Cash And Cash Equivalents

9 Months Ended

Sep. 30, 2011

Cash And Cash Equivalents [Abstract]

Cash And Cash Equivalents

5. Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include the balance sheet captions: cash and due from banks and interest-bearing bank balances.

The Company maintains its excess liquidity with the Federal Reserve to reduce credit risks associated with selling those funds to correspondent banks. For the foreseeable future, the Company is intentionally maintaining these higher cash balances to provide liquidity. Assuming that the Company is successful in raising capital and once the banking industry returns to a more stable operating environment, the Company plans to reinvest these cash reserves in higher yielding assets.