Note 19 – Contingent liabilities

The Bank rents, under non-cancelable leases, six of its banking facilities and one commercial loan production office. The original lease for 615 Church Street expired on July 31, 2009. On August 1, 2009, the Bank elected to enter into a new 10 year lease for this property. The Bank has 0.5 years remaining on this lease.

The Bank entered into a lease agreement for 828 Main Street with Jamesview Investments, LLC, a related party which is wholly-owned by William C. Bryant III, a member of the Board of Directors of both Financial and the Bank. The initial term of the lease was 10 years with two five year renewal options for a total of 20 years. The Bank has 5.5 years remaining on this lease including option periods. The total expense to be incurred by the Bank over the remaining course of the lease, including options to extend, is estimated to be $1,311.

In December 2005, the Bank entered into a lease agreement for 4935 Boonsboro Road. The initial term of the lease was five years with two five-year renewal options for a total of 15 years. The Bank has 2 years remaining on this lease and no remaining option periods.

In September 2013, the Bank entered into a lease agreement for 1430 Rolkin Court in Charlottesville, VA. Lease payments did not begin on the property until the upfit was completed on January 1, 2014. The initial term of the lease was five years with one five-year renewal option for a total of 10 years. The Bank has elected not to renew for an additional five-year period and is currently renting under a month to month agreement. The Rolkin Court location will be moved to 550 Water Street, Charlottesville, Virginia at the completion of the up-fit currently going on at this location.

In July 2015, the Bank entered into a lease agreement for 225 Merchant Walk Avenue, Charlottesville, VA. Lease payments did not begin on the property until the upfit was completed in November 2016. The initial term of the lease was 10 years with two five-year renewal options for a total of 20 years. The Bank has 18 years remaining on this lease including the two option periods.

In November 2016, the Bank entered into a lease agreement for 3562 Electric Road, Roanoke, VA. Lease payments did not begin on the property until February 1, 2017. The initial term of the lease was five years with two five year renewal options for a total of 15 years. The Bank has 13 years remaining on this lease including the two option periods.

In February 2018, the Bank entered into a lease agreement for 2001 South Main Street, Unit #107, Blacksburg, Virginia. This location is operated solely as a mortgage origination office and is not a bank branch. Lease payments did not begin on the property until March 1, 2018. The term of the lease was three years with no renewal options. The Bank has 2 years remaining on this lease.

Note 19 – Contingent liabilities (continued)

Rental expenses under operating leases were $675 and $692 for the years ended December 31, 2018 and 2017, respectively.

The current minimum annual rental commitments under the non-cancelable leases in effect at December 31, 2018 are as follows:


	Year Ending	Amount
	2019	$545
	2020	426
	2021	353
	2022	317
	2023	314
	Thereafter	361

		$2,316