NOTE 16 – RELATED‑PARTY TRANSACTIONS

The Bank extends credit under Regulation O to certain covered parties including Company directors, executive officers and their affiliates. At December 31, 2019 and December 31, 2018, 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 (in thousands):


	December 31, 2019		December 31, 2018
Balance, beginning of year	$	2,659	$	14,077
Funded loans		9,118		1,466
Payments collected		(8,579)		(9,386)
Changes in related parties		—		(3,498)
Balance, end of year	$	3,198	$	2,659

Deposits from related parties held by the Bank at December 31, 2019 and December 31, 2018 totaled $28.5 million and $36.7 million, respectively.

The Company leases office spaces from entities controlled by one of the Company’s board members. During the years ended December 31, 2019 and 2018, the Company incurred $0.3 million and $0.3 million, respectively, of expense related to these leases.

The Company earned trust and investment management fees of $0.2 million and $0.1 million from related parties during the years ended December 31, 2019 and 2018. Assets under management for those related parties totaled $137.1 million and $89.3 million at December 31, 2019 and 2018, 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.