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Commitments and Contingent Liabilities
12 Months Ended
Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities

Note 9.Commitments and Contingent Liabilities

 

The Bank has two data processing contractual obligations that began in June 2014 and will end in December 2021.  The expense for these obligations totaled $1.3 million for the year ended December 31, 2020 and $1.2 million for each of the years ended December 31, 2019 and 2018.  In addition, the core data processing contract provides for interchange processing where the expense is based on interchange volume and is more than offset by interchange income on the same transactions.  The net interchange income was $1.2 million for the year ended December 31, 2020 and $1.3 million for each of the years ended December 31, 2019 and 2018.

 

In accordance with Regulation D of the Federal Reserve Act, the Bank is typically required to maintain cash reserve balances on hand or with the Federal Reserve Bank.  In March 2020, the Federal Reserve Bank eliminated the reserve requirement.  For the final weekly reporting period for the year ended December 31, 2020 and 2019, the Bank had no required reserve balances.  

 

In the normal course of business, the Company makes various commitments and incurs certain contingent liabilities, which are not reflected in the accompanying financial statements. These commitments and contingent liabilities include various guarantees, commitments to extend credit and standby letters of credit. The Company does not anticipate any material losses as a result of these commitments.  See Note 15 with respect to financial instruments with off-balance sheet risk.