NOTE 15 – RELATED‑PARTY TRANSACTIONS

The Company granted loans to principal officers and directors and their affiliates, all of whom are deemed related parties. At December 31, 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):


	December 31, 2018		December 31, 2017
Balance, beginning of year	$	14,077	$	10,268
Funded loans		1,466		8,119
Payments collected		(9,386)		(4,310)
Changes in related parties		(3,498)		—
Balance, end of year	$	2,659	$	14,077

Deposits from related parties held by the Bank at December 31, 2018 and December 31, 2017 totaled $36.7 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 year ended December 31, 2018 and 2017, the Company incurred $0.1 million each year, of expense related to this lease.

The Company earned trust and investment management fees of $0.1 million from related parties each year during the years ended December 31, 2018 and 2017. Assets under management for those related parties totaled $89.3 million and $74.8 million at December 31, 2018 and 2017, respectively.

Effective July 23, 2018, the Company redeemed its subordinated notes due 2020. A director of the Company was a subscription holder of such notes. Upon redemption, the Company incurred a principal and interest payment of $0.1 million.

The Company had a note receivable from a former executive officer of $2.1 million and as of December 31, 2018, the former executive officer is no longer a related party. The note receivable from the former executive officer was reclassified from Promissory notes from related parties to the Loans, net line item on the consolidated balance sheet, during the year ended December 31, 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 as of December 31, 2017. The amounts paid for the year ended December 31, 2018 are included in the payments collected in the table above.