Note 22 - Related Party Transactions

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

22. RELATED PARTY TRANSACTIONS

In the normal course of business, the Bank has made loans to its directors, officers, including their immediate families, and their related business interests. In the opinion of management, related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of loans outstanding to directors, officers, their immediate families, and their related business interests was approximately $11.5 million and $1.7 million at December 31, 2014 and 2013, respectively and unused lines of credit was $2.5 million and $3.1 million at December 31, 2014 and 2013, respectively. Deposits from related parties held by the Bank at December 31, 2014 and 2013 amounted to $13.7 million and $2.0 million, respectively.

From December 2011 to October 2013, the Bank subleased office space on a month-to-month basis from a related party. Lease expense to this related party was approximately $72,000 for the year ended December 31, 2013. For the years ended December 31, 2014 and 2013, the Company also paid $129,000 and $26,000, respectively, to a related party under the terms of an aircraft time-sharing agreement and service agreements.

In 2014 the Company and its Chairman entered into an aircraft purchase agreement whereby the Company acquired a 75% undivided interest and Mr. Massey acquired a 25% undivided interest in an airplane acquired at a cost of $775,000.  The Company’s share is recorded in office properties and equipment on the consolidated statement of financial condition and has a net book value of $583,000 at December 31, 2014.  The Company and Mr. Massey also entered into an agreement pursuant to which the parties agreed to apportion the fixed costs of the aircraft on a pro rata basis and each party agreed to pay its own variable costs associated with the use of the aircraft. Variable costs attributable to Mr. Massey's use of the Aircraft in connection with Company business, and not in connection with his personal use of the Aircraft, were paid by the Company.