Restricted Cash Balances

12 Months Ended

Dec. 31, 2011

Restricted Cash Balances

Restricted Cash Balances

Note 3. Restricted Cash Balances

The Bank is required to maintain reserves against its deposit liabilities in the form of vault cash and/or balances with the Federal Reserve Bank. Deposit reserves that the Bank was required to hold were approximately $815 thousand and $949 thousand at December 31, 2011 and 2010, respectively and were satisfied by the Bank's vault cash. In addition, as compensation for check clearing and other services, a compensatory balance maintained at the Federal Reserve Bank at December 31, 2011 and 2010, was approximately $900 thousand.