Related Party Transactions

12 Months Ended

Dec. 31, 2014

Note 15 - Related Party Transactions

During the years ended December 31, 2014 and 2013, the Bank engaged in the transactions described below with parties that are deemed affiliated.

During January, 2007, a law firm, in which the President of Bancorp and the Bank is a partner, entered into a five year lease agreement with a subsidiary of Bancorp. The term of the lease is five years with the option to renew the lease for three additional five year terms. The first option to renew was exercised in January 2012. The total payments received by the subsidiary, which includes rent, common area maintenance and utilities were $385,000 and $378,000 for the years ended December 31, 2014 and 2013, respectively. In addition, the law firm represents Bancorp and the Bank in certain legal matters. The fees for services rendered by that firm were $324,000, and $615,000 for the years ended December 31, 2014 and 2013 respectively.

Members of the Board of Directors of Bancorp had loans outstanding totaling $846,000 and $905,000 at December 31, 2014 and 2013, respectively. The following table shows loan activity for the year ended December 31, 2014:

	2014
Beginning balance as of December 31, 2013	$	905,000
Loan funding		-
Loan pay off/payment		59,000
Ending balance as of December 31, 2014	$	846,000

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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