Note 22 - Related Party Transactions

12 Months Ended

Dec. 31, 2016

22.	RELATED PARTY TRANSACTIONS

In the normal course of business, the Bank has made loans to its directors and officers, including their immediate families, and their related business interests. In accordance with the Bank’s policies, 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 and officers, their immediate families, and their related business interests was approximately

$6.8

million and

$13.8

million at

December

31,

2016

and

2015,

respectively and unused lines of credit available to such persons totaled

$241,000

and

$3.0

million at

December

31,

2016

and

2015,

respectively. Deposits from related parties held by the Bank at

December

31,

2016

and

2015

amounted to

$16.9

million and

$35.5

million, respectively.

For the years ended

December

31,

2016

and

2015,

the Company paid

$160,000

and

$167,000,

respectively, to related parties under the terms of an aircraft time-sharing agreement and service agreements.

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 held for sale on the consolidated statement of financial condition and had a net book value of

$459,000

December

31,

2016.

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 with each party agreeing 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.