Commitments, Contingencies and Guarantees

9 Months Ended

Sep. 30, 2012

Commitments, Contingencies and Guarantees

7. Commitments, Contingencies and Guarantees

In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, commercial letters of credit, standby letters of credit, futures contracts, forward foreign exchange contracts and spot foreign exchange contracts. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheet. The contract or notional amount of those instruments reflects the extent of involvement the Company has in particular classes of financial instruments. Many of the commitments expire without being drawn upon, therefore, the total amount of these commitments does not necessarily represent the future cash requirements of the Company.

The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instruments for commitments to extend credit, commercial letters of credit, and standby letters of credit is represented by the contract or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

The following table summarizes the Company’s off-balance sheet financial instruments.

Contract or Notional Amount (in thousands):

	September 30, 2012		December 31, 2011
Commitments to extend credit for loans (excluding credit card loans)	$	2,403,773	$	2,202,838
Commitments to extend credit under credit card loans		2,145,793		2,059,193
Commercial letters of credit		2,228		19,564
Standby letters of credit		321,084		320,119
Futures contracts		3,500		30,600
Forward foreign exchange contracts		28,857		119,200
Spot foreign exchange contracts		3,001		3,040