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Commitments, Off-Balance Sheet Risk and Contingencies
 12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Off-Balance Sheet Risk and Contingencies
Note 21 – Commitments,
Off-Balance
Sheet Risk and Contingencies
The Bank was not required to have any cash on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing balance requirements at December 31, 2019. These balances would be included in cash and cash equivalents and would not earn interest.
The Bank is a party to financial instruments with
off-balance
sheet risk in the ordinary course of business to meet financing needs of its customers. These financial instruments include commitments to make loans and standby letters of credit. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to make loans and standby letters of credit is represented by the contractual amount of those instruments. The Bank follows the same credit policy to make such commitments as is followed for those loans recorded in the financial statements.
At December 31, 2019 and 2018, commitments to make loans amounted to approximately $958.7 million and $873.8 million and commitments under outstanding standby letters of credit amounted to approximately $17.3 million and $4.8 million. Since many commitments to make loans and standby letters of credit expire without being used, the amount does not necessarily represent future cash advances. No losses are anticipated as a result of these transactions. Collateral obtained upon exercise of the commitment is determined using management’s credit evaluation.