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Note 15 - Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

Note 15 – Commitments and Contingencies

The Bancorp is a party to financial instruments in the normal course of business to meet the financing needs of its customers. These financial instruments, which include commitments to make loans and standby letters of credit, are not reflected in the accompanying consolidated financial statements. Such financial instruments are recorded when they are funded.

 

The Bancorp’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to originate loans and standby letters of credit is represented by the contractual amount of those instruments. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The Bancorp uses the same credit policy to make such commitments as it uses for on-balance sheet items. Since commitments to make loans may expire without being used, the amount does not necessarily represent future cash commitments.

 

The Bancorp had outstanding commitments to originate loans as follows:

 

  

(Dollars in thousands)

 
  

Fixed

  

Variable

     

(Dollars in thousands)

 

Rate

  

Rate

  

Total

 

December 31, 2023:

            

Residential real estate

 $7  $22,086  $22,093 

Home equity

  46,444   5,601   52,045 

Commercial real estate

  1,365   7,775   9,140 

Construction and land development

  13,010   35,390   48,400 

Multifamily

  117   1,058   1,175 

Consumer

  28,611   -   28,611 

Commercial business

  993   81,623   82,616 

Lot

  -   -   - 

Total

 $90,547  $153,533  $244,080 
             

December 31, 2022:

            

Residential real estate

 $3  $21,980  $21,983 

Home equity

  48,796   5,636   54,432 

Commercial real estate

  3,166   11,610   14,776 

Construction and land development

  24,296   22,427   46,723 

Multifamily

  884   1,338   2,222 

Consumer

  29,586   -   29,586 

Commercial business

  823   75,623   76,446 

Lot

  -   6,143   6,143 

Total

 $107,554  $144,757  $252,311 

 

Standby letters of credit are conditional commitments issued by the Bancorp to guarantee the performance of a customer to a third party. At December 31, 2023, and 2022, the Bancorp had standby letters of credit totaling approximately $18.3 million and $13.7 million, respectively, which are not included in the tables above. The Bancorp evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bancorp upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral obtained may include accounts receivable, inventory, property, land or other assets.