LCNB CORP, 10-K filed on 3/10/2022
Annual Report
v3.22.0.1
Cover - USD ($)
12 Months Ended
Dec. 31, 2021
Mar. 08, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 000-26121    
Entity Registrant Name LCNB Corp.    
Entity Incorporation, State or Country Code OH    
Entity Tax Identification Number 31-1626393    
Entity Address, Address Line One 2 North Broadway    
Entity Address, City or Town Lebanon    
Entity Address, State or Province OH    
Entity Address, Postal Zip Code 45036    
City Area Code 513    
Local Phone Number 932-1414    
Title of 12(b) Security Common Stock, No Par Value    
Trading Symbol LCNB    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Non-accelerated Filer    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 196,713,412
Entity Common Stock, Shares Outstanding   11,396,323  
Entity Central Index Key 0001074902    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
ICFR Auditor Attestation Flag false    
v3.22.0.1
Audit Information
12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Name BKD, LLP
Auditor Location Cincinnati, Ohio
Auditor Firm ID 686
v3.22.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2021
Dec. 31, 2020
ASSETS:    
Cash and due from banks $ 16,810,000 $ 17,383,000
Interest-bearing demand deposits 1,326,000 14,347,000
Total cash and cash equivalents 18,136,000 31,730,000
Investment securities:    
Equity securities with a readily determinable fair value, at fair value 2,546,000 2,389,000
Equity securities without a readily determinable fair value, at cost 2,099,000 2,099,000
Debt securities, available-for-sale, at fair value 308,177,000 209,471,000
Debt securities, held-to-maturity, at cost 22,972,000 24,810,000
Federal Reserve Bank stock, at cost 4,652,000 4,652,000
Federal Home Loan Bank stock, at cost 5,203,000 5,203,000
Loans, net 1,363,939,000 1,293,693,000
Premises and equipment, net 35,385,000 35,376,000
Operating Lease, Right-of-Use Asset 6,357,000 6,274,000
Goodwill 59,221,000 59,221,000
Core deposit and other intangibles, net 2,473,000 3,453,000
Bank owned life insurance 43,224,000 42,149,000
Accrued interest receivable 7,999,000 8,337,000
Other assets, net 21,246,000 17,027,000
TOTAL ASSETS 1,903,629,000 1,745,884,000
Deposits:    
Non-interest-bearing 501,531,000 455,073,000
Interest-bearing 1,127,288,000 1,000,350,000
Total deposits 1,628,819,000 1,455,423,000
Long-term debt 10,000,000 22,000,000
Operating Lease, Liability 6,473,000 6,371,000
Accrued interest and other liabilities 19,733,000 21,265,000
TOTAL LIABILITIES 1,665,025,000 1,505,059,000
COMMITMENTS AND CONTINGENT LIABILITIES $ 0 $ 0
Preferred Stock, No Par Value $ 0 $ 0
Preferred Stock, Shares Outstanding 0 0
SHAREHOLDERS' EQUITY:    
Preferred shares - no par value, authorized 1,000,000 shares, none outstanding $ 0 $ 0
Common Stock, Value, Issued 143,130,000 142,443,000
Retained earnings $ 126,312,000 $ 115,058,000
Treasury Stock, Shares 1,798,836 1,305,579
Treasury Stock, Value $ (29,029,000) $ (20,719,000)
Accumulated other comprehensive income (loss), net of taxes (1,809,000) 4,043,000
TOTAL SHAREHOLDERS' EQUITY 238,604,000 240,825,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,903,629,000 $ 1,745,884,000
Preferred Stock, Shares Authorized 1,000,000 1,000,000
Common Stock, No Par Value $ 0 $ 0
Common stock, shares, outstanding (in shares) 12,414,956 12,858,325
Common Stock, Shares, Issued 14,213,792 14,163,904
Common Stock, Shares Authorized 19,000,000 19,000,000
v3.22.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares
Dec. 31, 2021
Dec. 31, 2020
SHAREHOLDERS' EQUITY:    
Preferred Stock, Shares Authorized 1,000,000 1,000,000
Preferred Stock, Shares Outstanding 0 0
Common Stock, Shares Authorized 19,000,000 19,000,000
Common Stock, Shares, Issued 14,213,792 14,163,904
Treasury Stock, Shares 1,798,836 1,305,579
v3.22.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
INTEREST INCOME:      
Interest and fees on loans $ 56,142 $ 59,267 $ 59,009
Dividend Income, Equity Securities, Operating 51 54 62
Dividend Income, Operating 21 37 65
Interest on debt securities:      
Taxable 3,668 2,916 3,601
Non-taxable 864 1,027 1,677
Interest Income, Deposits with Financial Institutions 0 0 11
Other investments 431 479 769
TOTAL INTEREST INCOME 61,177 63,780 65,194
INTEREST EXPENSE:      
Interest on deposits 3,578 6,634 9,526
Interest on short-term borrowings 6 7 227
Interest on long-term debt 469 921 1,035
TOTAL INTEREST EXPENSE 4,053 7,562 10,788
NET INTEREST INCOME 57,124 56,218 54,406
PROVISION (CREDIT) FOR LOAN LOSSES (269) 2,014 207
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES 57,393 54,204 54,199
NON-INTEREST INCOME:      
Net gains (losses) on sales of debt securities 303 221 (41)
Bank owned life insurance income 1,074 1,441 943
Net gains from sales of loans 852 2,297 328
Other operating income 1,293 1,291 889
TOTAL NON-INTEREST INCOME 16,232 15,741 12,348
NON-INTEREST EXPENSE:      
Salaries and employee benefits 27,616 27,178 25,320
Equipment expenses 1,678 1,377 1,209
Occupancy expense, net 2,949 2,875 2,961
State financial institutions tax 1,758 1,708 1,669
Marketing 1,239 1,254 1,319
Amortization of intangibles 1,043 1,046 1,043
FDIC insurance premiums, net 492 256 225
ATM expense 1,416 1,028 580
Computer maintenance and supplies 1,213 1,107 1,094
Telephone expense 420 706 707
Contracted services 2,430 1,821 1,865
Merger-related expenses 0 0 114
Other non-interest expense 5,786 5,429 5,416
TOTAL NON-INTEREST EXPENSE 48,040 45,785 43,522
INCOME BEFORE INCOME TAXES 25,585 24,160 23,025
PROVISION FOR INCOME TAXES 4,611 4,085 4,113
NET INCOME $ 20,974 $ 20,075 $ 18,912
Earnings per common share:      
Basic (in dollars per share) $ 1.66 $ 1.55 $ 1.44
Diluted (in dollars per share) $ 1.66 $ 1.55 $ 1.44
Weighted average common shares outstanding:      
Basic (in shares) 12,589,605 12,914,277 13,078,920
Diluted (in shares) 12,589,613 12,914,584 13,082,893
Fiduciary and Trust      
Weighted average common shares outstanding:      
Revenue from Contract with Customer, Excluding Assessed Tax $ 6,674 $ 5,009 $ 4,354
Revenue from Contract with Customer, Excluding Assessed Tax 6,674 5,009 4,354
Deposit Account      
Weighted average common shares outstanding:      
Revenue from Contract with Customer, Excluding Assessed Tax 6,036 5,482 5,875
Revenue from Contract with Customer, Excluding Assessed Tax $ 6,036 $ 5,482 $ 5,875
v3.22.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income $ 20,974 $ 20,075 $ 18,912
Other comprehensive income (loss):      
Net unrealized gain (loss) on available-for-sale securities (net of taxes of $(1,501), $975, and $1,450 for 2021, 2020, and 2019, respectively) (5,645) 3,666 5,456
Reclassification adjustment for net realized (gain) loss on sale of available-for-sale securities included in net income (net of taxes of $64, $46, and $(9) for 2021, 2020 and 2019, respectively) (239) (175) 32
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax 32 (121) (96)
Other comprehensive income (loss) (5,852) 3,370 5,392
TOTAL COMPREHENSIVE INCOME 15,122 23,445 24,304
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX, AS OF YEAR-END:      
Net unrealized gain (loss) on securities available-for-sale (1,536) 4,348 857
Net unfunded liability for nonqualified pension plan (273) (305) (184)
Balance at year-end $ (1,809) $ 4,043 $ 673
v3.22.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Other comprehensive income (loss):      
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax $ (1,501) $ 975 $ 1,450
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax 64 46 (9)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax $ 9 $ (33) $ (26)
v3.22.0.1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Shares
Retained Earnings
Treasury Shares
Accumulated Other Comprehensive Income (Loss)
Balance (in shares) at Dec. 31, 2018   13,295,276      
Balance at beginning of year at Dec. 31, 2018 $ 218,985 $ 141,170 $ 94,547 $ (12,013) $ (4,719)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 18,912 0 18,912 0 0
Other comprehensive income, net of taxes 5,392 $ 0 0 0 5,392
Dividend Reinvestment and Stock Purchase Plan (in shares)   25,629      
Dividend Reinvestment and Stock Purchase Plan 446 $ 446 0 0 0
Exercise of stock options (in shares)   3,374      
Exercise of stock options 41 $ 41 0 0 0
Treasury Stock, Shares, Acquired   400,000      
Payments for Repurchase of Common Stock 6,834 $ 0 0 6,834 0
Compensation expense relating to restricted stock (in shares)   12,504      
Compensation expense relating to restricted stock 134 $ 134 0 0 0
Dividends, Common Stock, Stock   0      
Dividends, Common Stock, Cash (9,028) $ 0 (9,028) 0 0
Balance (in shares) at Dec. 31, 2019   12,936,783      
Balance at end of year at Dec. 31, 2019 228,048 $ 141,791 104,431 (18,847) 673
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 20,075 0 20,075 0 0
Other comprehensive income, net of taxes 3,370 $ 0 0 0 3,370
Dividend Reinvestment and Stock Purchase Plan (in shares)   26,840      
Dividend Reinvestment and Stock Purchase Plan 401 $ 401 0 0 0
Exercise of stock options (in shares)   9,593      
Exercise of stock options 114 $ 114 0 0 0
Treasury Stock, Shares, Acquired   130,552      
Payments for Repurchase of Common Stock 1,872 $ 0 0 1,872 0
Compensation expense relating to restricted stock (in shares)   15,661      
Compensation expense relating to restricted stock 137 $ 137 0 0 0
Dividends, Common Stock, Stock   0      
Dividends, Common Stock, Cash $ (9,448) $ 0 (9,448) 0 0
Balance (in shares) at Dec. 31, 2020 12,858,325 12,858,325      
Balance at end of year at Dec. 31, 2020 $ 240,825 $ 142,443 115,058 (20,719) 4,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 20,974 0 20,974 0 0
Other comprehensive income, net of taxes (5,852) $ 0 0 0 (5,852)
Dividend Reinvestment and Stock Purchase Plan (in shares)   24,012      
Dividend Reinvestment and Stock Purchase Plan 434 $ 434 0 0 0
Exercise of stock options (in shares)   311      
Exercise of stock options 4 $ 4 0 0 0
Treasury Stock, Shares, Acquired   493,257      
Payments for Repurchase of Common Stock 8,310 $ 0 0 8,310 0
Compensation expense relating to restricted stock (in shares)   25,565      
Compensation expense relating to restricted stock 249 $ 249 0 0 0
Dividends, Common Stock, Stock   0      
Dividends, Common Stock, Cash $ (9,720) $ 0 (9,720) 0 0
Balance (in shares) at Dec. 31, 2021 12,414,956 12,414,956      
Balance at end of year at Dec. 31, 2021 $ 238,604 $ 143,130 $ 126,312 $ (29,029) $ (1,809)
v3.22.0.1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]      
Common Stock, Dividends, Per Share, Declared $ 0.77 $ 0.73 $ 0.69
v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $ 20,974 $ 20,075 $ 18,912
Adjustments to reconcile net income to net cash flows from operating activities-      
Depreciation, amortization and accretion 2,612 2,234 3,244
Provision (credit) for loan losses (269) 2,014 207
Deferred income tax provision 294 134 419
Increase in cash surrender value of bank owned life insurance (1,074) (1,124) (943)
Bank owned life insurance death benefits in excess of cash surrender value 0 (317) 0
Equity Securities, FV-NI, Gain (Loss) (141) (675) (264)
Net gain on sales of securities (303) (221) 41
Realized gain from sales of premises and equipment, net (6) (53) (1)
Realized (gain) loss from sale and impairment of other real estate owned and repossessed assets 0 (11) 44
Origination of mortgage loans for sale (33,824) (65,890) (16,418)
Realized gains from sales of loans (852) (2,297) (328)
Proceeds from sales of loans 34,268 67,467 16,590
Compensation expense related to restricted stock 249 137 134
Changes in:      
Accrued income receivable 338 (4,573) 230
Other assets (4,208) (6,795) (1,373)
Other liabilities (237) 3,573 1,474
TOTAL ADJUSTMENTS (3,153) (6,397) 3,056
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 17,821 13,678 21,968
CASH FLOWS FROM INVESTING ACTIVITIES:      
Proceeds from sales of equity securities 0 967 398
Proceeds from sales of debt securities, available-for-sale 21,235 8,786 84,521
Proceeds from maturities and calls of debt securities:      
Available-for-sale 33,093 66,170 28,942
Held-to-maturity 4,285 5,297 10,766
Purchases of equity securities (16) (369) (367)
Purchases of debt securities:      
Available-for-sale (161,786) (102,920) (47,270)
Held-to-maturity (2,447) (2,582) (8,570)
Increase (Decrease) in Time Deposits 0 0 996
Proceeds from Sale of Federal Reserve Bank Stock 0 0 1
Net increase in loans (67,649) (54,196) (44,093)
Purchase of bank owned life insurance 0 0 (12,000)
Proceeds from bank owned life insurance mortality benefits 0 958 0
Proceeds from sales of other real estate owned and repossessed assets 0 208 19
Purchases of premises and equipment (1,940) (2,791) (3,934)
Proceeds from sales of premises and equipment 6 421 5
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES (175,219) (80,051) 9,056
CASH FLOWS FROM FINANCING ACTIVITIES:      
Net increase in deposits 173,396 107,143 47,361
Net decrease in short-term borrowings 0 0 (56,230)
Principal payments on long-term debt (12,000) (19,000) (6,055)
Proceeds from issuance of common stock 434 401 446
Payments for Repurchase of Common Stock 8,310 1,872 6,834
Proceeds from exercise of stock options 4 114 41
Cash dividends paid on common stock (9,720) (9,448) (9,028)
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES 143,804 77,338 (30,299)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect (13,594) 10,965 725
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 31,730 20,765 20,040
CASH AND CASH EQUIVALENTS AT END OF YEAR 18,136 31,730 20,765
CASH PAID DURING THE YEAR FOR:      
Interest 4,228 7,809 10,480
Income taxes 3,665 3,811 3,471
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING ACTIVITY:      
Transfer from loans to other real estate owned and repossessed assets 0 0 17
Payments to Acquire Federal Home Loan Bank Stock $ 0 $ 0 $ (358)
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
LCNB Corp. (the "Company" or “LCNB”), an Ohio corporation formed in December 1998, is a financial holding company whose principal activity is the ownership of LCNB National Bank (the "Bank").  The Bank was founded in 1877 and provides full banking services, including Wealth Management and Investment services, to customers primarily in Southwestern Ohio and Franklin County Ohio and contiguous areas.

BASIS OF PRESENTATION
The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions are eliminated in consolidation.  The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles and with general practices in the banking industry.

Certain prior period data presented in the consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications had no effect on net income or shareholders' equity.

USE OF ESTIMATES
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates. Estimates that management has determined to be critical accounting estimates are more fully described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-K.

CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, cash and cash equivalents include cash, balances due from banks, federal funds sold, and interest-bearing demand deposits with original maturities of twelve months or less.  Deposits with other banks routinely have balances greater than FDIC insured limits.  Management considers the risk of loss to be very low with respect to such deposits.

INVESTMENT SECURITIES
Certain municipal debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost.  Debt securities not classified as held-to-maturity are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, a separate component of shareholders’ equity.  Amortization of premiums and accretion of discounts are recognized as adjustments to interest income using the level-yield method.  Realized gains or losses from the sale of securities are recorded on the trade date and are computed using the specific identification method.

Declines in the fair value of debt securities below their cost that are deemed to be other-than-temporarily impaired, and for which the Company does not intend to sell the securities and it is not more likely than not that the securities will be sold before the anticipated recovery of the impairment, are separated into losses related to credit factors and losses related to other factors.  The losses related to credit factors are recognized in earnings and losses related to other factors are recognized in other comprehensive income.  In estimating other than temporary impairment losses, management considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Management determined that no such impairment adjustment was required to be made in the Company's Consolidated Statements of Income as of December 31, 2021, 2020, and 2019.

Equity securities with a readily determinable fair value are measured at fair value with changes in fair value recognized in net income.
Federal Home Loan Bank ("FHLB") stock is an equity interest in the Federal Home Loan Bank of Cincinnati.  It can be sold only at its par value of $100 per share and only to the FHLB or to another member institution.  In addition, the equity ownership rights are more limited than would be the case for a public company because of the oversight role exercised by the Federal Housing Finance Agency in the process of budgeting and approving dividends.  Federal Reserve Bank stock is similarly restricted in marketability and value.  Both investments are carried at cost, which is their par value.

FHLB and Federal Reserve Bank stock are both subject to minimum ownership requirements by member banks.  The required investments in common stock are based on predetermined formulas.

LOANS
The Company’s loan portfolio includes most types of commercial and industrial loans, commercial loans secured by real estate, residential real estate loans, consumer loans, agricultural loans and other types of loans. Most of the properties collateralizing the loan portfolio are located within the Company’s market area.

Loans are stated at the principal amount outstanding, net of unearned income, deferred origination fees and costs, and the allowance for loan losses.  Interest income is accrued on the unpaid principal balance. The delinquency status of a loan is based on contractual terms and not on how recently payments have been received.  Generally, a loan is placed on non-accrual status when it is classified as impaired or there is an indication that the borrower’s cash flow may not be sufficient to make payments as they come due, unless the loan is well secured and in the process of collection.  Subsequent cash receipts on non-accrual loans are recorded as a reduction of principal and interest income is recorded once principal recovery is reasonably assured.  The current year's accrued interest on loans placed on non-accrual status is charged against earnings. Previous years' accrued interest is charged against the allowance for loan losses. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer a reasonable doubt as to the timely collection of interest or principal.

Loan origination fees and certain direct loan origination costs are deferred and the net amount amortized as an adjustment of loan yields.  These amounts are being amortized over the lives of the related loans.

In the ordinary course of business, the Company enters into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit.  Such financial instruments are recorded in the consolidated financial statements when they are funded.  The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses.

Loans acquired from mergers are recorded at fair value with no carryover of the acquired entity's previously established allowance for loan losses.  The excess of expected cash flows over the estimated fair value of acquired loans is recognized as interest income over the remaining contractual lives of the loans using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses.  Subsequent improvements in expected cash flows result in the recognition of additional interest income over the then-remaining contractual lives of the loans. Management estimates the cash flows expected to be collected at acquisition using a third-party risk model, which incorporates the estimate of key assumptions, such as default rates, severity, and prepayment speeds.

Impaired loans acquired are accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") No. 310-30.  Factors considered in evaluating whether an acquired loan was impaired include delinquency status and history, updated borrower credit status, collateral information, and current loan-to-value information.  The difference between contractually required payments at the time of acquisition and the cash flows expected to be collected is referred to as the nonaccretable difference.  The interest component of the cash flows expected to be collected is referred to as the accretable yield and is recognized as interest income over the remaining contractual life of the loan using the level yield method.   Subsequent decreases in expected cash flows will require additions to the allowance for loan losses.  Subsequent improvements in expected cash flows will result in a reclassification from the nonaccretable difference to the accretable yield.
 
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses is established through a provision for loan losses charged to expense.  Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely.  Consumer loans are charged off when they reach 120 days past due.  Subsequent recoveries, if any, are credited to the allowance.

The provision for loan losses is determined by management based upon its evaluation of the amount needed to maintain the allowance for loan losses at a level considered appropriate in relation to the estimated risk of losses inherent in the portfolio.  Current methodology used by management to estimate the allowance takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, historic categorical trends, current delinquency levels as related to historical levels, portfolio growth rates, changes in composition of the portfolio, the current economic environment, as well as current allowance adequacy in relation to the portfolio.  Management is cognizant that reliance on historical information coupled with the cyclical nature of the economy, including credit cycles, affects the allowance.  Management considers all of these factors prior to making any adjustments to the allowance due to the subjectivity and imprecision involved in allocation methodology.  This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of specific and general components.  The specific component relates to loans that are specifically reviewed for impairment.  For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.  The general component covers loans not specifically reviewed for impairment and homogeneous loan pools, such as residential real estate and consumer loans.  The general component is measured for each loan category separately based on each category’s average of historical loss experience over a trailing sixty month period, adjusted for qualitative factors.  Such qualitative factors may include current economic conditions if different from the five-year historical loss period, trends in underperforming loans, trends in volume and terms of loan categories, concentrations of credit, and trends in loan quality.

A loan is considered impaired when management believes, based on current information and events, it is probable that the Bank will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement.  An impaired loan is measured by the present value of expected future cash flows using the loan's effective interest rate.  An impaired collateral-dependent loan may be measured based on collateral value.  Smaller-balance homogeneous loans, including residential mortgage and consumer installment loans, which are not evaluated individually are collectively evaluated for impairment.

PREMISES AND EQUIPMENT
Premises and equipment are stated at cost less accumulated depreciation.  Land is stated at cost. Depreciation is computed on both the straight-line and accelerated methods over the estimated useful lives of the assets, generally 15 to 40 years for premises and 3 to 10 years for equipment.  Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Costs incurred for maintenance and repairs are expensed as incurred. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

LEASES
FASB Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)," requires a lessee to recognize in the statement of financial position a liability to make lease payments ("the lease liability") and a right-of-use asset representing its right to use the underlying asset for the lease term, initially measured at the present value of the lease payments. When measuring assets and liabilities arising from a lease, the lessee should include payments to be made in optional periods only if the lessee is reasonably certain, as defined, to exercise an option to the lease or not to exercise an option to terminate the lease. Optional payments to purchase the underlying asset should be included if the lessee is reasonably certain it will exercise the purchase option. Most variable lease payments should be excluded except for those that depend on an index or a rate or are in substance fixed payments.
A lessee shall classify a lease as a finance lease if it meets any of five designated criteria. If the lease does not meet any of the five criteria, the lessee shall classify it as an operating lease. All leases entered into by LCNB through December 31, 2021 and 2020 are classified as operating leases. Lessees shall recognize a single lease cost on a straight-line basis over the lease term for operating leases. LCNB has adopted an accounting policy election to not recognize lease assets and lease liabilities for leases with a term of 12 months or less. Lease expense for such leases will generally be recognized on a straight-line basis over the lease term.

OTHER REAL ESTATE OWNED
Other real estate owned includes properties acquired through foreclosure.  Such property is held for sale and is initially recorded at fair value, less costs to sell, establishing a new cost basis.  Fair value is primarily based on a property appraisal obtained at the time of transfer and any periodic updates that may be obtained thereafter.  The allowance for loan losses is charged for any write down of the loan’s carrying value to fair value at the date of transfer.  Any subsequent reductions in fair value and expenses incurred from holding other real estate owned are charged to other non-interest expense.  Costs, excluding interest, relating to the improvement of other real estate owned are capitalized.  Gains and losses from the sale of other real estate owned are included in other non-interest expense.

GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill is the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination.  Goodwill is not amortized, but is instead subject to an annual review for impairment. A review for impairment may be conducted more frequently than annually if circumstances indicate a possible impairment. Impairment indicators that may be considered include the condition of the economy and banking industry; estimated future cash flows; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of LCNB’s stock, and other relevant events. These and other factors could lead to a conclusion that goodwill is impaired, which would require LCNB to write off the difference between the estimated fair value of the company and the carrying value.

Mortgage servicing rights on originated mortgage loans that have been sold are initially recorded at their estimated fair values.  Mortgage servicing rights are amortized to loan servicing income in proportion to and over the period of estimated servicing income.  Such assets are periodically evaluated as to the recoverability of their carrying value.

The Company’s other intangible assets relate to core deposits acquired from business combinations.  These intangible assets are amortized on a straight-line basis over their estimated useful lives.  Management evaluates whether events or circumstances have occurred that indicate the remaining useful life or carrying value of the amortizing intangible should be revised.

BANK OWNED LIFE INSURANCE
The Company has purchased life insurance policies on certain officers of the Company.  The Company is the beneficiary of these policies and has recorded the estimated cash surrender value in the Consolidated Balance Sheets.  Income on the policies, based on the increase in cash surrender value and any incremental death benefits, is included in non-interest income in the Consolidated Statements of Income.

AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP
LCNB has elected to account for its investment in an affordable housing tax credit limited partnership using the proportional amortization method described in "ASU 2014-01, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (A Consensus of the FASB Emerging Issues Task Force)." Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The investment in the limited partnership is included in other assets and the unfunded amount is included in accrued interest and other liabilities in LCNB's Consolidated Balance Sheets.
FAIR VALUE MEASUREMENTS
Accounting guidance establishes a fair value hierarchy to prioritize the inputs to valuation techniques used to measure fair value.  A financial instrument’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The three broad input levels are:
Level 1 – quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the reporting date;
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly; and
Level 3 - inputs that are unobservable for the asset or liability.

Accounting guidance permits, but does not require, companies to measure many financial instruments and certain other items, including loans and debt securities, at fair value.  The decision to elect the fair value option is made individually for each instrument and is irrevocable once made.  Changes in fair value for the selected instruments are recorded in earnings. The Company did not select any financial instruments for the fair value election in 2021 or 2020.

ADVERTISING EXPENSE
Advertising costs are expensed as incurred and are recorded as a marketing expense, a component of non-interest expense.

PENSION PLANS
Eligible employees of the Company hired before 2009 participate in a multiple-employer qualified noncontributory defined benefit retirement plan.  This plan is accounted for as a multi-employer plan because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer.

