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INVESTMENT SECURITIES | 12 Months Ended
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Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The amortized cost and estimated fair value of debt securities at December 31 are summarized as follows (in thousands):
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
2022 |  |  |  |  |  |  |
Debt Securities Available-for-Sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | 84,927 |  |  | — |  |  | 8,480 |  |  | 76,447 |
U.S. Agency notes | 89,160 |  |  | — |  |  | 11,184 |  |  | 77,976 |
Corporate Bonds | 7,450 |  |  | 13 |  |  | 778 |  |  | 6,685 |
U.S. Agency mortgage-backed securities | 90,746 |  |  | 5 |  |  | 11,311 |  |  | 79,440 |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | 8,892 |  |  | — |  |  | 368 |  |  | 8,524 |
Taxable | 46,556 |  |  | 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 |
Taxable | 3,431 |  |  | — |  |  | 409 |  |  | 3,022 |
| $ | 19,878 |  |  | 10 |  |  | 1,003 |  |  | 18,885 |
2021 |  |  |  |  |  |  |
Debt Securities Available-for-Sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | 75,443 |  |  | 57 |  |  | 756 |  |  | 74,744 |
U.S. Agency notes | 89,293 |  |  | 45 |  |  | 2,092 |  |  | 87,246 |
Corporate Bonds | 5,200 |  |  | 70 |  |  | 118 |  |  | 5,152 |
U.S. Agency mortgage-backed securities | 96,018 |  |  | 1,350 |  |  | 692 |  |  | 96,676 |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | 8,959 |  |  | 125 |  |  | 18 |  |  | 9,066 |
Taxable | 35,208 |  |  | 531 |  |  | 446 |  |  | 35,293 |
| $ | 310,121 |  |  | 2,178 |  |  | 4,122 |  |  | 308,177 |
Debt Securities Held-to-Maturity: |  |  |  |  |  |  |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | $ | 19,403 |  |  | 98 |  |  | — |  |  | 19,501 |
Taxable | 3,569 |  |  | 21 |  |  | 4 |  |  | 3,586 |
| $ | 22,972 |  |  | 119 |  |  | 4 |  |  | 23,087 |
Information concerning debt securities with gross unrealized losses at December 31, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (in thousands):
| Less Than Twelve Months |  | Twelve Months or More
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
2022 |  |  |  |  |  |  |
Available-for-Sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | 16,521 |  |  | 931 |  |  | 59,927 |  |  | 7,549 |
U.S. Agency notes | 7,729 |  |  | 543 |  |  | 70,247 |  |  | 10,641 |
Corporate Bonds | 2,667 |  |  | 283 |  |  | 3,255 |  |  | 495 |
U.S. Agency mortgage-backed securities | 41,543 |  |  | 3,597 |  |  | 37,282 |  |  | 7,714 |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | 6,831 |  |  | 248 |  |  | 893 |  |  | 120 |
Taxable | 22,162 |  |  | 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 |
Taxable | 2,811 |  |  | 370 |  |  | 212 |  |  | 39 |
| $ | 12,378 |  |  | 963 |  |  | 243 |  |  | 40 |
2021 |  |  |  |  |  |  |
Available-for-Sale: |  |  |  |  |  |  |
U.S. Treasury notes | $ | 66,891 |  |  | 756 |  |  | — |  |  | — |
U.S. Agency notes | 58,648 |  |  | 1,257 |  |  | 20,289 |  |  | 835 |
Corporate Bonds | 3,898 |  |  | 102 |  |  | 484 |  |  | 16 |
U.S. Agency mortgage-backed securities | 49,813 |  |  | 692 |  |  | — |  |  | — |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | 1,020 |  |  | 18 |  |  | — |  |  | — |
Taxable | 18,434 |  |  | 322 |  |  | 3,535 |  |  | 124 |
| $ | 198,704 |  |  | 3,147 |  |  | 24,308 |  |  | 975 |
Held-to-Maturity: |  |  |  |  |  |  |
Municipal securities: |  |  |  |  |  |  |
Non-taxable | $ | 46 |  |  | — |  |  | — |  |  | — |
Taxable | 271 |  |  | 4 |  |  | — |  |  | — |
| $ | 317 |  |  | 4 |  |  | — |  |  | — |
Unrealized losses at December 31, 2022 have not been recognized into income because the Company does not have the intent to sell the securities, it is likely that the Company will not be required to sell the securities prior to the anticipated recovery of their amortized costs, and the decline in fair values is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. Fair value is expected to recover as the securities approach their maturities. Contractual maturities of debt securities at December 31, 2022 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 | $ | 13,193 |  |  | 13,004 |  |  | 755 |  |  | 752 |
Due from one to five years | 133,026 |  |  | 119,304 |  |  | 3,628 |  |  | 3,475 |
Due from five to ten years | 90,036 |  |  | 77,467 |  |  | 2,440 |  |  | 2,238 |
Due after ten years | 730 |  |  | 635 |  |  | 13,055 |  |  | 12,420 |
| 236,985 |  |  | 210,410 |  |  | 19,878 |  |  | 18,885 |
U.S. Agency mortgage-backed securities | 90,746 |  |  | 79,440 |  |  | — |  |  | — |
| $ | 327,731 |  |  | 289,850 |  |  | 19,878 |  |  | 18,885 |
Debt securities with a market value of $166,412,000 and $128,426,000 at December 31, 2022 and 2021, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. Certain information concerning the sale of debt securities available-for-sale for the years ended December 31 was as follows (in thousands):
| 2022 |  | 2021 |  | 2020
Proceeds from sales | $ | — |  |  | 21,235 |  |  | 8,786 |
Gross realized gains | — |  |  | 365 |  |  | 221 |
Gross realized losses | — |  |  | 62 |  |  | — |
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 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 December 31, 2022 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 December 31 are summarized as follows (in thousands):
| 2022 |  | 2021
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Mutual funds | $ | 1,429 |  |  | 1,234 |  |  | 1,410 |  |  | 1,379 |
Equity securities | 778 |  |  | 1,039 |  |  | 778 |  |  | 1,167 |
Total equity securities with a readily determinable fair value | $ | 2,207 |  |  | 2,273 |  |  | 2,188 |  |  | 2,546 |
Certain information concerning changes in fair value of equity securities with a readily determinable fair value for the years ended December 31 was as follows (in thousands):
| 2022 |  | 2021 |  | 2020
Net gains (losses) recognized | $ | (292) |  |  | 141 |  |  | 675 |
Less net realized gains on equity securities sold | — |  |  | — |  |  | 658 |
Unrealized gains (losses) recognized and still held at period end | $ | (292) |  |  | 141 |  |  | 17 |

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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