Note (15)—Related party transactions:

(A) Loans:

The Bank has made and expects to continue to make loans to the directors, certain management and executive officers of the Company and their affiliates in the ordinary course of business. In management’s opinion, these transactions with directors and executive officers complied with federal banking Regulation O and were made on substantially the same terms as those prevailing at the time for comparable transactions with other unaffiliated persons and did not involve more than the normal risk.

An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates follows:

Loans outstanding at January 1, 2017	$	27,370
New loans and advances		2,807
Repayments		(3,745	)
Loans outstanding at September 30, 2017	$	26,432

Unfunded commitments to certain executive officers and directors and their associates totaled $7,017 and $6,838 at September 30, 2017 and December 31, 2016, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $116,734 and $150,373 as of September 30, 2017 and December 31, 2016, respectively.

The Bank leases various office spaces from entities related to the majority shareholder and his son, who is also a Director of the Company, under varying terms. The Company had $142 and $158 in unamortized leasehold improvements related to these leases at September 30, 2017 and December 31, 2016, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $127 and $128 and $377 and $392 for the three and nine months ended September 30, 2017 and 2016, respectively.

(D) Subordinated debt:

On February 12, 1996, the Company borrowed $775 from the shareholder through a term subordinated note. On August 26, 1999, the Company borrowed $3,300 from the shareholder through a term subordinated note. On June 30, 2006, the Company borrowed $6,000 from the shareholder through a term subordinated note. The total of $10,075 was repaid with cash proceeds from the sale of common stock in the initial public offering, as discussed in Note 1. The Company paid interest payments related to these subordinated debentures to the shareholder amounting to approximately $106 and $230 for the three and nine months ended September 30, 2016, respectively.

(E) Investment securities transactions:

The Company holds an investment in a fund that was issued by an entity owned by one of its directors. The balance in the investment was $200 and $1,145 as of September 30, 2017 and December 31, 2016, respectively.

(F) Aviation time sharing agreement:

Effective May 24, 2016, the Company entered an aviation time sharing agreement with an entity owned by the majority shareholder and his son, who is also a Director of the Company. This replaces the previous agreement dated December 21, 2012. During the three and nine months ended September 30, 2017 and 2016, the Company made payments of $44 and $267 and $71 and $299, respectively, under these agreements.