Citizens National had a qualified noncontributory, defined benefit pension plan, which has been assumed by the Company, that covers eligible employees hired before May 1, 2005. This is a single employer plan.

TREASURY STOCK
Common shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the weighted average method.

STOCK OPTIONS AND RESTRICTED STOCK AWARD PLANS
The cost of employee services received in exchange for stock option grants is the grant-date fair value of the award estimated using an option-pricing model.  The compensation cost for restricted stock awards is based on the market price of the Company's common stock at the date of grant multiplied by the number of shares granted that are expected to vest. The estimated cost is recognized on a straight-line basis over the period the employee is required to provide services in exchange for the award, usually the vesting period.  The Company uses a Black-Scholes pricing model and related assumptions for estimating the fair value of stock option grants and a five-year vesting period for stock options and restricted stock.

REVENUE RECOGNITION
FASB ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606") provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance enumerates five steps that entities should follow in achieving this core principle. Revenue generated from financial instruments, including loans and investment securities, are not included in the scope of ASC No. 606. The adoption of ASC No. 606 did not result in a change to the accounting for any of LCNB's revenue streams that are within the scope of the amendments. Revenue-generating activities that are within the scope of ASC 606 and that are presented as non-interest income in LCNB's Consolidated Statements of Income include:
Fiduciary income - this includes periodic fees due from Wealth Management and Investment Services customers for managing the customers' financial assets. Fees are generally charged on a quarterly or annual basis and are recognized ratably throughout the period, as the services are provided on an ongoing basis.
Service charges and fees on deposit accounts - these include general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer, or overdraft activities. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services.

INCOME TAXES
Deferred income taxes are determined using the asset and liability method of accounting.  Under this method, the net deferred tax asset or liability is determined based on the tax effects of temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws.

Management analyzes material tax positions taken in any income tax return for any tax jurisdiction and determines the likelihood of the positions being sustained in a tax examination.  A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.  The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination.  For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

EARNINGS PER SHARE
Basic earnings per share allocated to common shareholders is calculated using the two-class method and is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share is adjusted for the dilutive effects of stock based compensation and is calculated using the two-class method or the treasury stock method.  The diluted average number of common shares outstanding has been increased for the assumed exercise of stock based compensation with the proceeds used to purchase treasury shares at the average market price for the period.

ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS

ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment"
ASU No. 2017-04 was issued in January 2017 and was adopted by LCNB as of January 1, 2020. It applies to public and other entities that have goodwill reported in their financial statements. To simplify the subsequent measurement of goodwill, this ASU eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Adoption of ASU No. 2017-04 did not have a material impact on LCNB's results of consolidated operations or financial position.

ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement"
ASU No. 2018-13 was issued in August 2018 and was adopted by LCNB as of January 1, 2020. It applies to all entities that are required to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this update modify fair value disclosure requirements, including the deletion, modification, and addition of certain targeted disclosures. Adoption of ASU No. 2018-13 did not have a material impact on LCNB's results of consolidated operations or financial position.
ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract"
ASU No. 2018-15 was issued in August 2018 and was adopted by LCNB on January 1, 2020. It applies to entities that are a customer in a hosting arrangement, as defined, that is accounted for as a service contract. The amendments in this update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Capitalized implementation costs are to be expensed over the term of the hosting arrangement. Adoption of ASU No. 2018-15 did not have a material impact on LCNB's results of consolidated operations or financial position.

ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting"
ASU No. 2020-04 was issued in March 2020 and provides optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying generally accepted accounting principles ("GAAP") to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. LCNB does not expect the guidance in ASU No. 2020-04 will have a material impact on its results of consolidated operations or financial position.

ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans"
ASU No. 2018-14 was issued in August 2018 and was adopted by LCNB on January 1, 2021. The amendments in this update modify disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including the deletion, modification, and addition of certain targeted disclosures. The amendments are to be applied on a retrospective basis to all periods presented upon adoption. Adoption of ASU No. 2018-14 did not have a material impact on LCNB's results of consolidated operations or financial position.

ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes"
ASU No. 2019-12 was issued in December 2019 and adopted by LCNB on January 1, 2021. It simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifies and amends certain other guidance. Adoption of ASU No. 2019-12 did not have a material impact on LCNB's results of consolidated operations or financial position.

RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE
From time to time the FASB issues an ASU to communicate changes to U.S. GAAP. The following information provides brief summaries of newly issued but not yet effective ASUs that could have an effect on LCNB’s financial position or results of consolidated operations:

ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments"
ASU No. 2016-13 was issued in June 2016 and, once effective, will significantly change current guidance for recognizing impairment of financial instruments. Current guidance requires an "incurred loss" methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. ASU No. 2016-13 replaces the incurred loss impairment methodology with a new current expected credit loss ("CECL") methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to inform credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required.
ASU No. 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Under the new guidance, entities will determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. Any credit loss will be recognized as an allowance for credit losses on available-for-sale debt securities rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings rather than as interest income over time, as currently required.

ASU No. 2016-13 eliminates the current accounting model for purchased credit impaired loans and debt securities. Instead, purchased financial assets with credit deterioration will be recorded gross of estimated credit losses as of the date of acquisition and the estimated credit losses amounts will be added to the allowance for credit losses. Thereafter, entities will account for additional impairment of such purchased assets using the models listed above.
Originally, ASU No. 2016-13 would have taken effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At their meeting on October 16, 2019, FASB approved a final ASU delaying the effective date for several major standards, including ASU No. 2016-13, if certain qualifications are met. The new effective date for SEC filers eligible to be smaller reporting companies ("SRC"), as defined, will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. As an SRC, LCNB intends to adopt ASU No. 2016-13 for the fiscal year, and interim periods within the fiscal year, beginning after December 15, 2022.

LCNB has created a cross-functional CECL Committee, which reports to the Audit Committee, composed of members from the lending, Wealth Management, and finance departments. During 2017, the CECL Committee selected a vendor to assist in implementation of and ongoing compliance with the new requirements. It has completed analyzing its data collection efforts, selected a calculation model, analyzed its pool segmentation and reporting mechanisms, and has finished back testing in preparation for adoption of the new methodology. While the committee and management expect that implementation of ASU No. 2016-13 will increase the balance of the allowance for loan losses, they continue to analyze modeling after studying the impacts that the most recent economic conditions presented due to the pandemic. As they adjust and finalize appropriate modeling, they are continuing to evaluate the modeling and its potential impact on LCNB's results of consolidated operations and financial position. The consolidated financial statement impact of this new standard cannot be reasonably estimated at this time; however, it is anticipated during 2022 that modeling adjustments should be complete after finalizing review of prepayment, curtailment, and forecasting assessments.
v3.22.0.1
INVESTMENT SECURITIES
12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
The amortized cost and estimated fair value of equity and debt securities at December 31 are summarized as follows (in thousands):
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
2021
Debt Securities Available-for-Sale:
U.S. Treasury notes$75,443 57 756 74,744 
U.S. Agency notes89,293 45 2,092 87,246 
Corporate Bonds5,200 70 118 5,152 
U.S. Agency mortgage-backed securities96,018 1,350 692 96,676 
Municipal securities:    
Non-taxable8,959 125 18 9,066 
Taxable35,208 531 446 35,293 
 $310,121 2,178 4,122 308,177 
Debt Securities Held-to-Maturity:
Municipal securities:
Non-taxable$19,403 98 — 19,501 
Taxable3,569 21 3,586 
$22,972 119 23,087 
2020
Debt Securities Available-for-Sale:
U.S. Treasury notes$2,268 120 — 2,388 
U.S. Agency notes66,983 950 33 67,900 
Corporate Bonds1,200 — 21 1,179 
U.S. Agency mortgage-backed securities88,455 3,180 91,634 
Municipal securities:    
Non-taxable12,651 282 — 12,933 
Taxable32,409 1,031 33,437 
 $203,966 5,563 58 209,471 
Debt Securities Held-to-Maturity:
Municipal securities:
Non-taxable$21,408 181 — 21,589 
Taxable3,402 37 3,371 
$24,810 187 37 24,960 
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 MonthsTwelve Months or More
 Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
2021
Available-for-Sale:
U.S. Treasury notes$66,891 756 — 
U.S. Agency notes58,648 1,257 20,289 835 
Corporate Bonds3,898 102 484 16 
U.S. Agency mortgage-backed securities49,813 692 — — 
Municipal securities:   
Non-taxable1,020 18 — — 
Taxable18,434 322 3,535 124 
 $198,704 3,147 24,308 975 
Held-to-Maturity:
Municipal securities:
  Non-taxable$46 — — — 
  Taxable271 — — 
$317 — — 
2020
Available-for-Sale:
U.S. Agency notes$10,674 33 — — 
Corporate Bonds679 21 — — 
U.S. Agency mortgage-backed securities290 — — 
Municipal securities:
  Non-taxable38 — — — 
  Taxable3,063 — — 
$14,744 58 — — 
Held-to-Maturity:
Municipal securities:
  Non-taxable$— — — 
  Taxable3,113 37 — — 
$3,114 37 — — 

Management has determined that the unrealized losses at December 31, 2021 are primarily due to fluctuations in market interest rates and do not reflect credit quality deterioration of the securities.   Because the Company does not have the intent to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost, the Company does not consider these investments to be other-than-temporarily impaired.
Contractual maturities of debt securities at December 31, 2021 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
Cost
Fair
Value
Amortized
Cost
Fair
Value
Due within one year$5,971 5,993 1,867 1,876 
Due from one to five years80,780 80,181 4,960 4,969 
Due from five to ten years126,622 124,594 2,894 2,904 
Due after ten years730 733 13,251 13,338 
 214,103 211,501 22,972 23,087 
U.S. Agency mortgage-backed securities96,018 96,676 — — 
 $310,121 308,177 22,972 23,087 

Debt securities with a market value of $128,426,000 and $118,599,000 at December 31, 2021 and 2020, 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):
 202120202019
Proceeds from sales$21,235 8,786 84,521 
Gross realized gains365 221 228 
Gross realized losses62 — 269 

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, 2021 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):
20212020
 Amortized
Cost
Fair
Value
Amortized CostFair Value
Mutual funds$1,410 1,379 1,395 1,402 
Equity securities778 1,167 778 987 
Total equity securities with a readily determinable fair value$2,188 2,546 2,173 2,389 
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):
20212020
Net gains recognized$141 675 
Less net realized gains on equity securities sold— 658 
Unrealized gains recognized and still held at period end$141 17 
v3.22.0.1
LOANS
12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
LOANS LOANS
Major classifications of loans at December 31 were as follows (in thousands):
 20212020
Commercial and industrial$101,598 99,596 
Commercial, secured by real estate887,679 842,209 
Residential real estate335,106 310,085 
Consumer34,291 37,052 
Agricultural10,649 10,116 
Other loans, including deposit overdrafts122 363 
 1,369,445 1,299,421 
Less allowance for loan losses5,506 5,728 
Loans-net$1,363,939 1,293,693 

Loans in the above table are shown net of deferred origination fees and costs. Deferred origination fees, net of related costs, were $961,000 and $1,135,000 at December 31, 2021 and 2020, respectively.
Non-accrual, past-due, and accruing restructured loans at December 31 were as follows (dollars in thousands):
 20212020
Non-accrual loans:  
Commercial, secured by real estate$1,182 2,458 
Residential real estate299 1,260 
Total non-accrual loans1,481 3,718 
Past-due 90 days or more and still accruing56 — 
Total non-accrual and past-due 90 days or more and still accruing1,537 3,718 
Accruing restructured loans2,622 5,176 
Total$4,159 8,894 
Ratio of total non-accrual loans to total loans0.11 %0.29 %
Ratio of total non-accrual loans, past-due 90 days or more and still accruing, and accruing restructured loans to total loans0.30 %0.68 %

Interest income that would have been recorded during 2021 and 2020 if loans on non-accrual status at December 31, 2021 and 2020 had been current and in accordance with their original terms was approximately $31,000 and $134,000, respectively.
The allowance for loan losses and recorded investment in loans for the years ended December 31 were as follows (in thousands):
 Commercial
& Industrial
Commercial,
Secured by
Real Estate
Residential
Real Estate
ConsumerAgriculturalOtherTotal
2021       
Allowance for loan losses:       
Balance, beginning of year$816 3,903 837 153 28 (9)5,728 
Provision (credit) charged to expenses279 (375)(190)(45)60 (269)
Losses charged off— (112)(28)(9)— (105)(254)
Recoveries— 191 46 — 58 301 
Balance, end of year$1,095 3,607 665 105 30 5,506 
Individually evaluated for impairment$11 — — — 25 
Collectively evaluated for impairment1,090 3,596 656 105 30 5,481 
Acquired credit impaired loans— — — — — — — 
Balance, end of year$1,095 3,607 665 105 30 5,506 
Loans:       
Individually evaluated for impairment$155 2,945 559 — — — 3,659 
Collectively evaluated for impairment101,355 883,122 333,384 34,291 10,649 122 1,362,923 
Acquired credit impaired loans88 1,612 1,163 — — — 2,863 
Balance, end of year$101,598 887,679 335,106 34,291 10,649 122 1,369,445 
Ratio of net charge-offs to average loans— %(0.01)%(0.01)%0.01 %— %16.24 %— %
2020       
Allowance for loan losses:       
Balance, beginning of year$456 2,924 528 99 34 4,045 
Provision (credit) charged to expenses342 1,332 239 62 (6)45 2,014 
Losses charged off(13)(353)(5)(30)— (140)(541)
Recoveries31 — 75 22 — 82 210 
Balance, end of year$816 3,903 837 153 28 (9)5,728 
Individually evaluated for impairment$17 27 — — — 52 
Collectively evaluated for impairment808 3,886 810 153 28 (9)5,676 
Acquired credit impaired loans— — — — — — — 
Balance, end of year$816 3,903 837 153 28 (9)5,728 
Loans:       
Individually evaluated for impairment$194 6,613 1,641 — — 8,453 
Collectively evaluated for impairment99,040 833,548 306,138 37,047 10,116 179 1,286,068 
Acquired credit impaired loans362 2,048 2,306 — — 184 4,900 
Balance, end of year$99,596 842,209 310,085 37,052 10,116 363 1,299,421 
Ratio of net charge-offs to average loans(0.02)%0.04 %(0.02)%0.02 %— %10.83 %0.03 %
 Commercial
& Industrial
Commercial,
Secured by
Real Estate
Residential
Real Estate
ConsumerAgriculturalOtherTotal
2019       
Allowance for loan losses:       
Balance, beginning of year$400 2,745 767 87 46 4,046 
Provision (credit) charged to expenses103 266 (264)(12)110 207 
Losses charged off(47)(143)(272)(24)— (181)(667)
Recoveries— 56 297 32 — 74 459 
Balance, end of year$456 2,924 528 99 34 4,045 
Individually evaluated for impairment$272 17 — — — 295 
Collectively evaluated for impairment450 2,652 511 99 34 3,750 
Acquired credit impaired loans— — — — — — — 
Balance, end of year$456 2,924 528 99 34 4,045 
Ratio of net charge-offs to average loans0.06 %0.01 %(0.01)%(0.04)%— %18.57 %0.02 %

The risk characteristics of LCNB's material loan portfolio segments were as follows:

Commercial & Industrial Loans. LCNB’s commercial and industrial loan portfolio consists of loans for various purposes, including loans to fund working capital requirements (such as inventory and receivables financing) and purchases of machinery and equipment.  LCNB offers a variety of commercial and industrial loan arrangements, including term loans, balloon loans, and lines of credit.  Commercial & industrial loans can have a fixed or variable rate, with maturities ranging from one to ten years. Commercial & industrial loans are offered to businesses and professionals for short and medium terms on both a collateralized and uncollateralized basis. Commercial & industrial loans typically are underwritten on the basis of the borrower’s ability to make repayment from the cash flow of the business.  Collateral, when obtained, may include liens on furniture, fixtures, equipment, inventory, receivables, or other assets.  As a result, such loans involve complexities, variables, and risks that require thorough underwriting and more robust servicing than other types of loans.

This category includes PPP loans that were authorized under the CARES Act and updated by the Economic Aid Act. The PPP was implemented by the SBA with support from the Department of the Treasury and provided small businesses that were negatively impacted by the COVID-19 pandemic with government guaranteed and potentially forgivable loans that could be used to pay up to eight or twenty-four weeks, depending on the date of the loan, of payroll costs including benefits. Funds could also be used to pay interest on mortgages, rent, utilities, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures. Eligible borrowers could apply for a First Draw or a Second Draw PPP Loan prior to the program ending on May 31, 2021. PPP loans made by LCNB have a maturity of two years if issued prior to June 5, 2020 and five years if issued on or after June 5, 2020. The loans have an interest rate of 1%. In addition, the SBA paid originating lenders processing fees based on the size of the loan. A borrower who meets certain requirements can request loan forgiveness from the SBA. If loan forgiveness is granted, the SBA will forward the forgiveness amount to the lender. LCNB originated 316 PPP loans with original balances totaling $45.5 million during 2020 and originated an additional 358 loans with original balances totaling $38.3 million during the first half of 2021. The outstanding balance at December 31, 2021 was $6.9 million.

Commercial, Secured by Real Estate Loans.  Commercial real estate loans include loans secured by a variety of commercial, retail and office buildings, religious facilities, hotels, multifamily (more than four-family) residential properties, construction and land development loans, and other land loans. Mortgage loans secured by owner-occupied agricultural property are included in this category.  Commercial real estate loan products generally amortize over five to twenty-five years and are payable in monthly principal and interest installments.  Some have balloon payments due within one to ten years after the origination date.  The majority have adjustable interest rates with adjustment periods ranging from one to ten years, some of which are subject to established “floor” interest rates.
Commercial real estate loans are underwritten based on the ability of the property, in the case of income producing property, or the borrower’s business to generate sufficient cash flow to amortize the debt. Secondary emphasis is placed upon global debt service, collateral value, financial strength and liquidity of any and all guarantors, and other factors. Commercial real estate loans are generally originated with a 75% to 85% maximum loan to appraised value ratio, depending upon borrower occupancy.

Residential Real Estate Loans.  Residential real estate loans include loans secured by first or second mortgage liens on one to four-family residential properties.  Home equity lines of credit are included in this category.  First and second mortgage loans are generally amortized over five to thirty years with monthly principal and interest payments.  Home equity lines of credit generally have a five year or less draw period with interest only payments followed by a repayment period with monthly payments based on the amount outstanding.  LCNB offers both fixed and adjustable rate mortgage loans.  Adjustable rate loans are available with adjustment periods ranging between one to ten years and adjust according to an established index plus a margin, subject to certain floor and ceiling rates.  Home equity lines of credit have a variable rate based on the Wall Street Journal prime rate plus a margin.

Residential real estate loans are underwritten primarily based on the borrower’s ability to repay, prior credit history, and the value of the collateral.  LCNB requires private mortgage insurance for first mortgage loans that have a loan to appraised value ratio of greater than 80%.
Consumer Loans.  LCNB’s portfolio of consumer loans generally includes secured and unsecured loans to individuals for household, family and other personal expenditures.  Secured loans include loans to fund the purchase of automobiles, recreational vehicles, boats, and similar acquisitions. Consumer loans made by LCNB generally have fixed rates and terms ranging up to 72 months, depending upon the nature of the collateral, size of the loan, and other relevant factors. Consumer loans generally have higher interest rates, but pose additional risks of collectability and loss when compared to certain other types of loans. Collateral, if present, is generally subject to damage, wear, and depreciation.  The borrower’s ability to repay is of primary importance in the underwriting of consumer loans.

Agricultural Loans.  LCNB’s portfolio of agricultural loans includes loans for financing agricultural production or for financing the purchase of equipment used in the production of agricultural products.  LCNB’s agricultural loans are generally secured by farm machinery, livestock, crops, vehicles, or other agricultural-related collateral.

LCNB uses a risk-rating system to quantify loan quality.  A loan is assigned to a risk category based on relevant information about the ability of the borrower to service the debt including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends.  The categories used are:

Pass – loans categorized in this category are higher quality loans that do not fit any of the other categories described below.

Other Assets Especially Mentioned (OAEM) - loans in this category are currently protected but are potentially weak.  These loans constitute a risk but not to the point of justifying a classification of substandard.  The credit risk may be relatively minor yet constitute an undue risk in light of the circumstances surrounding a specific asset.

Substandard – loans in this category are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any.  Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the possibility that LCNB will sustain some loss if the deficiencies are not corrected.

Doubtful – loans classified in this category have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
An analysis of the Company’s loan portfolio by credit quality indicators at December 31 is as follows (in thousands):
 PassOAEMSubstandardDoubtfulTotal
2021     
Commercial & industrial$98,694 2,757 147 — 101,598 
Commercial, secured by real estate851,709 22,336 13,634 — 887,679 
Residential real estate332,962 — 2,144 — 335,106 
Consumer34,281 — 10 — 34,291 
Agricultural10,649 — — — 10,649 
Other122 — — — 122 
Total$1,328,417 25,093 15,935 — 1,369,445 
2020     
Commercial & industrial$97,391 — 2,205 — 99,596 
Commercial, secured by real estate811,558 9,279 21,372 — 842,209 
Residential real estate306,092 1,005 2,988 — 310,085 
Consumer37,050 — — 37,052 
Agricultural10,116 — — — 10,116 
Other363 — — — 363 
Total$1,262,570 10,284 26,567 — 1,299,421 

LCNB evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. No significant changes were made to either during the past year.
A loan portfolio aging analysis at December 31 is as follows (in thousands):
 30-59 Days
Past Due
60-89 Days
Past Due
Greater Than
90 Days
Total
Past Due
CurrentTotal Loans
Receivable
Total Loans Greater Than
90 Days and
Accruing
2021       
Commercial & industrial$— — — — 101,598 101,598 — 
Commercial, secured by real estate181 — 784 965 886,714 887,679 — 
Residential real estate1,130 109 1,240 333,866 335,106 51 
Consumer22 32 34,259 34,291 
Agricultural— — — — 10,649 10,649 — 
Other122 — — 122 — 122 — 
Total$1,455 898 2,359 1,367,086 1,369,445 56 
2020       
Commercial & industrial$— — — — 99,596 99,596 — 
Commercial, secured by real estate16 — 1,476 1,492 840,717 842,209 — 
Residential real estate497 219 675 1,391 308,694 310,085 — 
Consumer— 37,047 37,052 — 
Agricultural— — — — 10,116 10,116 — 
Other60 — — 60 303 363 — 
Total$577 220 2,151 2,948 1,296,473 1,299,421 — 
Impaired loans, including acquired credit impaired loans, for the years ended December 31 were as follows (in thousands):
 Recorded
Investment
Unpaid
Principal
Balance
Related
Allowance
Average
Recorded
Investment
Interest
Income
Recognized
2021     
With no related allowance recorded:     
Commercial & industrial$88 316 — 236 83 
Commercial, secured by real estate3,897 4,736 — 5,978 411 
Residential real estate1,501 1,857 — 2,553 227 
Consumer— — — — 
Agricultural— — — — — 
Other— — — 144 127 
Total$5,486 6,909 — 8,912 848 
With an allowance recorded:     
Commercial & industrial$155 160 175 10 
Commercial, secured by real estate660 660 11 674 36 
Residential real estate221 221 230 13 
Consumer— — — — — 
Agricultural— — — — — 
Other— — — — — 
Total$1,036 1,041 25 1,079 59 
Total:     
Commercial & industrial$243 476 411 93 
Commercial, secured by real estate4,557 5,396 11 6,652 447 
Residential real estate1,722 2,078 2,783 240 
Consumer— — — — 
Agricultural— — — — — 
Other— — — 144 127 
Total$6,522 7,950 25 9,991 907 
 
 Recorded
Investment
Unpaid
Principal
Balance
Related
Allowance
Average
Recorded
Investment
Interest
Income
Recognized
2020     
With no related allowance recorded:     
Commercial & industrial$362 646 — 1,044 335 
Commercial, secured by real estate6,050 6,735 — 7,070 731 
Residential real estate3,261 3,695 — 3,290 316 
Consumer— 10 
Agricultural— — — — — 
Other184 297 — 234 36 
Total$9,861 11,377 — 11,648 1,419 
With an allowance recorded:     
Commercial & industrial$194 199 212 12 
Commercial, secured by real estate2,611 2,908 17 1,517 18 
Residential real estate686 687 27 404 18 
Consumer— — 
Agricultural— — — — — 
Other— — — — — 
Total$3,492 3,795 52 2,136 48 
Total:     
Commercial & industrial$556 845 1,256 347 
Commercial, secured by real estate8,661 9,643 17 8,587 749 
Residential real estate3,947 4,382 27 3,694 334 
Consumer— 13 
Agricultural— — — — — 
Other184 297 — 234 36 
Total$13,353 15,172 52 13,784 1,467 
 Average
Recorded
Investment
Interest
Income
Recognized
2019  
With no related allowance recorded:  
Commercial & industrial$836 83 
Commercial, secured by real estate12,748 1,213 
Residential real estate3,704 311 
Consumer12 
Agricultural— — 
Other310 35 
Total$17,610 1,643 
With an allowance recorded:  
Commercial & industrial$247 15 
Commercial, secured by real estate2,513 64 
Residential real estate528 35 
Consumer20 
Agricultural— — 
Other— — 
Total$3,308 115 
Total:  
Commercial & industrial$1,083 98 
Commercial, secured by real estate15,261 1,277 
Residential real estate4,232 346 
Consumer32 
Agricultural— — 
Other310 35 
Total$20,918 1,758 

Of the interest income recognized on impaired loans during 2021, 2020, and 2019, approximately $37,000, $34,000, and $42,000, respectively, were recognized on a cash basis. The Company continued to accrue interest on certain loans classified as impaired during 2021, 2020, and 2019 because they were restructured or considered well secured and in the process of collection.

