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Restrictions on Cash and Dividends
12 Months Ended
Dec. 31, 2011
Restrictions on Cash and Dividends [Abstract]  
Restrictions on Cash and Dividends
Restrictions on Cash and Dividends

The average balance on deposit with the FRB or other governing bodies to satisfy reserve requirements amounted to $4.5 million and $6.2 million during 2011 and 2010, respectively. The level of this balance is based upon amounts and types of customers’ deposits held by the banking subsidiary of the Corporation. In addition, deposits are maintained with other banks at levels determined by Management based upon the volumes of activity and prevailing interest rates to compensate for check-clearing, safekeeping, collection and other bank services performed by these banks. At December 31, 2011, cash and due from banks included $3.1 million deposited with the FRB and other banks for these reasons.

Dividends paid by the subsidiaries are the principal source of funds to enable the payment of dividends by the Corporation to its shareholders. These payments by the subsidiaries in 2011 were restricted, by the regulatory agencies, principally to the total of 2011 net income plus undistributed net income of the previous two calendar years. Regulatory approval must be obtained for the payment of dividends of any greater amount.