RELATED-PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2018

NOTE 10 – RELATED‑PARTY TRANSACTIONS

The Company granted loans to principal officers and directors and their affiliates, all of whom are deemed related parties. At September 30, 2018 and December 31, 2017, there were no delinquent or non‑performing loans to any officer or director of the Company. The following presents a summary of related‑party loan activity as of the dates noted (in thousands):


	September 30, 2018		December 31, 2017
Balance, beginning of year	$	14,077	$	10,268
Funded loans		1,288		8,119
Payments collected		(10,459)		(4,310)
Changes in related parties		(2,134)		—
Balance, end of year	$	2,772	$	14,077

Deposits from related parties held by the Bank at September 30, 2018 and December 31, 2017 totaled $47.6 million and $53.1 million, respectively.

The Company leases office space from an entity controlled by one of the Company’s board members. During the nine months ended September 30, 2018 and 2017, the Company incurred $0.1 million and $0.1 million, respectively, of expense related to this lease.

The Company also has a note receivable from a former executive officer totaling $2.1 million and as of September 30, 2018, is no longer a related party. The note receivable from the former executive officer was reclassified to the loans, net line item on the consolidated balance sheet, during the three month period ended September 30, 2018.

The Company had a note receivable from an executive officer and former executive officer totaling $5.8 million, in the aggregate, as of December 31, 2017. These amounts are included in the promissory notes from related parties on the accompanying consolidated balance sheet.