Quarterly report pursuant to Section 13 or 15(d)

Off-Balance Sheet Commitments

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Off-Balance Sheet Commitments
 9 Months Ended
Sep. 30, 2011
Off-Balance Sheet Commitments [Abstract]  
OFF-BALANCE SHEET COMMITMENTS

NOTE 10 — OFF-BALANCE SHEET COMMITMENTS

We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The Bank’s exposure to credit losses in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the counterparty.

 

Collateral held varies but may include accounts receivable; inventory; property, plant and equipment; and income-producing or borrower-occupied properties. The following table shows the distribution of undisbursed loan commitments as of the dates indicated:

 

                 
    September 30,
2011		     December 31,
2010		  
    (In Thousands)  

Commitments to Extend Credit

   $ 150,633     $ 178,424  

Standby Letters of Credit

     14,902       15,226  

Commercial Letters of Credit

     7,140       11,899  

Unused Credit Card Lines

     15,937       24,649  
   

 

 

    

 

 

  

Total Undisbursed Loan Commitments

   $ 188,612     $ 230,198