipal securities: |  |  |  |  |  |  |  |  |  |  |
Non-taxable | 75,333 |  |  | — |  |  | 75,333 |  |  | — |
Taxable | 17,309 |  |  | — |  |  | 17,309 |  |  | — |
Mutual funds | 2,380 |  |  | 1,380 |  |  | 1,000 |  |  | — |
Trust preferred securities | 147 |  |  | 147 |  |  | — |  |  | — |
Equity securities | 1,693 |  |  | 1,693 |  |  | — |  |  | — |
Total recurring fair value measurements | $ | 258,241 |  |  | 16,114 |  |  | 242,127 |  |  | — |
Nonrecurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |
Impaired loans | $ | 8,530 |  |  | — |  |  | 773 |  |  | 7,757 |
Other real estate owned and repossessed assets | 1,463 |  |  | — |  |  | 1,463 |  |  | — |
Total nonrecurring fair value measurements | $ | 9,993 |  |  | — |  |  | 2,236 |  |  | 7,757 |
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, 2014 and 2013 (dollars in thousands):
|  |  |  |  |  |  |  | Range
|  | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | High |  | Low |  | Weighted Average
2014 |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 4,872 |  |  | Estimated sales price |  | Adjustments for comparable properties, discounts to reflect current market conditions |  | Not applicable
|  |  |  | Discounted cash flows |  | Discount rate |  | 10.50 | % |  | 4.00 | % |  | 5.36 | %
Other real estate owned |  | 1,370 |  |  | Estimated sales price |  | Adjustments for comparable properties, discounts to reflect current market conditions |  | Not applicable
2013 |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 7,757 |  |  | Estimated sales price |  | Adjustments for comparable properties, discounts to reflect current market conditions |  | Not applicable
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)
2014 |  |  |  |  |  |  |  |  |
FINANCIAL ASSETS: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 15,845 |  |  | 15,845 |  |  | 15,845 |  |  |  |  |  |
Investment securities, held-to-maturity | 22,725 |  |  | 22,138 |  |  |  |  |  |  |  |  | 22,138 |
Federal Reserve Bank stock | 2,346 |  |  | 2,346 |  |  | 2,346 |  |  |  |  |  |
Federal Home Loan Bank stock | 3,638 |  |  | 3,638 |  |  | 3,638 |  |  |  |  |  |
Loans, net | 695,835 |  |  | 699,715 |  |  |  |  |  |  |  |  | 699,715 |
FINANCIAL LIABILITIES: |  |  |  |  |  |  |  |  |  |  |
Deposits | 946,205 |  |  | 947,541 |  |  | 731,766 |  |  | 215,775 |  |  |
Short-term borrowings | 16,645 |  |  | 16,645 |  |  | 16,645 |  |  |  |  |  |
Long-term debt | 11,357 |  |  | 11,944 |  |  |  |  |  | 11,944 |  |  |
2013 |  |  |  |  |  |  |  |  |
FINANCIAL ASSETS: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 14,688 |  |  | 14,688 |  |  | 14,688 |  |  |  |  |
Investment securities, held-to-maturity | 16,323 |  |  | 16,196 |  |  |  |  |  |  | 16,196 |
Federal Reserve Bank stock | 1,603 |  |  | 1,603 |  |  | 1,603 |  |  |  |  |
Federal Home Loan Bank stock | 2,854 |  |  | 2,854 |  |  | 2,854 |  |  |  |  |
Loans, net | 570,766 |  |  | 573,163 |  |  |  |  | 773 |  |  | 572,390 |
FINANCIAL LIABILITIES: |  |  |  |  |  |  |  |  |  |  |
Deposits | 785,761 |  |  | 788,096 |  |  | 599,838 |  |  | 188,258 |  |  |
Short-term borrowings | 8,655 |  |  | 8,655 |  |  | 8,655 |  |  |  |  |
Long-term debt | 12,102 |  |  | 12,842 |  |  |  |  | 12,842 |  |  |

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a,b,bb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=36462937&loc=SL7498348-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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- Definition Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, used to measure similar assets in prior periods (non-recurring basis) by class of asset or liability. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
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