RELATED-PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2019

NOTE 11 – RELATED‑PARTY TRANSACTIONS

The Bank granted loans to principal officers and directors and their affiliates, all of whom are deemed related parties. At March 31, 2019 and December 31, 2018, 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):


	March 31, 2019		December 31, 2018
Balance, beginning of year	$	2,659	$	14,077
Funded loans		988		1,466
Payments collected		(8)		(9,386)
Changes in related parties		—		(3,498)
Balance, end of year	$	3,639	$	2,659

Deposits from related parties held by the Bank at March 31, 2019 and December 31, 2018 totaled $39.1 million and $36.7 million, respectively.

The Company leases office space from an entity controlled by one of the Company’s board members. During of the three months ended March 31, 2019 and 2018, the Company incurred an immaterial amount of expense related to this lease.

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.