Note 3 - Restricted Cash Balances

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

Note

3.

RESTRICTED CASH BALANCES

FNCB is required to maintain average reserve balances as established by the Federal Reserve Bank. The required reserve balance was

$

1.6

million at both

December 31, 2019

and

2018.

FNCB satisfied 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,

2019

 and

2018,

the amount of these balances were

$1.2

million and

$2.8

million, respectively.