XML 30 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Commitments and Contingent Liabilities
12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments Contingencies and Guarantees [Text Block]
6. Commitments and Contingent Liabilities
 
Loan Commitments
Loan commitments are made to accommodate the financial needs of First Federal’s customers. Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. They primarily are issued to facilitate customers’ trade transactions.
 
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. Collateral (e.g., securities, receivables, inventory and equipment) is obtained based on management’s credit assessment of the customer.
 
The Company’s maximum obligation to extend credit for loan commitments (unfunded loans and unused lines of credit) and standby letters of credit outstanding on December 31 was as follows (In Thousands):
 
 
 
2017
 
2016
 
 
 
Fixed Rate
 
Variable Rate
 
Fixed Rate
 
Variable Rate
 
Commitments to make loans
 
$
42,458
 
$
161,778
 
$
34,432
 
$
106,356
 
Unused lines of credit
 
 
6,245
 
 
408,831
 
 
14,384
 
 
400,542
 
Standby letters of credit
 
 
-
 
 
7,605
 
 
-
 
 
9,668
 
Total
 
$
48,703
 
$
578,214
 
$
48,816
 
$
516,566
 
 
Commitments to make loans are generally made for periods of 60 days or less. The fixed rate loan commitments at December 31, 2017, had interest rates ranging from 1.99% to 18.00% and maturities ranging from less than 1 year to 30 years.
 
In addition to the above commitments, at December 31, 2017, First Defiance had commitments to sell $14.9 million of loans to Freddie Mac, Fannie Mae, FHLB of Cincinnati or BB&T Mortgage.