From time to time, the terms of certain loans are modified as troubled debt restructurings ("TDRs") where concessions are granted to borrowers experiencing financial difficulties. The modification of the terms of such loans may have included one, or a combination, of the following: a temporary or permanent reduction of the stated interest rate of the loan, an increase in the stated rate of interest lower than the current market rate for new debt with similar risk, forgiveness of principal, an extension of the maturity date, or a change in the payment terms.
Loan modifications that were classified as troubled debt restructurings during the years ended December 31 were as follows (dollars in thousands):
 20212020
 Number
of Loans
Pre-Modification Recorded BalancePost-Modification Recorded BalanceNumber
of Loans
Pre-Modification Recorded BalancePost-Modification Recorded Balance
Commercial and industrial— $— $— $$
Commercial, secured by real estate— — — 1,525 1,525 
Residential real estate97 101 14 14 
Consumer— — — — — — 
Totals$97 $101 $1,544 $1,543 

Post-modification balances of newly restructured troubled debt by type of modification for the years ended December 31 were as follows (in thousands):
 Term ModificationRate ModificationInterest OnlyPrincipal ForgivenessCombinationTotal Modifications
2021     
Commercial & industrial$— — — — — — 
Commercial, secured by real estate— — — — — — 
Residential real estate32 — — — 69 101 
Consumer— — — — — — 
Total$32 — — — 69 101 
2020     
Commercial & industrial$— — — — 
Commercial, secured by real estate— — — — 1,525 1,525 
Residential real estate— — — — 14 14 
Consumer— — — — — — 
Total$— — — — 1,543 1,543 

LCNB is not committed to lend additional funds to borrowers whose loan terms were modified in a troubled debt restructuring.

There were no troubled debt restructurings that subsequently defaulted within twelve months of the restructuring date for the years ended December 31, 2021, 2020, or 2019.

All troubled debt restructurings are considered impaired loans. The allowance for loan loss on such restructured loans is based on the present value of future expected cash flows.

Information concerning the post-modification balances of loans that were modified during the year ended December 31 and that were determined to be troubled debt restructurings follows (in thousands):
20212020
Impaired loans without a valuation allowance at the end of the period101 
Impaired loans with a valuation allowance at the end of the period— 1,539 
The CARES Act includes a provision that permits a financial institution to elect to suspend temporarily troubled debt restructuring accounting under ASC Subtopic 310-40 in certain circumstances (“Section 4013”). To be eligible under Section 4013, a loan modification must be (1) related to COVID-19; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The Consolidated Appropriations Act, 2021 was signed into law on December 20, 2020 and, among other provisions, extended the provisions in Section 4013 to January 1, 2022.

In response to this section of the CARES Act, the federal banking agencies issued a revised interagency statement on April 7, 2020 that, in consultation with the FASB, confirmed that, for loans not subject to section 4013, short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not troubled debt restructurings under ASC Subtopic 310-40. This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented.

No loans remained on modified terms under the guidance of Section 4013 at December 31, 2021 and the carrying value of such loans was $19,023,000 at December 31, 2020. No loans remained on modified terms under the guidance of the revised interagency statement at December 31, 2021 and such loans totaled $1,553,000 at December 31, 2020.

Mortgage loans sold to and serviced for the Federal Home Loan Mortgage Corporation and other investors are not included in the accompanying Consolidated Balance Sheets.  The unpaid principal balances of those loans at December 31, 2021 and 2020 were approximately $149,382,000 and $137,188,000, respectively.

Mortgage servicing right assets are included in core deposit and other intangibles in the Consolidated Balance Sheets.  Amortization of mortgage servicing rights is an adjustment to loan servicing income, which is included with other operating income in the Consolidated Statements of Income.  Activity in the mortgage servicing rights portfolio during the years ended December 31 was as follows (in thousands):
 202120202019
Balance, beginning of year$976 483 475 
Amount capitalized to mortgage servicing rights409 719 156 
Amortization of mortgage servicing rights(346)(226)(148)
Balance, end of year$1,039 976 483 
v3.22.0.1
ACQUIRED CREDIT IMPAIRED LOANS
12 Months Ended
Dec. 31, 2021
Acquired Credit Impaired Loans [Abstract]  
ACQUIRED CREDIT IMPAIRED LOANS ACQUIRED CREDIT IMPAIRED LOANS
The following table provides, as of December 31, the major classifications of loans acquired that are accounted for in accordance with FASB ASC 310-30 (in thousands):
20212020
Acquired from First Capital Bancshares, Inc.
Commercial & industrial$
Commercial, secured by real estate— — 
Residential real estate398 449 
Other loans, including deposit overdrafts— — 
  Total$399 450 
Acquired from Eaton National Bank & Trust Co.
Commercial & industrial$— 249 
Commercial, secured by real estate310 601 
Residential real estate463 595 
Other loans, including deposit overdrafts— 184 
  Total$773 1,629 
Acquired from BNB Bancorp, Inc.
Commercial & industrial$— — 
Commercial, secured by real estate688 780 
Residential real estate51 85 
Other loans, including deposit overdrafts— — 
  Total$739 865 
Acquired from Columbus First Bancorp, Inc.
Commercial & industrial$87 112 
Commercial, secured by real estate614 667 
Residential real estate251 1,177 
Other loans, including deposit overdrafts— — 
  Total$952 1,956 
Total
Commercial & industrial$88 362 
Commercial, secured by real estate1,612 2,048 
Residential real estate1,163 2,306 
Other loans, including deposit overdrafts— 184 
Total$2,863 4,900 
The following table provides the outstanding balance and related carrying amount for acquired impaired loans at December 31 (in thousands):
20212020
Outstanding balance$3,769 6,128 
Carrying amount2,863 4,900 

Activity during 2021 and 2020 for the accretable discount related to acquired impaired loans is as follows (in thousands):
20212020
Accretable discount, beginning of year$182 480 
Reclass from nonaccretable discount to accretable discount266 401 
Less accretion(332)(699)
Accretable discount, end of year$116 182 
v3.22.0.1
OTHER REAL ESTATE OWNED
12 Months Ended
Dec. 31, 2021
Real Estate [Abstract]  
OTHER REAL ESTATE OWNED OTHER REAL ESTATE OWNED
Other real estate owned includes property acquired through foreclosure or deed-in-lieu of foreclosure and are included in other assets in the Consolidated Balance Sheets.  Changes in other real estate owned were as follows (in thousands):
 20212020
Balance, beginning of year$— 197 
Reductions due to sales— (197)
Balance, end of year$— — 

The total recorded investment in residential consumer mortgage loans secured by residential real estate that was in the process of foreclosure at December 31, 2021 was $58,000.
v3.22.0.1
PREMISES AND EQUIPMENT
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
PREMISES AND EQUIPMENT PREMISES AND EQUIPMENT
Premises and equipment at December 31 are summarized as follows (in thousands):
 20212020
Land$8,512 7,933 
Buildings31,296 30,789 
Equipment17,272 16,431 
Construction in progress4,100 4,421 
Total61,180 59,574 
Less accumulated depreciation25,795 24,198 
Premises and equipment, net$35,385 35,376 

Depreciation charged to expense was $1,931,000 in 2021, $1,834,000 in 2020, and $1,770,000 in 2019.
v3.22.0.1
LEASES
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Lessee, Operating Leases LEASES
LCNB has capitalized operating leases for its Union Village, Barron Street, and Worthington offices, for the land at its Oxford and Oakwood offices, for certain office equipment, and for its ATMs. The Oakwood lease has a remaining term of fifteen years with options to renew for six additional periods of five years each. The Oxford lease has a remaining term of thirty-eight years with no renewal options. The other leases have remaining terms of less than one year up to nine years, some of which contain options to renew the leases for additional five years periods.

Right-of-use assets represent LCNB's right to use the underlying assets for their lease terms and lease liabilities represent the obligation to make lease payments. They are recognized using the present value of lease payments over the lease terms. The discount rate is LCNB's incremental borrowing rate for periods similar to the respective lease terms. LCNB management is reasonably certain that it will exercise the renewal options for the offices named above and these additional terms have been included in the calculation of the right-of-use assets and the lease liabilities. The lease for the Fairfield office is for a period of one year and LCNB management has elected the short-term measurement and recognition exception permitted by ASC 842 and has not calculated a right-of-use asset or lease liability for this office.

Lease expenses for offices are included in the Consolidated Statements of Income in occupancy expense, net and lease expenses for equipment and ATMs are included in equipment expenses. Components of lease expense for the years ended December 31 are as follows (in thousands):
20212020
Operating lease expense$840 666 
Short-term lease expense48 48 
Variable lease expense10 
Other10 
Total lease expense$902 731 

Other information related to leases at December 31, 2021 were as follows (dollars in thousands):
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$757 
Right-of-use assets obtained in exchange for new operating lease liabilities$801 
Weighted average remaining lease term in years for operating leases32.9
Weighted average discount rate for operating leases3.4 %

Future payments due under operating leases as of December 31, 2021 are as follows (in thousands):
2022$598 
2023574 
2024577 
2025398 
2026256 
Thereafter10,226 
12,629 
Less effects of discounting6,156 
Operating lease liabilities recognized$6,473 

Rental expense for all leased branches and equipment was approximately $902,000 in 2021, $731,000 in 2020, and $627,000 in 2019.
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 (in thousands):
20212020
Balance, beginning of year$59,221 59,221 
Additions from acquisitions— — 
Balance, end of year$59,221 59,221 

LCNB performs an impairment test of the carrying value of goodwill annually in the fourth quarter or sooner if circumstances indicate a possible impairment. Impairment indicators that may be considered include the condition of the economy and banking industry; estimated future cash flows; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of LCNB’s stock and other relevant events. These and other factors could lead to a conclusion that goodwill is impaired, which would require LCNB to write off the difference between the estimated fair value of the company and the carrying value. Given the current economic environment resulting from the COVID-19 pandemic, the probability of such impairments has increased. Specifically, the market price of LCNB's common stock decreased, similar to decreases experienced by other financial institutions. Accordingly, an interim impairment test was conducted as of June 30, 2020. At the conclusion of the assessment, management determined that fair value exceeded carrying value and that an impairment charge was not necessary at that time. Management will continue to monitor developments regarding the COVID-19 pandemic and measures implemented in response to the pandemic, market capitalization, overall economic conditions and any other triggering events or circumstances that may indicate an impairment of goodwill in the future.

Other intangible assets in the Consolidated Balance Sheets at December 31 were as follows (in thousands):
20212020
Gross
Intangible
Assets
Accumulated
Amortization
Net
Intangible
Assets
Gross
Intangible
Assets
Accumulated
Amortization
Net
Intangible
Assets
Core deposit intangibles$8,544 7,110 1,434 8,544 6,067 2,477 
Mortgage servicing rights2,323 1,284 1,039 1,938 962 976 
Total$10,867 8,394 2,473 10,482 7,029 3,453 

The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of December 31, 2021 is as follows (in thousands):
2022$597 
2023544 
2024422 
2025222 
202646 
v3.22.0.1
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP
12 Months Ended
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIPS
LCNB is a limited partner in limited partnerships that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (LIHTC) pursuant to Section 42 of the Internal Revenue Code. The purpose of the investments is to achieve a satisfactory return on capital, to facilitate the sale of additional affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants.

The following table presents the balances of LCNB's affordable housing tax credit investment and related unfunded commitment at December 31 (in thousands):
 20212020
Affordable housing tax credit investment$14,950 12,000 
Less amortization2,126 1,320 
Net affordable housing tax credit investment$12,824 10,680 
Unfunded commitment$8,655 8,237 

The net affordable housing tax credit investment is included in other assets and the unfunded commitment is included in accrued interest and other liabilities in the Consolidated Balance Sheets.

LCNB expects to fund the unfunded commitment over thirteen years.

The following table presents other information relating to LCNB's affordable housing tax credit investment for the years indicated (in thousands):
Year ended December 31,
 202120202019
Tax credits and other tax benefits recognized$995 612 387 
Tax credit amortization expense included in provision for income taxes806 510 318 
v3.22.0.1
CERTIFICATES OF DEPOSIT
12 Months Ended
Dec. 31, 2021
Deposits [Abstract]  
CERTIFICATES OF DEPOSIT TIME DEPOSITS
Contractual maturities of time deposits at December 31, 2021 were as follows (in thousands):
2022$121,807 
202343,286 
20244,484 
20257,956 
20269,045 
Thereafter6,864 
 $193,442 

The aggregate amount of time deposits in denominations of $250,000 or more at December 31, 2021 and 2020 was $25,123,000 and $35,584,000, respectively.
v3.22.0.1
BORROWINGS
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
Funds borrowed from the FHLB at December 31 by year of maturity were as follows (dollars in thousands):
20212020
Outstanding BalanceAverage RateOutstanding BalanceAverage Rate
Maturing within one year5,000 2.97 %12,000 2.42 %
Maturing one year through two years5,000 3.02 %5,000 2.97 %
Maturing two years through three years— — %5,000 3.02 %
Total$10,000 3.00 %$22,000 2.68 %
 
All advances from the FHLB are secured by a blanket pledge of the Company’s 1-4 family first lien mortgage loans in the amount of approximately $303 million and $276 million at December 31, 2021 and 2020, respectively.  Total remaining borrowing capacity, including short-term borrowing arrangements, at December 31, 2021 was approximately $186.6 million.
At December 31, 2021, the Company had short-term borrowing arrangements with two financial institutions and the FHLB of Cincinnati.  The first arrangement is a short-term line of credit for a maximum amount of $25 million at the interest rate in effect at the time of the borrowing.  The second arrangement is a short-term line of credit for a maximum amount of $30 million at an interest rate equal to the lending institution’s federal funds rate plus a spread of 50 basis points. There were no outstanding short-term borrowings as of December 31, 2021 or 2020.

Under the terms of a REPO Based Advance program with the FHLB, the Company can borrow up to $81.8 million in short-term advances, subject to total remaining borrowing capacity limitations. The Company can select terms ranging from one day to one year. The interest rate is the published rate in effect at the time of the advance. This agreement expired on February 11, 2022 and was renewed for another year.
v3.22.0.1
INCOME TAXES
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The provision for federal income taxes consists of (in thousands):
 202120202019
Income taxes currently payable$4,317 3,951 3,694 
Deferred income tax provision294 134 419 
Provision for income taxes$4,611 4,085 4,113 

A reconciliation between the statutory income tax and the Company's effective tax rate follows:
 202120202019
Statutory tax rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from -   
Tax exempt interest(0.7)%(0.9)%(1.4)%
Tax exempt income on bank owned life insurance(0.9)%(1.3)%(0.9)%
Captive insurance premium income(0.8)%(0.8)%(0.8)%
Tax benefit from certain provisions of the CARES Act— %(0.8)%— %
Other – net(0.6)%(0.3)%— %
Effective tax rate18.0 %16.9 %17.9 %
Deferred tax assets and liabilities, included in the Consolidated Balance Sheets with accrued interest and other liabilities in 2021 and 2020, consist of the following at December 31 (in thousands):
 20212020
Deferred tax assets:  
Allowance for loan losses$1,156 1,203 
Net unrealized losses on investment securities available-for-sale408 — 
Fair value adjustment on loans acquired from mergers103 196 
Deferred compensation630 667 
Minimum pension liability73 81 
Operating lease right-of-use assets1,359 1,338 
Other96 245 
 3,825 3,730 
Deferred tax liabilities:  
Depreciation of premises and equipment(1,595)(1,673)
Net unrealized gains on investment securities available-for-sale— (1,156)
Amortization of intangibles(1,518)(1,512)
Prepaid expenses(323)(283)
FHLB stock dividends(216)(216)
Operating lease liabilities(1,359)(1,338)
 (5,011)(6,178)
Net deferred tax liabilities$(1,186)(2,448)

As of December 31, 2021 and 2020 there were no unrecognized tax benefits and the Company does not anticipate the total amount of unrecognized tax benefits will significantly change within the next twelve months.  There were no amounts recognized for interest and penalties in the Consolidated Statements of Income for the three-year period ended December 31, 2021.

The Company is no longer subject to examination by federal tax authorities for years before 2018.
v3.22.0.1
COMMITMENTS AND CONTINGENT LIABILITIES
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES COMMITMENTS AND CONTINGENT LIABILITIES
LCNB is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit.  They involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets.  The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contract amount of those instruments.

The Bounce Protection product, a customer deposit overdraft program, is offered as a service and does not constitute a contract between the customer and LCNB.

LCNB uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Financial instruments whose contract amounts represent off-balance-sheet credit risk at December 31 were as follows (in thousands):
20212020
Commitments to extend credit:
Commercial loans$82,578 24,581 
Other loans:
Fixed rate5,196 14,668 
Adjustable rate2,784 4,386 
Unused lines of credit:
Fixed rate32,655 24,205 
Adjustable rate150,746 133,073 
Unused overdraft protection amounts on demand and NOW accounts16,711 16,471 
Standby letters of credit243 
$290,675 217,627 

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract or agreement.  Unused lines of credit include amounts not drawn on line of credit loans.  Commitments to extend credit and unused lines of credit generally have fixed expiration dates or other termination clauses.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party.  These guarantees generally are fully secured and have varying maturities.

The Company evaluates each customer’s credit worthiness on a case-by-case basis.  The amount of collateral obtained, if deemed necessary by the Company, is based on management’s credit evaluation of the borrower.  Collateral held varies, but may include accounts receivable; inventory; property, plant and equipment; residential realty; and income-producing commercial properties.

Capital expenditures include: the construction or acquisition of new office buildings; improvements to LCNB's offices; purchases of furniture and equipment; and additions or improvements to LCNB's information technology system. Commitments outstanding for capital expenditures as of December 31, 2021 were not material.

The Company and the Bank are parties to various claims and proceedings arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings and claims will not be material to LCNB's consolidated financial position or results of operations.
v3.22.0.1
REGULATORY MATTERS
12 Months Ended
Dec. 31, 2021
Regulatory Assets and Liabilities, Other Disclosures [Abstract]  
REGULATORY MATTERS REGULATORY MATTERS AND IMPACT ON PAYMENT OF DIVIDENDS
The Federal Reserve Act requires depository institutions to maintain cash reserves with the Federal Reserve Bank.  In 2021 and 2020, the Bank maintained average reserve balances of $15,121,000 and $20,907,000, respectively.  The reserve balances at December 31, 2021 and 2020 were $2,482,000 and $16,153,000, respectively.

The principal source of income and funds for LCNB Corp. is dividends paid by the Bank.  The payment of dividends is subject to restriction by regulatory authorities.  For 2022, the restrictions generally limit dividends to the aggregate of net income for the year 2022 plus the net earnings retained for 2021 and 2020.  In addition, dividend payments may not reduce capital levels below minimum regulatory guidelines. At December 31, 2021, approximately $16,145,000 of the Bank’s earnings retained was available for dividends in 2022 under this guideline.  Dividends in excess of these limitations would require the prior approval of the Comptroller of the Currency.

The Bank must meet certain minimum capital requirements set by federal banking agencies.  Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company's and Bank's financial statements.  The Bank’s capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors.

In addition to the minimum capital requirements, a financial institution needs to maintain a Capital Conservation Buffer composed of Common Equity Tier 1 Capital of at least 2.5% above its minimum risk-weighted capital requirements to avoid limitations on its ability to make capital distributions, including dividend payments to shareholders and certain discretionary bonus payments to executive officers. A financial institution with a buffer below 2.5% will be subject to increasingly stringent limitations on capital distributions as the buffer approaches zero.

For various regulatory purposes, financial institutions are classified into categories based upon capital adequacy:
 Minimum
Requirement
Minimum Requirement with Capital Conservation BufferTo Be Considered
Well-Capitalized
Ratio of Common Equity Tier 1 Capital to risk-weighted assets4.5 %7.0 %6.5 %
Ratio of tier 1 capital to risk-weighted assets6.0 %8.5 %8.0 %
Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets8.0 %10.5 %10.0 %
Leverage ratio (tier 1 capital to adjusted quarterly average total assets)4.0 %N/A5.0 %
 
As of the most recent notification from its regulators, the Bank was categorized as "well-capitalized" under the regulatory framework for prompt corrective action.  Management believes that no conditions or events have occurred since the last notification that would change the Bank's category.

On September 17, 2019, the FDIC finalized a rule that introduced an optional simplified measure of capital adequacy for qualifying community banking organizations, as required by the Economic Growth, Regulatory Relief and Consumer Protection Act. The simplified rule was designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. It could be used beginning with the March 31, 2020 Call Report. Qualifications to use the simplified approach include having a tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. A qualifying community banking organization that opts into the framework and meets all requirements under the framework will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action regulations and will not be required to report or calculate risk-based capital. LCNB qualifies to use the simplified measure, but did not opt in for the December 31, 2021 or 2020 regulatory capital calculations.
A summary of the regulatory capital of the Bank at December 31 follows (dollars in thousands):
20212020
Regulatory Capital:  
Shareholders' equity$234,451 234,092 
Goodwill and other intangible assets(60,655)(61,698)
Accumulated other comprehensive (income) loss1,809 (4,043)
Tier 1 risk-based capital175,605 168,351 
Eligible allowance for loan losses5,506 5,728 
Total risk-based capital$181,111 174,079 
Capital Ratios:  
Common Equity Tier 1 Capital to risk-weighted assets12.25 %12.48 %
Tier 1 capital to risk-weighted assets12.25 %12.48 %
Total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets12.64 %12.91 %
Leverage ratio (tier 1 capital to adjusted quarterly average total assets)9.58 %10.06 %
v3.22.0.1
ACCUMULATED OTHER COMPREHENSIVE INCOME
12 Months Ended
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE INCOME ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
Changes in accumulated other comprehensive income (loss) for 2021 and 2020 were as follows (in thousands):
20212020
 Unrealized Gains and Losses on Available-for-Sale SecuritiesChanges in Pension Plan Assets and Benefit ObligationsTotalUnrealized Gains and Losses on Available-for-Sale SecuritiesChanges in Pension Plan Assets and Benefit ObligationsTotal
Balance at beginning of year$4,348 (305)4,043 857 (184)673 
Before reclassifications(5,645)32 (5,613)3,666 (121)3,545 
Reclassifications(239)— (239)(175)— (175)
Balance at end of year$(1,536)(273)(1,809)4,348 (305)4,043 

Reclassifications out of accumulated other comprehensive income (loss) during 2021 and 2020 and the affected line items in the Consolidated Statements of Income were as follows (in thousands):
 20212020Affected Line Item in the Consolidated Statements of Income
Net gains (losses) on sales of debt securities$303 221 Net gains (losses) on sales of debt securities
Less provision (benefit) for income taxes64 46 Provision for income taxes
Reclassification adjustment, net of taxes$239 175 
v3.22.0.1
STOCK-BASED COMPENSATION
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
STOCK BASED COMPENSATION STOCK-BASED COMPENSATION
LCNB established an Ownership Incentive Plan (the "2002 Plan") during 2002 that allowed for stock-based awards to eligible employees, as determined by the Board of Directors.  The awards were in the form of stock options, share awards, and/or appreciation rights.  The 2002 Plan provided for the issuance of up to 200,000 shares. The 2002 Plan expired on April 16, 2012. Any outstanding unexercised options, however, continued to be exercisable in accordance with their terms and the last of the options were exercised during 2021.

The 2015 Ownership Incentive Plan (the "2015 Plan") was approved by LCNB's shareholders at the annual meeting on April 28, 2015 and allows for stock-based awards to eligible employees, as determined by the Compensation Committee of LCNB's Board of Directors ("Compensation Committee"). Awards may be made in the form of stock options, appreciation rights, restricted shares, and/or restricted share units. The 2015 Plan provides for the issuance of up to 450,000 shares of common stock. The 2015 Plan will terminate on April 28, 2025 and is subject to earlier termination by the Compensation Committee.

Stock-based awards may be in the form of treasury shares or newly issued shares.

LCNB has not granted stock options since 2012.
The following table summarizes stock option activity for the years indicated:
202120202019
  
 
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic Value (in thousands) (1)
 
 
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic Value (in thousands) (1) 
 
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic Value (in thousands) (1)
Outstanding at January 1,311 $12.60 9,904 $11.96 13,278 $11.98 
Exercised(311)12.60 (9,593)11.94 (3,374)12.05 
Expired— — — — — — 
Outstanding at December 31,— $— $— 311 $12.60 $— 9,904 $11.96 $73 
Exercisable at December 31,— $— $— 311 $12.60 $— 9,904 $11.96 $73 
(1) Aggregate Intrinsic Value is defined as the amount by which the current market value of the underlying stock exceeds the exercise price of the option.

The following table provides information related to stock options exercised during the years indicated (in thousands):
 202120202019
Intrinsic value of options exercised$46 20 
Cash received from options exercised114 41 
Tax benefit realized from options exercised— 

Compensation costs related to option awards were recognized in full during the first quarter 2017.

Restricted stock awards granted under the 2015 Plan were as follows:
202120202019
  
 
Shares
Weighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair Value
Outstanding at January 1,28,596 $17.42 17,752 $18.03 16,958 $18.94 
Granted26,321 16.85 19,211 16.87 12,504 16.95 
Vested(9,649)17.49 (4,817)17.83 (11,710)18.19 
Forfeited(756)16.86 (3,550)16.9 — — 
Outstanding at December 31,44,512 $17.08 28,596 $17.42 17,752 $18.03 

Total expense related to restricted stock awards included in salaries and wages in the Consolidated Statements of Income for the years ended December 31, 2021, 2020, and 2019 was $249,000, $137,000, and $134,000 respectively. The related tax benefit for the years ended December 31, 2021, 2020, and 2019 was $52,000, $29,000, and $28,000, respectively. Unrecognized compensation expense for restricted stock awards was $605,000 at December 31, 2021 and is expected to be recognized over a period of 4.2 years.
v3.22.0.1
EARNINGS PER SHARE
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
LCNB has granted restricted stock awards with non-forfeitable dividend rights, which are considered participating securities. Accordingly, earnings per share is computed using the two-class method as required by FASB ASC 260-10-45. Basic earnings per common share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities.  Diluted earnings per common share is adjusted for the dilutive effects of stock options, warrants, and restricted stock.  The diluted average number of common shares outstanding has been increased for the assumed exercise of stock options with proceeds used to purchase treasury shares at the average market price for the period.  

