RELATED-PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2022

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

NOTE 13 - RELATED-PARTY TRANSACTIONS

The Bank extends credit to certain covered parties including Company directors, executive officers, and their affiliates. As of September 30, 2022 and December 31, 2021, 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 (dollars in thousands):

	September 30, 2022		December 31, 2021
Balance, beginning of year	$	12,833	$	14,321
Funded loans		13,903		11,294
Payments collected		(9,964)		(12,782)
Balance, end of period	$	16,772	$	12,833

Deposits from related parties held by the Bank as of September 30, 2022 and December 31, 2021 totaled $25.6 million and $51.0 million, respectively.

The Company leases office space from an entity controlled by one of the Company’s board members. During the nine months ended September 30, 2022 and 2021, the Company incurred $0.2 million of expenses related to these leases.