(8) LEASES

Included in other borrowings is a long-term capital lease agreement, which relates to DNB’s West Goshen branch. As of December 31, 2018 the capital lease has a carrying amount of $103,000 net of accumulated depreciation of $647,000, and is included in the balance of office properties and equipment in the accompanying statements of financial condition. The following is a schedule of the future minimum capital lease payments, together with the present value of the net minimum lease payments, as of December 31, 2018:




	Year ended
(Dollars in thousands)	December 31
2019	$	107
2020		106
2021		107
2022		69
2023		-
Thereafter		-
Total minimum lease payments		389
Less amount representing interest		(84)
Present value of net minimum lease payments	$	305

DNB recognized rent expense of $1.1 million and $1.2 million for the years ended December 31, 2018 and 2017, respectively. The following is a schedule of the future minimum non-cancelable operating lease payments for the Operations Center in Downingtown and leased branches as of December 31, 2018.




	Year ended
(Dollars in thousands)	December 31
2019	$	1,047
2020		799
2021		633
2022		472
2023		197
Thereafter		-
Total minimum lease payments	$	3,148