Earnings per share for the years ended December 31 were calculated as follows (in thousands, except share and per share data):
 202120202019
Net income$20,974 20,075 18,912 
  Less allocation of earnings and dividends to participating securities75 45 31 
  Net income allocated to common shareholders$20,899 20,030 18,881 
Weighted average common shares outstanding, gross12,635,013 12,943,622 13,100,161 
   Less average participating securities45,408 29,345 21,241 
Weighted average number of shares outstanding used in the calculation of basic earnings per common share12,589,605 12,914,277 13,078,920 
Add dilutive effect of:   
Stock options307 3,973 
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share12,589,613 12,914,584 13,082,893 
Earnings per common share:   
Basic$1.66 1.55 1.44 
Diluted1.66 1.55 1.44 
v3.22.0.1
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
LCNB has entered into related party transactions with various directors and executive officers. Management believes these transactions do not involve more than a normal risk of collectability or present other unfavorable features.  The following table provides a summary of the loan activity for these officers and directors for the years ended December 31 (in thousands):
 20212020
Beginning balance$2,929 2,380 
New loans and advances250 1,139 
Change in composition of related parties(413)— 
Reductions(641)(590)
Ending Balance$2,125 2,929 
Deposits from executive officers, directors and related interests of such persons held by the Company at December 31, 2021 and 2020 amounted to $3,373,000 and $3,526,000, respectively.
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
LCNB measures certain assets at fair value using various valuation techniques and assumptions, depending on the nature of the asset.  Fair value is defined as the price that would be received from the sale of an asset in an orderly transaction between market participants at the measurement date.

The inputs to the valuation techniques used to measure fair value are assigned to one of three broad levels:
Level 1 – quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the reporting date.
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly.  Level 2 inputs may include quoted prices for similar assets in active markets, quoted prices for identical assets or liabilities in markets that are not active, inputs other than quoted prices (such as interest rates or yield curves) that are observable for the asset or liability, and inputs that are derived from or corroborated by observable market data.
Level 3 – inputs that are unobservable for the asset or liability.

Equity Securities with a Readily Determinable Fair Value
Equity securities with a readily determinable fair value are reported at fair value with changes in fair value reported in other operating income in the Consolidated Statements of Income. Fair values for equity securities are determined based on market quotations (level 1). LCNB has invested in two mutual funds that are traded in active markets and their fair values are based on market quotations (level 1). Investments in another two mutual funds are measured at fair value using net asset values ("NAV") and are considered level 1 because the NAVs are determined and published and are the basis for current transactions.

Debt Securities, Available-for-Sale
The majority of LCNB's financial debt securities are classified as available-for-sale.  The securities are reported at fair value with unrealized holding gains and losses reported net of income taxes in accumulated other comprehensive income (loss). LCNB utilizes a pricing service for determining the fair values of its debt securities.  Methods and significant assumptions used to estimate fair value are as follows:

Fair value for U.S. Treasury notes are determined based on market quotations (level 1).

Fair values for the other debt securities are calculated using the discounted cash flow method for each security.  The discount rates for these cash flows are estimated by the pricing service using rates observed in the market (level 2). Cash flow streams are dependent on estimated prepayment speeds and the overall structure of the securities given existing market conditions.  

Assets Recorded at Fair Value on a Nonrecurring Basis
Assets that may be recorded at fair value on a nonrecurring basis include impaired loans.

A loan is considered impaired when management believes it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement.  Impaired loans are carried at the present value of estimated future cash flows using the loan's existing rate or the fair value of collateral if the loan is collateral dependent, if this value is less than the loan balance.  These inputs are considered to be level 3.

Other real estate owned is adjusted to fair value, less costs to sell, upon transfer of the loan to foreclosed assets, usually based on an appraisal of the property.  Subsequently, foreclosed assets are carried at the lower of carrying value or fair value.  Other repossessed assets are valued at estimated sales prices, less costs to sell. The inputs for real estate owned and other repossessed assets are considered to be level 3.
The following table summarizes the valuation of LCNB’s assets recorded at fair value by input levels as of December 31 (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)
2021    
Recurring fair value measurements:    
Equity securities with a readily determinable fair value:
Equity securities$1,167 1,167 — — 
Mutual funds51 51 — — 
Mutual funds measured at net asset value1,328 1,328 — — 
Debt securities available-for-sale:    
U.S. Treasury notes74,744 74,744 — — 
U.S. Agency notes87,246 — 87,246 — 
Corporate bonds5,152 — 5,152 — 
U.S. Agency mortgage-backed securities96,676 — 96,676 — 
Municipal securities:    
Non-taxable9,066 — 9,066 — 
Taxable35,293 — 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 
2020    
Recurring fair value measurement:    
Equity securities with a readily determinable fair value:
Equity securities$987 987 — — 
Mutual funds50 50 — — 
Mutual funds measured at net asset value1,352 1,352 — — 
Debt securities available-for-sale:    
U.S. Treasury notes2,388 2,388 — — 
U.S. Agency notes67,900 — 67,900 — 
Corporate bonds1,179 — 1,179 — 
U.S. Agency mortgage-backed securities91,634 — 91,634 — 
Municipal securities:    
Non-taxable12,933 — 12,933 — 
Taxable33,437 — 33,437 — 
Total recurring fair value measurements$211,860 4,777 207,083 — 
Nonrecurring fair value measurements:    
Impaired loans$3,439 — — 3,439 
Total nonrecurring fair value measurements$3,439 — — 3,439 
The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at December 31, 2021 and 2020 (dollars in thousands):
Range
Fair ValueValuation TechniqueUnobservable InputsHighLowWeighted Average
2021
Impaired loans$— Estimated sales priceAdjustments for comparable properties, discounts to reflect current market conditionsNot applicable
1,011 Discounted cash flowsDiscount rate8.25 %4.00 %6.07 %
2020
Impaired loans$1,352 Estimated sales priceAdjustments for comparable properties, discounts to reflect current market conditionsNot applicable
2,087 Discounted cash flowsDiscount rate8.25 %4.00 %4.74 %
Carrying amounts and estimated fair values of financial instruments as of December 31 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)
2021
FINANCIAL ASSETS:    
Cash and cash equivalents$18,136 18,136 18,136 — — 
Debt securities, held-to-maturity22,972 23,087 — — 23,087 
Federal Reserve Bank stock4,652 4,652 4,652 — — 
Federal Home Loan Bank stock5,203 5,203 5,203 — — 
Loans, net1,363,939 1,333,840 — — 1,333,840 
Accrued interest receivable7,999 7,999 — 7,999 — 
FINANCIAL LIABILITIES:  
Deposits1,628,819 1,630,158 1,435,487 194,671 — 
Long-term debt10,000 10,292 — 10,292 — 
Accrued interest payable277 277 — 277 — 
2020
FINANCIAL ASSETS:
Cash and cash equivalents$31,730 31,730 31,730 — — 
Debt securities, held-to-maturity24,810 24,960 — — 24,960 
Federal Reserve Bank stock4,652 4,652 4,652 — — 
Federal Home Loan Bank stock5,203 5,203 5,203 — — 
Loans, net1,293,693 1,252,642 — — 1,252,642 
Accrued interest receivable8,337 8,337 — 8,337 — 
FINANCIAL LIABILITIES:  
Deposits1,455,423 1,458,413 1,212,903 245,510 — 
Long-term debt22,000 22,595 — 22,595 — 
Accrued interest payable452 452 — 452 — 

The fair values of off-balance-sheet financial instruments such as loan commitments and letters of credit are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements. The fair values of such instruments were not material at December 31, 2021 and 2020.

Fair values of financial instruments are based on various assumptions, including the discount rate and estimates of future cash flows.  Therefore, the fair values presented may not represent amounts that could be realized in actual transactions.  In addition, because the required disclosures exclude certain financial instruments and all nonfinancial instruments, any aggregation of the fair value amounts presented would not represent the underlying value of the Company.
.
v3.22.0.1
PARENT COMPANY FINANCIAL INFORMATION
12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
PARENT COMPANY FINANCIAL INFORMATION PARENT COMPANY FINANCIAL INFORMATION
Condensed financial information for LCNB Corp., parent company only, follows (in thousands):
Condensed Balance Sheets:  
December 31,20212020
Assets:  
Cash on deposit with subsidiary$657 3,648 
Cash on deposit with unrelated depository institution451 175 
Equity securities, at fair value1,156 1,001 
Investment in subsidiaries236,401 235,857 
Other assets180 164 
Total assets$238,845 240,845 
Liabilities$241 20 
Shareholders' equity238,604 240,825 
Total liabilities and shareholders' equity$238,845 240,845 

Condensed Statements of Income   
Year ended December 31,202120202019
Income:   
Dividends from subsidiaries$15,820 12,070 18,300 
Interest and dividends34 29 31 
Other income155 147 215 
Total income16,009 12,246 18,546 
Total expenses1,764 1,326 1,369 
Income before income tax expense/benefit and equity in undistributed income of subsidiaries14,245 10,920 17,177 
Income tax benefit(333)(404)(222)
Equity in undistributed income of subsidiaries6,396 8,751 1,513 
Net income$20,974 20,075 18,912 
Condensed Statements of Cash Flows   
Year ended December 31,202120202019
Cash flows from operating activities:   
Net income$20,974 20,075 18,912 
Adjustments for non-cash items -   
Increase in undistributed income of subsidiaries(6,396)(8,751)(1,513)
Other, net299 (88)476 
Net cash flows provided by operating activities14,877 11,236 17,875 
Cash flows from investing activities:   
Purchases of equity securities— (346)(337)
Proceeds from sales of equity securities— 463 397 
Net cash flows provided by (used in) investing activities— 117 60 
Cash flows from financing activities:   
Proceeds from issuance of common stock434 401 446 
Payments to repurchase common stock(8,310)(1,872)(6,834)
Cash dividends paid on common stock(9,720)(9,448)(9,028)
Other114 41 
Net cash flows used in financing activities(17,592)(10,805)(15,375)
Net change in cash(2,715)548 2,560 
Cash at beginning of year3,823 3,275 715 
Cash at end of year$1,108 3,823 3,275 
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
BASIS OF PRESENTATION
BASIS OF PRESENTATION
The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions are eliminated in consolidation.  The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles and with general practices in the banking industry.

Certain prior period data presented in the consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications had no effect on net income or shareholders' equity.
USE OF ESTIMATES USE OF ESTIMATESThe preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates. Estimates that management has determined to be critical accounting estimates are more fully described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-K.
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, cash and cash equivalents include cash, balances due from banks, federal funds sold, and interest-bearing demand deposits with original maturities of twelve months or less.  Deposits with other banks routinely have balances greater than FDIC insured limits.  Management considers the risk of loss to be very low with respect to such deposits.
INVESTMENT SECURITIES
INVESTMENT SECURITIES
Certain municipal debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity” and recorded at amortized cost.  Debt securities not classified as held-to-maturity are classified as “available-for-sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income, a separate component of shareholders’ equity.  Amortization of premiums and accretion of discounts are recognized as adjustments to interest income using the level-yield method.  Realized gains or losses from the sale of securities are recorded on the trade date and are computed using the specific identification method.

Declines in the fair value of debt securities below their cost that are deemed to be other-than-temporarily impaired, and for which the Company does not intend to sell the securities and it is not more likely than not that the securities will be sold before the anticipated recovery of the impairment, are separated into losses related to credit factors and losses related to other factors.  The losses related to credit factors are recognized in earnings and losses related to other factors are recognized in other comprehensive income.  In estimating other than temporary impairment losses, management considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Management determined that no such impairment adjustment was required to be made in the Company's Consolidated Statements of Income as of December 31, 2021, 2020, and 2019.

Equity securities with a readily determinable fair value are measured at fair value with changes in fair value recognized in net income.
Federal Home Loan Bank ("FHLB") stock is an equity interest in the Federal Home Loan Bank of Cincinnati.  It can be sold only at its par value of $100 per share and only to the FHLB or to another member institution.  In addition, the equity ownership rights are more limited than would be the case for a public company because of the oversight role exercised by the Federal Housing Finance Agency in the process of budgeting and approving dividends.  Federal Reserve Bank stock is similarly restricted in marketability and value.  Both investments are carried at cost, which is their par value.

FHLB and Federal Reserve Bank stock are both subject to minimum ownership requirements by member banks.  The required investments in common stock are based on predetermined formulas.
LOANS
LOANS
The Company’s loan portfolio includes most types of commercial and industrial loans, commercial loans secured by real estate, residential real estate loans, consumer loans, agricultural loans and other types of loans. Most of the properties collateralizing the loan portfolio are located within the Company’s market area.

Loans are stated at the principal amount outstanding, net of unearned income, deferred origination fees and costs, and the allowance for loan losses.  Interest income is accrued on the unpaid principal balance. The delinquency status of a loan is based on contractual terms and not on how recently payments have been received.  Generally, a loan is placed on non-accrual status when it is classified as impaired or there is an indication that the borrower’s cash flow may not be sufficient to make payments as they come due, unless the loan is well secured and in the process of collection.  Subsequent cash receipts on non-accrual loans are recorded as a reduction of principal and interest income is recorded once principal recovery is reasonably assured.  The current year's accrued interest on loans placed on non-accrual status is charged against earnings. Previous years' accrued interest is charged against the allowance for loan losses. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer a reasonable doubt as to the timely collection of interest or principal.

Loan origination fees and certain direct loan origination costs are deferred and the net amount amortized as an adjustment of loan yields.  These amounts are being amortized over the lives of the related loans.

In the ordinary course of business, the Company enters into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit.  Such financial instruments are recorded in the consolidated financial statements when they are funded.  The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses.

Loans acquired from mergers are recorded at fair value with no carryover of the acquired entity's previously established allowance for loan losses.  The excess of expected cash flows over the estimated fair value of acquired loans is recognized as interest income over the remaining contractual lives of the loans using the level yield method. Subsequent decreases in expected cash flows will require additions to the allowance for loan losses.  Subsequent improvements in expected cash flows result in the recognition of additional interest income over the then-remaining contractual lives of the loans. Management estimates the cash flows expected to be collected at acquisition using a third-party risk model, which incorporates the estimate of key assumptions, such as default rates, severity, and prepayment speeds.

Impaired loans acquired are accounted for under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") No. 310-30.  Factors considered in evaluating whether an acquired loan was impaired include delinquency status and history, updated borrower credit status, collateral information, and current loan-to-value information.  The difference between contractually required payments at the time of acquisition and the cash flows expected to be collected is referred to as the nonaccretable difference.  The interest component of the cash flows expected to be collected is referred to as the accretable yield and is recognized as interest income over the remaining contractual life of the loan using the level yield method.   Subsequent decreases in expected cash flows will require additions to the allowance for loan losses.  Subsequent improvements in expected cash flows will result in a reclassification from the nonaccretable difference to the accretable yield.
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses is established through a provision for loan losses charged to expense.  Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely.  Consumer loans are charged off when they reach 120 days past due.  Subsequent recoveries, if any, are credited to the allowance.

The provision for loan losses is determined by management based upon its evaluation of the amount needed to maintain the allowance for loan losses at a level considered appropriate in relation to the estimated risk of losses inherent in the portfolio.  Current methodology used by management to estimate the allowance takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, historic categorical trends, current delinquency levels as related to historical levels, portfolio growth rates, changes in composition of the portfolio, the current economic environment, as well as current allowance adequacy in relation to the portfolio.  Management is cognizant that reliance on historical information coupled with the cyclical nature of the economy, including credit cycles, affects the allowance.  Management considers all of these factors prior to making any adjustments to the allowance due to the subjectivity and imprecision involved in allocation methodology.  This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of specific and general components.  The specific component relates to loans that are specifically reviewed for impairment.  For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.  The general component covers loans not specifically reviewed for impairment and homogeneous loan pools, such as residential real estate and consumer loans.  The general component is measured for each loan category separately based on each category’s average of historical loss experience over a trailing sixty month period, adjusted for qualitative factors.  Such qualitative factors may include current economic conditions if different from the five-year historical loss period, trends in underperforming loans, trends in volume and terms of loan categories, concentrations of credit, and trends in loan quality.

A loan is considered impaired when management believes, based on current information and events, it is probable that the Bank will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement.  An impaired loan is measured by the present value of expected future cash flows using the loan's effective interest rate.  An impaired collateral-dependent loan may be measured based on collateral value.  Smaller-balance homogeneous loans, including residential mortgage and consumer installment loans, which are not evaluated individually are collectively evaluated for impairment.
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT
Premises and equipment are stated at cost less accumulated depreciation.  Land is stated at cost. Depreciation is computed on both the straight-line and accelerated methods over the estimated useful lives of the assets, generally 15 to 40 years for premises and 3 to 10 years for equipment.  Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Costs incurred for maintenance and repairs are expensed as incurred. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED
Other real estate owned includes properties acquired through foreclosure.  Such property is held for sale and is initially recorded at fair value, less costs to sell, establishing a new cost basis.  Fair value is primarily based on a property appraisal obtained at the time of transfer and any periodic updates that may be obtained thereafter.  The allowance for loan losses is charged for any write down of the loan’s carrying value to fair value at the date of transfer.  Any subsequent reductions in fair value and expenses incurred from holding other real estate owned are charged to other non-interest expense.  Costs, excluding interest, relating to the improvement of other real estate owned are capitalized.  Gains and losses from the sale of other real estate owned are included in other non-interest expense.
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill is the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination.  Goodwill is not amortized, but is instead subject to an annual review for impairment. A review for impairment may be conducted more frequently than annually if circumstances indicate a possible impairment. Impairment indicators that may be considered include the condition of the economy and banking industry; estimated future cash flows; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of LCNB’s stock, and other relevant events. These and other factors could lead to a conclusion that goodwill is impaired, which would require LCNB to write off the difference between the estimated fair value of the company and the carrying value.

Mortgage servicing rights on originated mortgage loans that have been sold are initially recorded at their estimated fair values.  Mortgage servicing rights are amortized to loan servicing income in proportion to and over the period of estimated servicing income.  Such assets are periodically evaluated as to the recoverability of their carrying value.

The Company’s other intangible assets relate to core deposits acquired from business combinations.  These intangible assets are amortized on a straight-line basis over their estimated useful lives.  Management evaluates whether events or circumstances have occurred that indicate the remaining useful life or carrying value of the amortizing intangible should be revised.
BANK OWNED LIFE INSURANCE
BANK OWNED LIFE INSURANCE
The Company has purchased life insurance policies on certain officers of the Company.  The Company is the beneficiary of these policies and has recorded the estimated cash surrender value in the Consolidated Balance Sheets.  Income on the policies, based on the increase in cash surrender value and any incremental death benefits, is included in non-interest income in the Consolidated Statements of Income.
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP
LCNB has elected to account for its investment in an affordable housing tax credit limited partnership using the proportional amortization method described in "ASU 2014-01, "Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (A Consensus of the FASB Emerging Issues Task Force)." Under the proportional amortization method, an investor amortizes the initial cost of the investment to income tax expense in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The investment in the limited partnership is included in other assets and the unfunded amount is included in accrued interest and other liabilities in LCNB's Consolidated Balance Sheets.
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
Accounting guidance establishes a fair value hierarchy to prioritize the inputs to valuation techniques used to measure fair value.  A financial instrument’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The three broad input levels are:
Level 1 – quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the reporting date;
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly; and
Level 3 - inputs that are unobservable for the asset or liability.

Accounting guidance permits, but does not require, companies to measure many financial instruments and certain other items, including loans and debt securities, at fair value.  The decision to elect the fair value option is made individually for each instrument and is irrevocable once made.  Changes in fair value for the selected instruments are recorded in earnings. The Company did not select any financial instruments for the fair value election in 2021 or 2020.
ADVERTISING EXPENSE
ADVERTISING EXPENSE
Advertising costs are expensed as incurred and are recorded as a marketing expense, a component of non-interest expense.
PENSION PLANS
PENSION PLANS
Eligible employees of the Company hired before 2009 participate in a multiple-employer qualified noncontributory defined benefit retirement plan.  This plan is accounted for as a multi-employer plan because assets contributed by an employer are not segregated in a separate account or restricted to provide benefits only to employees of that employer.

Citizens National had a qualified noncontributory, defined benefit pension plan, which has been assumed by the Company, that covers eligible employees hired before May 1, 2005. This is a single employer plan.
TREASURY STOCK
TREASURY STOCK
Common shares repurchased are recorded at cost. Cost of shares retired or reissued is determined using the weighted average method.
STOCK OPTIONS AND RESTRICTED STOCK AWARD PLANS
STOCK OPTIONS AND RESTRICTED STOCK AWARD PLANS
The cost of employee services received in exchange for stock option grants is the grant-date fair value of the award estimated using an option-pricing model.  The compensation cost for restricted stock awards is based on the market price of the Company's common stock at the date of grant multiplied by the number of shares granted that are expected to vest. The estimated cost is recognized on a straight-line basis over the period the employee is required to provide services in exchange for the award, usually the vesting period.  The Company uses a Black-Scholes pricing model and related assumptions for estimating the fair value of stock option grants and a five-year vesting period for stock options and restricted stock.
REVENUE RECOGNITION
REVENUE RECOGNITION
FASB ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606") provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance enumerates five steps that entities should follow in achieving this core principle. Revenue generated from financial instruments, including loans and investment securities, are not included in the scope of ASC No. 606. The adoption of ASC No. 606 did not result in a change to the accounting for any of LCNB's revenue streams that are within the scope of the amendments. Revenue-generating activities that are within the scope of ASC 606 and that are presented as non-interest income in LCNB's Consolidated Statements of Income include:
Fiduciary income - this includes periodic fees due from Wealth Management and Investment Services customers for managing the customers' financial assets. Fees are generally charged on a quarterly or annual basis and are recognized ratably throughout the period, as the services are provided on an ongoing basis.
Service charges and fees on deposit accounts - these include general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer, or overdraft activities. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services.
INCOME TAXES
INCOME TAXES
Deferred income taxes are determined using the asset and liability method of accounting.  Under this method, the net deferred tax asset or liability is determined based on the tax effects of temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws.

Management analyzes material tax positions taken in any income tax return for any tax jurisdiction and determines the likelihood of the positions being sustained in a tax examination.  A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.  The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination.  For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.
EARNINGS PER SHARE
EARNINGS PER SHARE
Basic earnings per share allocated to common shareholders is calculated using the two-class method and is computed by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share is adjusted for the dilutive effects of stock based compensation and is calculated using the two-class method or the treasury stock method.  The diluted average number of common shares outstanding has been increased for the assumed exercise of stock based compensation with the proceeds used to purchase treasury shares at the average market price for the period.
RECENT ACCOUNTING PRONOUNCEMENTS
ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS

ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment"
ASU No. 2017-04 was issued in January 2017 and was adopted by LCNB as of January 1, 2020. It applies to public and other entities that have goodwill reported in their financial statements. To simplify the subsequent measurement of goodwill, this ASU eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Adoption of ASU No. 2017-04 did not have a material impact on LCNB's results of consolidated operations or financial position.

ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement"
ASU No. 2018-13 was issued in August 2018 and was adopted by LCNB as of January 1, 2020. It applies to all entities that are required to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this update modify fair value disclosure requirements, including the deletion, modification, and addition of certain targeted disclosures. Adoption of ASU No. 2018-13 did not have a material impact on LCNB's results of consolidated operations or financial position.
ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract"
ASU No. 2018-15 was issued in August 2018 and was adopted by LCNB on January 1, 2020. It applies to entities that are a customer in a hosting arrangement, as defined, that is accounted for as a service contract. The amendments in this update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Capitalized implementation costs are to be expensed over the term of the hosting arrangement. Adoption of ASU No. 2018-15 did not have a material impact on LCNB's results of consolidated operations or financial position.

ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting"
ASU No. 2020-04 was issued in March 2020 and provides optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying generally accepted accounting principles ("GAAP") to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. LCNB does not expect the guidance in ASU No. 2020-04 will have a material impact on its results of consolidated operations or financial position.

ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans"
ASU No. 2018-14 was issued in August 2018 and was adopted by LCNB on January 1, 2021. The amendments in this update modify disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including the deletion, modification, and addition of certain targeted disclosures. The amendments are to be applied on a retrospective basis to all periods presented upon adoption. Adoption of ASU No. 2018-14 did not have a material impact on LCNB's results of consolidated operations or financial position.

ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes"
ASU No. 2019-12 was issued in December 2019 and adopted by LCNB on January 1, 2021. It simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifies and amends certain other guidance. Adoption of ASU No. 2019-12 did not have a material impact on LCNB's results of consolidated operations or financial position.

RECENT ACCOUNTING PRONOUNCEMENTS NOT YET EFFECTIVE
From time to time the FASB issues an ASU to communicate changes to U.S. GAAP. The following information provides brief summaries of newly issued but not yet effective ASUs that could have an effect on LCNB’s financial position or results of consolidated operations:

ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments"
ASU No. 2016-13 was issued in June 2016 and, once effective, will significantly change current guidance for recognizing impairment of financial instruments. Current guidance requires an "incurred loss" methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. ASU No. 2016-13 replaces the incurred loss impairment methodology with a new current expected credit loss ("CECL") methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to inform credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required.
ASU No. 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Under the new guidance, entities will determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. Any credit loss will be recognized as an allowance for credit losses on available-for-sale debt securities rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings rather than as interest income over time, as currently required.

ASU No. 2016-13 eliminates the current accounting model for purchased credit impaired loans and debt securities. Instead, purchased financial assets with credit deterioration will be recorded gross of estimated credit losses as of the date of acquisition and the estimated credit losses amounts will be added to the allowance for credit losses. Thereafter, entities will account for additional impairment of such purchased assets using the models listed above.
Originally, ASU No. 2016-13 would have taken effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. At their meeting on October 16, 2019, FASB approved a final ASU delaying the effective date for several major standards, including ASU No. 2016-13, if certain qualifications are met. The new effective date for SEC filers eligible to be smaller reporting companies ("SRC"), as defined, will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. As an SRC, LCNB intends to adopt ASU No. 2016-13 for the fiscal year, and interim periods within the fiscal year, beginning after December 15, 2022.

