Note 3 - Restrictions On Cash and Due From Banks

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

NOTE

3.

RESTRICTIONS ON CASH AND DUE FROM BANKS

We have a Fed Funds line of credit with

one

correspondent bank which requires us to hold compensating cash balances of

$450

thousand. We maintained the required compensating balance of

$450

thousand throughout

2019

and

2018.

The Bank is required by federal regulations to set aside specified amounts of cash as reserves against transaction and time deposits. The cash reserve required as of

December 31, 2019

and

December 31, 2018

was

$1.8

million and

$1.4

million, respectively which was satisfied by vault cash balances.