9. OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES  COVID-19 Pandemic  COVID-19 was declared a pandemic by the World Health Organization on March 11, 2020. Since March 2020, to slow the spread of COVID-19, jurisdictions within the U.S. have imposed economic and social restrictions on the population in general and non-essential businesses in particular. These restrictions in combination with the publics response to them effectively suspended or curtailed economic activity for many industries across the U.S., with industries in the Companys market footprint impacted.  The future potential financial impact of the COVID-19 pandemic is still unknown at this time; however, this pandemic and the publics response to it could cause the Company to experience a material adverse impact on its business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on the Companys intangible assets, investments, loans, MSRs, deferred tax assets, or counterparty risk derivatives.  Commitments to Extend Credit  The Company, in the normal course of business, is party to financial instruments with off balance sheet risk. These financial instruments primarily include commitments to extend credit and standby letters of credit. The contract or notional amounts of these instruments reflect the potential future obligations of the Company pursuant to those financial instruments. Creditworthiness for all instruments is evaluated on a case-by-case basis in accordance with the Companys credit policies. Collateral from the client may be required based on the Companys credit evaluation of the client and may include business assets of commercial clients, as well as personal property and real estate of individual clients or guarantors.  The Company also extends binding commitments to clients and prospective clients. Such commitments assure a borrower of financing for a specified period of time at a specified rate. The risk to the Company under such loan commitments is limited by the terms of the contracts. For example, the Company may not be obligated to advance funds if the clients financial condition deteriorates or if the client fails to meet specific covenants.  An approved but unfunded loan commitment represents a potential credit risk and a liquidity risk, since the Companys client(s) may demand immediate cash that would require funding. In addition, unfunded loan commitments represent interest rate risk as market interest rates may rise above the rate committed to the Companys client. Since a portion of these loan commitments normally expire unused, the total amount of outstanding commitments at any point in time may not require future funding.  The following table presents the Companys commitments, exclusive of Mortgage Banking loan commitments, for each period ended:          (in thousands) September 30, 2020 December 31, 2019          Unused warehouse lines of credit  $ 310,125  $ 436,541  Unused home equity lines of credit  358,380  363,195  Unused loan commitments - other  751,502  757,657  Standby letters of credit  11,515  11,252  FHLB letter of credit  643  2,485  Total commitments  $ 1,432,165  $ 1,571,130   Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third-party. The terms and risk of loss involved in issuing standby letters of credit are similar to those involved in issuing loan commitments and extending credit. In addition to credit risk, the Company also has liquidity risk associated with standby letters of credit because funding for these obligations could be required immediately. The Company does not deem this risk to be material.   The following tables present a rollforward of the ACLC for the three and nine months ended September 30, 2020:                         ACLC Rollforward    Three Months Ended September 30, 2020    Beginning  ASC 326    Charge-    Ending (in thousands)   Balance  Adoption  Provision  offs  Recoveries  Balance                     Loan Commitments                    Unused warehouse lines of credit   $ 58  $   $ (6)  $   $   $ 52 Unused home equity lines of credit    124      22         146 Unused loan commitments - other    454      271         725                     Total   $ 636  $   $ 287  $   $   $ 923  The Company increased its ACLC during the three months ended September 30, 2020 based on higher estimated usage rates on its unused lines and higher loss expectations on that usage. Current and forecasted economic concerns driven by the COVID-19 pandemic drove the Companys higher loss expectations.                         ACLC Rollforward    Nine Months Ended September 30, 2020    Beginning  ASC 326    Charge-    Ending (in thousands)   Balance  Adoption  Provision  offs  Recoveries  Balance                     Loan Commitments                    Unused warehouse lines of credit   $   $ 55  $ (3)  $   $   $ 52 Unused home equity lines of credit       89   57         146 Unused loan commitments - other       312   413         725                     Total   $   $ 456  $ 467  $   $   $ 923  The Company increased its ACLC during the nine months ended September 30, 2020 based on higher estimated usage rates on its unused lines and higher loss expectations on that usage. Current and forecasted economic concerns driven by the COVID-19 pandemic drove the Companys higher loss expectations.