OTHER BORROWED FUNDS

3 Months Ended

Mar. 31, 2012

OTHER BORROWED FUNDS [Abstract]

OTHER BORROWED FUNDS

NOTE 6 - OTHER BORROWED FUNDS

Other borrowed funds at March 31, 2012 and December 31, 2011 are comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati, promissory notes and Federal Reserve Bank (“FRB") Notes.

	FHLB Borrowings		Promissory Notes		FRB Notes		Totals
March 31, 2012	$	16,345	$	3,748	$	----	$	20,093
December 31, 2011	$	16,548	$	3,748	$	----	$	20,296

Pursuant to collateral agreements with the FHLB, advances are secured by $242,917 in qualifying mortgage loans, $93,108 in commercial loans and $6,281 in FHLB stock at March 31, 2012.  Fixed-rate FHLB advances of $16,345 mature through 2033 and have interest rates ranging from 1.79% to 3.42% and a year-to-date weighted average cost of 2.31%.  There were no variable-rate FHLB borrowings at March 31, 2012.

At March 31, 2012, the Company had a cash management line of credit enabling it to borrow up to $95,000 from the FHLB.  All cash management advances have an original maturity of 90 days.  The line of credit must be renewed on an annual basis.  There was $95,000 available on this line of credit at March 31, 2012.

Based on the Company's current FHLB stock ownership, total assets and pledgeable loans, the Company had the ability to obtain borrowings from the FHLB up to a maximum of $179,938 at March 31, 2012.  Of

this maximum borrowing capacity of $179,938, the Company had $145,094 available to use as additional borrowings, of which $95,000 could be used for short-term, cash management advances, as mentioned above.

Promissory notes, issued primarily by Ohio Valley, have fixed rates of 1.52% to 5.00% and are due at various dates through a final maturity date of December 8, 2014.  At March 31, 2012, there were no promissory notes payable by Ohio Valley to related parties.

21

FRB notes consist of the collection of tax payments from Bank customers under the Treasury Tax and Loan program.  These funds have a variable interest rate and are callable on demand by the U.S. Treasury.  The interest rate for the Company's FRB notes was zero percent at March 31, 2012 and December 31, 2011.  Various investment securities from the Bank used to collateralize FRB notes totaled $725 at December 31, 2011, while no securities were  used as collateral at March 31, 2012.

Letters of credit issued on the Bank's behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $18,500 at March 31, 2012 and $27,000 at December 31, 2011.

Scheduled principal payments as of March 31, 2012:

		FHLB Borrowings		Promissory Notes		FRB Notes		Totals
	2012	$	1,304	$	2,437	$	----	$	3,741
	2013		3,814		166		----		3,980
	2014		3,704		1,145		----		4,849
	2015		1,108		----		----		1,108
	2016		1,026		----		----		1,026
Thereafter			5,389		----		----		5,389
		$	16,345	$	3,748	$	----	$	20,093