RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2016

NOTE 12 – RELATED-PARTY TRANSACTIONS

The Corporation granted loans to its directors, executive officers, and certain related individuals or entities in the ordinary course of business. The movement and balance of these loans were as follows:


	Amount
(In thousands)
Balance at December 31, 2014	$	1,333

New loans		43
Payments		(130)
Other changes		6
Balance at December 31, 2015		1,252

New loans		102
Payments		(146)
Other changes		-
Balance at December 31, 2016	$	1,208

These loans were made subject to the provisions of Regulation O-“Loans to Executive Officers, Directors and Principal Shareholders of Member Banks,” which governs the permissible lending relationships between a financial institution and its executive officers, directors, principal shareholders, their families and related interests. The amounts reported as other changes include changes in the status of those who are considered related parties, which, for 2015, was mainly related to the addition of one new executive officer.

From time to time, the Corporation, in the ordinary course of its business, obtains services from related parties or makes contributions to non-profit organizations that have some association with the Corporation. Management believes the terms of such arrangements are consistent with arrangements entered into with independent third parties.