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Commitments and Contigent Liabilities
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
NOTE 12:
 
COMMITMENTS AND CONTINGENT LIABILITIES
Credit-Related Financial Instruments
The Company is party to credit related financial instruments with off
 
-balance sheet risk in the normal course of business to
meet the financing needs of its customers.
 
These financial instruments include commitments to extend credit and standby
letters of credit.
 
Such commitments involve, to varying degrees, elements of credit and interest rate risk in
 
excess of the
amount recognized in the consolidated balance sheets.
The Company’s exposure
 
to credit loss is represented by the contractual amount of these commitments.
 
The Company
follows the same credit policies in making commitments as it does for on-balance
 
sheet instruments.
At December 31, 2024 and 2023, the following financial instruments were
 
outstanding whose contract amount represents
credit risk.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31
(Dollars in thousands)
2024
2023
Commitments to extend credit
$
84,667
$
73,606
Standby letters of credit
738
629
Commitments to extend credit are agreements to lend to a customer provided
 
there is no violation of any condition
established in the commitment agreement and provided the commitments
 
are not otherwise cancelable by the Bank.
 
 
Commitments generally have fixed expiration dates or other termination
 
clauses and may require payment of a fee.
 
The
commitments for lines of credit may expire without being drawn upon.
 
Therefore, total commitment amounts do not
necessarily represent future cash requirements.
 
The amount of collateral obtained, if it is deemed necessary by the
Company, is based on
 
management’s credit evaluation of the customer.
 
The Company records an allowance for credit
losses on off-balance sheet exposures, unless the commitments to
 
extend credit are unconditionally cancelable, through a
charge to provision for credit losses in the Company’s
 
Consolidated Statement of Earnings.
 
The allowance for credit losses
related to unfunded commitments was $
0.3
 
million at both December 31, 2024 and 2023, respectively,
 
and is included in
other liabilities on the Company’s
 
Consolidated Balance Sheet.
 
See “Note 1: Summary of Significant Accounting Policies –
Allowance for credit losses – Unfunded
 
commitments.”
Standby letters of credit are conditional commitments issued by the
 
Company to guarantee the performance of a customer
to a third party.
 
The credit risk involved in issuing letters of credit is essentially the same as that involved
 
in extending loan
facilities to customers.
 
The Company holds various assets as collateral, including accounts receivable,
 
inventory,
equipment, marketable securities, and property to support those commitments
 
for which collateral is deemed necessary.
 
The Company has a recorded a liability for the estimated fair value of these
 
standby letters of credit in the amount of $
13
thousand and $
9
 
thousand at December 31, 2024 and 2023, respectively.
Contingent Liabilities
The Company and the Bank are involved in various legal proceedings, arising
 
in connection with their business.
 
In the
opinion of management, based upon consultation with legal counsel, the
 
ultimate resolution of these proceedings will not
have a material adverse effect upon the consolidated
 
financial condition or results of operations of the Company and the
Bank.