Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments: The Company leases locations as well as equipment under various non-cancellable operating leases that expire between 2016 and 2043. The majority of the leases contain renewal options and provisions for increases in rental rates based on an agreed upon index or predetermined escalation schedule. As of December 31, 2015, minimum future rental payments, exclusive of taxes and other charges, of these leases were:



Years Ending December 31,	(in thousands)
2016	$	6,774
2017	5,621
2018	4,983
2019	4,606
2020	3,810
Thereafter	13,968
Total minimum payments	$	39,762

Total rental expense on buildings and equipment, net of rental income of $1.1 million, $756 thousand and $673 thousand, was $7.4 million, $8.3 million and $8.5 million, for the years ended December 31, 2015, 2014 and 2013, respectively.

Financial Instruments with Off-Balance Sheet Risk: In the normal course of business, the Company makes loan commitments (typically unfunded loans and unused lines of credit) and issues standby letters of credit to accommodate the financial needs of its customers.

Standby letters of credit commit the Company to make payments on behalf of customers under specified conditions. Historically, no significant losses have been incurred by the Company under standby letters of credit. Both arrangements have credit risk essentially the same as that involved in extending loans to customers and are subject to the Company’s normal credit policies, including collateral requirements, where appropriate. At December 31, 2015 and 2014, the Company’s loan commitments amounted to $1.93 billion and $1.58 billion, respectively. Standby letters of credit were $38.7 million and $36.7 million at December 31, 2015 and 2014, respectively. In addition, commitments under commercial letters of credit used to facilitate customers’ trade transactions and other off-balance sheet liabilities amounted to $5.0 million and $4.4 million at December 31, 2015 and 2014, respectively.

Legal Proceedings: The Company and its subsidiaries are from time to time defendants in and are threatened with various legal proceedings arising from their regular business activities. Management, after consulting with legal counsel, is of the opinion that the ultimate liability, if any, resulting from these pending or threatened actions and proceedings will not have a material effect on the financial statements of the Company.