LCNB has created a cross-functional CECL Committee, which reports to the Audit Committee, composed of members from the lending, Wealth Management, and finance departments. During 2017, the CECL Committee selected a vendor to assist in implementation of and ongoing compliance with the new requirements. It has completed analyzing its data collection efforts, selected a calculation model, analyzed its pool segmentation and reporting mechanisms, and has finished back testing in preparation for adoption of the new methodology. While the committee and management expect that implementation of ASU No. 2016-13 will increase the balance of the allowance for loan losses, they continue to analyze modeling after studying the impacts that the most recent economic conditions presented due to the pandemic. As they adjust and finalize appropriate modeling, they are continuing to evaluate the modeling and its potential impact on LCNB's results of consolidated operations and financial position. The consolidated financial statement impact of this new standard cannot be reasonably estimated at this time; however, it is anticipated during 2022 that modeling adjustments should be complete after finalizing review of prepayment, curtailment, and forecasting assessments.
Lessee, Leases
LEASES
FASB Accounting Standards Update ("ASU") No. 2016-02, "Leases (Topic 842)," requires a lessee to recognize in the statement of financial position a liability to make lease payments ("the lease liability") and a right-of-use asset representing its right to use the underlying asset for the lease term, initially measured at the present value of the lease payments. When measuring assets and liabilities arising from a lease, the lessee should include payments to be made in optional periods only if the lessee is reasonably certain, as defined, to exercise an option to the lease or not to exercise an option to terminate the lease. Optional payments to purchase the underlying asset should be included if the lessee is reasonably certain it will exercise the purchase option. Most variable lease payments should be excluded except for those that depend on an index or a rate or are in substance fixed payments.
A lessee shall classify a lease as a finance lease if it meets any of five designated criteria. If the lease does not meet any of the five criteria, the lessee shall classify it as an operating lease. All leases entered into by LCNB through December 31, 2021 and 2020 are classified as operating leases. Lessees shall recognize a single lease cost on a straight-line basis over the lease term for operating leases. LCNB has adopted an accounting policy election to not recognize lease assets and lease liabilities for leases with a term of 12 months or less. Lease expense for such leases will generally be recognized on a straight-line basis over the lease term.
v3.22.0.1
INVESTMENT SECURITIES (Tables)
12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost and Fair Value of Available-for-Sale Investment Securities
The amortized cost and estimated fair value of equity and debt securities at December 31 are summarized as follows (in thousands):
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
2021
Debt Securities Available-for-Sale:
U.S. Treasury notes$75,443 57 756 74,744 
U.S. Agency notes89,293 45 2,092 87,246 
Corporate Bonds5,200 70 118 5,152 
U.S. Agency mortgage-backed securities96,018 1,350 692 96,676 
Municipal securities:    
Non-taxable8,959 125 18 9,066 
Taxable35,208 531 446 35,293 
 $310,121 2,178 4,122 308,177 
Debt Securities Held-to-Maturity:
Municipal securities:
Non-taxable$19,403 98 — 19,501 
Taxable3,569 21 3,586 
$22,972 119 23,087 
2020
Debt Securities Available-for-Sale:
U.S. Treasury notes$2,268 120 — 2,388 
U.S. Agency notes66,983 950 33 67,900 
Corporate Bonds1,200 — 21 1,179 
U.S. Agency mortgage-backed securities88,455 3,180 91,634 
Municipal securities:    
Non-taxable12,651 282 — 12,933 
Taxable32,409 1,031 33,437 
 $203,966 5,563 58 209,471 
Debt Securities Held-to-Maturity:
Municipal securities:
Non-taxable$21,408 181 — 21,589 
Taxable3,402 37 3,371 
$24,810 187 37 24,960 
Securities in a Continuous Loss Position
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 MonthsTwelve Months or More
 Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
2021
Available-for-Sale:
U.S. Treasury notes$66,891 756 — 
U.S. Agency notes58,648 1,257 20,289 835 
Corporate Bonds3,898 102 484 16 
U.S. Agency mortgage-backed securities49,813 692 — — 
Municipal securities:   
Non-taxable1,020 18 — — 
Taxable18,434 322 3,535 124 
 $198,704 3,147 24,308 975 
Held-to-Maturity:
Municipal securities:
  Non-taxable$46 — — — 
  Taxable271 — — 
$317 — — 
2020
Available-for-Sale:
U.S. Agency notes$10,674 33 — — 
Corporate Bonds679 21 — — 
U.S. Agency mortgage-backed securities290 — — 
Municipal securities:
  Non-taxable38 — — — 
  Taxable3,063 — — 
$14,744 58 — — 
Held-to-Maturity:
Municipal securities:
  Non-taxable$— — — 
  Taxable3,113 37 — — 
$3,114 37 — — 
Investments Classified by Contractual Maturity Date
Contractual maturities of debt securities at December 31, 2021 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
Cost
Fair
Value
Amortized
Cost
Fair
Value
Due within one year$5,971 5,993 1,867 1,876 
Due from one to five years80,780 80,181 4,960 4,969 
Due from five to ten years126,622 124,594 2,894 2,904 
Due after ten years730 733 13,251 13,338 
 214,103 211,501 22,972 23,087 
U.S. Agency mortgage-backed securities96,018 96,676 — — 
 $310,121 308,177 22,972 23,087 
Realized Gain (Loss) on Investment Securities Available-for-Sale
Certain information concerning the sale of debt securities available-for-sale for the years ended December 31 was as follows (in thousands):
 202120202019
Proceeds from sales$21,235 8,786 84,521 
Gross realized gains365 221 228 
Gross realized losses62 — 269 
Equity Securities with Readily Determinable Fair Value [Table Text Block]
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):
20212020
 Amortized
Cost
Fair
Value
Amortized CostFair Value
Mutual funds$1,410 1,379 1,395 1,402 
Equity securities778 1,167 778 987 
Total equity securities with a readily determinable fair value$2,188 2,546 2,173 2,389 
Equity Securities With Readily Determinable Fair Value, Changes in Fair Value [Table Text Block]
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):
20212020
Net gains recognized$141 675 
Less net realized gains on equity securities sold— 658 
Unrealized gains recognized and still held at period end$141 17 
v3.22.0.1
LOANS (Tables)
12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Major Classifications of Loans
Major classifications of loans at December 31 were as follows (in thousands):
 20212020
Commercial and industrial$101,598 99,596 
Commercial, secured by real estate887,679 842,209 
Residential real estate335,106 310,085 
Consumer34,291 37,052 
Agricultural10,649 10,116 
Other loans, including deposit overdrafts122 363 
 1,369,445 1,299,421 
Less allowance for loan losses5,506 5,728 
Loans-net$1,363,939 1,293,693 
Non-accrual, Past Due, and Accruing Restructured Loans
Non-accrual, past-due, and accruing restructured loans at December 31 were as follows (dollars in thousands):
 20212020
Non-accrual loans:  
Commercial, secured by real estate$1,182 2,458 
Residential real estate299 1,260 
Total non-accrual loans1,481 3,718 
Past-due 90 days or more and still accruing56 — 
Total non-accrual and past-due 90 days or more and still accruing1,537 3,718 
Accruing restructured loans2,622 5,176 
Total$4,159 8,894 
Ratio of total non-accrual loans to total loans0.11 %0.29 %
Ratio of total non-accrual loans, past-due 90 days or more and still accruing, and accruing restructured loans to total loans0.30 %0.68 %
Allowance for Loan Losses and Recorded Investments in Loans
The allowance for loan losses and recorded investment in loans for the years ended December 31 were as follows (in thousands):
 Commercial
& Industrial
Commercial,
Secured by
Real Estate
Residential
Real Estate
ConsumerAgriculturalOtherTotal
2021       
Allowance for loan losses:       
Balance, beginning of year$816 3,903 837 153 28 (9)5,728 
Provision (credit) charged to expenses279 (375)(190)(45)60 (269)
Losses charged off— (112)(28)(9)— (105)(254)
Recoveries— 191 46 — 58 301 
Balance, end of year$1,095 3,607 665 105 30 5,506 
Individually evaluated for impairment$11 — — — 25 
Collectively evaluated for impairment1,090 3,596 656 105 30 5,481 
Acquired credit impaired loans— — — — — — — 
Balance, end of year$1,095 3,607 665 105 30 5,506 
Loans:       
Individually evaluated for impairment$155 2,945 559 — — — 3,659 
Collectively evaluated for impairment101,355 883,122 333,384 34,291 10,649 122 1,362,923 
Acquired credit impaired loans88 1,612 1,163 — — — 2,863 
Balance, end of year$101,598 887,679 335,106 34,291 10,649 122 1,369,445 
Ratio of net charge-offs to average loans— %(0.01)%(0.01)%0.01 %— %16.24 %— %
2020       
Allowance for loan losses:       
Balance, beginning of year$456 2,924 528 99 34 4,045 
Provision (credit) charged to expenses342 1,332 239 62 (6)45 2,014 
Losses charged off(13)(353)(5)(30)— (140)(541)
Recoveries31 — 75 22 — 82 210 
Balance, end of year$816 3,903 837 153 28 (9)5,728 
Individually evaluated for impairment$17 27 — — — 52 
Collectively evaluated for impairment808 3,886 810 153 28 (9)5,676 
Acquired credit impaired loans— — — — — — — 
Balance, end of year$816 3,903 837 153 28 (9)5,728 
Loans:       
Individually evaluated for impairment$194 6,613 1,641 — — 8,453 
Collectively evaluated for impairment99,040 833,548 306,138 37,047 10,116 179 1,286,068 
Acquired credit impaired loans362 2,048 2,306 — — 184 4,900 
Balance, end of year$99,596 842,209 310,085 37,052 10,116 363 1,299,421 
Ratio of net charge-offs to average loans(0.02)%0.04 %(0.02)%0.02 %— %10.83 %0.03 %
 Commercial
& Industrial
Commercial,
Secured by
Real Estate
Residential
Real Estate
ConsumerAgriculturalOtherTotal
2019       
Allowance for loan losses:       
Balance, beginning of year$400 2,745 767 87 46 4,046 
Provision (credit) charged to expenses103 266 (264)(12)110 207 
Losses charged off(47)(143)(272)(24)— (181)(667)
Recoveries— 56 297 32 — 74 459 
Balance, end of year$456 2,924 528 99 34 4,045 
Individually evaluated for impairment$272 17 — — — 295 
Collectively evaluated for impairment450 2,652 511 99 34 3,750 
Acquired credit impaired loans— — — — — — — 
Balance, end of year$456 2,924 528 99 34 4,045 
Ratio of net charge-offs to average loans0.06 %0.01 %(0.01)%(0.04)%— %18.57 %0.02 %
Analysis of the Company's Loan Portfolio by Credit Quality Indicators
An analysis of the Company’s loan portfolio by credit quality indicators at December 31 is as follows (in thousands):
 PassOAEMSubstandardDoubtfulTotal
2021     
Commercial & industrial$98,694 2,757 147 — 101,598 
Commercial, secured by real estate851,709 22,336 13,634 — 887,679 
Residential real estate332,962 — 2,144 — 335,106 
Consumer34,281 — 10 — 34,291 
Agricultural10,649 — — — 10,649 
Other122 — — — 122 
Total$1,328,417 25,093 15,935 — 1,369,445 
2020     
Commercial & industrial$97,391 — 2,205 — 99,596 
Commercial, secured by real estate811,558 9,279 21,372 — 842,209 
Residential real estate306,092 1,005 2,988 — 310,085 
Consumer37,050 — — 37,052 
Agricultural10,116 — — — 10,116 
Other363 — — — 363 
Total$1,262,570 10,284 26,567 — 1,299,421 
Loan Portfolio Aging Analysis
A loan portfolio aging analysis at December 31 is as follows (in thousands):
 30-59 Days
Past Due
60-89 Days
Past Due
Greater Than
90 Days
Total
Past Due
CurrentTotal Loans
Receivable
Total Loans Greater Than
90 Days and
Accruing
2021       
Commercial & industrial$— — — — 101,598 101,598 — 
Commercial, secured by real estate181 — 784 965 886,714 887,679 — 
Residential real estate1,130 109 1,240 333,866 335,106 51 
Consumer22 32 34,259 34,291 
Agricultural— — — — 10,649 10,649 — 
Other122 — — 122 — 122 — 
Total$1,455 898 2,359 1,367,086 1,369,445 56 
2020       
Commercial & industrial$— — — — 99,596 99,596 — 
Commercial, secured by real estate16 — 1,476 1,492 840,717 842,209 — 
Residential real estate497 219 675 1,391 308,694 310,085 — 
Consumer— 37,047 37,052 — 
Agricultural— — — — 10,116 10,116 — 
Other60 — — 60 303 363 — 
Total$577 220 2,151 2,948 1,296,473 1,299,421 — 
Impaired Loans
Impaired loans, including acquired credit impaired loans, for the years ended December 31 were as follows (in thousands):
 Recorded
Investment
Unpaid
Principal
Balance
Related
Allowance
Average
Recorded
Investment
Interest
Income
Recognized
2021     
With no related allowance recorded:     
Commercial & industrial$88 316 — 236 83 
Commercial, secured by real estate3,897 4,736 — 5,978 411 
Residential real estate1,501 1,857 — 2,553 227 
Consumer— — — — 
Agricultural— — — — — 
Other— — — 144 127 
Total$5,486 6,909 — 8,912 848 
With an allowance recorded:     
Commercial & industrial$155 160 175 10 
Commercial, secured by real estate660 660 11 674 36 
Residential real estate221 221 230 13 
Consumer— — — — — 
Agricultural— — — — — 
Other— — — — — 
Total$1,036 1,041 25 1,079 59 
Total:     
Commercial & industrial$243 476 411 93 
Commercial, secured by real estate4,557 5,396 11 6,652 447 
Residential real estate1,722 2,078 2,783 240 
Consumer— — — — 
Agricultural— — — — — 
Other— — — 144 127 
Total$6,522 7,950 25 9,991 907 
 
 Recorded
Investment
Unpaid
Principal
Balance
Related
Allowance
Average
Recorded
Investment
Interest
Income
Recognized
2020     
With no related allowance recorded:     
Commercial & industrial$362 646 — 1,044 335 
Commercial, secured by real estate6,050 6,735 — 7,070 731 
Residential real estate3,261 3,695 — 3,290 316 
Consumer— 10 
Agricultural— — — — — 
Other184 297 — 234 36 
Total$9,861 11,377 — 11,648 1,419 
With an allowance recorded:     
Commercial & industrial$194 199 212 12 
Commercial, secured by real estate2,611 2,908 17 1,517 18 
Residential real estate686 687 27 404 18 
Consumer— — 
Agricultural— — — — — 
Other— — — — — 
Total$3,492 3,795 52 2,136 48 
Total:     
Commercial & industrial$556 845 1,256 347 
Commercial, secured by real estate8,661 9,643 17 8,587 749 
Residential real estate3,947 4,382 27 3,694 334 
Consumer— 13 
Agricultural— — — — — 
Other184 297 — 234 36 
Total$13,353 15,172 52 13,784 1,467 
 Average
Recorded
Investment
Interest
Income
Recognized
2019  
With no related allowance recorded:  
Commercial & industrial$836 83 
Commercial, secured by real estate12,748 1,213 
Residential real estate3,704 311 
Consumer12 
Agricultural— — 
Other310 35 
Total$17,610 1,643 
With an allowance recorded:  
Commercial & industrial$247 15 
Commercial, secured by real estate2,513 64 
Residential real estate528 35 
Consumer20 
Agricultural— — 
Other— — 
Total$3,308 115 
Total:  
Commercial & industrial$1,083 98 
Commercial, secured by real estate15,261 1,277 
Residential real estate4,232 346 
Consumer32 
Agricultural— — 
Other310 35 
Total$20,918 1,758 
Loan Modification that were Classified as Troubled Debt Restructuring
Loan modifications that were classified as troubled debt restructurings during the years ended December 31 were as follows (dollars in thousands):
 20212020
 Number
of Loans
Pre-Modification Recorded BalancePost-Modification Recorded BalanceNumber
of Loans
Pre-Modification Recorded BalancePost-Modification Recorded Balance
Commercial and industrial— $— $— $$
Commercial, secured by real estate— — — 1,525 1,525 
Residential real estate97 101 14 14 
Consumer— — — — — — 
Totals$97 $101 $1,544 $1,543 
Troubled Debt Restructurings by Type of Modification
Post-modification balances of newly restructured troubled debt by type of modification for the years ended December 31 were as follows (in thousands):
 Term ModificationRate ModificationInterest OnlyPrincipal ForgivenessCombinationTotal Modifications
2021     
Commercial & industrial$— — — — — — 
Commercial, secured by real estate— — — — — — 
Residential real estate32 — — — 69 101 
Consumer— — — — — — 
Total$32 — — — 69 101 
2020     
Commercial & industrial$— — — — 
Commercial, secured by real estate— — — — 1,525 1,525 
Residential real estate— — — — 14 14 
Consumer— — — — — — 
Total$— — — — 1,543 1,543 
Schedule of Activity in the Mortgage Servicing Rights Portfolio Activity in the mortgage servicing rights portfolio during the years ended December 31 was as follows (in thousands):
 202120202019
Balance, beginning of year$976 483 475 
Amount capitalized to mortgage servicing rights409 719 156 
Amortization of mortgage servicing rights(346)(226)(148)
Balance, end of year$1,039 976 483 
v3.22.0.1
ACQUIRED CREDIT IMPAIRED LOANS (Tables)
12 Months Ended
Dec. 31, 2021
Acquired Credit Impaired Loans [Abstract]  
Schedule of carrying values of certain loans acquired in a transfer
The following table provides, as of December 31, the major classifications of loans acquired that are accounted for in accordance with FASB ASC 310-30 (in thousands):
20212020
Acquired from First Capital Bancshares, Inc.
Commercial & industrial$
Commercial, secured by real estate— — 
Residential real estate398 449 
Other loans, including deposit overdrafts— — 
  Total$399 450 
Acquired from Eaton National Bank & Trust Co.
Commercial & industrial$— 249 
Commercial, secured by real estate310 601 
Residential real estate463 595 
Other loans, including deposit overdrafts— 184 
  Total$773 1,629 
Acquired from BNB Bancorp, Inc.
Commercial & industrial$— — 
Commercial, secured by real estate688 780 
Residential real estate51 85 
Other loans, including deposit overdrafts— — 
  Total$739 865 
Acquired from Columbus First Bancorp, Inc.
Commercial & industrial$87 112 
Commercial, secured by real estate614 667 
Residential real estate251 1,177 
Other loans, including deposit overdrafts— — 
  Total$952 1,956 
Total
Commercial & industrial$88 362 
Commercial, secured by real estate1,612 2,048 
Residential real estate1,163 2,306 
Other loans, including deposit overdrafts— 184 
Total$2,863 4,900 
Outstanding and related carrying amount for acquired impaired loans
The following table provides the outstanding balance and related carrying amount for acquired impaired loans at December 31 (in thousands):
20212020
Outstanding balance$3,769 6,128 
Carrying amount2,863 4,900 
Accretable discount related to acquired impaired loans
Activity during 2021 and 2020 for the accretable discount related to acquired impaired loans is as follows (in thousands):
20212020
Accretable discount, beginning of year$182 480 
Reclass from nonaccretable discount to accretable discount266 401 
Less accretion(332)(699)
Accretable discount, end of year$116 182 
v3.22.0.1
OTHER REAL ESTATE OWNED (Tables)
12 Months Ended
Dec. 31, 2021
Real Estate [Abstract]  
Changes in Other Real Estate Owned Changes in other real estate owned were as follows (in thousands):
 20212020
Balance, beginning of year$— 197 
Reductions due to sales— (197)
Balance, end of year$— — 
v3.22.0.1
PREMISES AND EQUIPMENT (Tables)
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Premises and Equipment
Premises and equipment at December 31 are summarized as follows (in thousands):
 20212020
Land$8,512 7,933 
Buildings31,296 30,789 
Equipment17,272 16,431 
Construction in progress4,100 4,421 
Total61,180 59,574 
Less accumulated depreciation25,795 24,198 
Premises and equipment, net$35,385 35,376 
v3.22.0.1
LEASES (Tables)
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Lessee, Leases, Other Information [Table Text Block]
Other information related to leases at December 31, 2021 were as follows (dollars in thousands):
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$757 
Right-of-use assets obtained in exchange for new operating lease liabilities$801 
Weighted average remaining lease term in years for operating leases32.9
Weighted average discount rate for operating leases3.4 %
Lessee, Operating Lease, Liability, Maturity
Future payments due under operating leases as of December 31, 2021 are as follows (in thousands):
2022$598 
2023574 
2024577 
2025398 
2026256 
Thereafter10,226 
12,629 
Less effects of discounting6,156 
Operating lease liabilities recognized$6,473 
Lease, Cost Components of lease expense for the years ended December 31 are as follows (in thousands):
20212020
Operating lease expense$840 666 
Short-term lease expense48 48 
Variable lease expense10 
Other10 
Total lease expense$902 731 
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 (in thousands):
20212020
Balance, beginning of year$59,221 59,221 
Additions from acquisitions— — 
Balance, end of year$59,221 59,221 
Schedule of Other Intangible Assets Included in Other Assets
Other intangible assets in the Consolidated Balance Sheets at December 31 were as follows (in thousands):
20212020
Gross
Intangible
Assets
Accumulated
Amortization
Net
Intangible
Assets
Gross
Intangible
Assets
Accumulated
Amortization
Net
Intangible
Assets
Core deposit intangibles$8,544 7,110 1,434 8,544 6,067 2,477 
Mortgage servicing rights2,323 1,284 1,039 1,938 962 976 
Total$10,867 8,394 2,473 10,482 7,029 3,453 
Estimated Aggregate Future Amortization Expense
The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of December 31, 2021 is as follows (in thousands):
2022$597 
2023544 
2024422 
2025222 
202646 
v3.22.0.1
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP (Tables)
12 Months Ended
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Activity in Affordable Housing Program Obligation
The following table presents the balances of LCNB's affordable housing tax credit investment and related unfunded commitment at December 31 (in thousands):
 20212020
Affordable housing tax credit investment$14,950 12,000 
Less amortization2,126 1,320 
Net affordable housing tax credit investment$12,824 10,680 
Unfunded commitment$8,655 8,237 

The net affordable housing tax credit investment is included in other assets and the unfunded commitment is included in accrued interest and other liabilities in the Consolidated Balance Sheets.

LCNB expects to fund the unfunded commitment over thirteen years.

