CASH AND CASH EQUIVALENTS

12 Months Ended

Dec. 31, 2011

Cash and Cash Equivalents [Abstract]

CASH AND CASH EQUIVALENTS

NOTE 2 CASH AND CASH EQUIVALENTS

PSB is required to maintain a certain reserve balance, in cash or on deposit with the Federal Reserve Bank, based upon a percentage of transactional deposits. The total required reserve balance was $25 at December 31, 2011 and 2010.

PSB is also required to provide collateral on interest rate swap agreements with counterparties. The total required collateral on deposit with counterparties was $680 at December 31, 2011 and $350 at December 31, 2010.

In the normal course of business, PSB maintains cash and due from bank balances with correspondent banks, some of which are participating in the Federal Deposit Insurance Corporation’s (FDIC) Transaction Account Guarantee Program. Consequently, the majority of account balances with correspondent banks, except the FHLB and U.S. Bank, were guaranteed at December 31, 2011. PSB also maintains cash balances in money market mutual funds. Such balances are not insured. Uninsured cash and cash equivalent balances totaled $1,151 and $45 at December 31, 2011 and 2010, respectively.