Restrictions On Cash And Demand Balances In Other Banks

12 Months Ended

Dec. 31, 2011

Restrictions On Cash And Demand Balances In Other Banks Disclosure [Abstract]

Restrictions On Cash And Demand Balances In Other Banks Disclosure [Text Block]

NOTE 2 - RESTRICTIONS ON CASH AND DEMAND BALANCES IN OTHER BANKS

The Bank is subject to average reserve and clearing balance requirements in the form of cash on hand or balances due from the Federal Reserve Bank. The amount of reserve and clearing balances required at December 31, 2011 were $473,000. These reserve balances vary depending on the level of client deposits in the Bank.

The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2011 and 2010, cash equivalents consisted primarily of interest-bearing balances with banks.

As a result of provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act,   all funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the general FDIC deposit insurance coverage of up to $250,000 available to depositors. The financial institution holding the Company’s cash accounts is insured by the FDIC. At December 31, 2011, the Company’s cash accounts did not exceed federally insured limits. At December 31, 2011, the Company had cash balances of $91,673,000 at the FRB and FHLB that did not have FDIC insurance coverage.