Note 6 - Other Borrowed Funds

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE

6

- OTHER BORROWED FUNDS

Other borrowed funds at June 30, 2016 and December 31, 2015 are comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati and promissory notes. At June 30, 2016 and December 31, 2015, FHLB Borrowings included $95 and $117 in capitalized lease obligations, respectively.

	FHLB Borrowings		Promissory Notes		Totals
June 30, 2016	$	27,493	$	3,918	$	31,411
December 31, 2015	$	20,028	$	3,918	$	23,946

Pursuant to collateral agreements with the FHLB, advances were secured by $217,358 in qualifying mortgage loans, $79,674 in commercial loans and $5,081 in FHLB stock at June 30, 2016. Fixed-rate FHLB advances of $27,398 mature through 2042 and have interest rates ranging from 1.34% to 3.31% and a year-to-date weighted average cost of 2.09%. There were no variable-rate FHLB borrowings at June 30, 2016.

At June 30, 2016, the Company had a cash management line of credit enabling it to borrow up to $75,000 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 $75,000 available on this line of credit at June 30, 2016.

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 $180,606 at June 30, 2016. Of this maximum borrowing capacity, the Company had $114,409 available to use as additional borrowings, of which $75,000 could be used for short-term, cash management advances, as mentioned above.

Promissory notes, issued primarily by Ohio Valley, are due at various dates through a final maturity date of May 16, 2018, and have fixed rates ranging from 1.25% to 1.50% and a year-to-date weighted average cost of 1.44% at June 30, 2016, as compared to 1.38% at December 31, 2015. Promissory notes payable by Ohio Valley to related parties totaled $360 at June 30, 2016.

Letters of credit issued on the Bank's behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $38,800 at June 30, 2016 and $34,800 at December 31, 2015.

Scheduled principal payments as of June 30, 2016:

	FHLB Borrowings		Promissory Notes		Totals
2016	$	1,331	$	1,904	$	3,235
2017		5,022		1,502		6,524
2018		1,967		512		2,479
2019		1,906		----		1,906
2020		1,817		----		1,817
Thereafter		15,450		----		15,450
	$	27,493	$	3,918	$	31,411