FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2016

FEDERAL HOME LOAN BANK ADVANCES [Abstract]

FEDERAL HOME LOAN BANK ADVANCES

NOTE 10 – FEDERAL HOME LOAN BANK ADVANCES

The Banks own stock of the Federal Home Loan Bank of Cincinnati, Ohio (FHLB-Cin), and Federal Home Loan Bank of Pittsburgh, Pennsylvania (FHLB-Pitt). This stock allows the Banks to borrow advances from the FHLB.  At December 31, 2016 the total amount of borrowing permitted by the FHLB-Cin was $73,492 and the total amount of borrowing permitted by the FHLB-Pitt was $369,689.

As part of the acquisition of Bankshares, the Company assumed five amortizing advances from FHLB-Pitt to First National Bank, its wholly owned subsidiary, with principal outstanding totaling $1,261 as of the January 15, 2016 acquisition date.  During 2016 the Company paid off the five advances prior to their maturity.  Reported interest expense on the advances includes the periodic accretion of the fair value adjustments and any prepayment penalties incurred.

During 2016 and 2015, the Banks borrowed on a short-term basis and paid-off all FHLB advances as they matured.  There were no borrowings outstanding at December 31, 2016 or 2015.