Annual report pursuant to Section 13 and 15(d)

COMMITMENTS AND CONTINGENCIES

v2.4.0.8
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
NOTE 18.              COMMITMENTS AND CONTINGENCIES
 
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:
 
 
 
2013
 
2012
 
2011
 
 
 
(In Thousands)
 
Commitments to extend credit
 
$
1,052,902
 
$
860,421
 
$
697,939
 
Credit card arrangements
 
 
38,122
 
 
25,699
 
 
19,686
 
Standby letters of credit and
 
 
 
 
 
 
 
 
 
 
financial guarantees
 
 
40,371
 
 
36,374
 
 
42,937
 
Total
 
$
1,131,395
 
$
922,494
 
$
760,562
 
 
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.