In the ordinary course of business, the Company enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit, unused lines of credit, commercial and similar letters of credit and standby letters of credit. Those instruments involve to varying degrees, elements of credit and interest rate risk not recognized in the Company's financial statements.

The Company's exposure to loan loss in the event of nonperformance on these financial commitments is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for loans reflected in the financial statements.

As of December 31, 2019 and 2018, the Company had the following financial commitments whose contractual amount represents credit risk:

	2019				2018
	Fixed		Variable		Fixed		Variable
(dollars in thousands)	Rate		Rate		Rate		Rate
Commitments to make loans	$	—	$	167,496	$	5,211	$	125,610
Unused lines of credit		55,789		102,841		61,191		75,908
Commercial and similar letters of credit		—		358		1,042		—
Standby letters of credit		2,485		1,230		2,701		673
	$	58,274	$	271,925	$	70,145	$	202,191

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. Since many of the commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Company evaluates each client's credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company is based on management's credit evaluation of the customer.

The Company is involved in various matters of litigation which have arisen in the ordinary course of business and accruals for estimates of potential losses have been provided when necessary and appropriate under generally accepted accounting principles. In the opinion of management, the disposition of such pending litigation will not have a material effect on the Company's financial statements.