OTHER BORROWED FUNDS

6 Months Ended

Jun. 30, 2024

OTHER BORROWED FUNDS [Abstract]

OTHER BORROWED FUNDS

NOTE 6 – OTHER BORROWED FUNDS

Other borrowed funds at June 30, 2024 and December 31, 2023 are comprised of advances from the Federal Home Loan Bank (“FHLB”) of Cincinnati and promissory notes.

	FHLB Borrowings		Promissory Notes		Totals
June 30, 2024	$	39,596	$	2,460	$	42,056
December 31, 2023	$	42,199	$	2,394	$	44,593

Pursuant to collateral agreements with the FHLB, advances are secured by $345,679 in qualifying mortgage loans, $34,015 in commercial loans and $2,876 in FHLB stock at June 30, 2024.  Fixed-rate FHLB advances of $39,596 mature through 2042 and have interest rates ranging from 1.53% to 4.91% and a year-to-date weighted average cost of 4.03% at June 30, 2024 and 3.50% at December 31, 2023.  There were no variable-rate FHLB borrowings at June 30, 2024.

At June 30, 2024, the Company had a cash management line of credit enabling it to borrow up to $100,000 from the FHLB, subject to the stock ownership and collateral limitations described in the next paragraph.  All cash management advances have an original maturity of 90 days.  The line of credit must be renewed on an annual basis.  There was $100,000 available on this line of credit at June 30, 2024.

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 $185,225 at June 30, 2024.  Of this maximum borrowing capacity, the Company had $86,730 available to use as additional borrowings, of which $86,730 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 March 13, 2025, and have fixed rates ranging from 3.25% to 5.25% and a year-to-date weighted average cost of 4.79% at June 30, 2024, as compared to 3.79% at December 31, 2023.  At June 30, 2024, there were six promissory notes payable by Ohio Valley to related parties totaling $2,460. There were no promissory notes payable to other banks at June 30, 2024 or December 31, 2023.

Letters of credit issued on the Bank’s behalf by the FHLB to collateralize certain public unit deposits as required by law totaled $58,900 at June 30, 2024 and $52,350 at December 31, 2023.

Scheduled principal payments as of June 30, 2024:

	FHLB Borrowings		Promissory Notes		Totals
2024	$	2,809	$	781	$	3,590
2025		4,983		1,679		6,662
2026		12,908		—		12,908
2027		11,397		—		11,397
2028		1,349		—		1,349
Thereafter		6,150		—		6,150
	$	39,596	$	2,460	$	42,056