Cash And Cash Equivalents

12 Months Ended

Dec. 31, 2012

Cash and Cash Equivalents [Abstract]

Cash And Cash Equivalents

NOTE 3 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, 2012 and 2011.

PSB is also required to provide collateral on interest rate swap agreement liabilities with counterparties. The total required collateral on deposit with counterparties before any offset against related swap liabilities was $1,060 at December 31, 2012, and $680 at December 31, 2011.

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 (TAG) program. Consequently, the majority of account balances with correspondent banks, except the FHLB, were guaranteed at December 31, 2012. PSB also maintains cash balances in money market mutual funds. Such balances are not insured. Total uninsured cash and cash equivalent balances totaled $515 and $1,247 at December 31, 2012 and 2011, respectively. If the TAG program had not been in effect, uninsured cash and cash equivalent balances would have been $18,112 and $13,679 at December 31, 2012 and 2011, respectively. The TAG program expired on January 1, 2013.