Loan Commitments and Other Related Activities

12 Months Ended

Dec. 31, 2013

Loan Commitments and Other Related Activities

Loan Commitments and Other Related Activities

Note 16 – Loan Commitments and Other Related Activities

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk for credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amounts of financial instruments with off-balance-sheet risk at year-end were as follows:

	2013		2012
	(In thousands)
Commitments to make loans – variable rates	$	850	$	141
Unused lines of credit – variable rates		255		399

Commitments to make loans are generally made for periods of 60 days or less. At year-end 2013, loan commitments consisted of one multi-family residential loan with an initial five year interest rate of 3.875%.