Annual report pursuant to Section 13 and 15(d)

Note 17 - Commitments and Contingencies

Note 17 - Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

NOTE 17.



Loan Commitments


The Company is a party to 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, credit card arrangements, 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 balance sheets. A summary of the Company’s approximate commitments and contingent liabilities is as follows:









(In Thousands)


Commitments to extend credit

  $ 2,303,788     $ 1,985,801     $ 1,945,171  

Credit card arrangements

    248,617       173,613       128,149  

Standby letters of credit and financial guarantees

    48,394       40,590       41,654  


  $ 2,600,799     $ 2,200,004     $ 2,114,974  


Commitments to extend credit, credit card arrangements, commercial letters of credit and standby letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. Because these instruments have fixed maturity dates, and because many of them expire without being drawn upon, they do not generally present any significant liquidity risk to the Company.