COMMITMENTS AND CONTINGENCIES In the normal course of business, there are outstanding various contingent liabilities such as claims and legal action, which are not reflected in the financial statements. On March 4, 2019, the Bank entered into an agreement with the FHLBNY, for a Municipal Letter of Credit ("MLOC"), of $40.0 million . The MLOC is used to pledge against public deposits and expires on March 3, 2020. There were no outstanding borrowings on the letter of credit as of March 31, 2019 . We provide banking services to customers that are licensed by the States of New Jersey, Pennsylvania, Maryland or New York to do business in the medical-use cannabis industry as growers, processors and dispensaries. Medical-use cannabis businesses are legal in the States of New Jersey, Pennsylvania, Maryland and New York although it is not legal at the federal level. The U.S. Department of the Treasurys Financial Crimes Enforcement Network (FinCEN) published guidelines in 2014 for financial institutions servicing state legal cannabis businesses. A financial institution that provides services to cannabis-related businesses can comply with Bank Secrecy Act (BSA) disclosure standards by following the FinCEN guidelines. We maintain stringent written policies and procedures related to the on-boarding of such businesses and to the monitoring and maintenance of such business accounts. We do a deep upfront due diligence review of the cannabis business before the business is on-boarded, including confirmation that the business is properly licensed by the applicable state. Throughout the relationship, we continue monitoring the business, including site visits, to ensure that the business continues to meet our stringent requirements, including maintenance of required licenses and periodic financial reviews of the business. While we believe we are operating in compliance with the FinCEN guidelines, there can be no assurance that federal enforcement guidelines will not change. Federal prosecutors have significant discretion and there can be no assurance that the federal prosecutors will not choose to strictly enforce the federal laws governing cannabis. Any change in the Federal governments enforcement position, could cause us to immediately cease providing banking services to the cannabis industry. At March 31, 2019 and December 31, 2018, deposit balances from medical-use cannabis customers were approximately $ 274.2 million and $ 253.8 million , or 17.6% and 21.4% of total deposits, respectively, with two customers accounting for 40.9% and 65.9% of the total at March 31, 2019 and December 31, 2018. At March 31, 2019 and December 31, 2018, there were cannabis-related loans in the amounts of $2.9 million and $970,000 , respectively. We recorded approximately $30,500 and $12,000 of interest income in the three months ended March 31, 2019 and 2018, respectively, related to these loans.