Note 3 - Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

3

.    Cash and Cash Equivalents

 

     The Company manages its cash and cash equivalents, which consist of cash on hand, amounts due from banks, federal funds sold, and short-term investments with original maturity of

three

months or less, based upon the Company’s operating, investment, and financing activities. For the purpose of reporting cash flows, these same accounts are included in cash and cash equivalents.

 

The Company is required to maintain reserves with the Federal Reserve Bank. Reserve requirements are based on a percentage of deposit liabilities. The average reserve balances required were

$7.5

million for

2017

and

$1.9

million for

2016

. The average excess balance with Federal Reserve Bank was

$359.5

million in

2017

and

$338.5

million in

2016

.   At

December 31, 2017,

the Bancorp had

$4.5

million on deposit in a cash margin account that serves as collateral for the Bancorp’s interest rate swaps.