TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES

12 Months Ended

Dec. 31, 2013

TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES

TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES

19.               TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES

Republic leases office facilities under operating leases from limited liability companies in which Republic’s Chairman/Chief Executive Officer and President are partners. Rent expense under these leases was as follows:

Years Ended December 31, ($ in thousands)	2013		2012		2011
Rent expense under leases from related parties	$	3,372	$	3,254	$	3,158

Total minimum lease commitments under non-cancelable operating leases are as follows:

(in thousands)	Affiliate		Other		Total
2014	3,455		3,391		6,846
2015	3,209		2,994		6,203
2016	2,643		1,499		4,142
2017	1,827		1,368		3,195
2018	1,281		1,196		2,477
Thereafter	—		5,507		5,507
Total	$	12,415	$	15,955	$	28,370

A director of Republic Bancorp, Inc. is the President and Chief Executive Officer of a company that leases space to the Bank. Fees paid to the Bank totaled $14,000, $14,000 and $14,000 for years ended December 31, 2013, 2012 and 2011.

A director of Republic Bancorp, Inc. is “of counsel” to a local law firm. Fees paid by the Bank to this firm totaled $1.0 million, $181,000 and $293,000 in 2013, 2012 and 2011.

A director of RB&T is an executive of two consulting firms. Fees paid by the Bank to these firms totaled $101,000, $173,000 and $12,000 in 2013, 2012 and 2011.

A director of RB&T is a partner of an accounting firm that received fees from the Bank of $9,000, $8,000 and $8,000 in 2013, 2012 and 2011.

Loans made to executive officers and directors of Republic and their related interests during 2013 were as follows:

	(in thousands)
Beginning balance	$	20,953
Effect of changes in composition of related parties	(338		)
New loans	6,981
Repayments	(7,888		)
Ending balance	$	19,708

Deposits from executive officers, directors, and their affiliates totaled $70 million and $70 million at December 31, 2013 and 2012.

By an agreement dated December 14, 1989, as amended August 8, 1994, RB&T entered into a split-dollar insurance agreement with a trust established by the Company’s deceased former Chairman, Bernard M. Trager. Pursuant to the agreement, from 1989 through 2002 RB&T paid $690,000 in total annual premiums on the insurance policies held in the trust. The policies are joint-life policies payable upon the death of Ms. Jean Trager, as the survivor of her husband Bernard M. Trager. The cash surrender value of the policies was approximately $1.9 million and $1.8 million as of December 31, 2013 and 2012.

Pursuant to the terms of the trust, the beneficiaries of the trust will each receive the proceeds of the policies after the repayment of the $690,000 of indebtedness to RB&T. The aggregate amount of such unreimbursed premiums constitutes indebtedness from the trust to RB&T and is secured by a collateral assignment of the policies. As of December 31, 2013 and 2012, the net death benefit under the policies was approximately $3.5 million. Upon the termination of the agreement, whether by the death of Ms. Trager or earlier cancellation, RB&T is entitled to be repaid by the trust the amount of indebtedness outstanding at that time.