Note

11.

RELATED PARTY TRANSACTIONS

In conducting its business, FNCB has engaged in, and intends to continue to engage in, banking and financial transactions with directors, executive officers and their related parties.

FNCB has granted loans, letters of credit and lines of credit to directors, executive officers and their related parties. The following table summarizes the changes in the total amounts of such outstanding loans, advances under lines of credit, net of

any participations sold, as well as repayments during the years ended

December 31, 2019

and

2018:

	For the Year Ended December 31,
(in thousands)	2019			2018
Balance January 1,	$	64,634		$	55,576
Additions, new loans and advances		93,871			87,015
Repayments		(80,609	)		(77,957	)
Balance December 31,	$	77,896		$	64,634

December 31, 2019,

there were

loans made to directors, executive officers and their related parties that were

not

performing in accordance with the terms of the loan agreements.

Deposits from directors, executive officers and their related parties held by the Bank at

December 31,

2019

and

2018

amounted to

$84.1

million and

$115.5

million, respectively. Interest paid on the deposits amounted to

$484

thousand in

2019

and

$348

thousand in

2018.

In the course of its operations, FNCB acquires goods and services from, and transacts business with, various companies of related parties, which include, but are

not

limited to, employee health insurance, fidelity bond and errors and omissions insurance, legal services, and repair of repossessed automobiles for resale. FNCB recorded payments to related parties for goods and services of $

2.4

million and

$2.5

million in

2019

and

2018

, respectively.

February 8, 2019,

FNCB accelerated the final

$5.0

million principal repayment on the notes, which was due and payable on

September 1, 2019,

of which

$3.1

million was paid to directors and/or their related interests. Accordingly, there was

balance outstanding on the notes held by directors and/or their related parties at

December 31, 2019.

The Notes held by directors and/or their related parties totaled

$3.1

million at

December 31, 2018.

Interest expense recorded on the Notes for directors and/or their related parties amounted to

$24

thousand and

$141

thousand for the years ended

December 31, 2019

and

2018,

respectively. Interest accrued and unpaid on the Notes to directors and/or their related parties totaled

$12

thousand at

December 31,

2018.