Annual report pursuant to Section 13 and 15(d)

COMMITMENTS AND CONTINGENCIES

v2.4.0.6
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2011
COMMITMENTS AND CONTINGENCIES

NOTE 19.            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 commitments and contingent liabilities is approximately as follows:

 

    2011     2010     2009  
    (In Thousands)  
Commitments to extend credit   $ 697,939     $ 538,719     $ 409,760  
Credit card arrangements     19,686       17,601       19,059  
Standby letters of credit and                        
financial guarantees     42,937       47,103       39,205  
Total   $ 760,562     $ 603,423     $ 468,024  

 

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.