COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

NOTE 18 - 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 the years ended December 31, 2013 and 2012, were as follows:

	2013				2012
	Fixed		Variable		Fixed		Variable
(dollars in thousands)	Rate		Rate		Rate		Rate
Commercial loan lines of credit	$	79,457	$	828,405	$	55,422	$	719,393
Commercial letters of credit		0		80		0		5,331
Standby letters of credit		0		33,575		0		32,409
Real estate mortgage loans		3,865		2,233		17,740		1,189
Real estate construction mortgage loans		927		1,821		391		2,715
Home equity mortgage open-ended revolving lines		0		139,555		0		136,234
Consumer loan open-ended revolving lines		0		5,013		0		4,607
Total	$	84,249	$	1,010,682	$	73,553	$	901,878

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, 2013 and 2012, were as follows:

	2013						2012
	Fixed			Variable			Fixed			Variable
	Rate			Rate			Rate			Rate
Commercial loan		1.83-10.00	%		1.67-7.50	%		1.00-10.00	%		1.11-7.00	%
Real estate mortgage loan		3.375-4.75	%		3.375-4.875	%		2.625-3.88	%		2.875-5.75	%
Consumer loan open-ended revolving line		N/A			2.50-15.00	%		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.