Note 15 - Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

( 15 ) Commitments and Contingent Liabilities

As of

March 31, 2019

and

December 31, 2018,

Bancorp had various commitments outstanding that arose in the normal course of business, such as unused commitments or lines of credit and commitments made to lend in the future, which are properly

not

reflected in the consolidated financial statements. Total off balance sheet commitments to extend credit follows:

(In thousands)	March 31, 2019		December 31, 2018
Commercial and Industrial	$	354,903	$	309,920
Construction - Commercial		201,465		163,314
Construction - Residential		14,785		16,050
Home Equity		149,584		147,907
Credit Cards		19,912		20,003
Overdrafts		21,558		21,751
Letters of credit		20,374		20,891
Other		33,748		33,369
Future loan commitments		213,087		101,399
Total off balance sheet commitments to extend credit	$	1,029,416	$	834,604

Commitments to extend credit are an agreement to lend to a customer as long as collateral is available as agreed upon and there is

no

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

not

necessarily represent future cash requirements. Bancorp uses the same credit and collateral policies in making commitments and conditional guarantees as for on-balance sheet instruments. Bancorp evaluates each customer’s creditworthiness on a case by case basis. The amount of collateral obtained is based on management’s credit evaluation of the customer. Collateral held varies but

may

include accounts receivable, inventory, securities, equipment, and real estate. However, should the commitments be drawn upon and should our customers default on their resulting obligation to us, our maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those instruments. At

March 31, 2019

and

December 31, 2018,

Bancorp had accrued

$350

thousand in other liabilities for inherent risks related to unfunded credit commitments.

Standby letters of credit and financial guarantees written are conditional commitments issued by Bancorp to guarantee the performance of a customer to a

first

party. Those guarantees are primarily issued to support customer commercial transactions. Standby letters of credit generally have maturities of

one

to

two

years.

As of

March 31, 2019,

in the normal course of business, there were pending legal actions and proceedings in which claims for damages are asserted. Management, after discussion with legal counsel, believes the ultimate result of these legal actions and proceedings will

not

have a material adverse effect on the consolidated financial position or results of operations of Bancorp.