Related Party Transactions

12 Months Ended

Dec. 31, 2016

Note 15 - Related Party Transactions

During the years ended December 31, 2016 and 2015, 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 the Company and the Bank is a partner, entered into a five year lease agreement with a subsidiary of the Company. The term of the lease is five years with the option to renew the lease for three additional five year terms. The second option to renew was exercised in January 2017. The total payments received by the subsidiary, which includes rent, common area maintenance and utilities were $270,000 and $266,000 for the years ended December 31, 2016 and 2015, respectively. In addition, the law firm represents the Company and the Bank in certain legal matters. The fees for services rendered by that firm were $228,000, and $206,000 for the years ended December 31, 2016 and 2015 respectively.

Members of the Board of Directors of the Company had loans outstanding totaling $3,060,000 and $3,186,000 at December 31, 2016 and 2015, respectively. The following table shows loan activity for the year ended December 31, 2016:

	2016
Beginning balance as of December 31, 2015	$	3,186,000
Loan funding		133,000
Loan pay off/payment		(259,000	)
Ending balance as of December 31, 2016	$	3,060,000