RELATED-PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2020

NOTE 12 - RELATED‑PARTY TRANSACTIONS

The Bank extends credit under Regulation O to certain covered parties including Company directors, executive officers and their affiliates. At March 31, 2020 and December 31, 2019, 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 benefits 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):


	March 31, 2020		December 31, 2019
Balance, beginning of year	$	3,198	$	2,659
Funded loans		768		9,118
Payments collected		(3,598)		(8,579)
Balance, end of year	$	368	$	3,198

Deposits from related parties held by the Bank at March 31, 2020 and December 31, 2019 totaled $30.5 million and $28.5 million, respectively.

The Company leases office spaces from entities controlled by one of the Company’s board members. During the three months ended March 31, 2020 and 2019, the Company incurred an immaterial amount of expense related to this lease.