Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Note 11 – Related Party Transactions

From time to time, the Company and its subsidiaries have business dealings with companies owned by directors and beneficial shareholders of the Company. Payments made to these companies that exceeded the disclosure threshold of $120,000 in 2015 are reported below.

In 2015, rental expenditures of $465,000 (including reimbursements for taxes, insurance, and other expenses) were paid to an entity indirectly owned by a director of the Company.

SRCM Holdings LLC (“SRCM Holdings”), Swift Run Capital Management, LLC (“SRCM”) and Swift Run Capital, L.P. (the "Fund") are part of a group (collectively, the “SRCM Group”) that had shared voting and shared dispositive power over 9% of the outstanding Company common stock as of March 6, 2014 until the shares were repurchased on May 19, 2015. On May 19, 2015, the Company purchased 190,152 shares of its common stock from the Fund for an aggregate purchase price of $4,354,481, or $22.90 per share, pursuant to a Stock Purchase Agreement dated May 18, 2015. This purchase was funded with cash on hand, and the Company retired the purchased shares. This purchase was made pursuant to the Stock Repurchase Program described in Note 1 – Summary of Significant Accounting Policies. As discussed later in Note 1, the SRCM Sale Agreement entered into in 2013 provides for VNBTrust to receive ongoing royalty payments from the SRCM Group. From January 1, 2015 through May 19, 2015, the date of the repurchase, the Company and its affiliates received cash payments from SRCM Holdings and/or SRCM of $58,000, of which $42,000 was recorded as royalty income.

In December, 2015, the Company purchased 23,285 shares of its common stock from a director of the Company and her spouse (together, the "Sellers") for an aggregate purchase price of $533,227. The purchase was funded with cash on hand, and the purchased shares were retired. This purchase was likewise made pursuant to the Stock Repurchase Program.