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 is presented below:



Loans outstanding at January 1, 2019	$	32,264
New loans and advances	1,566
Change in related party status	(9,687		)
Repayments	(589		)
Loans outstanding at June 30, 2019	$	23,554

Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $22,263 and $15,000 at June 30, 2019 and December 31, 2018, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $275,622 and $287,156 as of June 30, 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 $102 and $116 in unamortized leasehold improvements related to these leases at June 30, 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 $124 and $253 for the three and six months ended June 30, 2019 respectively, and $111 and $259 for the three and six months ended June 30, 2018, respectively.

(D) 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 and six months ended June 30, 2019 the Company made payments of $70 and $97, respectively, and $53 and $125 during the three and six months ended June 30, 2018, respectively, under these agreements.

(E) Registration rights agreement:

The Company is party to a registration rights agreement with its former majority shareholder 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 the three and six months ended June 30, 2018, the Company paid $0.7 million under this agreement. No such expenses were incurred for the three and six months ended June 30, 2019.