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 September 30, 2019 . The Company is also a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. We enter into commitments to lend funds to customers, which are usually at a stated interest rate, if funded, and for specific purposes and time periods. At September 30, 2019 and December 31, 2018, unused commitments to extend credit amounted to approximately $202.1 million and $150.6 million , respectively. At the September 30, 2019 and December 31, 2018, we also had standby letters of credit with customers were $20.6 million and $19.3 million , respectively. We provide banking services to customers that are licensed by various States to do business in the medical-use cannabis industry as growers, processors and dispensaries. Medical-use cannabis businesses are legal in these States, 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 acceptance of such businesses and to the monitoring and maintenance of such business accounts. We conduct a significant due diligence review of the cannabis business before the business is accepted, 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 September 30, 2019 and December 31, 2018, deposit balances from medical-use cannabis customers were approximately $ 215.9 million and $ 253.8 million , or 16.7% and 21.4% of total deposits, respectively, with two customers accounting for 24.9% and 65.9% of the total at September 30, 2019 and December 31, 2018, respectively. At September 30, 2019 and December 31, 2018, there were cannabis-related loans in the amounts of $4.0 million and $970,000 , respectively. We recorded approximately $134,400 and $38,300 of interest income in the nine months ended September 30, 2019 and 2018, respectively, related to these loans.