Commitments and Contingent Liabilities

12 Months Ended

Jun. 30, 2015

Commitments and Contingent Liabilities [Abstract]

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, 2015 and 2014:

(In thousands)	2015		2014
Residential real estate loan commitments	$	5,087	$	2,380
Construction and land loan commitments		5,622		3,138
Commercial real estate loan commitments		15,855		8,757
Home equity available lines of credit		8,295		8,159
Consumer overdraft available lines of credit		698		706
Commercial loan available lines of credit		21,264		14,419
Commercial loan commitments		885		226
Total commitments	$	57,706	$	37,785

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 upon an extension of credit 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.