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Investment Securities | 3 Months Ended
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Mar. 31, 2019
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, 2019 and December 31, 2018 are summarized as follows (in thousands):
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
March 31, 2019 |  |  |  |  |  |  |
Debt Securities, Available-for-Sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | 2,276 |  |  | — |  |  | 19 |  |  | 2,257 |
U.S. Agency notes | 75,681 |  |  | — |  |  | 1,231 |  |  | 74,450 |
U.S. Agency mortgage-backed securities | 55,718 |  |  | 9 |  |  | 1,161 |  |  | 54,566 |
Municipal securities: |  |  |  |  |  |  |  |  |  |  |
Non-taxable | 70,068 |  |  | 163 |  |  | 516 |  |  | 69,715 |
Taxable | 16,635 |  |  | 133 |  |  | 88 |  |  | 16,680 |
| $ | 220,378 |  |  | 305 |  |  | 3,015 |  |  | 217,668 |
Debt Securities, Held-to-Maturity: |  |  |  |  |  |  |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | $ | 25,915 |  |  | 68 |  |  | 187 |  |  | 25,796 |
Taxable | 6,448 |  |  | 36 |  |  | 53 |  |  | 6,431 |
| $ | 32,363 |  |  | 104 |  |  | 240 |  |  | 32,227 |
December 31, 2018 |  |  |  |  |  |  |
Debt Securities, Available-for-Sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | 2,278 |  |  | — |  |  | 43 |  |  | 2,235 |
U.S. Agency notes | 80,708 |  |  | — |  |  | 2,368 |  |  | 78,340 |
U.S. Agency mortgage-backed securities | 57,584 |  |  | 7 |  |  | 1,981 |  |  | 55,610 |
Municipal securities: |  |  |  |  |  |  |  |  |  |  |
Non-taxable | 86,059 |  |  | 77 |  |  | 1,422 |  |  | 84,714 |
Taxable | 17,654 |  |  | 102 |  |  | 234 |  |  | 17,522 |
| $ | 244,283 |  |  | 186 |  |  | 6,048 |  |  | 238,421 |
Debt Securities, Held-to-Maturity: |  |  |  |  |  |  |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | $ | 26,021 |  |  | 84 |  |  | 635 |  |  | 25,470 |
Taxable | 3,700 |  |  | — |  |  | 146 |  |  | 3,554 |
| $ | 29,721 |  |  | 84 |  |  | 781 |  |  | 29,024 |
Information concerning debt securities with gross unrealized losses at March 31, 2019 and December 31, 2018, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (dollars in thousands):
| Less than Twelve Months |  | Twelve Months or Greater
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
March 31, 2019 |  |  |  |  |  |  |
Available-for-Sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | — |  |  | — |  |  | 2,257 |  |  | 19 |
U.S. Agency notes | — |  |  | — |  |  | 74,450 |  |  | 1,231 |
U.S. Agency mortgage-backed securities | 111 |  |  | — |  |  | 54,245 |  |  | 1,161 |
Municipal securities: |  |  |  |  |  |  |  |  |
Non-taxable | 619 |  |  | 1 |  |  | 43,862 |  |  | 515 |
Taxable | — |  |  | — |  |  | 13,001 |  |  | 88 |
| $ | 730 |  |  | 1 |  |  | 187,815 |  |  | 3,014 |
Held-to-Maturity: |  |  |  |  |  |  |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | $ | — |  |  | — |  |  | 18,537 |  |  | 187 |
Taxable | — |  |  | — |  |  | 3,247 |  |  | 53 |
| $ | — |  |  | — |  |  | 21,784 |  |  | 240 |
December 31, 2018 |  |  |  |  |  |  |
Available-for-Sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | — |  |  | — |  |  | 2,235 |  |  | 43 |
U.S. Agency notes | 4,988 |  |  | 7 |  |  | 73,351 |  |  | 2,361 |
U.S. Agency mortgage-backed securities | 137 |  |  | — |  |  | 55,217 |  |  | 1,981 |
Municipal securities: |  |  |  |  |  |  |  |  |  |
Non-taxable | 14,264 |  |  | 49 |  |  | 58,211 |  |  | 1,373 |
Taxable | — |  |  | — |  |  | 14,407 |  |  | 234 |
| $ | 19,389 |  |  | 56 |  |  | 203,421 |  |  | 5,992 |
Held-to-Maturity: |  |  |  |  |  |  |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | $ | 366 |  |  | 1 |  |  | 18,588 |  |  | 634 |
Taxable | 400 |  |  | 1 |  |  | 3,154 |  |  | 145 |
| $ | 766 |  |  | 2 |  |  | 21,742 |  |  | 779 |
Management has determined that the unrealized losses at March 31, 2019 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, 2019 were as follows (in thousands). Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
| Available-for-Sale |  | Held-to-Maturity
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Due within one year | $ | 15,455 |  |  | 15,425 |  |  | 2,800 |  |  | 2,799 |
Due from one to five years | 98,030 |  |  | 97,128 |  |  | 6,274 |  |  | 6,270 |
Due from five to ten years | 49,458 |  |  | 48,863 |  |  | 7,982 |  |  | 7,946 |
Due after ten years | 1,717 |  |  | 1,686 |  |  | 15,307 |  |  | 15,212 |
| 164,660 |  |  | 163,102 |  |  | 32,363 |  |  | 32,227 |
U.S. Agency mortgage-backed securities | 55,718 |  |  | 54,566 |  |  | — |  |  | — |
| $ | 220,378 |  |  | 217,668 |  |  | 32,363 |  |  | 32,227 |
Debt securities with a market value of $168,251,000 and $106,568,000 at March 31, 2019 and December 31, 2018, 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, 2019 and 2018 was as follows (in thousands):
|  | Three Months Ended March 31,
|  | 2019 |  | 2018
Proceeds from sales |  | 21,806 |  |  | — |
Gross realized gains |  | 58 |  |  | — |
Gross realized losses |  | 76 |  |  | — |
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, 2019 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, 2019 and December 31, 2018 are summarized as follows (in thousands):
| March 31, 2019 |  | December 31, 2018
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Mutual funds | $ | 1,349 |  |  | 1,299 |  |  | 1,651 |  |  | 1,559 |
Equity securities | 780 |  |  | 886 |  |  | 471 |  |  | 519 |
Total equity securities with a readily determinable fair value | $ | 2,129 |  |  | 2,185 |  |  | 2,122 |  |  | 2,078 |
Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the three months ended March 31, 2019 was as follows (in thousands):
|  | Three Months Ended March 31,
|  | 2019 |  | 2018
Net gains (losses) recognized |  | $ | 93 |  |  | (23 | )
Less net realized gains (losses) on equity securities sold |  | (6 | ) |  | 23 |
Unrealized gains (losses) recognized and still held at period end |  | $ | 99 |  |  | (46 | )

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