Cash And Cash Equivalents

12 Months Ended

Dec. 31, 2013

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. As of December 31, 2013, PSB had a required reserve of $905, which was satisfied by cash balances of $1,694.

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 $570 at December 31, 2013, and $1,060 at December 31, 2012.

In the normal course of business, PSB maintains cash and due from bank balances with correspondent banks. PSB also maintains cash balances in money market mutual funds. Such balances are not insured. Total uninsured cash and cash equivalent balances totaled $12,045 and $515 at December 31, 2013 and 2012, respectively. At December 31, 2012, some of the correspondent banks were 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. If the TAG program had not been in effect, uninsured cash and cash equivalent balances would have been $18,112 at December 31, 2012. The TAG program expired on January 1, 2013.