OTHER BORROWED FUNDS

6 Months Ended

Jun. 30, 2020

NOTE 6 - OTHER BORROWED FUNDS

Other borrowed funds at June 30, 2020 and December 31, 2019 are comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati and promissory notes.

	FHLB Borrowings		Promissory Notes		Totals

June 30, 2020	$	26,446	$	3,664	$	30,110
December 31, 2019	$	29,758	$	4,233	$	33,991

Pursuant to collateral agreements with the FHLB, advances were secured by $306,417 in qualifying mortgage loans, $79,976 in commercial loans and $5,365 in FHLB stock at June 30, 2020. Fixed-rate FHLB advances of $26,446 mature through 2042 and have interest rates ranging from 1.53% to 3.31% and a year-to-date weighted average cost of 2.40%. There were no variable-rate FHLB borrowings at June 30, 2020.

At June 30, 2020, the Company had a cash management line of credit enabling it to borrow up to $80,000 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 $80,000 available on this line of credit at June 30, 2020.

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 $198,131 at June 30, 2020. Of this maximum borrowing capacity, the Company had $109,288 available to use as additional borrowings, of which $80,000 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 18, 2021, and have fixed rates ranging from 2.00% to 4.09% and a year-to-date weighted average cost of 2.40% at June 30, 2020, as compared to 2.73% at December 31, 2019. There were seven promissory notes payable by Ohio Valley to related parties totaling $3,558 at June 30, 2020, and December 31, 2019. Promissory notes payable to other banks totaled $106 at June 30, 2020, as compared to $405 at December 31, 2019.

Letters of credit issued on the Bank's behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $62,397 at June 30, 2020 and $56,500 at December 31, 2019.

Scheduled principal payments as of June 30, 2020:

	FHLB Borrowings		Promissory Notes		Totals

2020	$	1,541	$	2,104	$	3,645
2021		2,888		1,560		4,448
2022		2,727		—		2,727
2023		2,588		—		2,588
2024		2,214		—		2,214
Thereafter		14,488		—		14,488
	$	26,446	$	3,664	$	30,110