Note 6 - Other Borrowed Funds

3 Months Ended

Mar. 31, 2013

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE 6 - OTHER BORROWED FUNDS

Other borrowed funds at March 31, 2013 and December 31, 2012 are comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati and promissory notes.

	FHLB Borrowings		Promissory Notes		Totals
March 31, 2013	$	10,926	$	3,526	$	14,452
December 31, 2012	$	10,759	$	3,526	$	14,285

Pursuant to collateral agreements with the FHLB, advances are secured by $203,773 in qualifying mortgage loans, $96,434 in commercial loans and $6,281 in FHLB stock at March 31, 2013.  Fixed-rate FHLB advances of $10,926 mature through 2042 and have interest rates ranging from 1.53% to 3.31% and a year-to-date weighted average cost of 2.24%.  There were no variable-rate FHLB borrowings at March 31, 2013.

At March 31, 2013, 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, 2013.

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 $207,282 at March 31, 2013.  Of this maximum borrowing capacity, the Company had $173,155 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 1.15% to 5.00% and are due at various dates through a final maturity date of December 8, 2014.  At March 31, 2013, 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 $23,200 at March 31, 2013 and $14,200 at December 31, 2012.

Scheduled principal payments as of March 31, 2013:

	FHLB Borrowings		Promissory Notes		Totals
2013	$	1,161	$	1,743	$	2,904
2014		1,177		1,783		2,960
2015		1,080		----		1,080
2016		996		----		996
2017		924		----		924
Thereafter		5,588		----		5,588
	$	10,926	$	3,526	$	14,452