22. Contractual Obligations, Commitments and Contingent Liabilities

Contractual Obligations

The Corporation enters into contractual obligations in the normal course of business. Among these obligations are FHLB advances and junior subordinated debentures, operating lease agreements for banking and subsidiaries’ offices, and for data processing and telecommunications equipment. Payments required under these obligations are set forth in the table following as of December 31, 2019:



(In thousands)	Less than 1 year		1-3 years		3-5 years		After 5 years		Total
Short-term borrowings	$	48,728	$	—	$	—	$	—	$	48,728
Long-term borrowings		—		50,000		20,000		30,929		100,929
Certificates of deposit		114,234		129,090		10,566		—		253,890
Data processing obligations		2,900		3,867		—		—		6,767
Operating lease obligations		467		977		824		1,778		4,046
Total	$	166,329	$	183,934	$	31,390	$	32,707	$	414,360

Commitments

Loan commitments are made to accommodate the financial needs of our customers. Loan commitments have credit risk essentially the same as that involved in extending loans to customers and are subject to normal credit policies. Commitments to extend credit generally have fixed expiration dates, may require payment of a fee, and contain cancellation clauses in the event of an adverse change in the customer’s credit quality.

Commitments to extend credit in the form of consumer, commercial and business as of December 31, 2019 and December 31, 2018 are as follows:



(In thousands)	2019		2018
Residential Mortgage - home equity	$	53,827	$	49,294
Residential Mortgage - construction		4,995		6,790
Commercial		85,089		63,668
Consumer - personal credit lines		3,903		3,847
Standby letters of credit		9,112		3,391
Total	$	156,926	$	126,990

We do not issue any guarantees that would require liability recognition or disclosure other than the standby letters of credit issued by the Bank. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party to support contractual obligations and to ensure job performance. Generally, the Bank’s letters of credit are issued with expiration dates within one year. Historically, most letters of credit expire unfunded, and therefore, cash requirements are substantially less than the total commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank generally holds collateral and/or personal guarantees supporting letters of credit. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payment required by the letters of credit. Management does not believe that the amount of the liability associated with guarantees under standby letters of credit outstanding at December 31, 2019 and December 31, 2018 is material.