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	13,370
Change in related party status	(10,067		)
Repayments	(4,687		)
Loans outstanding at December 31, 2019	$	30,880

Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $19,404 and $15,000 at December 31, 2019 and 2018, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $238,781 and $287,156 as of December 31, 2019 and 2018, respectively.

The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $86 and $116 in unamortized leasehold improvements related to these leases at December 31, 2019 and 2018, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $509, $516, and $504 for the years ended December 31, 2019, 2018, and 2017, respectively.

(D) Aviation time sharing agreement:

The Company is a participant to aviation time sharing agreements with entities owned by a certain director of the Company. During the years ended December 31, 2019, 2018 and 2017, the Company made payments of $266, $208 and $176, 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 2018, the Company paid $671 under this agreement. No such expenses were incurred for the year ended December 31, 2019 or 2017.