The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, credit card arrangements, and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. A summary of the Company’s approximate commitments and contingent liabilities is as follows:

 

		2018				2017				2016
		(In Thousands)
Commitments to extend credit		$	1,985,801			$	1,945,171			$	1,667,015
Credit card arrangements			173,613				128,149				100,678
Standby letters of credit and financial guarantees			40,590				41,654				40,991
Total		$	2,200,004			$	2,114,974			$	1,808,684

 

Commitments to extend credit, credit card arrangements, commercial letters of credit and standby letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. Because these instruments have fixed maturity dates, and because many of them expire without being drawn upon, they do generally present any significant liquidity risk to the Company.