Leases The Company leases branch facilities, administrative offices and various equipment under noncancelable operating leases which expire on various dates through the year 2024. Certain of the leases have five year renewal options. One of the branch facilities is leased from a current member of the Companys Board of Directors (see Note 17). Future minimum lease payments are as follows (dollars in thousands): Year Ending December 31, 2019 $ 747 2020 689 2021 659 2022 633 2023 282 Thereafter 930 $ 3,940 Rental expense included in occupancy, furniture and equipment expense totaled $753,000, $755,000 and $858,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Financial Instruments With Off-Balance-Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business in order to meet the financing needs of its customers and to reduce its exposure to fluctuations in interest rates. These financial instruments consist of commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the consolidated balance sheet. The Companys exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and standby letters of credit as it does for loans included on the consolidated balance sheet. The following financial instruments represent off-balance-sheet credit risk (dollars in thousands): December 31, 2018 2017 Commitments to extend credit: Revolving lines of credit secured by 1-4 family residences $ 47 $ 175 Commercial real estate, construction and land development commitments secured by real estate 21,185 3,565 Other unused commitments, principally commercial loans 13,044 7,183 $ 34,276 $ 10,923 Standby letters of credit $ 361 $ 121 At inception, real estate loan commitments are generally secured by property with a loan to value ratio of 55% to 75%. In addition, the majority of the Companys commitments have variable rates. Commitments to extend credit are agreements to lend to a client as long as there is no violation of any conditions 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, the total commitment amounts do not necessarily represent future cash requirements. Each clients creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on managements credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, equipment and deeds of trust on real estate and income-producing commercial properties. Standby letters of credit are conditional commitments issued to guarantee the performance or financial obligation of a client to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to clients. Significant Concentrations of Credit Risk The Company grants real estate mortgage, real estate construction, commercial, agricultural and consumer loans to clients throughout Northern California. In managements judgment, a concentration exists in real estate-related loans which represented approximately 87% and 91% of the Companys loan portfolio at December 31, 2018 and 2017, respectively. A continued substantial decline in the economy in general, or a continued decline in real estate values in the Companys primary market areas in particular, could have an adverse impact on collectability of these loans. However, personal and business income represents the primary source of repayment for a majority of these loans. Correspondent Banking Agreements The Company maintains funds on deposit with other federally insured financial institutions under correspondent banking agreements. The Company had $9,175,000 in uninsured deposits at December 31, 2018. The Company had $6,882,000 in uninsured deposits at December 31, 2017. Contingencies The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company.