RELATED-PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2023

The Bank extends credit to certain covered parties including Company directors, executive officers, and their affiliates. As of March 31, 2023 and December 31, 2022, there were no delinquent or non-performing loans to any executive officer or director of the Company. These covered parties, along with principal owners, management, immediate family of management or principal owners, a parent company and its subsidiaries, trusts for the benefit of employees, and other parties, may be considered related parties. The following presents a summary of related-party loan activity as of the dates noted (dollars in thousands):


	March 31, 2023		December 31, 2022
Balance, beginning of year	$	16,859	$	12,833
Funded loans	2,360		15,079
Payments collected	(2,923)		(11,053)
Balance, end of period	$	16,296	$	16,859

Deposits from related parties held by the Bank as of March 31, 2023 and December 31, 2022 totaled $31.5 million and $36.9 million, respectively.

The Company leases office space from an entity controlled by one of the Company’s board members. During the three months ended March 31, 2023 and 2022, the Company incurred $0.1 million and an immaterial amount, respectively, of expenses related to these leases.