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, 2017 and 2016, were as follows:

	2017		2016
	Fixed	Variable	Fixed	Variable
(dollars in thousands)	Rate	Rate	Rate	Rate
Commercial loan lines of credit	$53,998	$1,155,096	$46,940	$1,164,660
Commercial letters of credit	0	50	0	93
Standby letters of credit	0	71,046	0	54,749
Real estate mortgage loans	4,973	5,722	6,116	3,103
Real estate construction mortgage loans	2,365	6,042	0	6,063
Home equity mortgage open-ended revolving lines	0	212,776	0	183,472
Consumer loan open-ended revolving lines	249	11,892	240	9,200
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$61,585	$1,462,624	$53,296	$1,421,340

The index on variable rate commercial loan commitments is principally the national prime rate. Interest rate ranges on commitments and open-ended revolving lines of credit for years ended December 31, 2017 and 2016, were as follows:

	2017				2016
	Fixed		Variable		Fixed		Variable
	Rate		Rate		Rate		Rate
Commercial loan	2.00-14.50	%	2.48-9.50	%	2.71-12.50	%	1.96-8.75	%
Real estate mortgage loan	3.25-4.50	%	3.50-5.75	%	3.13-4.50	%	3.25-5.75	%
Consumer loan open-ended revolving line	15.00	%	4.00-15.00	%	15.00	%	3.00-15.00	%

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.