Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk The Corporation 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 and to manage the Corporations exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, forward loan commitments, loan related derivative contracts and interest rate risk management contracts. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Corporations Unaudited Consolidated Balance Sheets. The contract or notional amounts of these instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporations credit policies with respect to interest rate swap agreements with commercial borrowers, commitments to extend credit and financial guarantees are similar to those used for loans. The interest rate swaps with other counterparties are generally subject to bilateral collateralization terms. The following table presents the contractual and notional amounts of financial instruments with off-balance sheet risk: (Dollars in thousands) Mar 31, 2019 Dec 31, 2018 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $502,781 $533,884 Home equity lines 278,477 270,462 Other loans 48,750 46,698 Standby letters of credit 8,469 7,706 Financial instruments whose notional amounts exceed the amount of credit risk: Forward loan commitments: Interest rate lock commitments 64,104 30,766 Forward sale commitments 94,640 61,993 Loan related derivative contracts: Interest rate swaps with customers 671,492 648,050 Mirror swaps with counterparties 671,492 648,050 Risk participation-in agreements 46,357 46,510 Foreign exchange contracts 2,726 2,784 Interest rate risk management contracts: Interest rate swaps 60,000 60,000 See Note 9 for additional disclosure pertaining to derivative financial instruments. Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there are no violations of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements. Each borrowers creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained is based on managements credit evaluation of the borrower. Standby Letters of Credit Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support the financing needs of the Banks commercial customers. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The collateral supporting those commitments is essentially the same as for other commitments. Most standby letters of credit extend for one year. The maximum potential amount of undiscounted future payments, not reduced by amounts that may be recovered totaled $8.5 million and $7.7 million , respectively, as of March 31, 2019 and December 31, 2018 . At March 31, 2019 and December 31, 2018 , there were no liabilities to beneficiaries resulting from standby letters of credit. Fee income on standby letters of credit was insignificant for the three months ended March 31, 2019 and 2018 . Forward Loan Commitments Interest rate lock commitments are extended to borrowers and relate to the origination of mortgage loans held for sale. To mitigate the interest rate risk and pricing risk associated with these rate locks and mortgage loans held for sale, the Corporation enters into forward sale commitments. Both interest rate lock commitments and forward sale commitments are derivative financial instruments.