ADVANCES FROM THE FEDERAL HOME LOAN BANK OF CINCINNATI

12 Months Ended

Jun. 30, 2012

ADVANCES FROM THE FEDERAL HOME LOAN BANK OF CINCINNATI

NOTE 7—ADVANCES FROM THE FEDERAL HOME LOAN BANK OF CINCINNATI

Short-Term Advances: The Bank maintains two lines of credit totaling $230,000,000 with the FHLB. The $200,000,000 repurchase line matures on February 8, 2013. No borrowings were outstanding on the repurchase line of credit as of June 30, 2012 and June 30, 2011. The Bank has chosen to take daily advances from this line, with the interest rate set daily. The $30,000,000 cash management line matures on September 28, 2012. No borrowings were outstanding on the cash management line as of June 30, 2012 and June 30, 2011. The borrowing capacity on these lines of credit is limited to collateral pledged. At June 30, 2012, Park View Federal had an available borrowing capacity of $10.4 million on these lines.

In order to secure these advances, the Bank has pledged mortgage loans with unpaid principal balances aggregating approximately $45,393,890 and $44,097,091 at June 30, 2012 and 2011, respectively, and FHLB stock.

Long-Term Advances: Long-term advances from the FHLB, with maturities and interest rates thereon at June 30, 2012 and 2011, were as follows:

Maturity	Interest Rate			2012			2011
January 2015		2.82	%	$	15,000,000		$	15,000,000
January 2015		3.04	%		15,000,000			15,000,000
April 2018		3.17	%		5,000,000			5,000,000
				$	35,000,000		$	35,000,000
Weighted average interest rate					2.96	%		2.96	%

The advances outstanding at June 30, 2012 and 2011 were putable fixed-rate advances. They can be terminated at the option of the FHLB after a stated lockout period. If the option is exercised, the Bank could repay this advance without a prepayment penalty.