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Loan Commitments | 12 Months Ended
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Dec. 31, 2022
Loan Commitments |
Loan Commitments | (7) Loan Commitments The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet customers’ financing needs. These financial instruments consist principally of commitments to extend credit. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party is represented by the contractual amount of those instruments. In the normal course of business, there are various commitments and contingent liabilities, such as commitments to extend credit, letters of credit, and lines of credit, the balance of which are not recorded in the accompanying consolidated financial statements. The Company generally requires collateral or other security on unfunded loan commitments and irrevocable letters of credit. Unfunded commitments to extend credit, excluding standby letters of credit, aggregated to $183.5 million and $139.5 million at December 31, 2022 and 2021, respectively, and are generally at variable interest rates. Standby letters of credit totaled $2.7 million at December 31, 2022 and $1.9 million at December 31, 2021.

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