The following table presents other information relating to LCNB's affordable housing tax credit investment for the years indicated (in thousands):
Year ended December 31,
 202120202019
Tax credits and other tax benefits recognized$995 612 387 
Tax credit amortization expense included in provision for income taxes806 510 318 
v3.22.0.1
CERTIFICATES OF DEPOSIT (Tables)
12 Months Ended
Dec. 31, 2021
Deposits [Abstract]  
Contractual Maturities of Time Deposits
Contractual maturities of time deposits at December 31, 2021 were as follows (in thousands):
2022$121,807 
202343,286 
20244,484 
20257,956 
20269,045 
Thereafter6,864 
 $193,442 
v3.22.0.1
BORROWINGS (Tables)
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Summary of funds borrowed from Federal Home Loan Bank
Funds borrowed from the FHLB at December 31 by year of maturity were as follows (dollars in thousands):
20212020
Outstanding BalanceAverage RateOutstanding BalanceAverage Rate
Maturing within one year5,000 2.97 %12,000 2.42 %
Maturing one year through two years5,000 3.02 %5,000 2.97 %
Maturing two years through three years— — %5,000 3.02 %
Total$10,000 3.00 %$22,000 2.68 %
Short-term borrowings
v3.22.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Provision for Federal Income Taxes
The provision for federal income taxes consists of (in thousands):
 202120202019
Income taxes currently payable$4,317 3,951 3,694 
Deferred income tax provision294 134 419 
Provision for income taxes$4,611 4,085 4,113 
Reconciliation Between Statutory Income Tax and Effective Tax Rate
A reconciliation between the statutory income tax and the Company's effective tax rate follows:
 202120202019
Statutory tax rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from -   
Tax exempt interest(0.7)%(0.9)%(1.4)%
Tax exempt income on bank owned life insurance(0.9)%(1.3)%(0.9)%
Captive insurance premium income(0.8)%(0.8)%(0.8)%
Tax benefit from certain provisions of the CARES Act— %(0.8)%— %
Other – net(0.6)%(0.3)%— %
Effective tax rate18.0 %16.9 %17.9 %
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities, included in the Consolidated Balance Sheets with accrued interest and other liabilities in 2021 and 2020, consist of the following at December 31 (in thousands):
 20212020
Deferred tax assets:  
Allowance for loan losses$1,156 1,203 
Net unrealized losses on investment securities available-for-sale408 — 
Fair value adjustment on loans acquired from mergers103 196 
Deferred compensation630 667 
Minimum pension liability73 81 
Operating lease right-of-use assets1,359 1,338 
Other96 245 
 3,825 3,730 
Deferred tax liabilities:  
Depreciation of premises and equipment(1,595)(1,673)
Net unrealized gains on investment securities available-for-sale— (1,156)
Amortization of intangibles(1,518)(1,512)
Prepaid expenses(323)(283)
FHLB stock dividends(216)(216)
Operating lease liabilities(1,359)(1,338)
 (5,011)(6,178)
Net deferred tax liabilities$(1,186)(2,448)
v3.22.0.1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Financial Instruments Whose Contract Amounts Represent Off-Balance-Sheet Credit Risk
Financial instruments whose contract amounts represent off-balance-sheet credit risk at December 31 were as follows (in thousands):
20212020
Commitments to extend credit:
Commercial loans$82,578 24,581 
Other loans:
Fixed rate5,196 14,668 
Adjustable rate2,784 4,386 
Unused lines of credit:
Fixed rate32,655 24,205 
Adjustable rate150,746 133,073 
Unused overdraft protection amounts on demand and NOW accounts16,711 16,471 
Standby letters of credit243 
$290,675 217,627 
v3.22.0.1
REGULATORY MATTERS (Tables)
12 Months Ended
Dec. 31, 2021
Regulatory Assets and Liabilities, Other Disclosures [Abstract]  
Financial institutions are classified into categories based upon capital adequacy
For various regulatory purposes, financial institutions are classified into categories based upon capital adequacy:
 Minimum
Requirement
Minimum Requirement with Capital Conservation BufferTo Be Considered
Well-Capitalized
Ratio of Common Equity Tier 1 Capital to risk-weighted assets4.5 %7.0 %6.5 %
Ratio of tier 1 capital to risk-weighted assets6.0 %8.5 %8.0 %
Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets8.0 %10.5 %10.0 %
Leverage ratio (tier 1 capital to adjusted quarterly average total assets)4.0 %N/A5.0 %
Summary of regulatory capital and capital ratios of LCNB
A summary of the regulatory capital of the Bank at December 31 follows (dollars in thousands):
20212020
Regulatory Capital:  
Shareholders' equity$234,451 234,092 
Goodwill and other intangible assets(60,655)(61,698)
Accumulated other comprehensive (income) loss1,809 (4,043)
Tier 1 risk-based capital175,605 168,351 
Eligible allowance for loan losses5,506 5,728 
Total risk-based capital$181,111 174,079 
Capital Ratios:  
Common Equity Tier 1 Capital to risk-weighted assets12.25 %12.48 %
Tier 1 capital to risk-weighted assets12.25 %12.48 %
Total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets12.64 %12.91 %
Leverage ratio (tier 1 capital to adjusted quarterly average total assets)9.58 %10.06 %
v3.22.0.1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)
12 Months Ended
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) for 2021 and 2020 were as follows (in thousands):
20212020
 Unrealized Gains and Losses on Available-for-Sale SecuritiesChanges in Pension Plan Assets and Benefit ObligationsTotalUnrealized Gains and Losses on Available-for-Sale SecuritiesChanges in Pension Plan Assets and Benefit ObligationsTotal
Balance at beginning of year$4,348 (305)4,043 857 (184)673 
Before reclassifications(5,645)32 (5,613)3,666 (121)3,545 
Reclassifications(239)— (239)(175)— (175)
Balance at end of year$(1,536)(273)(1,809)4,348 (305)4,043 
Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications out of accumulated other comprehensive income (loss) during 2021 and 2020 and the affected line items in the Consolidated Statements of Income were as follows (in thousands):
 20212020Affected Line Item in the Consolidated Statements of Income
Net gains (losses) on sales of debt securities$303 221 Net gains (losses) on sales of debt securities
Less provision (benefit) for income taxes64 46 Provision for income taxes
Reclassification adjustment, net of taxes$239 175 
v3.22.0.1
RETIREMENT PLANS (Tables)
12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Summary of Costs of Retirement Plans
Funding and administrative costs of the qualified noncontributory defined benefit retirement plan and 401(k) plan charged to salaries and employee benefits in the Consolidated Statements of Income for the years ended December 31 were as follows (in thousands):
 202120202019
Qualified noncontributory defined benefit retirement plan$1,178 1,111 1,039 
401(k) plan610 590 524 
Components of Net Benefit Costs
The components of net periodic pension cost of the nonqualified defined benefit retirement plan for the years ended December 31 are summarized as follows (in thousands):
 202120202019
Service cost$— — — 
Interest cost52 63 77 
Amortization of unrecognized (gain) loss— 
Net periodic pension cost$60 65 77 
Reconciliation of Changes in Projected Benefit Obligations
A reconciliation of changes in the projected benefit obligation of the nonqualified defined benefit retirement plan at December 31 follows (in thousands):
 202120202019
Projected benefit obligation at beginning of year$2,124 2,045 1,900 
Service cost— — — 
Interest cost52 63 77 
Actuarial (gain) or loss(33)155 122 
Benefits paid(144)(139)(54)
Projected benefit obligation at end of year$1,999 2,124 2,045 
Amount Recognized in OCI
Amounts recognized in accumulated other comprehensive income (loss), net of tax, at December 31 for the nonqualified defined benefit retirement plan consists of (in thousands):
 202120202019
Net actuarial (gain) or loss$(32)122 184 
Schedule of Key Assumptions Used
Key weighted-average assumptions used to determine the benefit obligation and net periodic pension costs for the nonqualified defined benefit retirement plan for the years ended December 31 were as follows:
 202120202019
Benefit obligation:   
Discount rate2.83 %2.52 %3.22 %
Salary increase rate— %— %— %
Net periodic pension cost:   
Discount rate2.52 %3.22 %4.22 %
Salary increase rate— %— %2.00 %
Amortization period in years20.1621.241.00
Expected Benefit Payments Estimated future benefit payments reflecting expected future service for the years ended after December 31, 2021 are (in thousands):
2022$144 
2023144 
2024144 
2025144 
2026143 
2027-2031669 
v3.22.0.1
STOCK-BASED COMPENSATION (Tables)
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Summary of Restricted Stock Awards Activity
Restricted stock awards granted under the 2015 Plan were as follows:
202120202019
  
 
Shares
Weighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair Value
Outstanding at January 1,28,596 $17.42 17,752 $18.03 16,958 $18.94 
Granted26,321 16.85 19,211 16.87 12,504 16.95 
Vested(9,649)17.49 (4,817)17.83 (11,710)18.19 
Forfeited(756)16.86 (3,550)16.9 — — 
Outstanding at December 31,44,512 $17.08 28,596 $17.42 17,752 $18.03 
Summary of Stock Option Activity
The following table summarizes stock option activity for the years indicated:
202120202019
  
 
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic Value (in thousands) (1)
 
 
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic Value (in thousands) (1) 
 
