NOTE 11  COMMITMENTS AND CONTINGENCIES In the normal course of business, the Bank may be involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the Banks financial statements. No material legal proceedings existed at June 30, 2019. In the normal course of business, the Bank is party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These instruments include commitments to extend credit and commitments to sell loans. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the balance sheets. The Banks exposure to credit losses is represented by the contractual, or notional, amount of these commitments. The Bank follows the same credit policies in making commitments as it does for on-balance-sheet instruments. As some of the commitments are expected to expire without being drawn upon, and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements of the Bank. The contractual amounts of off-balance-sheet credit-related financial instruments are summarized below: June 30, 2019 Fixed Rate Variable Rate Total (in thousands) Commitments to extend credit $ 23,004 $ 39,058 $ 62,062 Standby letters of credit  23 23 Credit enhancement under the FHLB of Chicago Mortgage Partnership Finance Program 725  725 Commitments to sell loans 16,660  16,660 Overdraft protection program commitments 3,811  3,811 Total $ 44,200 $ 39,081 $ 83,281 December 31, 2018 Fixed Rate Variable Rate Total (in thousands) Commitments to extend credit $ 19,255 $ 37,258 $ 56,513 Standby letters of credit  33 33 Credit enhancement under the FHLB of Chicago Mortgage Partnership Finance Program 612  612 Commitments to sell loans 6,617  6,617 Overdraft protection program commitments 3,894  3,894 Total $ 30,378 $ 37,291 $ 67,669 Commitments to extend credit and commitments to sell loans are agreements to lend to a customer at fixed or variable rates, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained upon extension of credit is based on managements credit evaluation of the customer. Collateral held varies but may include accounts receivable; inventory; property, plant and equipment; real estate; and stocks and bonds. Standby letters of credit are conditional lending commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all standby letters of credit have expiration dates within one year. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank generally holds collateral supporting these commitments. Standby letters of credit are not reflected in the financial statements, since recording the fair value of these guarantees would not have a significant impact on the financial statements. The Bank participates in the Federal Home Loan Bank of Chicago Mortgage Partnership Finance Program (the Program). In addition to entering into forward commitments to sell mortgage loans to a secondary market agency, the Bank enters into firm commitments to deliver loans to the Federal Home Loan Bank of Chicago through the Program. Under the Program, loans are funded by the Federal Home Loan Bank of Chicago, and the Bank receives an agency fee reported as a component of gain on sale of loans. The Bank had $3,806 and $1,882 of commitments to deliver loans through the Program as of June 30, 2019 and December 31, 2018, respectively. Once delivered to the Program, the Bank provides a contractually agreed-upon credit enhancement and performs servicing of the loans. Under the credit enhancement, the Bank is liable for losses on loans delivered through the Program after application of any mortgage insurance and a contractually agreed-upon credit enhancement provided by the Program, subject to an agreed-upon maximum. The Bank receives a fee for this credit enhancement. The Bank records a liability for expected losses in excess of anticipated credit enhancement fees. As of June 30, 2019 and December 31, 2018, the Bank had no liability outstanding related to the Program. Unfunded commitments under overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit may or may not require collateral and may or may not contain a specific maturity date.