Annual report pursuant to Section 13 and 15(d)

Note 17 - Commitments and Contingencies

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Note 17 - Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

NOTE 17.          COMMITMENTS AND CONTINGENCIES

 

Loan Commitments

 

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:

 

   

2023

    

2022

    

2021

  
   

(In Thousands)

  

Commitments to extend credit

   $ 3,410,283     $ 4,230,485     $ 3,515,818  

Credit card arrangements

     381,524       368,749       366,525  

Standby letters of credit and financial guarantees

     86,065       67,285       61,856  

Total

   $ 3,877,872     $ 4,666,519     $ 3,944,199  

 

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 not generally present any significant liquidity risk to the Company.