Commitments, Contingencies, and Concentrations

3 Months Ended

Mar. 31, 2016

Commitments, Contingencies, and Concentrations [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 10.Commitments, Contingencies, and Concentrations

We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers.  These financial instruments include commitments to extend credit and standby letters of credit.  Such financial instruments are recorded in the financial statements when they become payable. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.  The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments.

Our exposure to credit loss in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments.  We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments.

The contract amounts are as follows:

	March 31,		December 31,
(In thousands)	2016		2015
Financial instruments whose contract amounts represent credit risk:
Open-end lines of credit	$	67,986	$	72,988
Commitments to extend credit		31,927		8,497
Standby letters of credit and financial guarantees written		278		515

In March 2016, we commenced renovations of a 3-story Company-owned building in Narberth, Pennsylvania. It is the site of Royal Bank’s main branch location.  The branch will remain open during construction.  We expect the project to be completed later this year for an approximate cost of $1.3 million.  Its our intention to lease the second and third floors as a revenue source.

Legal Proceedings

From time to time, we are a party to routine legal proceedings within the normal course of business.  Such routine legal proceedings in the aggregate are believed by management to be immaterial to our financial condition or results of operations.