Note 2 - Cash and Balances Due From Banks

12 Months Ended

Dec. 31, 2016

Cash and Cash Equivalents Disclosure [Text Block]

(2)

Cash

and

Balances

Due

from

Banks

Components of cash and balances due from banks are as follows as of

December

31:

	20 16		2015

Cash on Hand and Cash Items	$	8,509,530	$	9,061,678
Noninterest-Bearing Deposits with Other Banks		20,312,574		13,194,968

	$	28,822,104	$	22,256,646

The Company is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank based on a percentage of deposits. Reserve balances totaled approximately

$1,417,000

and

$1,275,000

December

31,

2016

and

2015,

respectively.

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

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