RELATED-PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2020

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

NOTE 13 - RELATED-PARTY TRANSACTIONS

The Bank extends credit under Regulation O to certain covered parties including Company directors, executive

officers and their affiliates. At June 30, 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):

	June 30, 2020		December 31, 2019
Balance, beginning of year	$	5,675	$	2,659
Funded loans		3,262		11,618
Payments collected		(6,075)		(8,602)
Balance, end of year	$	2,862	$	5,675

Deposits from related parties held by the Bank at June 30, 2020 and December 31, 2019 totaled $23.6 million and $28.5 million, respectively.

The Company leases office spaces from entities controlled by one of the Company’s board members. During the six months ended June 30, 2020 and 2019, the Company incurred expenses of $0.1 million and an immaterial amount of expense related to this lease in 2019.