Related party transactions

12 Months Ended

Dec. 31, 2021

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, 2021	$	24,675
New loans and advances	11,791
Change in related party status	(122)
Repayments	(7,334)
Loans outstanding at December 31, 2021	$	29,010

Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $10,994 and $23,059 at December 31, 2021 and 2020, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $312,956 and $245,084 as of December 31, 2021 and 2020, respectively.

The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $6 and $53 in unamortized leasehold improvements related to these leases at December 31, 2021 and 2020, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $497, $510, and $509 for the years ended December 31, 2021, 2020, and 2019.

(D) Aviation time sharing agreements:

The Company is a participant to an aviation time sharing agreement with an entity owned by a certain director of the Company. During the years ended December 31, 2021, 2020, and 2019, the Company made payments of $32, $161 and $266, respectively, under this agreement. Additionally, during the year ended December 31, 2021, the Bank formed a subsidiary, FBK Aviation, LLC and purchased an aircraft under this entity. FBK Aviation, LLC also established a non-exclusive aircraft lease agreement with an entity owned by one of the Company's directors. During the year ended December 31, 2021, the Company recognized income amounting to $21 under this agreement.

(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 year ended December 31, 2021, the Company paid $605 under this agreement related to the secondary offering completed during the second quarter of 2021. There were no such expenses during the years ended December 31, 2020 and 2019.