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Note 16 - Financial Instruments with Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2013

Table Text Block [Abstract]

Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]

Note 16 - Financial Instruments with Off-Balance Sheet Risk

Various commitments to extend credit are made in the normal course of banking business. Letters of credit are also issued for the benefit of customers. These commitments are subject to loan underwriting standards and geographic boundaries consistent with the Company’s loans outstanding.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Loan commitments outstanding and lines and letters of credit at December 31, 2013 and 2012 are as follows:

(dollars in thousands)		2013				2012
Unfunded loan commitments		$	1,150,556			$	718,386
Unfunded lines of credit			79,786				74,094
Letters of credit			51,768				58,378
Total		$	1,282,110			$	850,858

Because most of the Company’s business activity is with customers located in the Washington, D.C., metropolitan area, a geographic concentration of credit risk exists within the loan portfolio, the performance of which will be influenced by the economy of the region.

The Bank maintains a reserve for the potential repurchase of residential mortgage loans, which amounted to $57 thousand at December 31, 2013 and $225 thousand at December 31, 2012. These amounts are included in Other liabilities in the accompanying Consolidated Balance Sheets. Changes in the balance of the reserve are a component of Other expenses in the accompanying Consolidated Statements of Operations. The reserve is available to absorb losses on the repurchase of loans sold related to document and other fraud, early payment default and early payoff. Through December 31, 2013, no reserve charges have occurred related to fraud or early payment default.