Related Party Transactions

9 Months Ended

Sep. 30, 2022

Related party transactions:

(A) Loans:

The Bank has made and expects to continue to make loans to the directors, certain management, significant shareholders, and executive officers of the Company and their related interests 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 related interests is presented below:


Loans outstanding at January 1, 2022	$	29,010
New loans and advances	55,428
Change in related party status	(9,939)
Repayments	(2,345)
Loans outstanding at September 30, 2022	$	72,154

Unfunded commitments to certain executive officers, certain management and directors and their related interests totaled $34,875 and $10,994 at September 30, 2022 and December 31, 2021, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $311,197 and $312,956 as of September 30, 2022 and December 31, 2021, respectively.

The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $1 and $6 in unamortized leasehold improvements related to these leases at September 30, 2022 and December 31, 2021, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $96 and $297 for the three and nine months ended September 30, 2022, respectively, and $128 and $388 for the three and nine months ended September 30, 2021.

(D) Aviation lease and time sharing agreement:

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 maintains a non-exclusive aircraft lease agreement with an entity owned by one of the Company's directors. During the three and nine months ended September 30, 2022, the Company recognized income amounting to $17 and $36, respectively, under this agreement. No such income was recognized during the three and nine months ended September 30, 2021. Additionally, the Company is a participant to an aviation time sharing agreement for an aircraft owned by an entity that is owned by one of the Company's directors and one of the Company's former directors. During the nine months ended September 30, 2021, the Company made payments of $32 under this agreement. No such payments were made during the three months ended September 30, 2021 nor the three and nine months ended September 30, 2022.

(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 nine months ended September 30, 2021, the Company paid $605 under this agreement related to the secondary offering completed during the second quarter of 2021. No such expenses were incurred during the three months ended September 30, 2021 nor three and nine months ended September 30, 2022.