RELATED-PARTY TRANSACTIONS

9 Months Ended

Sep. 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 September 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):

	September 30, 2020		December 31, 2019
Balance, beginning of year	$	5,675	$	2,659
Funded loans		6,808		11,618
Payments collected		(7,161)		(8,602)
Balance, end of year	$	5,322	$	5,675

Deposits from related parties held by the Bank at September 30, 2020 and December 31, 2019 totaled $21.8 million and $28.5 million, respectively.

The Company leases office spaces from entities controlled by one of the Company’s board members. During the nine months ended September 30, 2020 and 2019, the Company incurred expenses of $0.1 million.