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Fair Value Measurements (Tables) | 3 Months Ended
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Mar. 31, 2022
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, 2022 and December 31, 2021 (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, 2022 |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |
| Equity securities with a readily determinable fair value: |  |  |  |  |  |  |  |
| Equity securities |  | $ | 1,107 |  |  | 1,107 |  |  | — |  |  | — |
| Mutual funds |  | 47 |  |  | 47 |  |  | — |  |  | — |
| Mutual funds measured at net asset value |  | 1,270 |  |  | 1,270 |  |  | — |  |  | — |
| Debt securities, available-for-sale: |  |  |  |  |  |  |  |
| U.S. Treasury notes |  | 74,733 |  |  | 74,733 |  |  | — |  |  | — |
| U.S. Agency notes |  | 82,746 |  |  | — |  |  | 82,746 |  |  | — |
| Corporate bonds |  | 5,927 |  |  | — |  |  | 5,927 |  |  | — |
| U.S. Agency mortgage-backed securities |  | 86,800 |  |  | — |  |  | 86,800 |  |  | — |
| Municipal securities: |  |  |  |  |  |  |  |
| Non-taxable |  | 8,273 |  |  | — |  |  | 8,273 |  |  | — |
| Taxable |  | 34,985 |  |  | — |  |  | 34,985 |  |  | — |
| Total recurring fair value measurements |  | $ | 295,888 |  |  | 77,157 |  |  | 218,731 |  |  | — |
Nonrecurring fair value measurements: |  |  |  |  |  |  |  |
| Impaired loans |  | $ | 991 |  |  | — |  |  | — |  |  | 991 |
| Total nonrecurring fair value measurements |  | $ | 991 |  |  | — |  |  | — |  |  | 991 |
December 31, 2021 |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |
| Equity securities with a readily determinable fair value: |  |  |  |  |  |  |  |
| Equity securities |  | $ | 1,167 |  |  | 1,167 |  |  | — |  |  | — |
| Mutual funds |  | 51 |  |  | 51 |  |  | — |  |  | — |
| Mutual funds measured at net asset value |  | 1,328 |  |  | 1,328 |  |  | — |  |  | — |
| Debt securities, available-for-sale: |  |  |  |  |  |  |  |
| U.S. Treasury notes |  | 74,744 |  |  | 74,744 |  |  | — |  |  | — |
| U.S. Agency notes |  | 87,246 |  |  | — |  |  | 87,246 |  |  | — |
| Corporate bonds |  | 5,152 |  |  | — |  |  | 5,152 |  |  | — |
| U.S. Agency mortgage-backed securities |  | 96,676 |  |  | — |  |  | 96,676 |  |  | — |
| Municipal securities: |  |  |  |  |  |  |  |
| Non-taxable |  | 9,066 |  |  | — |  |  | 9,066 |  |  | — |
| Taxable |  | 35,293 |  |  | — |  |  | 35,293 |  |  | — |
| Total recurring fair value measurements |  | $ | 310,723 |  |  | 77,290 |  |  | 233,433 |  |  | — |
Nonrecurring fair value measurements: |  |  |  |  |  |  |  |
| Impaired loans |  | $ | 1,011 |  |  | — |  |  | — |  |  | 1,011 |
| Total nonrecurring fair value measurements |  | $ | 1,011 |  |  | — |  |  | — |  |  | 1,011 |
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, 2022 and December 31, 2021 (dollars in thousands):
|  |  |  |  |  |  |  | Range
|  | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | High |  | Low |  | Weighted Average
March 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | — |  |  | Estimated sales price |  | Adjustments for comparable properties, discounts to reflect current market conditions |  | Not applicable
Impaired loans |  | $ | 991 |  |  | Discounted cash flows |  | Discount rate |  | 8.125 | % |  | 4.625 | % |  | 6.07 | %
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | — |  |  | Estimated sales price |  | Adjustments for comparable properties, discounts to reflect current market conditions |  | Not applicable
|  | 1,011 |  |  | Discounted cash flows |  | Discount rate |  | 8.25 | % |  | 4.00 | % |  | 6.07 | %
Carrying Amounts and Estimated Fair Values of Financial Instruments | Carrying amounts and estimated fair values of financial instruments as of March 31, 2022 and December 31, 2021 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, 2022 |  |  |  |  |  |  |  |  |  |
FINANCIAL ASSETS: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 19,941 |  |  | 19,941 |  |  | 19,941 |  |  | — |  |  | — |
Debt securities, held-to-maturity |  | 22,873 |  |  | 22,409 |  |  | — |  |  | — |  |  | 22,409 |
Federal Reserve Bank stock |  | 4,652 |  |  | 4,652 |  |  | 4,652 |  |  | — |  |  | — |
Federal Home Loan Bank stock |  | 5,203 |  |  | 5,203 |  |  | 5,203 |  |  | — |  |  | — |
Loans, net |  | 1,373,991 |  |  | 1,299,509 |  |  | — |  |  | — |  |  | 1,299,509 |
Accrued interest receivable |  | 8,364 |  |  | 8,364 |  |  | — |  |  | 8,364 |  |  | — |
FINANCIAL LIABILITIES: |  |  |  |  |  |  |  |  |  |
Deposits |  | 1,636,606 |  |  | 1,637,621 |  |  | 1,451,644 |  |  | 185,977 |  |  | — |
Short-term borrowings |  | 24,746 |  |  | 24,746 |  |  | 24,746 |  |  | — |  |  | — |
Long-term debt |  | 10,000 |  |  | 10,243 |  |  | — |  |  | 10,243 |  |  | — |
Accrued interest payable |  | 339 |  |  | 339 |  |  | — |  |  | 339 |  |  | — |
December 31, 2021 |  |  |  |  |  |  |  |  |  |
FINANCIAL ASSETS: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 18,136 |  |  | 18,136 |  |  | 18,136 |  |  | — |  |  | — |
Debt securities, held-to-maturity |  | 22,972 |  |  | 23,087 |  |  | — |  |  | — |  |  | 23,087 |
Federal Reserve Bank stock |  | 4,652 |  |  | 4,652 |  |  | 4,652 |  |  | — |  |  | — |
Federal Home Loan Bank stock |  | 5,203 |  |  | 5,203 |  |  | 5,203 |  |  | — |  |  | — |
Loans, net |  | 1,363,939 |  |  | 1,333,840 |  |  | — |  |  | — |  |  | 1,333,840 |
Accrued interest receivable |  | 7,999 |  |  | 7,999 |  |  | — |  |  | 7,999 |  |  | — |
FINANCIAL LIABILITIES: |  |  |  |  |  |  |  |  |  |
Deposits |  | 1,628,819 |  |  | 1,630,158 |  |  | 1,435,487 |  |  | 194,671 |  |  | — |
Long-term debt |  | 10,000 |  |  | 10,292 |  |  | — |  |  | 10,292 |  |  | — |
Accrued interest payable |  | 277 |  |  | 277 |  |  | — |  |  | 277 |  |  | — |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=123874694&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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