Reserves on Deposit with the Federal Reserve Bank and Federal Bank Stock

12 Months Ended

Dec. 31, 2011

Reserves on Deposit with the Federal Reserve Bank and Federal Bank Stock

5. Reserves on Deposit with the Federal Reserve Bank and Federal Bank Stock

The Bank is required to maintain reserves against customer deposits by keeping balances with the Federal Reserve. The cash balances at the Federal Reserve are classified as cash and cash equivalents. Additionally, as a member of the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”), we are required to hold shares of FHLB and FRB stock under the Bank’s borrowing agreement. FHLB and FRB stock are recorded at cost as a component of other assets, and any cash dividends received are recorded as a component of other noninterest income.

The tables below provide information on the required reserve balances at the Federal Reserve, as well as shares held at the FHLB and FRB for the years ended and as of December 31, 2011 and 2010:

	Year ended December 31,
(Dollars in thousands)	2011		2010
Average required reserve balances at FRB San Francisco	$	91,046	$	46,929
	December 31,
(Dollars in thousands)	2011		2010
FHLB stock holdings	$	25,000	$	25,000
FRB stock holdings		14,189		13,618