Note (25)—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 compliance with regulatory requirements. In management’s opinion, these transactions with directors and executive officers 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		1,204
Change in related party status		(624	)
Repayments		(6,938	)
Loans outstanding at December 31, 2017	$	21,012

Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $4,672 and $6,838 at December 31, 2017 and 2016, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $110,465 and $150,373 as of December 31, 2017 and 2016, respectively.

The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $137 and $158 in unamortized leasehold improvements related to these leases at December 31, 2017 and 2016, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $504, $522 and $503 for the years ended December 31, 2017, 2016 and 2015, respectively.

(D) Consulting services:

The Bank paid $306 for the year ended December 31, 2015 in management consulting services to an entity owned 100% by the then-sole shareholder. The agreement was terminated effective January 1, 2016.

(E) Subordinated debt:

On February 12, 1996, the Company borrowed $775 from the then-sole 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 $230 and $237 for the years ended December 31 2016 and 2015, respectively.

(F) 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 December 31, 2017 and 2016, respectively..

(G) Aviation time sharing agreement:

Effective May 24, 2016, the Company entered an aviation time sharing agreement with an entity owned by certain directors of the Company. This replaces the previous agreement dated December 21, 2012. During the years ended December 31, 2017 and 2016, the Company made payments of $176 and $313, respectively, under these agreements.