Options
Weighted
Average
Exercise
Price
Aggregate Intrinsic Value (in thousands) (1)
Outstanding at January 1,311 $12.60 9,904 $11.96 13,278 $11.98 
Exercised(311)12.60 (9,593)11.94 (3,374)12.05 
Expired— — — — — — 
Outstanding at December 31,— $— $— 311 $12.60 $— 9,904 $11.96 $73 
Exercisable at December 31,— $— $— 311 $12.60 $— 9,904 $11.96 $73 
(1) Aggregate Intrinsic Value is defined as the amount by which the current market value of the underlying stock exceeds the exercise price of the option.
Schedule Of Information Related To Stock Options Exercised
The following table provides information related to stock options exercised during the years indicated (in thousands):
 202120202019
Intrinsic value of options exercised$46 20 
Cash received from options exercised114 41 
Tax benefit realized from options exercised— 
v3.22.0.1
EARNINGS PER SHARE (Tables)
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Computations of Earnings Per Share
Earnings per share for the years ended December 31 were calculated as follows (in thousands, except share and per share data):
 202120202019
Net income$20,974 20,075 18,912 
  Less allocation of earnings and dividends to participating securities75 45 31 
  Net income allocated to common shareholders$20,899 20,030 18,881 
Weighted average common shares outstanding, gross12,635,013 12,943,622 13,100,161 
   Less average participating securities45,408 29,345 21,241 
Weighted average number of shares outstanding used in the calculation of basic earnings per common share12,589,605 12,914,277 13,078,920 
Add dilutive effect of:   
Stock options307 3,973 
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share12,589,613 12,914,584 13,082,893 
Earnings per common share:   
Basic$1.66 1.55 1.44 
Diluted1.66 1.55 1.44 
v3.22.0.1
RELATED PARTY TRANSACTIONS (Tables)
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions The following table provides a summary of the loan activity for these officers and directors for the years ended December 31 (in thousands):
 20212020
Beginning balance$2,929 2,380 
New loans and advances250 1,139 
Change in composition of related parties(413)— 
Reductions(641)(590)
Ending Balance$2,125 2,929 
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2021
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 December 31 (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)
2021    
Recurring fair value measurements:    
Equity securities with a readily determinable fair value:
Equity securities$1,167 1,167 — — 
Mutual funds51 51 — — 
Mutual funds measured at net asset value1,328 1,328 — — 
Debt securities available-for-sale:    
U.S. Treasury notes74,744 74,744 — — 
U.S. Agency notes87,246 — 87,246 — 
Corporate bonds5,152 — 5,152 — 
U.S. Agency mortgage-backed securities96,676 — 96,676 — 
Municipal securities:    
Non-taxable9,066 — 9,066 — 
Taxable35,293 — 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 
2020    
Recurring fair value measurement:    
Equity securities with a readily determinable fair value:
Equity securities$987 987 — — 
Mutual funds50 50 — — 
Mutual funds measured at net asset value1,352 1,352 — — 
Debt securities available-for-sale:    
U.S. Treasury notes2,388 2,388 — — 
U.S. Agency notes67,900 — 67,900 — 
Corporate bonds1,179 — 1,179 — 
U.S. Agency mortgage-backed securities91,634 — 91,634 — 
Municipal securities:    
Non-taxable12,933 — 12,933 — 
Taxable33,437 — 33,437 — 
Total recurring fair value measurements$211,860 4,777 207,083 — 
Nonrecurring fair value measurements:    
Impaired loans$3,439 — — 3,439 
Total nonrecurring fair value measurements$3,439 — — 3,439 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques
The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at December 31, 2021 and 2020 (dollars in thousands):
Range
Fair ValueValuation TechniqueUnobservable InputsHighLowWeighted Average
2021
Impaired loans$— Estimated sales priceAdjustments for comparable properties, discounts to reflect current market conditionsNot applicable
1,011 Discounted cash flowsDiscount rate8.25 %4.00 %6.07 %
2020
Impaired loans$1,352 Estimated sales priceAdjustments for comparable properties, discounts to reflect current market conditionsNot applicable
2,087 Discounted cash flowsDiscount rate8.25 %4.00 %4.74 %
Carrying Amounts and Estimated Fair Values of Financial Instruments
Carrying amounts and estimated fair values of financial instruments as of December 31 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)
2021
FINANCIAL ASSETS:    
Cash and cash equivalents$18,136 18,136 18,136 — — 
Debt securities, held-to-maturity22,972 23,087 — — 23,087 
Federal Reserve Bank stock4,652 4,652 4,652 — — 
Federal Home Loan Bank stock5,203 5,203 5,203 — — 
Loans, net1,363,939 1,333,840 — — 1,333,840 
Accrued interest receivable7,999 7,999 — 7,999 — 
FINANCIAL LIABILITIES:  
Deposits1,628,819 1,630,158 1,435,487 194,671 — 
Long-term debt10,000 10,292 — 10,292 — 
Accrued interest payable277 277 — 277 — 
2020
FINANCIAL ASSETS:
Cash and cash equivalents$31,730 31,730 31,730 — — 
Debt securities, held-to-maturity24,810 24,960 — — 24,960 
Federal Reserve Bank stock4,652 4,652 4,652 — — 
Federal Home Loan Bank stock5,203 5,203 5,203 — — 
Loans, net1,293,693 1,252,642 — — 1,252,642 
Accrued interest receivable8,337 8,337 — 8,337 — 
FINANCIAL LIABILITIES:  
Deposits1,455,423 1,458,413 1,212,903 245,510 — 
Long-term debt22,000 22,595 — 22,595 — 
Accrued interest payable452 452 — 452 — 
v3.22.0.1
PARENT COMPANY FINANCIAL INFORMATION (Tables)
12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheets
Condensed financial information for LCNB Corp., parent company only, follows (in thousands):
Condensed Balance Sheets:  
December 31,20212020
Assets:  
Cash on deposit with subsidiary$657 3,648 
Cash on deposit with unrelated depository institution451 175 
Equity securities, at fair value1,156 1,001 
Investment in subsidiaries236,401 235,857 
Other assets180 164 
Total assets$238,845 240,845 
Liabilities$241 20 
Shareholders' equity238,604 240,825 
Total liabilities and shareholders' equity$238,845 240,845 
Condensed Statements of Income
Condensed Statements of Income   
Year ended December 31,202120202019
Income:   
Dividends from subsidiaries$15,820 12,070 18,300 
Interest and dividends34 29 31 
Other income155 147 215 
Total income16,009 12,246 18,546 
Total expenses1,764 1,326 1,369 
Income before income tax expense/benefit and equity in undistributed income of subsidiaries14,245 10,920 17,177 
Income tax benefit(333)(404)(222)
Equity in undistributed income of subsidiaries6,396 8,751 1,513 
Net income$20,974 20,075 18,912 
Condensed Statements of Cash Flows
Condensed Statements of Cash Flows   
Year ended December 31,202120202019
Cash flows from operating activities:   
Net income$20,974 20,075 18,912 
Adjustments for non-cash items -   
Increase in undistributed income of subsidiaries(6,396)(8,751)(1,513)
Other, net299 (88)476 
Net cash flows provided by operating activities14,877 11,236 17,875 
Cash flows from investing activities:   
Purchases of equity securities— (346)(337)
Proceeds from sales of equity securities— 463 397 
Net cash flows provided by (used in) investing activities— 117 60 
Cash flows from financing activities:   
Proceeds from issuance of common stock434 401 446 
Payments to repurchase common stock(8,310)(1,872)(6,834)
Cash dividends paid on common stock(9,720)(9,448)(9,028)
Other114 41 
Net cash flows used in financing activities(17,592)(10,805)(15,375)
Net change in cash(2,715)548 2,560 
Cash at beginning of year3,823 3,275 715 
Cash at end of year$1,108 3,823 3,275 
v3.22.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
12 Months Ended
Dec. 31, 2021
CASH AND CASH EQUIVALENTS  
Short term investment maturity period 12 months
ALLOWANCE FOR LOAN LOSSES  
Minimum period due consumer loan 120 days
Period for measurement of loan component 60 months
Historical loss period 5 years
STOCK OPTIONS  
Option vesting period 5 years
Premises | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 15 years
Premises | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 40 years
Equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 10 years
v3.22.0.1
INVESTMENT SECURITIES, AMORTIZED COST AND FAIR VALUE (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities Available-for-Sale:    
Amortized Cost $ 310,121 $ 203,966
Unrealized Gains 2,178 5,563
Unrealized Losses 4,122 58
Debt securities, available-for-sale, at fair value 308,177 209,471
Debt Securities Held-to-Maturity:    
Amortized Cost 22,972 24,810
Unrealized Gains 119 187
Unrealized Losses 4 37
Fair Value 23,087 24,960
Equity Securities, FV-NI, Cost 2,188 2,173
Equity Securities, FV-NI 2,546 2,389
U.S. Treasury notes    
Debt Securities Available-for-Sale:    
Amortized Cost 75,443 2,268
Unrealized Gains 57 120
Unrealized Losses 756 0
Debt securities, available-for-sale, at fair value 74,744 2,388
U.S. Agency notes    
Debt Securities Available-for-Sale:    
Amortized Cost 89,293 66,983
Unrealized Gains 45 950
Unrealized Losses 2,092 33
Debt securities, available-for-sale, at fair value 87,246 67,900
U.S. Agency mortgage-backed securities    
Debt Securities Available-for-Sale:    
Amortized Cost 96,018 88,455
Unrealized Gains 1,350 3,180
Unrealized Losses 692 1
Debt securities, available-for-sale, at fair value 96,676 91,634
Debt Securities Held-to-Maturity:    
Amortized Cost 0  
Fair Value 0  
Non-taxable municipal securities    
Debt Securities Available-for-Sale:    
Amortized Cost 8,959 12,651
Unrealized Gains 125 282
Unrealized Losses 18 0
Debt securities, available-for-sale, at fair value 9,066 12,933
Debt Securities Held-to-Maturity:    
Amortized Cost 19,403 21,408
Unrealized Gains 98 181
Unrealized Losses 0 0
Fair Value 19,501 21,589
Taxable municipal securities    
Debt Securities Available-for-Sale:    
Amortized Cost 35,208 32,409
Unrealized Gains 531 1,031
Unrealized Losses 446 3
Debt securities, available-for-sale, at fair value 35,293 33,437
Debt Securities Held-to-Maturity:    
Amortized Cost 3,569 3,402
Unrealized Gains 21 6
Unrealized Losses 4 37
Fair Value 3,586 3,371
Mutual funds    
Debt Securities Held-to-Maturity:    
Equity Securities, FV-NI, Cost 1,410 1,395
Equity Securities, FV-NI 1,379 1,402
Equity securities    
Debt Securities Held-to-Maturity:    
Equity Securities, FV-NI, Cost 778 778
Equity Securities, FV-NI 1,167 987
Corporate Bond Securities    
Debt Securities Available-for-Sale:    
Amortized Cost 5,200 1,200
Unrealized Gains 70 0
Unrealized Losses 118 21
Debt securities, available-for-sale, at fair value $ 5,152 $ 1,179
v3.22.0.1
INVESTMENT SECURITIES, CONTINUOUS UNREALIZED LOSS POSITION (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Available-for-Sale:    
Less Than 12 Months, Fair Value $ 198,704 $ 14,744
Less Than 12 Months, Unrealized Losses 3,147 58
12 Months or More, Fair Value 24,308 0
12 Months or More, Unrealized Losses 975 0
Held-to-Maturity:    
Less Than 12 Months, Fair Value 317 3,114
Less Than 12 Months, Unrealized Losses 4 37
12 Months or More, Fair Value 0 0
12 Months or More, Unrealized Losses 0 0
U.S. Treasury notes    
Available-for-Sale:    
Less Than 12 Months, Fair Value 66,891  
Less Than 12 Months, Unrealized Losses 756  
12 Months or More, Fair Value  
12 Months or More, Unrealized Losses 0  
U.S. Agency notes    
Available-for-Sale:    
Less Than 12 Months, Fair Value 58,648 10,674
Less Than 12 Months, Unrealized Losses 1,257 33
12 Months or More, Fair Value 20,289 0
12 Months or More, Unrealized Losses 835 0
U.S. Agency mortgage-backed securities    
Available-for-Sale:    
Less Than 12 Months, Fair Value 49,813 290
Less Than 12 Months, Unrealized Losses 692 1
12 Months or More, Fair Value 0 0
12 Months or More, Unrealized Losses 0 0
Non-taxable Municipal Securities    
Available-for-Sale:    
Less Than 12 Months, Fair Value 1,020 38
Less Than 12 Months, Unrealized Losses 18 0
12 Months or More, Fair Value 0 0
12 Months or More, Unrealized Losses 0 0
Held-to-Maturity:    
Less Than 12 Months, Fair Value 46 1
Less Than 12 Months, Unrealized Losses 0 0
12 Months or More, Fair Value 0 0
12 Months or More, Unrealized Losses 0 0
Taxable Municipal Securities    
Available-for-Sale:    
Less Than 12 Months, Fair Value 18,434 3,063
Less Than 12 Months, Unrealized Losses 322 3
12 Months or More, Fair Value 3,535 0
12 Months or More, Unrealized Losses 124 0
Held-to-Maturity:    
Less Than 12 Months, Fair Value 271 3,113
Less Than 12 Months, Unrealized Losses 4 37
12 Months or More, Fair Value 0 0
12 Months or More, Unrealized Losses 0 0
Corporate Bond Securities    
Available-for-Sale:    
Less Than 12 Months, Fair Value 3,898 679
Less Than 12 Months, Unrealized Losses 102 21
12 Months or More, Fair Value 484 0
12 Months or More, Unrealized Losses $ 16 $ 0
v3.22.0.1
INVESTMENT SECURITIES, MATURITIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Available for Sale, Amortized Cost [Abstract]    
Due within one year $ 5,971  
Due from one to five years 80,780  
Due from five to ten years 126,622  
Due after ten years 730  
Amortized Cost 214,103  
Amortized Cost 310,121 $ 203,966
Available-for-sale, Fair Value [Abstract]    
Due within one year 5,993  
Due from one to five years 80,181  
Due from five to ten years 124,594  
Due after ten years 733  
Fair Value 211,501  
Held-to-maturity Securities, Amortized Cost [Abstract]    
Due within one year 1,867  
Due from one to five years 4,960  
Due from five to ten years 2,894  
Due after ten years 13,251  
Amortized Cost 22,972 24,810
Held-to-maturity Securities, Fair Value [Abstract]    
Due within one year 1,876  
Due from one to five years 4,969  
Due from five to ten years 2,904  
Due after ten years 13,338  
Fair Value 23,087 24,960
U.S. Agency mortgage-backed securities    
Available for Sale, Amortized Cost [Abstract]    
Amortized Cost 96,018 $ 88,455
Held-to-maturity Securities, Amortized Cost [Abstract]    
Amortized Cost 0  
Held-to-maturity Securities, Fair Value [Abstract]    
Fair Value $ 0  
v3.22.0.1
INVESTMENT SECURITIES, NARRATIVE (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]    
Debt Securities, Available-for-sale, Restricted $ 128,426 $ 118,599
v3.22.0.1
INVESTMENT SECURITIES, SALE (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]      
Proceeds from sales of debt securities, available-for-sale $ 21,235 $ 8,786 $ 84,521
Debt Securities, Available-for-sale, Realized Gain 365 221 228
Debt Securities, Available-for-sale, Realized Loss $ 62 $ 0 $ 269
v3.22.0.1
INVESTMENT SECURITIES Equity Securities With Readily Determinable Fair Values, Amortized Cost and Fair Value (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]      
Equity Securities, FV-NI, Gain (Loss) $ 141 $ 675 $ 264
Equity Securities, FV-NI, Cost 2,188 2,173  
Equity Securities, FV-NI 2,546 2,389  
Equity Securities, Realized Gain (Loss) From Sale 0 (658)  
Equity Securities, FV-NI, Unrealized Gain (Loss) 141 17  
Equity securities      
Debt Securities, Available-for-sale [Line Items]      
Equity Securities, FV-NI, Cost 778 778  
Equity Securities, FV-NI 1,167 987  
Mutual funds      
Debt Securities, Available-for-sale [Line Items]      
Equity Securities, FV-NI, Cost 1,410 1,395  
Equity Securities, FV-NI $ 1,379 $ 1,402  
v3.22.0.1
LOANS, MAJOR CLASSIFICATION OF LOANS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 1,369,445 $ 1,299,421
Less allowance for loan losses 5,506 5,728
Loans, net 1,363,939 1,293,693
Deferred origination fees, net of related costs 961 1,135
Commercial & industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 101,598 99,596
Commercial, secured by real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 887,679 842,209
Residential real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 335,106 310,085
Consumer    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 34,291 37,052
Agricultural    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 10,649 10,116
Other loans, including deposit overdrafts    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 122 $ 363
v3.22.0.1
LOANS, PAST-DUE, AND ACCRUING RESTRUCTURED LOANS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items]    
Total non-accrual loans $ 1,481 $ 3,718
Past-due 90 days or more and still accruing 56 0
Total non-accrual and past-due 90 days or more and still accruing 1,537 3,718
Accruing restructured loans 2,622 5,176
Total $ 4,159 $ 8,894
Ratio of total non-accrual loans to total loans 0.11% 0.29%
Ratio of total non-accrual loans, past-due 90 days or more and still accruing, and accruing restructured loans to total loans 0.30% 0.68%
Interest income $ 31 $ 134
Commercial & industrial    
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items]    
Past-due 90 days or more and still accruing 0 0
Commercial, secured by real estate    
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items]    
Total non-accrual loans 1,182 2,458
Past-due 90 days or more and still accruing 0 0
Agricultural    
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items]    
Past-due 90 days or more and still accruing 0 0
Residential real estate    
Financing receivables, non-accruals, past-due, and accruing restructured loans [Line Items]    
Total non-accrual loans 299 1,260
Past-due 90 days or more and still accruing $ 51 $ 0
v3.22.0.1
LOANS, ALLOWANCES FOR CREDIT LOSSES (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Allowance for loan losses:      
Balance, beginning of year $ 5,728 $ 4,045 $ 4,046
Provision (credit) charged to expenses (269) 2,014 207
Losses charged off (254) (541) (667)
Recoveries 301 210 459
Balance, end of year 5,506 5,728 4,045
Individually evaluated for impairment 25 52 295
Collectively evaluated for impairment 5,481 5,676 3,750
Acquired credit impaired loans 0 0  
Balance, end of year 5,506 5,728 $ 4,045
Loans:      
Individually evaluated for impairment 3,659 8,453  
Collectively evaluated for impairment 1,362,923 1,286,068  
Acquired credit impaired loans 2,863 4,900  
Total loans $ 1,369,445 $ 1,299,421  
Ratio Of Net Charge-Offs To Average Loans 0.00% 0.03% 0.02%
Commercial & industrial      
Allowance for loan losses:      
Balance, beginning of year $ 816 $ 456 $ 400
Provision (credit) charged to expenses 279 342 103
Losses charged off 0 (13) (47)
Recoveries 0 31 0
Balance, end of year 1,095 816 456
Individually evaluated for impairment 5 8 6
Collectively evaluated for impairment 1,090 808 450
Acquired credit impaired loans 0 0  
Balance, end of year 1,095 816 $ 456
Loans:      
Individually evaluated for impairment 155 194  
Collectively evaluated for impairment 101,355 99,040  
Total loans $ 101,598 $ 99,596  
Ratio Of Net Charge-Offs To Average Loans 0.00% (0.02%) 0.06%
Commercial, secured by real estate      
Allowance for loan losses:      
Balance, beginning of year $ 3,903 $ 2,924 $ 2,745
Provision (credit) charged to expenses (375) 1,332 266
Losses charged off (112) (353) (143)
Recoveries 191 0 56
Balance, end of year 3,607 3,903 2,924
Individually evaluated for impairment 11 17 272
Collectively evaluated for impairment 3,596 3,886 2,652
Acquired credit impaired loans 0 0  
Balance, end of year 3,607 3,903 $ 2,924
Loans:      
Individually evaluated for impairment 2,945 6,613  
Collectively evaluated for impairment 883,122 833,548  
Total loans $ 887,679 $ 842,209  
Ratio Of Net Charge-Offs To Average Loans (0.01%) 0.04% 0.01%
Residential real estate      
Allowance for loan losses:      
Balance, beginning of year $ 837 $ 528 $ 767
Provision (credit) charged to expenses (190) 239 (264)
Losses charged off (28) (5) (272)
Recoveries 46 75 297
Balance, end of year 665 837 528
Individually evaluated for impairment 9 27 17
Collectively evaluated for impairment 656 810 511
Acquired credit impaired loans 0 0  
Balance, end of year 665 837 $ 528
Loans:      
Individually evaluated for impairment 559 1,641  
Collectively evaluated for impairment 333,384 306,138  
Total loans $ 335,106 $ 310,085  
Ratio Of Net Charge-Offs To Average Loans (0.01%) (0.02%) (0.01%)
Consumer      
Allowance for loan losses:      
Balance, beginning of year $ 153 $ 99 $ 87
Provision (credit) charged to expenses (45) 62 4
Losses charged off (9) (30) (24)
Recoveries 6 22 32
Balance, end of year 105 153 99
Individually evaluated for impairment 0 0 0
Collectively evaluated for impairment 105 153 99
Acquired credit impaired loans 0 0  
Balance, end of year 105 153 $ 99
Loans:      
Individually evaluated for impairment 0 5  
Collectively evaluated for impairment 34,291 37,047  
Total loans $ 34,291 $ 37,052  
Ratio Of Net Charge-Offs To Average Loans 0.01% 0.02% (0.04%)
Agricultural      
Allowance for loan losses:      
Balance, beginning of year $ 28 $ 34 $ 46
Provision (credit) charged to expenses 2 (6) (12)
Losses charged off 0 0 0
Recoveries 0 0 0
Balance, end of year 30 28 34
Individually evaluated for impairment 0 0 0
Collectively evaluated for impairment 30 28 34
Acquired credit impaired loans 0 0  
Balance, end of year 30 28 $ 34
Loans:      
Individually evaluated for impairment 0 0  
Collectively evaluated for impairment 10,649 10,116  
Total loans $ 10,649 $ 10,116  
Ratio Of Net Charge-Offs To Average Loans 0.00% 0.00% 0.00%
Other      
Allowance for loan losses:      
Balance, beginning of year $ (9) $ 4 $ 1
Provision (credit) charged to expenses 60 45 110
Losses charged off (105) (140) (181)
Recoveries 58 82 74
Balance, end of year 4 (9) 4
Individually evaluated for impairment 0 0 0
Collectively evaluated for impairment 4 (9) 4
Acquired credit impaired loans 0 0  
Balance, end of year 4 (9) $ 4
Loans:      
Individually evaluated for impairment 0 0  
Collectively evaluated for impairment 122 179  
Total loans $ 122 $ 363  
Ratio Of Net Charge-Offs To Average Loans 16.24% 10.83% 18.57%
Financial Receivable Acquired Credit Impaired      
Loans:      
Acquired credit impaired loans $ 2,863 $ 4,900 $ 0
Financial Receivable Acquired Credit Impaired | Commercial & industrial      
Loans:      
Acquired credit impaired loans 88 362  
Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate      
Loans:      
Acquired credit impaired loans 1,612 2,048  
Financial Receivable Acquired Credit Impaired | Residential real estate      
Loans:      
Acquired credit impaired loans 1,163 2,306  
Financial Receivable Acquired Credit Impaired | Consumer      
Loans:      
Acquired credit impaired loans 0 0  
Financial Receivable Acquired Credit Impaired | Agricultural      
Loans:      
Acquired credit impaired loans 0 0  
Financial Receivable Acquired Credit Impaired | Other      
Loans:      
Acquired credit impaired loans $ 0 $ 184  
v3.22.0.1
LOANS, ADDITIONAL INFORMATION (Details)
12 Months Ended
Dec. 31, 2021
USD ($)
Bank_Loan
Dec. 31, 2020
USD ($)
Bank_Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Interest income $ 31,000 $ 134,000
Financing Receivable, Short Term Modifications, Dollar Amount, End Of Period 0 1,553,000
Financing Receivable, CARES Act Section 4013 Modifications, Dollar Amount, End Of Period 0 19,023,000
Total loans 1,369,445,000 1,299,421,000
Commercial & industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 101,598,000 99,596,000
Commercial & industrial | Minimum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Adjustable interest rate periods of loan products 1 year  
Commercial & industrial | Maximum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Adjustable interest rate periods of loan products 10 years  
Commercial, secured by real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 887,679,000 842,209,000
Commercial, secured by real estate | Minimum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortization period of loan products 5 years  
Balloon payment terms of loan products 1 year  
Adjustable interest rate periods of loan products 1 year  
Loan to appraised value ratio of loan products 75.00%  
Commercial, secured by real estate | Maximum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortization period of loan products 25 years  
Balloon payment terms of loan products 10 years  
Adjustable interest rate periods of loan products 10 years  
Loan to appraised value ratio of loan products 85.00%  
Residential real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Home equity lines of credit draw period of residential real estate loans 5 years  
Total loans $ 335,106,000 310,085,000
Residential real estate | Minimum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortization period of loan products 5 years  
Adjustable interest rate periods of loan products 1 year  
Loan to appraised value ratio of loan products 80.00%  
Residential real estate | Maximum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortization period of loan products 30 years  
Adjustable interest rate periods of loan products 10 years  
Consumer    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 34,291,000 $ 37,052,000
Consumer | Maximum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortization period of loan products 72 months  
Paycheck Protection Program Loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing Receivable, Interest Rate 1.00%  
Financing Receivable, Number Of Contracts | Bank_Loan 358 316
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year   $ 45,500,000
Financing Receivable, Year One, Originated, Current Fiscal Year $ 38,300,000  
Total loans $ 6,900,000  
Paycheck Protection Program Loans | Minimum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortization period of loan products 2 years  
Paycheck Protection Program Loans | Maximum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Amortization period of loan products 5 years  
v3.22.0.1
LOANS, LOANS PORTFOLIO BY CREDIT QUALITY INDICATORS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans $ 1,369,445 $ 1,299,421
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1,328,417 1,262,570
OAEM    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 25,093 10,284
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 15,935 26,567
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Commercial & industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 101,598 99,596
Commercial & industrial | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 98,694 97,391
Commercial & industrial | OAEM    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 2,757 0
Commercial & industrial | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 147 2,205
Commercial & industrial | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Commercial, secured by real estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 887,679 842,209
Commercial, secured by real estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 851,709 811,558
Commercial, secured by real estate | OAEM    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 22,336 9,279
Commercial, secured by real estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 13,634 21,372
Commercial, secured by real estate | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Residential real estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 335,106 310,085
Residential real estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 332,962 306,092
Residential real estate | OAEM    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 1,005
Residential real estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 2,144 2,988
Residential real estate | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Consumer    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 34,291 37,052
Consumer | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 34,281 37,050
Consumer | OAEM    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Consumer | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 10 2
Consumer | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Agricultural    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 10,649 10,116
Agricultural | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 10,649 10,116
Agricultural | OAEM    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Agricultural | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Agricultural | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Other    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 122 363
Other | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 122 363
Other | OAEM    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Other | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Other | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans $ 0 $ 0
v3.22.0.1
LOANS, LOANS PORTFOLIO AGING ANALYSIS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 1,369,445 $ 1,299,421
Total Loans Greater Than 90 Days and Accruing 56 0
Commercial & industrial    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 101,598 99,596
Total Loans Greater Than 90 Days and Accruing 0 0
Commercial, secured by real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 887,679 842,209
Total Loans Greater Than 90 Days and Accruing 0 0
Residential real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 335,106 310,085
Total Loans Greater Than 90 Days and Accruing 51 0
Consumer    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 34,291 37,052
Total Loans Greater Than 90 Days and Accruing 5 0
Agricultural    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 10,649 10,116
Total Loans Greater Than 90 Days and Accruing 0 0
Other    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 122 363
Total Loans Greater Than 90 Days and Accruing 0 0
30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,455 577
30-59 Days Past Due | Commercial & industrial    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
30-59 Days Past Due | Commercial, secured by real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 181 16
30-59 Days Past Due | Residential real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,130 497
30-59 Days Past Due | Consumer    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 22 4
30-59 Days Past Due | Agricultural    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
30-59 Days Past Due | Other    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 122 60
60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 6 220
60-89 Days Past Due | Commercial & industrial    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
60-89 Days Past Due | Commercial, secured by real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
60-89 Days Past Due | Residential real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1 219
60-89 Days Past Due | Consumer    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 5 1
60-89 Days Past Due | Agricultural    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
60-89 Days Past Due | Other    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
Greater Than 90 Days    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 898 2,151
Greater Than 90 Days | Commercial & industrial    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
Greater Than 90 Days | Commercial, secured by real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 784 1,476
Greater Than 90 Days | Residential real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 109 675
Greater Than 90 Days | Consumer    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 5 0
Greater Than 90 Days | Agricultural    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
Greater Than 90 Days | Other    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
Financial Asset, Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 2,359 2,948
Financial Asset, Past Due | Commercial & industrial    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
Financial Asset, Past Due | Commercial, secured by real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 965 1,492
Financial Asset, Past Due | Residential real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,240 1,391
Financial Asset, Past Due | Consumer    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 32 5
Financial Asset, Past Due | Agricultural    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 0 0
Financial Asset, Past Due | Other    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 122 60
Financial Asset, Not Past Due    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 1,367,086 1,296,473
Financial Asset, Not Past Due | Commercial & industrial    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 101,598 99,596
Financial Asset, Not Past Due | Commercial, secured by real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 886,714 840,717
Financial Asset, Not Past Due | Residential real estate    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 333,866 308,694
Financial Asset, Not Past Due | Consumer    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 34,259 37,047
Financial Asset, Not Past Due | Agricultural    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable 10,649 10,116
Financial Asset, Not Past Due | Other    
Financing Receivable, Past Due [Line Items]    
Total Loans Receivable $ 0 $ 303
v3.22.0.1
LOANS, IMPAIRED LOANS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Financing Receivable, Impaired [Line Items]      
Financing Receivable, Modifications, with No Related Allowance, Recorded Investment $ 101 $ 4  
With no related allowance recorded [Abstract]      
Recorded Investment 5,486 9,861  
Unpaid Principal Balance 6,909 11,377  
Average Recorded Investment 8,912 11,648 $ 17,610
Interest Income Recognized 848 1,419 1,643
With an allowance recorded [Abstract]      
Recorded Investment 1,036 3,492  
Unpaid Principal Balance 1,041 3,795  
Related Allowance 25 52  
Average Recorded Investment 1,079 2,136 3,308
Interest Income Recognized 59 48 115
Total [Abstract]      
Recorded Investment 6,522 13,353  
Unpaid Principal Balance 7,950 15,172  
Average Recorded Investment 9,991 13,784 20,918
Interest Income Recognized 907 1,467 1,758
Interest income recognized on a cash basis 37 34 42
Financing Receivable, Modifications, with Related Allowance, Recorded Investment 0 1,539  
Commercial & industrial      
With no related allowance recorded [Abstract]      
Recorded Investment 88 362  
Unpaid Principal Balance 316 646  
Average Recorded Investment 236 1,044 836
Interest Income Recognized 83 335 83
With an allowance recorded [Abstract]      
Recorded Investment 155 194  
Unpaid Principal Balance 160 199  
Related Allowance 5 8  
Average Recorded Investment 175 212 247
Interest Income Recognized 10 12 15
Total [Abstract]      
Recorded Investment 243 556  
Unpaid Principal Balance 476 845  
Average Recorded Investment 411 1,256 1,083
Interest Income Recognized 93 347 98
Commercial, secured by real estate      
With no related allowance recorded [Abstract]      
Recorded Investment 3,897 6,050  
Unpaid Principal Balance 4,736 6,735  
Average Recorded Investment 5,978 7,070 12,748
Interest Income Recognized 411 731 1,213
With an allowance recorded [Abstract]      
Recorded Investment 660 2,611  
Unpaid Principal Balance 660 2,908  
Related Allowance 11 17  
Average Recorded Investment 674 1,517 2,513
Interest Income Recognized 36 18 64
Total [Abstract]      
Recorded Investment 4,557 8,661  
Unpaid Principal Balance 5,396 9,643  
Average Recorded Investment 6,652 8,587 15,261
Interest Income Recognized 447 749 1,277
Residential real estate      
With no related allowance recorded [Abstract]      
Recorded Investment 1,501 3,261  
Unpaid Principal Balance 1,857 3,695  
Average Recorded Investment 2,553 3,290 3,704
Interest Income Recognized 227 316 311
With an allowance recorded [Abstract]      
Recorded Investment 221 686  
Unpaid Principal Balance 221 687  
Related Allowance 9 27  
Average Recorded Investment 230 404 528
Interest Income Recognized 13 18 35
Total [Abstract]      
Recorded Investment 1,722 3,947  
Unpaid Principal Balance 2,078 4,382  
Average Recorded Investment 2,783 3,694 4,232
Interest Income Recognized 240 334 346
Consumer      
With no related allowance recorded [Abstract]      
Recorded Investment 0 4  
Unpaid Principal Balance 0 4  
Average Recorded Investment 1 10 12
Interest Income Recognized 0 1 1
With an allowance recorded [Abstract]      
Recorded Investment 0 1  
Unpaid Principal Balance 0 1  
Related Allowance 0 0  
Average Recorded Investment 0 3 20
Interest Income Recognized 0 0 1
Total [Abstract]      
Recorded Investment 0 5  
Unpaid Principal Balance 0 5  
Average Recorded Investment 1 13 32
Interest Income Recognized 0 1 2
Agricultural      
With no related allowance recorded [Abstract]      
Recorded Investment 0 0  
Unpaid Principal Balance 0 0  
Average Recorded Investment 0 0 0
Interest Income Recognized 0 0 0
With an allowance recorded [Abstract]      
Recorded Investment 0 0  
Unpaid Principal Balance 0 0  
Related Allowance 0 0  
Average Recorded Investment 0 0 0
Interest Income Recognized 0 0 0
Total [Abstract]      
Recorded Investment 0 0  
Unpaid Principal Balance 0 0  
Average Recorded Investment 0 0 0
Interest Income Recognized 0 0 0
Other      
With no related allowance recorded [Abstract]      
Recorded Investment 0 184  
Unpaid Principal Balance 0 297  
Average Recorded Investment 144 234 310
Interest Income Recognized 127 36 35
With an allowance recorded [Abstract]      
Recorded Investment 0 0  
Unpaid Principal Balance 0 0  
Related Allowance 0 0  
Average Recorded Investment 0 0 0
Interest Income Recognized 0 0 0
Total [Abstract]      
Recorded Investment 0 184  
Unpaid Principal Balance 0 297  
Average Recorded Investment 144 234 310
Interest Income Recognized $ 127 $ 36 $ 35
v3.22.0.1
LOANS, TROUBLED DEBT RESTRUCTURING (Details)
12 Months Ended
Dec. 31, 2021
USD ($)
Loan
Dec. 31, 2020
USD ($)
Loan
Dec. 31, 2019
USD ($)
Loan modifications classified as troubled debt restructurings [Abstract]      
Number of Loans (in loan) | Loan 3 3  
Pre-Modification Recorded Balance $ 97,000 $ 1,544,000  
Post-Modification Recorded Balance 101,000 1,543,000  
Loans modified that subsequently defaulted 0 0 $ 0
Modified impaired loans without a valuation allowance 101,000 4,000  
Modified impaired loans with valuation allowance 0 1,539,000  
Financing Receivable, Short Term Modifications, Dollar Amount, End Of Period 0 1,553,000  
Financing Receivable, CARES Act Section 4013 Modifications, Dollar Amount, End Of Period 0 19,023,000  
Federal Home Loan Mortgage Corporation and Other Investors      
Loan modifications classified as troubled debt restructurings [Abstract]      
Unpaid principal balances of loans sold and serviced for the Federal Home Loan Mortgage Corporation $ 149,382,000 $ 137,188,000  
Commercial & industrial      
Loan modifications classified as troubled debt restructurings [Abstract]      
Number of Loans (in loan) | Loan 0 1  
Pre-Modification Recorded Balance $ 0 $ 5,000  
Post-Modification Recorded Balance $ 0 $ 4,000  
Commercial, secured by real estate      
Loan modifications classified as troubled debt restructurings [Abstract]      
Number of Loans (in loan) | Loan 0 1  
Pre-Modification Recorded Balance $ 0 $ 1,525,000  
Post-Modification Recorded Balance $ 0 $ 1,525,000  
Residential real estate      
Loan modifications classified as troubled debt restructurings [Abstract]      
Number of Loans (in loan) | Loan 3 1  
Pre-Modification Recorded Balance $ 97,000 $ 14,000  
Post-Modification Recorded Balance $ 101,000 $ 14,000  
Consumer      
Loan modifications classified as troubled debt restructurings [Abstract]      
Number of Loans (in loan) | Loan 0 0  
Pre-Modification Recorded Balance $ 0 $ 0  
Post-Modification Recorded Balance $ 0 $ 0  
v3.22.0.1
LOANS, TROUBLED DEBT RESTRUCTURINGS, MODIFICATION TYPE (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance $ 101 $ 1,543
Commercial & industrial    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 4
Commercial, secured by real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 1,525
Residential real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 101 14
Consumer    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Term Modification    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 32 0
Term Modification | Commercial & industrial    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Term Modification | Commercial, secured by real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Term Modification | Residential real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 32 0
