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.

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



Loans outstanding at January 1, 2018	$	21,012
New loans and advances	21,828
Repayments	(10,576		)
Loans outstanding at December 31, 2018	$	32,264

Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $15,000 and $4,672 at December 31, 2018 and 2017, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $287,156 and $110,465 as of December 31, 2018 and 2017, respectively.

The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $116 and $137 in unamortized leasehold improvements related to these leases at December 31, 2018 and 2017, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $516, $504 and $522 for the years ended December 31, 2018, 2017 and 2016, respectively.

(D) 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 $29 and $200 as of December 31, 2018 and 2017, respectively.

(E) 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, 2018 and 2017, the Company made payments of $208 and $176, respectively, under these agreements.

(F) Registration rights agreement:

The Company is party to a registration rights agreement with its chairman of the Company’s board of directors (and former majority shareholder) that was entered into in connection with the 2016 IPO, under which the Company is responsible for payment of expenses (other than underwriting discounts and commissions) relating to sales to the public by the shareholder of shares of the Company’s common stock beneficially owned by him. Such expenses include registration fees, legal and accounting fees, and printing costs payable by the Company and expensed when incurred. During 2018, the Company paid $671 under this agreement related to the secondary offering completed during the second quarter of 2018.