CASH AND DUE FROM BANKS

3 Months Ended

Mar. 31, 2012

CASH AND DUE FROM BANKS

CASH AND DUE FROM BANKS

NOTE 5 - CASH AND DUE FROM BANKS

The Company maintains cash balances with its correspondent banks to meet reserve requirements determined by the Federal Reserve.  At March 31, 2012, the Bank did not have a deposit on hand with the Federal Reserve Bank to meet this requirement. At December 31, 2011, the reserve requirement was met by the cash balance in the vault.  At March 31, 2012, the Bank had $1.1 million in actual currency and cash on hand, $1.8 million in due from non-interest bearing balances and $235,000 in due from interest bearing balances. At March 31, 2012, the Company had $1.3 million in interest bearing balances which are pledged as collateral against the ESOP borrowing.