Note

– Commitments –

Leases

The Bank leases certain branch offices through non-cancelable operating leases with terms that range from

one

ten

years and contain various renewal options for certain of the leases. Rental expense under these agreements was

$2.5

million,

$1.8

million and

$1.5

million for the years ended

December 31, 2018,

2017

and

2016,

respectively.

Future minimum lease payments under these leases are as follows:

December 31,
	(Dollars in thousands)
2019	$	2,366
2020		1,678
2021		1,409
2022		1,215
2023 and Thereafter		5,830
Total Future Minimum Lease Payments	$	12,498

SBIC Capital Commitment

The SBIC is a program initiated by the Small Business Administration (SBA) in

1958

to assist in the funding of small business loans. The program is a joint venture between investors with venture capital, the SBA, and small business borrowers. Investors are responsible for funding the

first

portion of the capital requirements, with the remaining requirement being funded by the SBA. The funds are then lent to small business borrowers.

The Bank has agreed to participate as an investor with McLarty Capital Partners SBIC, L.P. (McLarty), McLarty Capital Partners SBIC II, L.P. (McLarty II), Bluehenge Capital Secured Debt SBIC, L.P. (Bluehenge) and New Louisiana Angel Fund

LLC (New Louisiana); details of these commitments at

December 31, 2018

are below.

	McLarty		McLarty II		Bluehenge		New Louisiana
	(Dollars in thousands)
Total Capital Commitment	$	2,000	$	2,500	$	1,500	$	50
Capital Called	$	1,802	$	1,604	$	1,102	$	13
Remaining Unfunded Capital Commitment	$	198	$	896	$	398	$	37

Federal Home Loan Bank Letters of Credit

The Bank had outstanding letters of credit on behalf of others from the FHLB of

$137.3

million and

$81.0

million at

December 31, 2018

and

2017,

respectively. The outstanding letters of credit as of

December 31, 2018

are as follows:

Two letters of credit totaling

$25.0

million expires in

April 2019.

Four letters of credit totaling

$16.9

million expires in

May 2019.

One letter of credit of

$157,000

expires in

August 2019.

One letter of credit of

$35.0

million expires in

September 2019.

Three letters of credit totaling

$60.3

million expires in

December 2019.