Note 6. Other Borrowed Funds

6 Months Ended

Jun. 30, 2012

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE 6 - OTHER BORROWED FUNDS

Other borrowed funds at June 30, 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
June 30, 2012	$	16,641	$	3,448	$	----	$	20,089
December 31, 2011	$	16,548	$	3,748	$	----	$	20,296

Pursuant to collateral agreements with the FHLB, advances are secured by $239,135 in qualifying mortgage loans, $87,356 in commercial loans and $6,281 in FHLB stock at June 30, 2012.  Fixed-rate FHLB advances of $16,641 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 June 30, 2012.

At June 30, 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 June 30, 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 $177,137 at June 30, 2012.  Of this maximum borrowing capacity of $177,137, the Company had $143,297 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 1.50% to 5.00% and are due at various dates through a final maturity date of December 8, 2014.  At June 30, 2012, there were no promissory notes payable by Ohio Valley to related parties.

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 June 30, 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 June 30, 2012.

Letters of credit issued on the Bank's behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $17,200 at June 30, 2012 and $27,000 at December 31, 2011.

Scheduled principal payments as of June 30, 2012:

	FHLB Borrowings		Promissory Notes		FRB Notes		Totals
2012	$	1,110	$	1,887	$	----	$	2,997
2013		3,833		166		----		3,999
2014		3,724		1,395		----		5,119
2015		1,129		----		----		1,129
2016		1,047		----		----		1,047
Thereafter		5,798		----		----		5,798
	$	16,641	$	3,448	$	----	$	20,089