Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2011

Commitments and Contingent Liabilities [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 10—COMMITMENTS AND CONTINGENT LIABILITIES

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 to 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:

		September 30,		September 30,		September 30,		September 30,
	2011				2010
	Fixed		Variable		Fixed		Variable
	Rate		Rate		Rate		Rate
Commitments to make loans	$	440	$	10,802	$	1,265	$	4,617
Unused lines of credit	$	28,273	$	46,898	$	29,999	$	32,462

Commitments to make loans are generally made for periods of 30 days or less. The fixed rate loan commitments for 2011 have interest rates ranging from 4.75% to 6.25% and all mature in thirty years. The fixed rate commitments for 2010 have interest rates ranging from 4.75% to 6.25% and maturities ranging from fifteen to thirty years. Fixed rate unused lines of credit have interest rates ranging from 3.25% to 18.00% at December 31, 2011 and December 31, 2010.

Standby letters of credit are considered financial guarantees. The standby letters of credit have a contractual value of $4.0 million in 2011 and $3.2 million in 2010. The carrying amount of these items on the balance sheet is not material.