Commitments to Extend Credit

6 Months Ended

Jun. 30, 2025

Commitments to Extend Credit [Abstract]

Note 7 – Commitments to Extend Credit

The Company has commitments to extend credit with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition.

The Company’s exposure to credit losses is represented by the contractual amount of these commitments. There was a $323,000 and $316,000 allowance for credit losses associated with these commitments at June 30, 2025 and December 31, 2024, respectively.

The following commitments to extend credit were outstanding as of the dates specified:


	Contract Amount
	June 30,		December 31,
	2025		2024
	(Dollars in thousands)

Commitments to grant loans	$	12,686	$	3,098
Unfunded commitments to fund loans and lines of credit		92,087		96,711
Commercial and Standby letters of credit		720		765

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

Lake Shore Bancorp, Inc. /MD/ 10-Q