Note N - Employee Benefits

12 Months Ended

Dec. 31, 2016

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note

- Employee Benefits

The 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

$290,

$288,

and

$278

for

2016,

2015

and

2014.

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

350,170

and

322,056

December

31,

2016

and

2015.

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

	Years ended December 31
	2016		2015		2014

Number of shares issued		24,572		----		14,618

Fair value of stock contributed	$	575	$	----	$	351

Cash contributed		----		674		300

Total expense	$	575	$	674	$	651

Life insurance contracts with a cash surrender value of

$27,343

and annuity assets of

$2,006

December

31,

2016

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

$6,328

and

$6,033

December

31,

2016

and

2015.

Expenses related to the plans for each of the last

three

years amounted to

$399,

$338,

and

$604.

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

$3,007

December

31,

2016

and

$3,062

December

31,

2015.

During the

fourth

quarter of

2015,

the Company recorded

$941

in proceeds expected to be received from the settlement of

two

BOLI policies. The triggering event occurred in

December

2015,

resulting in a

$908

reduction to BOLI assets and a net gain of

$33

that was recorded to income. The proceeds of

$941

had not yet been collected by year-end

2015

and, therefore, were recorded as other assets at

December

31,

2015.