Term Modification | Consumer    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Rate Modification    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Rate Modification | Commercial & industrial    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Rate Modification | Commercial, secured by real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Rate Modification | Residential real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Rate Modification | Consumer    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Interest Only    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Interest Only | Commercial & industrial    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Interest Only | Commercial, secured by real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Interest Only | Residential real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Interest Only | Consumer    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Principal Forgiveness [Member]    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Principal Forgiveness [Member] | Commercial & industrial    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Principal Forgiveness [Member] | Commercial, secured by real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Principal Forgiveness [Member] | Residential real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Principal Forgiveness [Member] | Consumer    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 0
Combination    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 69 1,543
Combination | Commercial & industrial    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 4
Combination | Commercial, secured by real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 0 1,525
Combination | Residential real estate    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance 69 14
Combination | Consumer    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Post-Modification Recorded Balance $ 0 $ 0
v3.22.0.1
LOANS, ACTIVITY IN MORTGAGE SERVICING RIGHTS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Receivables [Abstract]        
Servicing Asset at Amortized Cost $ 1,039 $ 976 $ 483 $ 475
Amount capitalized to mortgage servicing rights 409 719 156  
Amortization of mortgage servicing rights $ (346) $ (226) $ (148)  
v3.22.0.1
ACQUIRED CREDIT IMPAIRED LOANS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans, net $ 1,363,939 $ 1,293,693
Financial Receivable Acquired Credit Impaired    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans, net 2,863 4,900
Financial Receivable Acquired Credit Impaired | Commercial & industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 88 362
Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 1,612 2,048
Financial Receivable Acquired Credit Impaired | Residential real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 1,163 2,306
Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 0 184
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans, net 773 1,629
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | Commercial & industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 0 249
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 310 601
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | Residential real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 463 595
Eaton National Bank & Trust Co. [Member] | Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 0 184
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans, net 739 865
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | Commercial & industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 0 0
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 688 780
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | Residential real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 51 85
BNB Bancorp, Inc [Member] | Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 0 0
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans, net 952 1,956
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | Commercial & industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 87 112
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 614 667
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | Residential real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 251 1,177
Columbus First Bancorp, Inc. | Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 0 0
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans, net 399 450
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | Commercial & industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 1 1
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | Commercial, secured by real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 0 0
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | Residential real estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired 398 449
First Capital Bancshares, Inc. [Member] | Financial Receivable Acquired Credit Impaired | Other loans, including deposit overdrafts    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans acquired $ 0 $ 0
v3.22.0.1
ACQUIRED CREDIT IMPAIRED LOANS, OUTSTANDING BALANCE AND CARRYING AMOUNT (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Outstanding balance $ 3,769 $ 6,128  
Carrying amount 2,863 4,900  
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield $ 116 $ 182 $ 480
v3.22.0.1
ACQUIRED CREDIT IMPAIRED LOANS, ACCRETABLE DISCOUNT RELATED TO ACQUIRED IMPAIRED LOANS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield $ 116 $ 182 $ 480
Reclass from nonaccretable discount to accretable discount 266 401  
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion $ (332) $ (699)  
v3.22.0.1
OTHER REAL ESTATE OWNED (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Other Real Estate [Roll Forward]    
Balance, beginning of year $ 0 $ 197
Reductions due to sales 0 (197)
Balance, end of year 0 $ 0
Residential real estate in the process of foreclosure $ 58  
v3.22.0.1
PREMISES AND EQUIPMENT (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Premises and equipment [Abstract]      
Premises and equipment, gross $ 61,180 $ 59,574  
Less accumulated depreciation 25,795 24,198  
Premises and equipment, net 35,385 35,376  
Depreciation charged 1,931 1,834 $ 1,770
Land      
Premises and equipment [Abstract]      
Premises and equipment, gross 8,512 7,933  
Buildings      
Premises and equipment [Abstract]      
Premises and equipment, gross 31,296 30,789  
Equipment      
Premises and equipment [Abstract]      
Premises and equipment, gross 17,272 16,431  
Construction in progress      
Premises and equipment [Abstract]      
Premises and equipment, gross $ 4,100 $ 4,421  
v3.22.0.1
LEASES (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Operating Leased Assets [Line Items]      
Operating Lease, Cost $ 840 $ 666  
Short-term Lease, Cost 48 48  
Variable Lease, Cost 4 10  
Other Lease Expense 10 7  
Lease, Cost 902 731 $ 627
Operating Lease, Payments 757    
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability $ 801 1,388 $ 5,775
Operating Lease, Weighted Average Remaining Lease Term 32 years 10 months 24 days    
Operating Lease, Weighted Average Discount Rate, Percent 3.40%    
Minimum annual rentals payment [Abstract]      
2017 $ 598    
2018 574    
2019 577    
2020 398    
2021 256    
Thereafter 10,226    
Lessee, Operating Lease, Liability, Payments, Due 12,629    
Lessee, Operating Lease, Liability, Undiscounted Excess Amount 6,156    
Operating Lease, Liability $ 6,473 $ 6,371  
Oakwood Lease [Member]      
Operating Leased Assets [Line Items]      
Lessee, Operating Lease, Remaining Lease Term 15 years    
Lessee, Operating Lease, Renewal Term 5 years    
Lessee, Operating Lease, Number Of Renewal Options 6    
Oxford Lease [Member]      
Operating Leased Assets [Line Items]      
Lessee, Operating Lease, Remaining Lease Term 38 years    
Lessee, Operating Lease, Number Of Renewal Options 0    
Other Leases [Member]      
Operating Leased Assets [Line Items]      
Lessee, Operating Lease, Renewal Term 5 years    
Minimum | Other Leases [Member]      
Operating Leased Assets [Line Items]      
Lessee, Operating Lease, Remaining Lease Term 1 year    
Maximum [Member] | Other Leases [Member]      
Operating Leased Assets [Line Items]      
Lessee, Operating Lease, Remaining Lease Term 9 years    
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS, CHANGES IN GOODWILL (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Balance, beginning of year $ 59,221 $ 59,221
Additions from acquisitions 0 0
Balance, end of year $ 59,221 $ 59,221
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS, OTHER INTANGIBLE ASSETS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Other intangible assets included in other assets [Abstract]    
Gross Intangible Assets $ 10,867 $ 10,482
Accumulated Amortization 8,394 7,029
Net Intangible Assets 2,473 3,453
Core deposit intangibles    
Other intangible assets included in other assets [Abstract]    
Gross Intangible Assets 8,544 8,544
Accumulated Amortization 7,110 6,067
Net Intangible Assets 1,434 2,477
Mortgage servicing rights    
Other intangible assets included in other assets [Abstract]    
Gross Intangible Assets 2,323 1,938
Accumulated Amortization 1,284 962
Net Intangible Assets $ 1,039 $ 976
v3.22.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS, ESTIMATED AGGREGATE FUTURE AMORTIZATION EXPENSE (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Estimated aggregate future amortization expense [Abstract]  
2017 $ 597
2018 544
2019 422
2020 222
2021 $ 46
v3.22.0.1
AFFORDABLE HOUSING TAX CREDIT LIMITED PARTNERSHIP (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]      
Affordable housing tax credit investment $ 14,950 $ 12,000  
Less amortization 2,126 1,320  
Net affordable housing tax credit investment 12,824 10,680  
Unfunded commitment $ 8,655 8,237  
Funding period for unfunded commitment 13 years    
Tax credits and other tax benefits recognized $ 995 612 $ 387
Tax credit amortization expense included in provision for income taxes $ 806 $ 510 $ 318
v3.22.0.1
CERTIFICATES OF DEPOSIT (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Contractual maturities of time deposits [Abstract]    
2017 $ 121,807  
2018 43,286  
2019 4,484  
2020 7,956  
2021 9,045  
Thereafter 6,864  
Time deposits 193,442  
Time deposits of $250,000 or more $ 25,123 $ 35,584
v3.22.0.1
BORROWINGS, FUNDS BORROWED FROM FHLB (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Funds borrowed from the FHLB at December 31 by year of maturity    
Due in next twelve months $ 5,000 $ 12,000
Due in year two 5,000 5,000
Due in year three 0 5,000
Long-term debt $ 10,000 $ 22,000
Average rate of funds borrowed from the FHLB at December 31 by year of maturity    
Due in next twelve months (as a percent) 2.97% 2.42%
Due in year two (as a percent) 3.02% 2.97%
Due in year three (as a percent) 0.00% 3.02%
Weighted average interest rate (as a percent) 3.00% 2.68%
v3.22.0.1
BORROWINGS, NARRATIVE (Details)
12 Months Ended
Dec. 31, 2021
USD ($)
institution
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]    
Pledged financial instruments for Federal Home Loan Bank $ 303,000,000 $ 276,000,000
FHLB remaining borrowing capacity $ 186,600,000  
Number of financial institution (in institution) | institution 2  
Line of Credit Facility, Maximum Borrowing Capacity $ 20,000,000  
Other Short-term Borrowings $ 0 $ 0
Federal Funds Rate    
Debt Instrument [Line Items]    
Debt Instrument, Basis Spread on Variable Rate 0.50%  
Correspondent Bank Number One [Member]    
Debt Instrument [Line Items]    
Line of Credit Facility, Maximum Borrowing Capacity $ 25,000,000  
Correspondent Bank Number Two [Member]    
Debt Instrument [Line Items]    
Line of Credit Facility, Maximum Borrowing Capacity $ 30,000,000  
v3.22.0.1
BORROWINGS, SHORT TERM DEBT (Details)
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Short-term Debt [Line Items]  
Line of Credit Facility, Maximum Borrowing Capacity $ 20.0
Correspondent Bank Number One [Member]  
Short-term Debt [Line Items]  
Line of Credit Facility, Maximum Borrowing Capacity 25.0
Correspondent Bank Number Two [Member]  
Short-term Debt [Line Items]  
Line of Credit Facility, Maximum Borrowing Capacity 30.0
Federal Home Loan Bank, REPO Based Advance Program [Member]  
Short-term Debt [Line Items]  
Line of Credit Facility, Maximum Borrowing Capacity $ 81.8
Short-Term Debt, Minimum Term 1 day
Short-Term Debt, Maximum Term 1 year
Line of Credit Facility, Expiration Date Feb. 11, 2022
Federal Funds Rate  
Short-term Debt [Line Items]  
Debt Instrument, Basis Spread on Variable Rate 0.50%
v3.22.0.1
INCOME TAXES, PROVISION FOR FEDERAL INCOME TAXES (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Provision for federal income taxes [Abstract]      
Income taxes currently payable $ 4,317 $ 3,951 $ 3,694
Deferred income tax provision 294 134 419
Provision for income taxes $ 4,611 $ 4,085 $ 4,113
v3.22.0.1
INCOME TAXES, EFFECTIVE INCOME TAX RATE RECONCILIATION (Details)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation between the statutory income tax and effective tax rate [Abstract]      
Statutory tax rate 21.00% 21.00% 21.00%
Increase (decrease) resulting from -      
Tax exempt interest (0.70%) (0.90%) (1.40%)
Tax exempt income on bank owned life insurance (0.90%) (1.30%) (0.90%)
Captive insurance premium income (0.80%) (0.80%) (0.80%)
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent 0.00% (0.80%) 0.00%
Other – net (0.60%) (0.30%) 0.00%
Effective tax rate 18.00% 16.90% 17.90%
v3.22.0.1
INCOME TAXES, DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:    
Allowance for loan losses $ 1,156 $ 1,203
Net unrealized losses on investment securities available-for-sale 408 0
Fair value adjustment on loans acquired from mergers 103 196
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation 630 667
Deferred compensation 73 81
Operating Lease, Right-of-Use Asset 1,359 1,338
Other 96 245
Deferred tax assets, gross 3,825 3,730
Deferred tax liabilities:    
Depreciation of premises and equipment (1,595) (1,673)
Amortization of intangibles (1,518) (1,512)
Deferred Tax Liabilities, Prepaid Expenses 323 283
FHLB stock dividends (216) (216)
Deferred Tax Liabilities Operating Lease Liabilities (1,359) (1,338)
Fair value adjustment on securities acquired from mergers 0 (1,156)
Deferred tax liabilities, gross (5,011) (6,178)
Net deferred tax liabilities $ (1,186) $ (2,448)
v3.22.0.1
INCOME TAXES, NARRATIVE (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Unrecognized tax benefits $ 0 $ 0  
Unrecognized interest and penalties $ 0 $ 0 $ 0
v3.22.0.1
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Off-balance sheet risks, liability $ 290,675 $ 217,627
Commercial loans    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Off-balance sheet risks, liability 82,578 24,581
Other loans | Fixed rate    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Off-balance sheet risks, liability 5,196 14,668
Other loans | Adjustable rate    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Off-balance sheet risks, liability 2,784 4,386
Unused lines of credit | Fixed rate    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Off-balance sheet risks, liability 32,655 24,205
Unused lines of credit | Adjustable rate    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Off-balance sheet risks, liability 150,746 133,073
Unused overdraft protection amounts on demand and NOW accounts    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Off-balance sheet risks, liability 16,711 16,471
Standby letters of credit    
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]    
Off-balance sheet risks, liability $ 5 $ 243
v3.22.0.1
REGULATORY MATTERS, NARRATIVE (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Regulatory Assets and Liabilities, Other Disclosures [Abstract]    
Minimum cash reserve balance with Federal Reserve Bank $ 15,121 $ 20,907
Cash Reserve balance 2,482 $ 16,153
Dividend payable from retained earnings without affecting capital position $ 16,145  
Capital Conservation Buffer, Fully Implimented 2.50%  
v3.22.0.1
REGULATORY MATTERS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Ratio of Common Equity Tier 1 Capital to risk-weighted assets        
Minimum Requirement 4.50%      
Minimum Requirement with Capital Conservation Buffer 7.00%      
To Be Considered Well-Capitalized 6.50%      
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 0.060      
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets With Capital Conservation Buffer 8.50%      
Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets 0.080      
Ratio of total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets        
Minimum Requirement 0.080      
Minimum Requirement with Capital Conservation Buffer 10.50%      
To Be Considered Well-Capitalized 0.100      
Leverage ratio (tier 1 capital to adjusted quarterly average total assets)        
Minimum Requirement 0.040      
To Be Considered Well-Capitalized 0.050      
Regulatory Capital:        
Shareholders' equity $ 238,604 $ 240,825 $ 228,048 $ 218,985
2021        
Regulatory Capital:        
Shareholders' equity 234,451 234,092    
Goodwill and other intangible assets (60,655) (61,698)    
Accumulated other comprehensive (income) loss 1,809 (4,043)    
Tier 1 risk-based capital 175,605 168,351    
Eligible allowance for loan losses 5,506 5,728    
Total risk-based capital $ 181,111 $ 174,079    
Capital Ratios:        
Common Equity Tier 1 Capital to risk-weighted assets 12.25% 12.48%    
Tier 1 capital to risk-weighted assets 0.1225 0.1248    
Total capital (tier 1 capital plus tier 2 capital) to risk-weighted assets 0.1264 0.1291    
Leverage ratio (tier 1 capital to adjusted quarterly average total assets) 0.0958 0.1006    
v3.22.0.1
ACCUMULATED OTHER COMPREHENSIVE INCOME, CHANGES IN AOCI (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of year $ 240,825 $ 228,048
Before reclassifications (5,613) 3,545
Reclassifications (239) (175)
Balance at end of year 238,604 240,825
Unrealized Gains and Losses on Available-for-Sale Securities    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of year 4,348 857
Before reclassifications (5,645) 3,666
Reclassifications (239) (175)
Balance at end of year (1,536) 4,348
Changes in Pension Plan Assets and Benefit Obligations    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of year (305) (184)
Before reclassifications 32 (121)
Reclassifications 0 0
Balance at end of year (273) (305)
Accumulated Other Comprehensive Income (Loss)    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance at beginning of year 4,043 673
Balance at end of year $ (1,809) $ 4,043
v3.22.0.1
ACCUMULATED OTHER COMPREHENSIVE INCOME, RECLASSIFICATION OF AOCI (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Net gains (losses) on sales of debt securities $ (303) $ (221) $ 41
Less provision (benefit) for income taxes (4,611) (4,085) $ (4,113)
Reclassification adjustment, net of taxes 239 175  
Unrealized Gains and Losses on Available-for-Sale Securities      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification adjustment, net of taxes 239 175  
Unrealized Gains and Losses on Available-for-Sale Securities | Reclassification out of Accumulated Other Comprehensive Income      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]      
Net gains (losses) on sales of debt securities 303 221  
Less provision (benefit) for income taxes 64 46  
Reclassification adjustment, net of taxes $ 239 $ 175  
v3.22.0.1
RETIREMENT PLANS, NARRATIVE (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Jul. 01, 2020
Jul. 01, 2019
Feb. 01, 2009
age_and_service
Defined Contribution Plan [Abstract]            
Age plus vesting service (less than, in years) | age_and_service           65
Employer's matching contribution to 401(k) of employees hired on or after January 1, 2009 50.00%          
Maximum annual contribution per employee, percent 3.00%          
Minimum annual contribution for employees who received a benefit reduction under plan amendments 5.00%          
Maximum annual contribution for employees who received a benefit reduction under plan amendments 7.00%          
Defined benefit plan, minimum funded percentage       80.00% 80.00%  
Deferred Compensation Arrangements            
Deferred Compensation Arrangements [Abstract]            
Accrued interest on deferred compensation 8.00%          
Deferred compensation liability $ 3,002 $ 3,176        
Qualified noncontributory defined benefit retirement plan            
Defined Contribution Plan [Abstract]            
Expected contribution by employer to noncontributory defined benefit plan 187          
Supplemental Employee Retirement Plan            
Supplemental income plan [Abstract]            
Projected benefit obligation $ 798 $ 901        
Discount rate 5.00% 5.20%        
Service cost $ 0 $ 0 $ 0      
Interest cost $ 42 $ 48 $ 52      
Qualified noncontributory defined benefit retirement plan            
Supplemental income plan [Abstract]            
Discount rate 2.83% 2.52% 3.22%      
Service cost $ 0 $ 0 $ 0      
Interest cost 52 63 $ 77      
Accumulated benefit obligation under nonqualified defined benefit retirement plan 1,999 2,124        
Future amortization of prior service cost 8          
Citizens National Bank            
Defined Contribution Plan [Abstract]            
Qualified noncontributory defined benefit pension plan liability $ 128 $ 182        
v3.22.0.1
RETIREMENT PLANS, COSTS OF RETIREMENT PLANS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]      
401(k) plan expense $ 610 $ 590 $ 524
Qualified noncontributory defined benefit retirement plan      
Defined Benefit Plan Disclosure [Line Items]      
Plan expense $ 1,178 $ 1,111 $ 1,039
v3.22.0.1
RETIREMENT PLANS, NET PERIODIC BENEFIT COSTS (Details) - Qualified noncontributory defined benefit retirement plan - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]      
Service cost $ 0 $ 0 $ 0
Interest cost 52 63 77
Amortization of unrecognized (gain) loss 8 2 0
Net periodic pension cost $ 60 $ 65 $ 77
v3.22.0.1
RETIREMENT PLANS, CHANGES IN PROJECTED BENEFIT OBLIGATION (Details) - Qualified noncontributory defined benefit retirement plan - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of changes in projected benefit obligation [Abstract]      
Projected benefit obligation at beginning of year $ 2,124 $ 2,045 $ 1,900
Service cost 0 0 0
Interest cost 52 63 77
Actuarial (gain) or loss (33) 155 122
Benefits paid (144) (139) (54)
Projected benefit obligation at end of year $ 1,999 $ 2,124 $ 2,045
v3.22.0.1
RETIREMENT PLANS, AMOUNTS RECOGNIZED IN AOCI (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Qualified noncontributory defined benefit retirement plan      
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract]      
Net actuarial (gain)/loss $ 32 $ (122) $ (184)
v3.22.0.1
RETIREMENT PLANS, ASSUMPTIONS USED (Details) - Qualified noncontributory defined benefit retirement plan
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Benefit obligation:      
Discount rate 2.83% 2.52% 3.22%
Salary increase rate 0.00% 0.00% 0.00%
Net periodic pension cost:      
Discount rate 2.52% 3.22% 4.22%
Salary increase rate 0.00% 0.00% 2.00%
Amortization period in years 20 years 1 month 28 days 21 years 2 months 26 days 1 year
v3.22.0.1
RETIREMENT PLANS, ESTIMATED FUTURE BENEFIT PAYMENTS (Details) - Qualified noncontributory defined benefit retirement plan
Dec. 31, 2021
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Contributions, next fiscal year $ 0
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]  
2018 144,000
2019 144,000
2020 144,000
2021 144,000
2022 143,000
2023-2026 $ 669,000
v3.22.0.1
STOCK-BASED COMPENSATION, NARRATIVE (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Period options granted to date vest ratably 5 years    
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 0 $ 0 $ 73
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value $ 0 $ 0 $ 73
Ownership Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for issuance (in shares) 200,000    
Ownership Incentive Plan 2015      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized for issuance (in shares) 450,000    
v3.22.0.1
STOCK-BASED COMPENSATION, STOCK OPTION ACTIVITY (Details) - Stock Options - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 0 $ 0 $ 73
    Options      
Outstanding at beginning of period (in shares) 311 9,904 13,278
Exercised (in shares) (311) (9,593) (3,374)
Expired (in shares) 0 0 0
Outstanding at end of period (in shares) 0 311 9,904
Exercisable at end of period (in shares) 0 311 9,904
Weighted Average Exercise Price      
Outstanding at beginning of period (in dollars per share) $ 12.60 $ 11.96 $ 11.98
Exercised (in dollars per share) 12.60 11.94 12.05
Expired (in dollars per share) 0 0 0
Outstanding at end of period (in dollars per share) 0 12.60 11.96
Exercisable at end of period (in dollars per share) $ 0 $ 12.60 $ 11.96
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value $ 0 $ 0 $ 73
v3.22.0.1
STOCK-BASED COMPENSATION, INFORMATION RELATED TO STOCK OPTIONS EXERCISED (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]      
Intrinsic value of options exercised $ 1 $ 46 $ 20
Cash received from options exercised 4 114 41
Tax benefit realized from options exercised $ 0 $ 5 $ 3
v3.22.0.1
STOCK-BASED COMPENSATION, RESTRICTED STOCK ACTIVITY (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Weighted Average Grant Date Fair Value      
Compensation expense relating to restricted stock $ 249 $ 137 $ 134
Restricted Stock Awards      
Shares      
Beginning of period (in shares) 28,596 17,752 16,958
Granted (in shares) 26,321 19,211 12,504
Vested (in shares) (9,649) (4,817) (11,710)
Forfeited (in shares) (756) (3,550) 0
End of period (in shares) 44,512 28,596 17,752
Weighted Average Grant Date Fair Value      
Beginning of period (usd per share) $ 17.42 $ 18.03 $ 18.94
Granted (usd per share) 16.85 16.87 16.95
Vested (usd per share) 17.49 17.83 18.19
Forfeited (usd per share) 16.86 16.9 0
End of period (usd per share) $ 17.08 $ 17.42 $ 18.03
Compensation expense relating to restricted stock $ 249 $ 137 $ 134
Tax benefit from compensation expense 52 $ 29 $ 28
Restricted stock compensation costs not yet recognized $ 605    
Compensation costs not yet recognized, period for recognition 4 years 2 months 12 days    
v3.22.0.1
EARNINGS PER SHARE (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Earnings Per Share [Abstract]      
Net income $ 20,974 $ 20,075 $ 18,912
Less allocation of earnings and dividends to participating securities 75 45 31
Net income allocated to common shareholders $ 20,899 $ 20,030 $ 18,881
Weighted average common shares outstanding, gross (in shares) 12,635,013 12,943,622 13,100,161
Less average participating securities (in shares) 45,408 29,345 21,241
Weighted average number of shares outstanding used in the calculation of basic earnings per common share (in shares) 12,589,605 12,914,277 13,078,920
Add dilutive effect of:      
Stock options (in shares) 8 307 3,973
Adjusted weighted average number of shares outstanding used in the calculation of diluted earnings per common share (in shares) 12,589,613 12,914,584 13,082,893
Stock Compensation Plan      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 0 0  
v3.22.0.1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Related parties transaction [Roll Forward]    
Beginning balances $ 2,929,000 $ 2,380,000
Additions 250,000 1,139,000
Reductions (641,000) (590,000)
Ending Balance 2,125,000 2,929,000
Deposits from related parties 3,373,000 3,526,000
Change in composition of related parties $ (413,000) $ 0
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS, AT FAIR VALUE (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value $ 308,177 $ 209,471  
Other real estate owned and repossessed assets 0 0 $ 197
Total Loans Receivable 1,369,445 1,299,421  
Equity securities with a readily determinable fair value, at fair value 2,546 2,389  
30-59 Days Past Due      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total Loans Receivable 1,455 577  
60-89 Days Past Due      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total Loans Receivable 6 220  
Greater Than 90 Days      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total Loans Receivable 898 2,151  
Financial Asset, Past Due      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total Loans Receivable 2,359 2,948  
Financial Asset, Not Past Due      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Total Loans Receivable 1,367,086 1,296,473  
Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value 310,723 211,860  
Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value 77,290 4,777  
Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value 233,433 207,083  
Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value 0 0  
Nonrecurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value 1,011 3,439  
Impaired loans 1,011 3,439  
Nonrecurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value 0 0  
Impaired loans 0 0  
Nonrecurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value 0 0  
Impaired loans 0 0  
Nonrecurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Fair Value 1,011 3,439  
Impaired loans 1,011 3,439  
U.S. Treasury notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 74,744 2,388  
U.S. Treasury notes | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 74,744 2,388  
U.S. Treasury notes | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 74,744 2,388  
U.S. Treasury notes | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
U.S. Treasury notes | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
U.S. Agency notes      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 87,246 67,900  
U.S. Agency notes | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 87,246 67,900  
U.S. Agency notes | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
U.S. Agency notes | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 87,246 67,900  
U.S. Agency notes | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
U.S. Agency mortgage-backed securities      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 96,676 91,634  
U.S. Agency mortgage-backed securities | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 96,676 91,634  
U.S. Agency mortgage-backed securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
U.S. Agency mortgage-backed securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 96,676 91,634  
U.S. Agency mortgage-backed securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
Non-taxable municipal securities      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 9,066 12,933  
Non-taxable municipal securities | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 9,066 12,933  
Non-taxable municipal securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
Non-taxable municipal securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 9,066 12,933  
Non-taxable municipal securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
Taxable municipal securities      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 35,293 33,437  
Taxable municipal securities | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 35,293 33,437  
Taxable municipal securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
Taxable municipal securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 35,293 33,437  
Taxable municipal securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
Mutual funds | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 51 50  
Mutual funds | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 51 50  
Mutual funds | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 0 0  
Mutual funds | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 0 0  
Mutual Funds Measured At Net Asset Value [Member] [Domain] | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value   1,352  
Mutual funds measured at net asset value | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 1,328    
Mutual funds measured at net asset value | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 1,328 1,352  
Mutual funds measured at net asset value | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 0 0  
Mutual funds measured at net asset value | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 0 0  
Equity securities | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 1,167 987  
Equity securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 1,167 987  
Equity securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 0 0  
Equity securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Equity securities with a readily determinable fair value, at fair value 0 0  
Corporate Bond Securities      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 5,152 1,179  
Corporate Bond Securities | Recurring fair value measurements      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 5,152 1,179  
Corporate Bond Securities | Recurring fair value measurements | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 0 0  
Corporate Bond Securities | Recurring fair value measurements | Significant Other Observable Inputs (Level 2)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value 5,152 1,179  
Corporate Bond Securities | Recurring fair value measurements | Significant Unobservable Inputs (Level 3)      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Debt securities, available-for-sale, at fair value $ 0 $ 0  
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS, QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS USED IN RECURRING AND NONRECURRING LEVEL 3 INPUTS (Details) - Nonrecurring fair value measurements
$ in Thousands
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value $ 1,011 $ 3,439
Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 1,011 3,439
Impaired Loans, Fair Value Calculated Using Estimated Sales Price [Member] | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value 0 1,352
Impaired Loans, Fair Value Calculated Using Disounted Cash Flows [Member] | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value $ 1,011 $ 2,087
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Impaired Loans [Member] | Maximum | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans Held-for-sale, Measurement Input 0.0825 0.0825
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Impaired Loans [Member] | Minimum | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans Held-for-sale, Measurement Input 0.0400 0.0400
Measurement Input, Discount Rate [Member] | Valuation, Income Approach [Member] | Impaired Loans [Member] | Weighted Average | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans Held-for-sale, Measurement Input 0.0607 0.0474
v3.22.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS, BY BALANCE SHEET GROUPING (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
FINANCIAL ASSETS:    
Debt securities, held-to-maturity $ 23,087 $ 24,960
Accrued interest receivable 7,999 8,337
Carrying Amount    
FINANCIAL ASSETS:    
Cash and cash equivalents 18,136 31,730
Debt securities, held-to-maturity 22,972 24,810
Federal Reserve Bank stock 4,652 4,652
Federal Home Loan Bank stock 5,203 5,203
Loans, net 1,363,939 1,293,693
Accrued interest receivable 7,999 8,337
FINANCIAL LIABILITIES:    
Deposits 1,628,819 1,455,423
Long-term debt 10,000 22,000
Accrued interest payable 277 452
Fair Value    
FINANCIAL ASSETS:    
Cash and cash equivalents 18,136 31,730
Debt securities, held-to-maturity 23,087 24,960
Federal Reserve Bank stock 4,652 4,652
Federal Home Loan Bank stock 5,203 5,203
Loans, net 1,333,840 1,252,642
Accrued interest receivable 7,999 8,337
FINANCIAL LIABILITIES:    
Deposits 1,630,158 1,458,413
Long-term debt 10,292 22,595
Accrued interest payable 277 452
Quoted Prices in Active Markets for Identical Assets (Level 1)    
FINANCIAL ASSETS:    
Cash and cash equivalents 18,136 31,730
Debt securities, held-to-maturity 0 0
Federal Reserve Bank stock 4,652 4,652
Federal Home Loan Bank stock 5,203 5,203
Loans, net 0 0
Accrued interest receivable 0 0
FINANCIAL LIABILITIES:    
Deposits 1,435,487 1,212,903
Long-term debt 0 0
Accrued interest payable 0 0
Significant Other Observable Inputs (Level 2)    
FINANCIAL ASSETS:    
Cash and cash equivalents 0 0
Debt securities, held-to-maturity 0 0
Federal Reserve Bank stock 0 0
Federal Home Loan Bank stock 0 0
Loans, net 0 0
Accrued interest receivable 7,999 8,337
FINANCIAL LIABILITIES:    
Deposits 194,671 245,510
Long-term debt 10,292 22,595
Accrued interest payable 277 452
Significant Unobservable Inputs (Level 3)    
FINANCIAL ASSETS:    
Cash and cash equivalents 0 0
Debt securities, held-to-maturity 23,087 24,960
Federal Reserve Bank stock 0 0
Federal Home Loan Bank stock 0 0
Loans, net 1,333,840 1,252,642
Accrued interest receivable 0 0
FINANCIAL LIABILITIES:    
Deposits 0 0
Long-term debt 0 0
Accrued interest payable $ 0 $ 0
v3.22.0.1
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED BALANCE SHEETS (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
ASSETS:        
Equity securities with a readily determinable fair value, at fair value $ 2,546 $ 2,389    
Other assets, net 21,246 17,027    
TOTAL ASSETS 1,903,629 1,745,884    
Liabilities 1,665,025 1,505,059    
Shareholders' equity 238,604 240,825 $ 228,048 $ 218,985
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,903,629 1,745,884    
Parent Company        
ASSETS:        
Cash on deposit with subsidiary 657 3,648    
Cash 451 175    
Equity securities with a readily determinable fair value, at fair value 1,156 1,001    
Investment in subsidiaries 236,401 235,857    
Other assets, net 180 164    
TOTAL ASSETS 238,845 240,845    
Liabilities 241 20    
Shareholders' equity 238,604 240,825    
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 238,845 $ 240,845    
v3.22.0.1
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED STATEMENTS OF INCOME (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income:      
Interest and dividends $ 61,177 $ 63,780 $ 65,194
Net gain on sales of securities 303 221 (41)
INCOME BEFORE INCOME TAXES 25,585 24,160 23,025
PROVISION FOR INCOME TAXES 4,611 4,085 4,113
NET INCOME 20,974 20,075 18,912
Parent Company      
Income:      
Dividends from subsidiaries 15,820 12,070 18,300
Interest and dividends 34 29 31
Other Income 155 147 215
Total income 16,009 12,246 18,546
Total expenses 1,764 1,326 1,369
INCOME BEFORE INCOME TAXES 14,245 10,920 17,177
PROVISION FOR INCOME TAXES (333) (404) (222)
Equity in undistributed income of subsidiaries 6,396 8,751 1,513
NET INCOME $ 20,974 $ 20,075 $ 18,912
v3.22.0.1
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Net income $ 20,974 $ 20,075 $ 18,912
Adjustments for non-cash items -      
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 17,821 13,678 21,968
Payments to Acquire Debt Securities, Available-for-sale 16 369 367
Cash flows from investing activities:      
Payments to Acquire Debt Securities, Available-for-sale 16 369 367
Proceeds from sales of equity securities 0 967 398
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES (175,219) (80,051) 9,056
Cash flows from financing activities:      
Proceeds from issuance of common stock 434 401 446
Payments to repurchase common stock (8,310) (1,872) (6,834)
Cash dividends paid on common stock (9,720) (9,448) (9,028)
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES 143,804 77,338 (30,299)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 31,730 20,765 20,040
CASH AND CASH EQUIVALENTS AT END OF YEAR 18,136 31,730 20,765
Parent Company      
Cash flows from operating activities:      
Net income 20,974 20,075 18,912
Adjustments for non-cash items -      
Increase in undistributed income of subsidiaries (6,396) (8,751) (1,513)
Other, net 299 (88) 476
NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 14,877 11,236 17,875
Payments to Acquire Debt Securities, Available-for-sale 0 346 337
Cash flows from investing activities:      
Payments to Acquire Debt Securities, Available-for-sale 0 346 337
Proceeds from sales of equity securities 0 463 397
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES 0 117 60
Cash flows from financing activities:      
Proceeds from issuance of common stock 434 401 446
Payments to repurchase common stock (8,310) (1,872) (6,834)
Cash dividends paid on common stock (9,720) (9,448) (9,028)
Other 4 114 41
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES (17,592) (10,805) (15,375)
NET CHANGE IN CASH AND CASH EQUIVALENTS (2,715) 548 2,560
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 3,823 3,275 715
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 1,108 $ 3,823 $ 3,275
v3.22.0.1
Subsequent Events (Details)
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Subsequent Event [Line Items]  
Line of Credit Facility, Maximum Borrowing Capacity $ 20
Line of Credit Facility, Expiration Period 12 months
Line of Credit Facility, Initiation Date Feb. 08, 2022