RELATED-PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2021

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

NOTE 12 - RELATED-PARTY TRANSACTIONS

The Bank extends credit to certain covered parties including Company directors, executive officers and their affiliates. As of March 31, 2021 and December 31, 2020, 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):

	March 31, 2021		December 31, 2020
Balance, beginning of year	$	14,321	$	5,675
Funded loans		2,312		17,348
Payments collected		(5,150)		(8,702)
Balance, end of period	$	11,483	$	14,321

Deposits from related parties held by the Bank as of March 31, 2021 and December 31, 2020 totaled $24.1 million and $26.2 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, 2021 and 2020, the Company incurred $0.1 million and an immaterial amount, respectively, of expenses related to these leases.