Note 4 - Cash, Cash Equivalents and Restricted Cash

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Cash and Cash Equivalents Disclosure [Text Block]

4. Cash, Cash Equivalents and Restricted Cash

The Company manages its cash and cash equivalents, which consist of cash on hand, amounts due from banks, 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 $222 thousand and $110 thousand for the three months ended March 31, 2020 and for the year ended December 31, 2019, respectively. As of March 31, 2020 and December 31, 2019, the Bancorp had $13.4 million and $7.1 million, respectively, on deposit in a cash margin account that serves as collateral for the Bancorp’s interest rate swaps. As of March 31, 2020 and December 31, 2019, the Company held $10.0 million and $18.9 million, respectively, in a restricted escrow account with a major bank for its alternative energy investments.