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Note 13 - Commitments

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Commitments Disclosure [Text Block]

NOTE 13 - COMMITMENTS

The Company leases several of its operating facilities under various noncancellable operating leases expiring at various dates through 2034. The Company is also responsible for common area maintenance, taxes and insurance at the various branch locations.

Future minimum rent payments on the Company’s leases were as follows at September 30, 2020:

*(dollars in thousands)*
Year ending December 31:
2020 remaining		$	1,464
2021			5,181
2022			4,727
2023			3,778
2024			2,693
Thereafter			12,032
Total		$	29,875

The minimum rent payments shown above are given for the existing lease obligation and are not a forecast of future rental expense. Total rental expense, recognized on a straight-line basis, was $1.4 million and $1.6 million for the three months ended September 30, 2020 and 2019, respectively and $4.3 million and $4.6 million for nine months ended September 30, 2020 and 2019, respectively. The Company received rental income of $82,000 and $49,000 in the third quarter of 2020 and 2019, respectively and $263,000 and $148,000 for the nine months ended September 30, 2020 and 2019, respectively.

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.

At September 30, 2020 and December 31, 2019, the Company had the following financial commitments whose contractual amount represents credit risk:

		*September 30,*				*December 31,*
*(dollars in thousands)*		*2020*				*2019*
Commitments to extend credit		$	447,111			$	326,126
Commercial and similar letters of credit			296				358
Standby letters of credit			4,114				3,715
Total		$	451,521			$	330,199

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.