Related Party Transactions

12 Months Ended

Dec. 31, 2016

22. RELATED PARTY TRANSACTIONS

Certain officers, directors and their associates (related parties) have loans and conduct other transactions with the Company. Such transactions are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for other non-related party transactions.

Related party activity for the years ended December 31, 2016 and 2015 is summarized as follows:

SUMMARY OF LOANS TO RELATED PARTIES

At or for the Years Ended December 31,	2016			2015
Balance, beginning of year	$	2,433		$	38,490
Additions		—			—
Other reductions⁽¹⁾		(236	)		—
Repayments		(1,773	)		(36,057	)
Balance, end of year	$	424		$	2,433

(1)	Represents balances at the beginning of the period for related parties who left the Company during the course of the year.

22. RELATED PARTY TRANSACTIONS (Continued)

Interest income earned on related party loans was $21 thousand and $86 thousand for the years ended December 31, 2016 and 2015, respectively.

Certain office space of the Company is leased from companies affiliated with former Directors who remain affiliates of the Company under separate agreements with the Company.

Terms of these five agreements at December 31, 2016 are as follows:

SUMMARY OF LEASES WITH AFFILIATES

December 31, 2016	Annual Rental Payment		Renewal Option Remaining	Annual Rental Increases
Expiration date:
January 2017	$	167	2 five-year terms	Fixed
October 2017		1,408	N/A	N/A
August 2025⁽¹⁾		570	4 five-year terms	Fixed
January 2027		174	4 five-year terms	Fixed
June 2029⁽²⁾		269	N/A	CPI

(1)	This lease is recorded as a $3.9 million obligation under capital lease at December 31, 2016.

(2)	This lease is recorded as a $2.4 million obligation under capital lease at December 31, 2016.

At the time of each of the related party transactions described above, the Company determined that each transaction was on terms as fair to the Company as could have been obtained from unaffiliated third parties.