Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Note (8)—Commitments and contingencies:

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates.

Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

(in thousands)	September 30, 2016		December 31, 2015
Commitments to extend credit, excluding interest rate lock commitments	$	688,446	$	554,274
Letters of credit		20,033		20,338
Balance at end of period	$	708,479	$	574,612

In connection with the sale of mortgage loans to third party investors, the Bank makes usual and customary representations and warranties as to the propriety of its origination activities. Occasionally, the investors require the Bank to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value with a corresponding charge to a valuation reserve. The total principal amount of loans repurchased (or indemnified for) was $13 and $0 for three and nine months ended September 30, 2016 and 2015, respectively. The Bank has established a reserve associated with loan repurchases. This reserve is recorded in accrued expenses and other liabilities on the consolidated balance sheet. The following table summarizes the activity in the repurchase reserve (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Balance at beginning of period	$	2,859	$	1,457	$	2,156	$	828
Provision for loan repurchases or indemnifications		470		392		1,173		1,021
Recoveries on previous losses		—		—		—		—
Losses on loans repurchased or indemnified		13		—		13		—
Balance at end of period	$	3,342	$	1,849	$	3,342	$	1,849