Note 10 - Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note

10:

Commitments and Contingent Liabilities

Loan commitments are agreements to lend to a custo

mer provided there is

no

violation of any condition established in the agreement. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do

not

necessarily represent future funding requirements. Loan commitments are subject to the Company’s normal credit policies and collateral requirements. Unfunded loan commitments were

$271,945

thousand at

March 31, 2019

and

$278,598

thousand at

December 31, 2018.

Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. Standby letters of credit are primarily issued to support customers’ short-term financing requirements and must meet the Company’s normal credit policies and collateral requirements. Financial and performance standby letters of credit outstanding totaled

$2,772

thousand at

March 31, 2019

and

$2,772

thousand at

December 31, 2018.

The Company had

no

commitments outstanding for commercial and similar letters of credit at

March 31, 2019

and

December 31, 2018.

The Company had

$550

thousand and

$75

thousand in outstanding full recourse guarantees to a

3

rd

party credit card company at

March 31, 2019

and

December 31, 2018,

respectively. The Company had a reserve for unfunded commitments of

$2,308

thousand at

March 31, 2019

and

December 31, 2018,

included in other liabilities.

Due to the nature of its business, the Company is subject to various threatened or filed legal cases. Based on the advice of legal counsel, the Company does

not

expect such cases will have a material, adverse effect on its financial position or results of operations. Legal liabilities are accrued when obligations become probable and the amount can be reasonably estimated. In the

third

quarter

2018,

the Company achieved a mediated settlement to dismiss a lawsuit and accrued a liability for

$3,500

thousand; the liability was paid in the

first

quarter

2019.

The Company determined that it will be obligated to provide refunds of revenue recognized in years prior to

2017

to some customers. The Company estimates the probable amount of these obligations will be

$5,542

thousand and accrued a liability for such amount in

2017;

the estimated liability is subject to revision.