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RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
The Company conducts transactions, in the normal course of business, with its directors and officers, including companies in which they have a beneficial interest. It is the Company’s policy to comply with federal regulations that require that these transactions with directors and executive officers be made on substantially the same terms as those prevailing at the time made for comparable transactions to other persons. Related party loans totaled approximately $83.8 million and $67.7 million at December 31, 2018 and 2017, respectively.
As described in Note 1, the Company has a 50% ownership in a joint venture with the Firm in connection with the Company’s headquarters facility. The Firm is considered a related party, as one of its principals is a Board member and shareholder of the Company. The Bank incurred approximately $1.1 million in annual rent expense to the joint venture during 2018, 2017, and 2016.
In October 2013, the Company entered into a lease for a new branch location in a facility owned by a different member of the Company’s Board and incurred less than $120,000 annually of rent expense on this facility during 2018, 2017, and 2016. During 2018, this same Board member participated in a competitive bid for and was awarded the contract as general contractor for the reconstruction of a branch location. Total payments for this branch reconstruction were $956,000, of which at least 75% of these payments were passed through to various subcontractors.
In February 2016, the Company entered into a lease agreement for a non-branch location owned by a relative of a senior management team member and paid approximately $138,000, $138,000, and $100,000 in 2018, 2017, and 2016, respectively, to the company owned by the relative. This same relative, who is employed by the Company as a financial advisor, received approximately $657,000, $668,000, and $420,000 in 2018, 2017, and 2016, respectively, in compensation. Another relative of the same senior management team member, who is also employed by the Company as a financial advisor, received approximately $284,000, $257,000, and $400,000 in 2018, 2017, and 2016, respectively, in compensation.