COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 19 - COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

During the normal course of business, the Company becomes a party to financial instruments with off-balance sheet risk in order to meet the financing needs of its customers. These financial instruments include commitments to make loans and open-ended revolving lines of credit. Amounts as of years ended December 31, 2012 and 2011, were as follows:

	2012				2011
	Fixed		Variable		Fixed		Variable
	Rate		Rate		Rate		Rate
	(in thousands)
Commercial loan lines of credit	$	55,422	$	719,393	$	44,800	$	651,767
Commercial letters of credit		0		5,331		0		984
Standby letters of credit		0		32,409		0		39,614
Real estate mortgage loans		17,740		1,189		10,744		3,145
Real estate construction mortgage loans		391		2,715		1,040		2,809
Home equity mortgage open-ended revolving lines		0		136,234		0		126,982
Consumer loan open-ended revolving lines		0		4,607		31		5,086
Total	$	73,553	$	901,878	$	56,615	$	830,387

The index on variable rate commercial loan commitments is principally the Company’s base rate, which is the national prime rate. Interest rate ranges on commitments and open-ended revolving lines of credit for years ended December 31, 2012 and 2011, were as follows:

	2012						2011
	Fixed			Variable			Fixed			Variable
	Rate			Rate			Rate			Rate
Commercial loan		1.00-10.00	%		1.11-7.00	%		1.00-10.00	%		2.00-7.50	%
Real estate mortgage loan		2.625-3.88	%		2.875-5.75	%		3.00-5.50	%		2.88-5.00	%
Consumer loan open-ended revolving line		N/A			2.09-15.00	%		N/A			2.09-15.00	%

Commitments, excluding open-ended revolving lines, generally have fixed expiration dates of one year or less. Open-ended revolving lines are monitored for proper performance and compliance on a monthly basis. Since many commitments expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company follows the same credit policy (including requiring collateral, if deemed appropriate) to make such commitments as it follows for those loans that are recorded in its financial statements.

The Company’s exposure to credit losses in the event of nonperformance is represented by the contractual amount of the commitments. Management does not expect any significant losses as a result of these commitments.