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Investment Securities
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
 
The amortized cost and estimated fair value of debt securities at June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):
 Amortized CostUnrealized GainsUnrealized LossesFair Value
June 30, 2024
Debt Securities, Available-for-Sale:
U.S. Treasury notes$74,946 — 6,256 68,690 
U.S. Agency notes88,892 — 7,878 81,014 
Corporate bonds7,450 — 807 6,643 
U.S. Agency mortgage-backed securities77,629 4 9,924 67,709 
Municipal securities:
Non-taxable4,606 — 260 4,346 
Taxable36,688 — 3,733 32,955 
 $290,211 4 28,858 261,357 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$15,568 1 1,069 14,500 
Taxable3,283 — 430 2,853 
$18,851 1 1,499 17,353 
December 31, 2023
Debt Securities, Available-for-Sale:
U.S. Treasury notes$74,404 — 6,202 68,202 
U.S. Agency notes88,978 — 8,077 80,901 
Corporate Bonds7,450 — 916 6,534 
U.S. Agency mortgage-backed securities81,634 2 8,846 72,790 
Municipal securities:
Non-taxable7,416 — 245 7,171 
Taxable44,923 1 3,921 41,003 
 $304,805 3 28,207 276,601 
Debt Securities, Held-to-Maturity:
Municipal securities:
Non-taxable$13,580 4 872 12,712 
Taxable3,283 — 316 2,967 
$16,863 4 1,188 15,679 

The Company estimated the expected credit losses at June 30, 2024 and December 31, 2023 to be immaterial based on the composition of the securities portfolio.
Information concerning debt securities with gross unrealized losses at June 30, 2024 and December 31, 2023, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (in thousands):
 Less than Twelve MonthsTwelve Months or Greater
 Fair ValueUnrealized LossesFair ValueUnrealized Losses
June 30, 2024
Available-for-Sale:
U.S. Treasury notes$2,165 10 66,525 6,246 
U.S. Agency notes— — 81,014 7,878 
Corporate bonds716 34 5,927 773 
U.S. Agency mortgage-backed securities66 1 67,293 9,923 
Municipal securities:
Non-taxable— — 4,346 260 
Taxable— — 32,835 3,733 
 $2,947 45 257,940 28,813 
Held-to-Maturity:
Municipal securities:
  Non-taxable$2,534 24 11,536 1,045 
  Taxable— — 2,853 430 
$2,534 24 14,389 1,475 
December 31, 2023
Available-for-Sale:
U.S. Treasury notes$— — 68,202 6,202 
U.S. Agency notes— — 80,901 8,077 
Corporate Bonds734 16 5,800 900 
U.S. Agency mortgage-backed securities— — 72,287 8,846 
Municipal securities:
Non-taxable1,540 10 5,631 235 
Taxable— — 40,392 3,921 
 $2,274 26 273,213 28,181 
Held-to-Maturity:
Municipal securities:
  Non-taxable$6,012 476 5,975 396 
  Taxable— — 2,966 316 
$6,012 476 8,941 712 

At June 30, 2024, LCNB’s securities portfolio consisted of 175 securities, 165 of which were in an unrealized loss position. At December 31, 2023, LCNB's securities portfolio consisted of 207 securities, 176 of which were in an unrealized loss position. After considering the issuers of the securities, LCNB management determined that that the unrealized losses were due to changing interest rate environments. LCNB had no intent at June 30, 2024 to sell its debt securities before recovery of their cost basis and as it was more likely than not that it will not be required to sell its debt securities before recovery of their cost basis.
Each quarter, LCNB performs an analysis to determine if any of the unrealized losses on available-for-sale debt securities are comprised of credit losses as compared to unrealized losses due to market interest rate adjustments. The assessment includes a review of the unrealized loss for each security issuance held; the financial condition and near-term prospects of the issuer, including external credit ratings and recent downgrades; and LCNB's ability and intent to hold the security for a period of time sufficient for a recovery in value. LCNB also considers the extent to which the securities are issued by the federal government or its agencies and any guarantee of issued amounts by those agencies. The portfolio continues to consist of a mix of fixed and floating-rate, high quality securities, largely rated AA (or better), displaying an overall effective duration of approximately 3.4 years. No credit losses were determined to be present as of June 30, 2024, as there was no credit quality deterioration noted. Therefore, no provision for credit losses on available-for-sale debt securities was recognized for the second quarter of 2024.

Debt securities with a market value of $144.5 million and $124.4 million at June 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes required or as permitted by law.

Excluding holdings in U.S. Treasury securities and U.S. Government Agencies, there were no investments in securities of any issuer that exceeded 10% of LCNB's consolidated shareholders' equity at June 30, 2024.

Contractual maturities of debt securities at June 30, 2024 were as follows (in thousands).  Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.
 Available-for-SaleHeld-to-Maturity
Amortized CostFair ValueAmortized CostFair Value
Due within one year$19,223 18,906 1,163 1,148 
Due from one to five years162,591 147,320 1,301 1,264 
Due from five to ten years30,768 27,422 10,568 9,838 
Due after ten years— — 5,819 5,103 
 212,582 193,648 18,851 17,353 
U.S. Agency mortgage-backed securities77,629 67,709 — — 
 $290,211 261,357 18,851 17,353 

Certain information concerning the sale of debt securities available-for-sale for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands):
 Three Months Ended
June 30,		Six Months Ended 
June 30,
 2024202320242023
Proceeds from sales$— — $9,615 — 
Gross realized gains— — — — 
Gross realized losses— — 214 — 

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 June 30, 2024 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 June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):
June 30, 2024December 31, 2023
 Amortized
Cost		Fair
 Value		Amortized
Cost		Fair
 Value
Mutual Funds$1,432 1,240 1,415 1,240 
Equity Securities10 90 10 96 
Total equity securities with a readily determinable fair value$1,442 1,330 1,425 1,336 

Certain information concerning changes in the fair value of equity securities with a readily determinable fair value for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Net losses recognized during the period on equity securities$(14)(14)$(24)(45)
Less net losses recognized during the period on equity securities sold during the period— — — (61)
Net unrealized gains (losses) recognized during the reporting period on equity securities still held at period end$(14)(14)$(24)16