Volunteer Corporate Credit Union and Subsidiary Notes to the Consolidated Financial Statements (In Thousands)

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Cash and Cash Equivalents

Cash and cash equivalents includes cash, deposits held at other financial institutions, and uncollected cash items with original maturities fewer than 90 days.

Uncollected Cash Items and Deposits in Collection

These accounts represent deposits made by VolCorp’s members that have not cleared the Federal Reserve Bank (Federal Reserve). Such amounts generally become available for investment or withdrawal by members within one to three days. The uncollected cash items represent the amounts due from the Federal Reserve, and the deposits in collection represent the amount due to the members when they become available. These amounts are not interest bearing.

Transactions as Agent

VolCorp acts as an agent in facilitating overnight investment transactions between participating member credit unions and the Federal Reserve. Transactions with the Federal Reserve are facilitated via the Excess Balance Account (EBA) pursuant to Regulation D. VolCorp acts as intermediary for these transactions but is not otherwise obligated by the transaction. VolCorp's consolidated financial statements do not reflect these transactions except for the fees earned. At December 31, 2022 and 2021, VolCorp was agent for participating member credit unions on EBA funds totaling $827,845 and $1,712,500, respectively.

Certificates of Deposit

These items are certificates of deposit in various institutions.

Federal Home Loan Bank stock, at Cost

Federal Home Loan Bank (FHLB) capital stock, can only be sold at par or a value as determined by the issuing institution and only to the respective institution or to another member institution. These securities are recorded at cost and evaluated annually for possible impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Central Liquidity Facility Membership Stock

Central Liquidity Facility (CLF) membership stock, can only be sold at par or a value as determined by the CLF and only to the CLF. These securities are recorded at cost and evaluated annually for possible impairment. VolCorp became a member of the CLF as an agent on behalf of a subset of its member credit unions to provide those credit unions access to extensions of credit from the CLF based on liquidity needs. VolCorp does not have access to extensions of credit through the CLF. Volcorp redeemed this stock in 2022 and was not a member as an agent as of December 31, 2022.