Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v2.4.0.6
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2012
Commitments and Contingencies [Abstract]  
COMMITMENTS AND CONTINGENCIES
10. COMMITMENTS AND CONTINGENCIES

Commitments to extend credit are agreements to lend to customers as long as there are no violations of any conditions established in the contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payments of fees. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case by case basis.

Letters of credit are conditional commitments issued by the Company to guarantee the performance of customers to third parties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

At September 30, 2012, Union Mortgage Group, Inc. (“Union Mortgage”), a wholly owned subsidiary of Union First Market Bank, a wholly owned subsidiary of Union First Market Bankshares Corporation, had rate lock commitments to originate mortgage loans and loans held for sale. These commitments to sell loans are designed to mitigate the mortgage company’s exposure to fluctuations in interest rates in connection with rate lock commitments and loans held for sale.

 

The following table presents the balances of commitments and contingencies (dollars in thousands):

 

                         
    September 30,     December 31,     September 30,  
    2012     2011     2011  

Commitments with off-balance sheet risk:

                        

Commitments to extend credit (1)

   $ 844,190     $ 720,317     $ 735,129  

Standby letters of credit

     46,861       38,068       40,242  

Mortgage loan rate lock commitments

     172,316       45,820       132,691  
   

 

 

    

 

 

    

 

 

  

Total commitments with off-balance sheet risk

   $ 1,063,367     $ 804,205     $ 908,062  
   

 

 

    

 

 

    

 

 

  

Commitments with balance sheet risk:

                        

Loans held for sale

   $ 141,965     $ 74,823     $ 61,786  
   

 

 

    

 

 

    

 

 

  

Total other commitments

   $ 1,205,332     $ 879,028     $ 969,848  
   

 

 

    

 

 

    

 

 

  

 

(1) Includes unfunded overdraft protection.