Note 15Commitments and Contingent Liabilities Legal contingencies I n th e ordinar y cours e o f business , th e Compan y an d Ban k hav e various outstandin g commitment s an d contingen t liabilitie s tha t ar e no t recognize d i n th e accompanyin g consolidated financia l statements . I n addition , th e Compan y ma y b e a defendan t i n certai n claim s an d lega l action s arisin g i n the ordinar y cours e o f business . I n th e opinio n o f management , afte r consultatio n wit h lega l counsel , th e ultimate dispositio n o f thes e matter s i s currentl y no t expecte d t o hav e a materia l advers e effec t o n th e Companys Consolidated Financial Statements. Operating lease commitment s The Company has entered into various operating lease agreements primarily for facilities and land on which banking facilities are located. Certain lease agreements have renewal options at the end of the original lease term and certain lease agreements have escalation clauses in the rent payments. The minimum annual rental commitments for operating leases subsequent to June 30, 2019, exclusive of taxes and other charges, are summarized as follows: Minimum Rental Commitments 2019 $ 2,173 2020 4,042 2021 3,589 2022 2,017 2023 1,077 Thereafter 3,156 Total $ 16,054 The Companys rental expenses for the six months ended June 30, 2019 and 2018 were $2.8 million. Rental expenses for the three months ended June 30, 2019 and 2018 were $1.5 million and $1.6 million, respectively. During t he six months ended June 30, 2019 and 2018, the Company received $370,000 and $346,000, respectively, in sublease income which is included in the C onsolidated Statements of Operations as a reduction of occupancy expense. Sublease income for the three months ended June 30, 2019 and 2018 was $190,000 and $175,000, respectively. The total amount of minimum rentals to be received in the future on these subleases is approximately $1.5 million, and the leases have contractual lives extending through 2025. In addition to the above required lease payments, the Company has contractual obligations related primarily to information technology contracts and other maintenance contracts. In June 2018, the Company accrued $8.1 million in data processing expense primarily related to contract termination with its core service provider in anticipation of a future system conversion . As of June 30, 2019, there was no remaining contract termination balance. Commitments to extend credi t The Company is 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. Those instruments 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 contractual or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Companys exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for funded instruments. The Company does not anticipate any material losses as a result of the commitments and letters of credit. The following table summarizes the contract or notional amount of outstanding loan and lease commitments at June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Fixed Rate Variable Rate Total Fixed Rate Variable Rate Total Commitments to extend credit $ 62,653 $ 942,348 $ 1,005,001 $ 74,099 $ 928,991 $ 1,003,090 Letters of credit 3,607 35,519 39,126 1,982 34,071 36,053 Total $ 66,260 $ 977,867 $ 1,044,127 $ 76,081 $ 963,062 $ 1,039,143 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 and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company evaluates each customers creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on managements credit evaluation of the counterparty. Collateral is primarily obtained in the form of commercial and residential real estate (including income producing commercial properties). Letters of credit are conditional commitments issued by the Company to guarantee to a third-party the performance of a customer. Those guarantees are primarily issued to support public and private borrowing arrangements, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 2.48% to 15.00% and maturities up to 2042. Variable rate loan commitments have interest rates ranging from 3.00% to 10.00% and maturities up to 2048.