BLUE RIDGE BANKSHARES, INC.  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  December 31,2012  Note 16. Financial Instruments With Off-Balance-Sheet Risk  Note 17. Commitments and Contingencies  Note 18. Lease Commitments  In the normal course of business, to meet the credit needs of its customers, the Bank has made  commitinents to extend credit of $14,461,000 and $7,516,000 as of December 31, 2012 and 2011,  respectively. These commitments represent a credit risk which is not recognized in the consolidated  balance sheet. The Bank uses the same credit policies in making commitments as it does for the loans  reflected in the balance sheet. Commitments to extend credit are generally made for a period of one  year and interest rates are determined when funds are disbursed. Collateral and other security for the  loans are determined on a case-by-case basis. Since many ofthe commitments are expected to expire  without being drawn upon, the total commitment amounts do not necessarily represent fiiture cash  requirements. The distribution of commitments to extend credit approximates the disfribution of loans  outstanding.  In the ordinary course of business, the Bank has various outstanding commitments and contingent  liabilities that are not reflected in the accompanying consolidated financial statements. The  commitments include $275,000 for its interest in a Small Business Investment Company (SBIC). The  Bank fiinded $725,000 of its $1,000,000 investinent prior to December 31, 2012, and anticipates  capital calls for the remaining amount to occur during the next one to two years. Additionally and  subsequent to year-end, the Bank entered into a commitment for an additional $1,000,000 investment  in another SBIC fund. This amount is expected to fiind over the next three to four years.  Management does not anticipate any loss resulting from these commitments.  The Bank leases real property in McGaheysville, Virginia for a branch that began operations in March  2003. The lease term commenced March 1, 2003 and continues for fifteen years, with five optional  one year extensions. Base annual rent, including utilities, is $36,300 or $3,025 per month, adjusted  annually for inflation as listed by the Consumer Price Index.  The Bank leases real property in Albemarle County, Virginia for a branch that began operations in  May 2012. The lease term commenced May 1, 2012 and continues for seven years with two optional  five year extensions. Base annual rent, including utilities, is $81,400, or $6,783 per month, increasing  at 2% annually. This lease replaced a lease at the origuial branch location that terminated December  31,2012 and had a base annual rent of $24,000, or $2,000 per month.  (Continued) 32