Restrictions on Cash and Due from Banks and Interest-earning Deposit Accounts

12 Months Ended

Dec. 31, 2011

Restrictions on Cash and Due from Banks and Interest-earning Deposit Accounts [Abstract]

Restrictions on Cash and Due from Banks and Interest-earning Deposit Accounts

Note 2. Restrictions on Cash and Due from Banks and Interest-earning Deposit Accounts

The Bank maintains reserve balances under Federal Reserve Bank requirements. The reserve requirement at December 31, 2011 and 2010 was $6.2 million and $5.8 million, respectively, and was satisfied by vault cash held at the Bank’s branches. No additional reserves were required to be maintained at the Federal Reserve Bank of Philadelphia in excess of the required $25 thousand clearing balance requirement. The average balances at the Federal Reserve Bank of Philadelphia were $60.7 million and $47.9 million for the years ended December 31, 2011 and 2010, respectively.

The Corporation also maintains interest-earning deposit accounts at other financial institutions as collateral for Risk Participation Agreements. The pledging requirement at December 31, 2011 and 2010 was $1.5 million and $430 thousand, respectively. See Note 15 — Commitments and Contingencies for additional information.