Financial Instruments with Off-Balance Sheet Risk

9 Months Ended

Sep. 30, 2018

Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract]

Financial Instruments with Off-Balance Sheet Risk

Note 12 – Financial Instruments with Off-Balance Sheet Risk

In the normal course of business, to meet the financial needs of its customers, the Bank is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

The following table provides information on commitments outstanding at September 30, 2018 and December 31, 2017.

(Dollars in thousands)	September 30, 2018		December 31, 2017
Commitments to extend credit	$	188,961	$	206,065
Letters of credit		6,816		7,142
Total	$	195,777	$	213,207