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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 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 June 30, 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)
June 30, 2023 |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |
| Equity securities with a readily determinable fair value: |  |  |  |  |  |  |  |
| Equity securities |  | $ | 72 |  |  | 72 |  |  | — |  |  | — |
| Mutual funds measured at net asset value |  | 1,207 |  |  | 1,207 |  |  | — |  |  | — |
| Debt securities, available-for-sale: |  |  |  |  |  |  |  |
| U.S. Treasury notes |  | 70,963 |  |  | 70,963 |  |  | — |  |  | — |
| U.S. Agency notes |  | 78,720 |  |  | — |  |  | 78,720 |  |  | — |
| Corporate bonds |  | 6,503 |  |  | — |  |  | 6,503 |  |  | — |
| U.S. Agency mortgage-backed securities |  | 75,322 |  |  | — |  |  | 75,322 |  |  | — |
| Municipal securities: |  |  |  |  |  |  |  |
| Non-taxable |  | 8,502 |  |  | — |  |  | 8,502 |  |  | — |
| Taxable |  | 41,146 |  |  | — |  |  | 41,146 |  |  | — |
| Total recurring fair value measurements |  | $ | 282,435 |  |  | 72,242 |  |  | 210,193 |  |  | — |
Nonrecurring fair value measurements: |  |  |  |  |  |  |  |
| Individually evaluated loans |  | $ | 22 |  |  | — |  |  | — |  |  | 22 |
| Total nonrecurring fair value measurements |  | $ | 22 |  |  | — |  |  | — |  |  | 22 |
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 June 30, 2023 and December 31, 2022 (dollars in thousands):
|  |  |  |  |  |  |  | Range
|  | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | High |  | Low |  | Weighted Average
June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated collateral dependent loans |  | $ | 22 |  |  | Estimated sales price |  | Adjustments for comparable properties, discounts to reflect current market conditions |  | Not applicable
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
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 June 30, 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)
June 30, 2023 |  |  |  |  |  |  |  |  |  |
FINANCIAL ASSETS: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 26,020 |  |  | 26,020 |  |  | 26,020 |  |  | — |  |  | — |
Debt securities, held-to-maturity, net |  | 19,123 |  |  | 17,590 |  |  | — |  |  | — |  |  | 17,590 |
Loans, net |  | 1,431,295 |  |  | 1,249,702 |  |  | — |  |  | — |  |  | 1,249,702 |
Accrued interest receivable |  | 7,811 |  |  | 7,811 |  |  | — |  |  | 7,811 |  |  | — |
FINANCIAL LIABILITIES: |  |  |  |  |  |  |  |  |  |
Deposits |  | 1,596,709 |  |  | 1,595,620 |  |  | 1,375,690 |  |  | 219,930 |  |  | — |
Short-term borrowings |  | 112,289 |  |  | 112,289 |  |  | 112,289 |  |  | — |  |  | — |
Long-term debt |  | 18,122 |  |  | 17,668 |  |  | — |  |  | 17,668 |  |  | — |
Accrued interest payable |  | 915 |  |  | 915 |  |  | — |  |  | 915 |  |  | — |
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 |  |  | — |

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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 -Name Accounting Standards Codification -Section 50 -Paragraph 2C -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2C Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + 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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + 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 -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482907/825-10-50-11 + Details
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