Note 2 - Cash, Cash Equivalents and Restricted Cash

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

2.     Cash, Cash Equivalents and Restricted Cash

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 $110 thousand for 2019 and $5.4 million for 2018.  The average excess balance with Federal Reserve Bank was $199.0 million in 2019 and $258.6 million in 2018.  At December 31, 2019, the Bancorp had $7.1 million on deposit in a cash margin account that serves as collateral for the Bancorp’s interest rate swaps.  As of December 31, 2019 and December 31, 2018, the Company held $18.9 million and $7.8 million, respectively, in a restricted escrow account with a major bank for its alternative energy investments.

In the consolidated statement of cash flows, the amounts for the year ended December 31, 2017 have been corrected and differ from the previously reported amounts of $796.3 million for decrease/(increase) in short-term investment and interest bearing deposits, $118.4 million for acquisitions, net of cash acquired, $224.7 million for net cash used by investing activities, $29.0 million increase in cash and cash equivalents, $218.0 million for cash and cash equivalents, beginning of period and $247.1 million for cash and cash equivalents, end of period.