Commitments and Contingent Liabilities

12 Months Ended

Jun. 30, 2013

Commitments and Contingent Liabilities [Abstract]

Commitments and Contingent Liabilities

Note 13.  Commitments and Contingent Liabilities

In the normal course of business there are various commitments and contingent liabilities outstanding pertaining to the granting of loans and the lines of credit, which are not reflected in the accompanying consolidated financial statements. 

The Bank of Greene County’s unfunded loan commitments are as follows at June 30, 2013 and 2012:

(In thousands)		2013		2012
Nonresidential mortgage loan commitments	$	5,396	$	5,964
Residential mortgage loan commitments		6,171		5,087
Construction and land loan commitments		2,230		994
Unused portion of overdraft lines of credit		719		735
Unused portion of home equity lines of credit		7,703		8,432
Unused portion of commercial lines of credit		10,815		10,050
Commercial loan commitments		298		805
Total commitments	$	33,332	$	32,067

Commitments to extend credit in the form of loan commitments and lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.  Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The Bank of Greene County evaluates each customer’s credit worthiness on a case-by-case basis.  

The amount of collateral, if any, required by The Bank of Greene County upon credit extension is based on management’s evaluation of customer credit.  Commitments to extend mortgage credit are primarily collateralized by first liens on real estate.  Collateral on extensions of commercial lines of credit vary but may include accounts receivable, inventory, property, plant and equipment, and income producing commercial property.