Note 2 - Restrictions on Cash and Due From Banks

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Restrictions on Cash and Due from Banks Disclosure [Text Block]

Note 2. Restrictions on Cash and Due from Banks

Federal Reserve System regulations require depository institutions to maintain cash reserves against their transaction accounts, primarily interest-bearing and regular checking accounts. The required cash reserves can be in the form of vault cash and, if vault cash does

not

fully satisfy the required cash reserves, in the form of a balance maintained with Federal Reserve Banks. The Board of Governors of the Federal Reserve System generally makes annual adjustments to the tiered cash reserve requirements. Based on Patriot’s deposits in transaction accounts, which were less than the exemption amount of

$16

million, the Bank was

not

subject to a reserve requirement as of

December 

31,

 

2019

and

2018.