Transactions With Affiliates

12 Months Ended

Dec. 31, 2013

Transactions With Affiliates [Abstract]

Transactions With Affiliates

Note  M—Transactions with Affiliates

The Company entered into a space sharing agreement for office space in New York, New York with Resource America Inc. commencing in September 2011. The Company pays only its proportionate share of the lease rate.The lessor is an independent unrelated third party.  The Chairman of the Board of Resource America, Inc. is the father of the Chairman of the Board and the spouse of the Chief Executive Officer of the Company.  The Chief Executive Officer of Resource America is the brother of the Chairman of the Board and the son of the Chief Executive Officer of the Company. Rent expense is 50% of the fixed rent, real estate tax payment and the base expense charges.  Rent expense was $102,000,  $102,000, and $59,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

The Company entered into a space sharing agreement for office space in New York, New York with Atlas Energy, L.P. commencing May 2012. The Company pays only its proportionate share of the lease rate.The lessor is an independent unrelated third party.  The Executive Chairman of the Board of the general partner of Atlas Energy, L.P. is the brother of the Chairman of the Board and son of the Chief Executive Officer of the Company. The Chief Executive Officer and President of the general partner of Atlas Energy, L.P is the father of the Chairman of the Board and spouse of the Chief Executive Officer of the Company. Rent expense is 50% of the fixed rent, real estate tax payment, and the base expense charges. Rent expense for 2013 and 2012 was $104,000 and $69,000, respectively.

The Bank maintains deposits for various affiliated companies totaling approximately $36.7 million and $42.6 million as of December 31, 2013 and 2012, respectively.

The Bank has entered into lending transactions in the ordinary course of business with directors, executive officers, principal stockholders and affiliates of such persons on the same terms as those prevailing for comparable transactions with other borrowers. At December 31, 2013, these loans were current as to principal and interest payments, and did not involve more than normal risk of collectability. At December 31, 2013, there were $34.9 million of outstanding loans to these related parties.

The Company executed securities transactions through PrinceRidge Group LLC (“PrinceRidge”), a broker dealer in which the Company’s Chairman has a minority interest. For the twelve months ended December 31, 2013, a total of $89.1 million of securities rated AAA by at least one rating agency were purchased from that firm at market, the market price having been confirmed by an independent securities advisor. Of that total, $11.3 was a residential mortgage backed security and $50.8 million were two pools of highly diversified and highly over-collateralized corporate debt and $27.0 million was a collaterized loan obligation. The Company does not pay a separate fee or commission to PrinceRidge. The Company does not have information as to PrinceRidge’s actual profits or losses. All of the purchases, except the $50.8 million AAA highly diversified andhighly over-collateralized pool of various corporate debt, were classified as available for sale. Additionally, the Bank purchased $9.4 million of AAA SBA loans for Community Reinvestment Act purposes through PrinceRidge.  From time to time, the Company may also purchase securities under agreements to resell through that company. The securities consist exclusively of G.N.M.A. certificates which are full faith and credit obligations of the United States government. The largest amount of such purchases outstanding during the twelve months ended December 31, 2013 was $41.3 million, issued at competitive rates. All terms were met as agreed and $6.4 million was outstanding at December 31, 2013.