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.

	September 30,		December 31,
	2018		2017
Commitments to extend credit, excluding interest rate lock commitments	$	1,038,688	$	977,276
Letters of credit		19,302		22,882
Balance at end of period	$	1,057,990	$	1,000,158

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. During the three and nine months ended September 30, 2018, the total principal amount of loans repurchased (or indemnified for) was $2,322 and $4,984, respectively, and $1,137 and $2,907 during the same periods in 2017. The Company 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:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Balance at beginning of period	$	3,646		$	3,037		$	3,386		$	2,659
Provision for loan repurchases or indemnifications		206			410			598			794
Losses on loans repurchased or indemnified		(115	)		(27	)		(247	)		(33	)
Balance at end of period	$	3,737		$	3,420		$	3,737		$	3,420