COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

The Company, in the normal course of conducting its business, extends credit to meet the financing needs of its customers through commitments and lines of credit.

The following commitments exist at December 31, 2021 and 2020, which are not reflected in the accompanying consolidated financial statements:


	As of December 31,
	2021			2020

		(Dollars in Thousands)
Origination of mortgage loans:
Fixed rate		$	1,847		$	5,517
Variable rate		14,456			23,144
Undisbursed home equity credit lines		33,265			33,786
Undisbursed construction credit lines		17,700			16,264
Undisbursed commercial credit lines		1,792			1,594
Performance standby letters of credit		671			671
Overdraft protection credit lines		19,038			10,548
Commitments to purchase investments		1,000			—

These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. The Company uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet loans. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company has no exposure to credit loss if the customer does not exercise its rights to borrow under the commitment. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower.

The Company issues financial standby letters of credit that are within the scope of ASC 460, Guarantees. These are irrevocable undertakings of the Company to guarantee payment of a specified financial obligation. Most of the Company’s standby letters of credit arise in connection with lending relationships and generally have terms of one year or less, or are issued in lieu of security deposits. The maximum potential future payments the Company could be required to make equals the contract amount of the standby letters of credit.