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	$	32,264
New loans and advances	1,225
Change in related party status	(9,614		)
Repayments	(219		)
Loans outstanding at March 31, 2019	$	23,656

Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $18,382 and $15,000 at March 31, 2019 and December 31, 2018, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $281,119 and $287,156 as of March 31, 2019 and December 31, 2018, respectively.

The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $111 and $116 in unamortized leasehold improvements related to these leases at March 31, 2019 and December 31, 2018, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $129 and $148 for the three months ended March 31, 2019 and 2018, 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 as of March 31, 2019 and December 31, 2018.

(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 three months ended March 31, 2019 and 2018, the Company made payments of $27 and $72, respectively, under these agreements.