Note 5 – Borrowings

Funds borrowed from the Federal Home Loan Bank of Cincinnati at September 30, 2011 and December 31, 2010 were as follows (dollars in thousands):

	Current Interest Rate			September 30, 2011		December 31, 2010

Fixed Rate Advances, due at maturity:
Advance due February 2011		2.10	%	$	-		5,000
Advance due August 2012		1.99	%		6,000		6,000
Advance due January 2015		2.00	%		5,000		-
Advance due March 2017		5.25	%		5,000		5,000

Fixed Rate Advances, with monthly principal and interest payments:
Advance due March 2014		2.45	%		2,576		3,319
Advance due March 2019		2.82	%		3,142		3,801
				$	21,718		23,120

All advances from the Federal Home Loan Bank of Cincinnati are secured by a blanket pledge of LCNB's 1-4 family first lien mortgage loans in the amount of approximately $143 million and $148 million at September 30, 2011 and December 31, 2010, respectively. Additionally, LCNB was required to hold minimum levels of FHLB stock, based on the outstanding borrowings.

Short-term borrowings at September 30, 2011 and December 31, 2010 are as follows (dollars in thousands):

	September 30, 2011					December 31, 2010
	Amount		Rate			Amount		Rate
U.S. Treasury demand note	$	1,038		-	%	$	1,295		-	%
Federal funds purchased		-		-	%		7,000		0.50	%
Line of credit		-		-	%		3,026		1.00	%
Repurchase agreements		11,348		0.15	%		10,370		0.30	%
	$	12,386		0.14	%	$	21,691		0.44	%