BLUE RIDGE BANKSHARES, INC.  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  December 31,2012  Note 1. Nature of Operations and Significant Accounting Policies (Continued):  Note 2. Cash and Due From Banks  H (Continued) The Bank has compensating balance agreements with its correspondent bank and The Federal Reserve  Bank of Richmond. The total included in cash and due from banks related to these agreements at  December 31,2012 and 2011 was $275,000.  Subsequent events have been evaluated through March 18, 2013, the date the financial statements  were available to be issued.  Certain amounts have been reclassified from prior year financial statements to ensure consistent  presentation with current year amounts. These reclassifications are for presentation purposes, and have  no impact on overall financial information.  In the ordinary course of business the Bank has entered into commitments to extend credit. Such  fmancial instmments are recorded in the financial statements when they are fiinded.  Bank Owned Life Insurance:  Advertising Costs:  Bank Premises and Equipment:  Income Taxes:  Eamings Per Share:  Financial Instmments:  Reclassified Amounts:  Subsequent Events:  Eamings per share are based on the weighted average number of shares outstanding.  Amounts provided for income tax expense are based on income reported for financial statement  purposes rather than amounts currently payable imder income tax laws. Deferred taxes, which arise  principally from temporary differences between the period in which certain income and expenses are  recognized for financial accounting purposes and the period in which they affect taxable income, are  included in the amounts provided for income taxes.  Bank premises and equipment are stated at cost, less any accumulated depreciation. Depreciation is  recognized over the estimated usefiil lives ofthe assets on a straight-line basis. Maintenance and repairs  are charged to operations as incurred. Gains and losses on dispositions are reflected in noninterest  income or expense.  Advertising costs are expensed as incurred.  The Bank owns and is the beneficiary of several single premium life insurance contracts insuring key  employees of the Bank. The policies are stated at cash surrender value, with changes in value  recorded in income for the year. 