Loan Commitments and Other Related Activities

12 Months Ended

Dec. 31, 2021

Loan Commitments and Other Related Activities [Abstract]

Loan Commitments and Other Related Activities

Note 20 – 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:

	2021		2020
	(In thousands)
Commitments to make loans	$	13,384	$	-
Unfunded construction loans		10,352
Unused lines of credit – variable rates		9,326		2,472

Commitments to make loans are generally made for periods of 60 days or less. At December 31, 2021, loan commitments consisted of five (5) multi‑family residential loans with initial five-year interest rates ranging from 3.125% to 3.50%, three (3) commercial real estate loans and with interest rates ranging from 3.25% to 4.05%, and two commercial loans with interest rates ranging from 4.25% to 5%. Unfunded construction loans and line of credit loans have variable interest rates based on prime.

At December 31, 2020, the Bank did not have any commitments to originate loans.