LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Risk of credit loss exists up to the face amount of these instruments. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was as follows for the dates indicated:



	September 30, 2017				December 31, 2016
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
	(In thousands)
Commitments to extend credit⁽¹⁾	$	2,637	$	264,592	$	74,777	$	201,321
Unused lines of credit	46,421		1,267,848		27,151		888,236
Letters of credit	1,772		7,494		1,784		8,655


(1)	Includes $0 and $65.1 million, respectively, of commitments to extend credit related to discontinued operations at September 30, 2017 and December 31, 2016.

Commitments to make loans are generally made for periods of 30 days or less.

Other Commitments

As of September 30, 2017, the Company had SFR mortgage loan sale commitments of $15.1 million. There were no forward commitments related to mortgage banking activities at September 30, 2017. As the Company continued to wind down mortgage banking activities in discontinued operations during the three months ended September 30, 2017, derivative instruments to hedge the risk of the overall change in the fair value of loan commitments to borrowers and mortgage loans held-for-sale were no longer needed.

During the three months ended March 31, 2017, the Bank entered into certain definitive agreements which grant the Bank the exclusive naming rights to the soccer stadium of The Los Angeles Football Club (LAFC) as well as the right to be the official bank of LAFC. In exchange for the Bank’s rights as set forth in the agreements, the Bank agreed to pay LAFC $100.0 million over a period of 15 years, beginning in 2017 and ending in 2032. As of September 30, 2017, the Company paid $10.0 million of the commitment, which was recognized as a prepaid asset and included in Other Assets in Consolidated Statements of Financial Condition. See Note 21 for additional information.

The Company had unfunded commitments of $16.2 million, $10.9 million, and $97.2 million for Affordable House Fund Investment, SBIC, and Other Investments including investments in alternative energy partnerships, at September 30, 2017, respectively.

Litigation

From time to time we are involved as plaintiff or defendant in various legal actions arising in the normal course of business. In accordance with applicable accounting guidance, the Company establishes an accrued liability when those matters present loss contingencies that are both probable and estimable. The Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. As of September 30, 2017, the Company accrued $5.9 million for various litigations filed against the Company and the Bank.