Note 3 - Restricted Cash Balances

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

Note

3.

RESTRICTED CASH BALANCES

FNCB is required to maintain certain average reserve balances as established by the Federal Reserve Bank. The amount of those reserve balances for the reserve computation periods which included

December 31,

2018

 and

2017

 were $

1.6

 million and $

1.8

 million, respectively. FNCB satisfied the required reserve balances through the restriction of vault cash and deposits maintained at the Federal Reserve Bank.

In addition, FNCB maintains compensating balances at correspondent banks, most of which are

not

required, but are used to offset specific charges for services. At

December 31,

2018

 and

2017,

the amount of these balances was $

2.8

 million and $

114

 thousand, respectively.