Restrictions on Cash and Amounts Due from Banks

12 Months Ended

Dec. 31, 2020

Restrictions on Cash and Amounts Due from Banks

Restrictions on Cash and Amounts Due from Banks

Note 2. Restrictions on Cash and Amounts Due from Banks

At the beginning of the year the Bank was required to maintain cash balances on hand or with the Federal Reserve Bank based on average deposit liabilities.  On March 26, 2020 the Board of Governors of the Federal Reserve System set the reserve requirement ratios to zero percent and reserve requirements were no longer administered.  On December 22, 2020 the zero percent reserve requirement ratio was extended for three years.  At December 31, 2020 and 2019, the average reserve balances were $0.4 million and $1.5 million, respectively.