NYCB 2017 Annual Report

118 The following table summarizes the Company’s off -balance sheet commitments to originate loans and letters of credit at December 31, 2017: (in thousands) Mortgage Loan Commitments: Multi-family and commercial real estate $ 377,782 One-to-four family 3,819 Acquisition, development, and construction 239,504 Total mortgage loan commitments $ 621,105 Other loan commitments 1,314,170 Total loan commitments $1,935,275 Commercial, performance stand-by, and financial stand-by letters of credit 339,403 Total commitments $2,274,678 Lease Commitments At December 31, 2017, the Company was obligated under various non-cancelable operating lease and license agreements with renewal options on properties used primarily for branch operations. The Company currently expects to renew such agreements upon their expiration in the normal course of business. The agreements contain periodic escalation clauses that provide for increases in the annual rents, commencing at various times during the lives of the agreements, which are primarily based on increases in real estate taxes and cost-of-living indices. The remaining projected minimum annual rental commitments under these agreements, exclusive of taxes and other charges, are summarized as follows: (in thousands) 2018 $ 29,786 2019 26,425 2020 20,211 2021 16,523 2022 and thereafter 66,555 Total minimum future rentals $159,500 The rental expense under these leases, which is included in “Occupancy and equipment expense” in the Consolidated Statements of Operations and Comprehensive Income (Loss), amounted to $33.2 million, $32.6 million, and $32.8 million, respectively, in the years ended December 31, 2017, 2016, and 2015. Rental income on Company- owned properties, netted in occupancy and equipment expense, was approximately $9.5 million, $7.1 million, and $3.7 million in the corresponding periods. There was no minimum future rental income under non-cancelable sub- lease agreements at December 31, 2017. Financial Guarantees The Company provides guarantees and indemnifications to its customers to enable them to complete a variety of business transactions and to enhance their credit standings. These guarantees are recorded at their respective fair values in “Other liabilities” in the Consolidated Statements of Condition. The Company deems the fair value of the guarantees to equal the consideration received. The following table summa rizes the Company’s guarantees and indemnifications at December 31, 2017: (in thousands) Expires Within One Year Expires After One Year Total Outstanding Amount Maximum Potential Amount of Future Payments Financial stand-by letters of credit $19,996 $55,202 $75,198 $267,174 Performance stand-by letters of credit 5,786 -- 5,786 5,775 Commercial letters of credit 3,063 209 3,272 66,454 Total letters of credit $28,845 $55,411 $84,256 $339,403 The maximum potential amount of future payments represents the notional amounts that could be funded under the guarantees and indemnifications if there were a total default by the guaranteed parties or if indemnification provisions were triggered, as applicable, without consideration of possible recoveries under recourse provisions or from collateral held or pledged.