Note 6 - Other Borrowed Funds

9 Months Ended

Sep. 30, 2012

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE 6 - OTHER BORROWED FUNDS

Other borrowed funds at September 30, 2012 and December 31, 2011 are comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati and promissory notes.

	FHLB Borrowings		Promissory Notes		Totals
September 30, 2012	$	16,649	$	3,449	$	20,098
December 31, 2011	$	16,548	$	3,748	$	20,296

Pursuant to collateral agreements with the FHLB, advances are secured by $243,913 in qualifying mortgage loans, $94,381 in commercial loans and $6,281 in FHLB stock at September 30, 2012.  Fixed-rate FHLB advances of $16,649 mature through 2042 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 September 30, 2012.

At September 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 September 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 $180,677 at September 30, 2012.  Of this maximum borrowing capacity of $180,677, the Company had $147,327 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 September 30, 2012, there were no promissory notes payable by Ohio Valley to related parties.

Letters of credit issued on the Bank's behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $16,700 at September 30, 2012 and $27,000 at December 31, 2011.

Scheduled principal payments as of September 30, 2012:

	FHLB Borrowings		Promissory Notes		Totals
2012	$	267	$	1,887	$	2,154
2013		3,814		166		3,980
2014		3,705		1,396		5,101
2015		1,109		----		1,109
2016		1,027		----		1,027
Thereafter		6,727		----		6,727
	$	16,649	$	3,449	$	20,098