Related Party Transactions

12 Months Ended

Dec. 31, 2019

Note 18 - Related Party Transactions

During the ordinary course of business, we make loans to our directors and their affiliates and several of our policy making officers on substantially the same terms, including interest rates and collateral, as those prevailing for comparable transactions with other customers.

Transactions in related party loans were as follows for the years ended December 31:


	2019		2018
	(dollars in thousands)
Beginning Balance	$	3,628	$	6,455
Additions		13,751		771
Repayments		(28)		(3,598)
Change in Directors/Officers		2,181		—
	$	19,532	$	3,628

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 was 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 rent payments received by the subsidiary were $287,000 and $281,000 for the years ended December 31, 2019 and 2018, respectively. The law firm also reimburses the Company for its share of common area maintenance and utilities. In addition, the law firm represents the Company and the Bank in certain legal matters. The fees for law services rendered by that firm were $149,000 and $158,000 for the years ended December 31, 2019 and 2018 respectively.

Total related party deposits in the Bank amounted to $5.8 million and $3.9 million at December 31, 2019 and 2018, respectively. Additionally, the law firm of the President of the Company and Bank, described above, maintained deposits in the Bank of $1.4 million and $270,000 at December 31, 2019 and 2018, respectively.