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Note 2 - Cash and Due From Banks
12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Restrictions on Cash and Due from Banks Disclosure [Text Block]

(2) Cash and Due from Banks

 

At December 31, 2020 and 2019, Bancorp’s interest-bearing cash accounts and non-interest bearing deposits held at other financial institutions exceeded the $250,000 federally insured limits by approximately $86 million and $89 million, respectively. Each correspondent bank’s financial performance and market rating are reviewed on a quarterly basis to ensure Bancorp maintains deposits only at highly rated institutions, providing minimal risk for those exceeding federally insured limits. Additionally, at December 31, 2020 and 2019, Bancorp had approximately $189 million and $113 million at the FHLB and FRB, respectively, which are government-sponsored entities not insured by the FDIC. Bancorp has historically been required to maintain an average reserve balance in cash or with the FRB relating to customer deposits. However, effective March 26, 2020, the FRB reduced the requirement ratio to 0% in response to the COVID-19 pandemic, eliminating the reserve requirements for all depository institutions. The amount of those required reserve balances was approximately $11 million at December 31, 2019 and was included in FFS and interest bearing due from banks in the consolidated balance sheet for that period.