Note N - Employee Benefits

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note

N

- Employee Benefits

Th

e Bank has a profit-sharing plan for the benefit of its employees and their beneficiaries. Contributions to the plan are determined by the Board of Directors of Ohio Valley. Contributions charged to expense were

$340,

$290,

and

$288

for

2017,

2016

and

2015.

Ohio Valley maintains an Employee Stock Ownership Plan (ESOP) covering substantially all employees of the Company. Ohio Valley issues shares to the ESOP,

purchased by the ESOP with subsidiary cash contributions, which are allocated to ESOP participants based on relative compensation. The total number of shares held by the ESOP, all of which have been allocated to participant accounts, were

361,584

and

350,170

at

December 31, 2017

and

2016.

  In addition, the subsidiaries made contributions to its ESOP Trust as follows: 

	Years ended December 31
	201 7		201 6		201 5
Number of shares issued		15,118		24,572		----
Fair value of stock contributed	$	428	$	575	$	----
Cash contributed		250		----		674
Total expense	$	678	$	575	$	674

Life insurance contracts with a cash surrender value of

$2

6,633

and annuity assets of

$2,042

at

December 31, 2017

have been purchased by the Company, the owner of the policies.  The purpose of these contracts was to replace a current group life insurance program for executive officers, implement a deferred compensation plan for directors and executive officers, implement a director retirement plan and implement supplemental retirement plans for certain officers.  Under the deferred compensation plan, Ohio Valley pays each participant the amount of fees deferred plus interest over the participant’s desired term, upon termination of service.  Under the director retirement plan, participants are eligible to receive ongoing compensation payments upon retirement subject to length of service.  The supplemental retirement plans provide payments to select executive officers upon retirement based upon a compensation formula determined by Ohio Valley’s Board of Directors.  The present value of payments expected to be provided are accrued during the service period of the covered individuals and amounted to

$6,740

and

$6,328

at

December 31, 2017

and

2016.

Expenses related to the plans for each of the last

three

years amounted to

$490,

$399,

and

$338.

In association with the split-dollar life insurance plan, the present value of the postretirement benefit totaled

$2,776

at

December 31, 2017

and

$3,007

at

December 31, 2016.

During

2017,

the Company

collected

$2,107

in proceeds on

two

BOLI policies and

recorded

$1,993

in proceeds expected to be received from the settlement of

two

other BOLI policies. This resulted in a

$3,586

reduction to BOLI assets and a net gain of

$514

that was recorded to income. The proceeds of

$1,993

had

not

yet been collected by year-end

2017

and, therefore, were recorded as other assets at

December 31, 2017.