IBT Bancorp Inc Pa (IRW)

Off-Balance Sheet Arrangements

In the normal course of business, the Company engages in a variety of financial transactions that, in accordance with generally accepted accounting principles, are not recorded in its consolidated financial statements. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments and lines of credit. At December 31, 2007 and 2006, the Company had commitments to extend credit in the amount of $123.0 million and $85.4 million, respectively. During the year ended December 31, 2007, the Company did not engage in any off-balance sheet transactions reasonably likely to have a material effect on its consolidated financial condition, results of operations or cash flows.

In the normal course of business, the Company engages in a variety of
financial transactions that, in accordance with generally accepted accounting
principles, are not recorded in its consolidated financial statements. These
transactions involve, to varying degrees, elements of credit, interest rate and
liquidity risk. Such transactions are used primarily to manage customers’
requests for funding and take the form of loan commitments and lines of credit. At
December 31, 2007 and 2006, the Company had commitments to extend credit in the amount
of $123.0 million and $85.4 million, respectively. During the year ended December 31,
2007, the Company did not engage in any off-balance sheet transactions reasonably
likely to have a material effect on its consolidated financial condition, results of
operations or cash flows.