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Note 5 - Purchased Credit Deteriorated Loans

9 Months Ended

Sep. 30, 2024

Accounting for Certain Loans and Debt Securities Acquired in Transfer [Text Block]

NOTE 5 - PURCHASED CREDIT DETERIORATED LOANS

LCNB acquired loans through the merger with EFBI for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of these loans at acquisition on April 12, 2024 is as follows (in thousands):

Purchase price of loans at acquisition		2,811
Allowance for credit losses at acquisition		189
Non-credit discount (premium) at acquisition		253
Par value of acquired loans at acquisition	$	3,253

The following table provides, as of September 30, 2024, the major classifications of purchased credit deteriorated loans acquired from EFBI (in thousands):

Commercial & industrial	$	182
Commercial, secured by real estate		373
Residential real estate		2,379
Total	$	2,934

The following table provides the outstanding balance and related carrying amount for purchased credit deteriorated loans acquired from EFBI as of September 30, 2024 (in thousands):

Outstanding balance		$	3,185
Carrying amount			2,934

Activity during 2024 for the accretable discount related to purchased credit deteriorated loans acquired from EFBI and CNNB is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Accretable discount, beginning of period	$	1,159		—		1,467		—
Accretable discount acquired during period from merger with EFBI		—		—		253		—
Less loans transferred to held-for-sale		—		—		396		—
Less accretion		17		—		182		—
Accretable discount, end of period	$	1,142		—		1,142		—