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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES 18. COMMITMENTS AND CONTINGENCIES
Data Processing and Network Operations
The Company has entered into contracts to manage its network operations, data processing and other related services. The projected amounts of future minimum payments contractually due are as follows:
 
(Dollars in thousands)
YearAmount
2021$9,262 
20229,623 
20236,169 
20242,757 
20252,107 
Legal Proceedings
In the ordinary course of business, the Company is subject to legal actions that involve claims for monetary relief. See Note 25 for additional information.

Financial Instruments With Off-Balance Sheet Risk
In the ordinary course of business, the Company is a party to financial instruments with off-balance sheet risk, primarily to meet the financing needs of its customers. To varying degrees, these financial instruments involve elements of credit risk that are not recognized in the Consolidated Statements of Financial Condition.
Exposure to loss for commitments to extend credit and standby letters of credit written is represented by the contractual amount of those instruments. The Company generally requires collateral to support such financial instruments in excess of the contractual amount of those instruments and use the same credit policies in making commitments as it does for on-balance sheet instruments.
The following represents a summary of off-balance sheet financial instruments at year-end:
 
 December 31,
(Dollars in thousands)20202019
Financial instruments with contract amounts which represent potential credit risk:
Construction loan commitments$406,639 $360,981 
Commercial mortgage loan commitments100,729 106,626 
Commercial loan commitments1,083,512 919,353 
Commercial owner-occupied commitments70,155 57,144 
Commercial standby letters of credit95,897 148,131 
Residential mortgage loan commitments2,842 5,317 
Consumer loan commitments591,856 506,544 
Total$2,351,630 $2,104,096 
At December 31, 2020, the Company had total commitments to extend credit of $2.4 billion. Commitments for consumer lines of credit were $591.9 million of which, $521.1 million were secured by real estate. Residential mortgage loan commitments generally have closing dates within a one month period but can be extended to six months. Not reflected in the table above are commitments to sell residential mortgages of $91.9 million and $60.0 million at December 31, 2020 and 2019, respectively.
Commitments provide for financing on predetermined terms as long as the customer continues to meet specific criteria. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The Company evaluates each customer’s creditworthiness and obtain collateral based on its credit evaluation of the counterparty.
Indemnifications from Secondary Market Loan Sales
Given the current interest rate environment and the Company's overall asset and liability management approach, the Company typically sells newly originated residential mortgage loans in the secondary market to mortgage loan aggregators and on a more limited basis, to government sponsored enterprise (GSEs), such as the Federal Home Loan Mortgage Corp (FHLMC), the Federal National Mortgage Association (FNMA), and the FHLB. Loans held for sale are reflected on the Consolidated Statements of Financial Condition at their fair value with changes in the value reflected in the Consolidated Statements of Income. Gains and losses are recognized at the time of sale. The Company periodically retains the servicing rights on residential mortgage loans sold which results in monthly service fee income. Otherwise, the Company sells loans with servicing released on a nonrecourse basis. Rate-locked loan commitments that the Company intends to sell in the secondary market are accounted for as derivatives under ASC 815, Derivatives and Hedging (ASC 815).
The Company does not sell loans with recourse, except for standard loan sale contract provisions covering violations of representations and warranties and, under certain circumstances, early payment default by the borrower. These are customary repurchase provisions in the secondary market for residential mortgage loan sales. These provisions may include either an indemnification from loss or an agreement to repurchase the loans. Repurchases and losses have been rare and no provision is made for losses at the time of sale. There were no repurchases for the year ended December 31, 2020 and one repurchase for $0.2 million for the year ended December 31, 2019.