Note 15 - Related Party Transactions

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

1

5

– RELATED PARTY

TRANSACTIONS

Loans to principal officers, directors, significant shareholders, and their affiliates in

2019

were as follows (in thousands):

Beginning balance	$	14,191
New loans and advances		6,247
Repayments		(8,046	)
Ending balance	$	12,392

Deposits from principal officers, directors, significant shareholders, and their affiliates at year-end

2019

and

2018

were

$505,000

and

$178,000,

respectively.

Hogan Development Company assists the Bank in onboarding, managing, and selling the Bank’s OREO. Hogan Development Company is owned by W. Glenn Hogan, a director. The agreement with Hogan Development Company is periodically reviewed and evaluated by the Audit Committee. The Bank paid real estate management fees of

$20,000

in both

2019

and

2018.

The Bank paid

no

real estate sales and leasing commissions in

2019

or

2018.

On

March 30, 2018,

the Company completed a private placement of common stock. In the transaction, the Company issued

150,000

common shares and

1.0

million non-voting common shares to Patriot Financial Partners III, L.P. at

$13.00

per share resulting in net proceeds of

$14.9

million. W. Kirk Wycoff, a former director of the Company and Bank, serves as a general partner of Patriot Financial Partners III, L.P.

On

June 26, 2018,

the Company completed the purchase and retirement of all of its issued and outstanding Series E and Series F Non-Voting Perpetual Preferred Shares for an aggregate price of

$3.5

million paid in cash. The Series E and Series F Shares had an aggregate liquidation preference of

$10.5

million. Participating sellers in the transaction, among others, were directors W. Glenn Hogan, Michael T. Levy, Dr. Edmond J. Seifried, and Patriot Financial Partners, L.P. and Patriot Financial Partners Parallel, L.P., each affiliates of former director W. Kirk Wycoff. An independent

third

party financial advisory firm served as the financial advisor in this transaction to a special committee of directors comprised of members having

no

interest in the repurchase transaction.