Note 18 - Commitments, Guarantees and Other Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

18.     Commitments, Guarantees and Other Contingencies

Unused lending commitments to clients are not recorded in the Consolidated Balance Sheets until funds are advanced. For commercial clients, lending commitments generally take the form of unused revolving credit arrangements to finance clients’ working capital requirements as well as unused credit arrangements to fund commercial construction. For retail clients, lending commitments are generally unused lines of credit secured by residential property as well as unused credit arrangements to fund residential construction. The Company routinely extends lending commitments for both floating and fixed-rate loans.

The following table summarizes the contractual amounts of the Company’s unused lending commitments relating to extensions of credit with off-balance sheet risk at March 31, 2015 (in thousands).

Commitments to extend credit:
Revolving, open-end loans secured by single-family residential properties	$	70,643
Commercial real estate, construction and land development loans secured by real estate     Single-family residential construction loans		10,805
Commercial real estate, other construction loans, and land development loans		33,392
Commercial and industrial loans		42,377
Overdraft protection loans		31,337
Other		11,294
Total commitments to extend credit	$	199,848

Standby letters of credit are issued for clients in connection with contracts between clients and third parties. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third party. The maximum potential amount of undiscounted future advances related to letters of credit was $3.5 million and $2.7 million at March 31, 2015 and December 31, 2014, respectively.

The reserve for estimated credit losses on unfunded lending commitments at March 31, 2015 and December 31, 2014 was $219 thousand and $472 thousand, respectively.

For disclosure regarding our derivative financial instruments and hedging activities, see Note 19, Derivative Financial Instruments and Hedging Activities.

Contractual Obligations

In March 2013, the Bank entered into a subscription agreement for a limited partnership investment in Plexus Fund III, L.P. (the “Fund”). The Bank’s commitment represents approximately 1.3% of the Fund’s total capital commitments. During 2013 and 2014, the Bank invested $350 thousand and $250 thousand, respectively, into the Fund in connection with its capital call obligation. There were no investments during the three months ended March 31, 2015. As of March 31, 2015, $1.4 million remains subject to additional capital calls by the Fund. Capital calls are at the discretion of the Fund and are expected to be fully invested by 2018.