FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK |
6 Months Ended |
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Jun. 30, 2026 | |
| FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | |
| FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK |
NOTE 5 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Bank 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, standby letters of credit and financial
guarantees. The Bank’s exposure to
credit loss in the event of nonperformance by the other party to the financial
instrument for commitments to extend credit and standby letters of credit, and
financial guarantees written, is represented by the contractual amount of those
instruments. The contract amounts of
these instruments are not included in the consolidated financial statements. At
June 30, 2026, the contract amounts of these instruments totaled approximately
$228,736, compared to $226,570 at December 31, 2025. The Bank estimates expected credit losses
over the contractual period in which the Bank is exposed to credit risk via a
contractual obligation to extend credit.
At June 30, 2026, the estimated ACL related to off-balance sheet
commitments was $731, compared to $871 at December 31, 2025. This includes
provision expense recoveries of $60 and $140 during the three and six months
ended June 30, 2026, compared to $115 and $55 in provision expense during the
three and six months ended June 30, 2025, respectively. The Bank uses the same
credit policies in making commitments and conditional obligations as it does
for instruments recorded on the balance sheet. Since many of these instruments
are expected to expire without being drawn upon, the total contract amounts do
not necessarily represent future cash requirements.
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