Commitments, Guarantees and Other Contingencies

3 Months Ended

Mar. 31, 2013

Commitments, Guarantees and Other Contingencies

16. Commitments, Guarantees and Other Contingencies

Unused lending commitments to clients are not recorded in the Consolidated Balance Sheets until funds are advanced. For commercial clients, lending commitments generally take the form of unused revolving credit arrangements to finance clients’ working capital requirements. For retail clients, lending commitments are generally unused lines of credit secured by residential property. The Company routinely extends lending commitments for both floating and fixed-rate loans.

The following table summarizes the contractual amounts of the Company’s unused lending commitments relating to extensions of credit with off-balance sheet risk at March 31, 2013 (in thousands).

Commitments to extend credit:
Revolving, open-end lines secured by single-family residential properties	$	57,086
Commercial real estate, construction, and land development loans secured by real estate
Single-family residential construction loan commitments		8,221
Commercial real estate, other construction loan, and land development loan commitments		45,380
Commercial and industrial loan commitments		29,721
Overdraft protection line commitments		30,303
Other		7,657
Total commitments to extend credit	$	178,368

In addition, the maximum potential amount of undiscounted future advances related to letters of credit was $3.1 million and $3.6 million at March 31, 2013 and December 31, 2012, respectively.

The reserve for estimated credit losses on unfunded lending commitments at March 31, 2013 and December 31, 2012 was $609 thousand and $367 thousand, respectively, and is recorded in Other liabilities in the Consolidated Balance Sheets.

For disclosure regarding our derivative financial instruments and hedging activities, see Note 17, Derivative Financial Instruments and Hedging Activities.