Commitments and Contingent Liabilities Lease Commitments : The Company leases land and premises for its branch banking offices and administration facilities. The initial terms of these leases expire at various dates through 2025. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. The total expense on land and premises leased under operating leases was $933,000 , $922,000 , and $862,000 for the years ended December 31, 2018, 2017, and 2016 , respectively. Future minimum rental commitments under existing non-cancelable leases as of December 31, 2018 are as follows: (In thousands): 2019 $ 593 2020 544 2021 349 2022 330 2023 296 Thereafter 627 $ 2,739 Financial Instruments with Off-Balance Sheet Risk: The Company is party to financial instruments with off-balance sheet risk which arise in the normal course of business. These instruments may contain elements of credit risk, interest rate risk and liquidity risk, and include commitments to extend credit and standby letters of credit. The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: Contractual amount  December 31, (In thousands) 2018 2017 Commitments to extend credit $ 144,643 $ 99,958 Standby letters of credit 1,183 2,058 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. Substantially all of these commitments are at floating interest rates based on the Prime rate, and most have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis, and the amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate and income-producing properties. Many of the commitments are expected to expire without being drawn upon and, as a result, the total commitment amounts do not necessarily represent future cash requirements of the Company. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Companys letters of credit are short-term guarantees and generally have terms from less than one month to approximately 3 years. At December 31, 2018 , the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit totaled $1,183,000 . In the ordinary course of business, the Company becomes involved in litigation arising out of its normal business activities. Management, after consultation with legal counsel, believes that the ultimate liability, if any, resulting from the disposition of such claims would not be material to the financial position of the Company.