Quarterly report pursuant to Section 13 or 15(d)

Off-Balance Sheet Commitments

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Off-Balance Sheet Commitments
 6 Months Ended
Jun. 30, 2014
Risks And Uncertainties [Abstract]  
Off-Balance Sheet Commitments

Note 13 — Off-Balance Sheet Commitments

The Bank is 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 similar to the risk involved with on-balance sheet items 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, was based on management’s credit evaluation of the counterparty.

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

 

     June 30,
2014		      December 31,
2013		  
     (In thousands)  

Commitments to extend credit

    $ 271,225       $ 246,161   

Standby letters of credit

      8,310         8,926   

Commercial letters of credit

      4,066         4,179   

Unused credit card lines

      1,495         12,223   
  

 

 

     

 

 

  

Total undisbursed loan commitments

    $ 285,096       $ 271,489