TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES

12 Months Ended

Dec. 31, 2016

TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES

TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES

21.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)	2016		2015		2014
Rent expense under leases from related parties	$	3,791	$	3,706	$	3,646

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

Year (in thousands)	Affiliate		Other		Total
2017	$	3,508		2,301		5,809
2018		2,949		2,106		5,055
2019		2,165		1,723		3,888
2020		1,945		1,502		3,447
2021		1,477		1,407		2,884
Thereafter		1,780		3,605		5,385
Total	$	13,824	$	12,644	$	26,468

A director of Republic Bancorp, Inc. is the President and Chief Executive Officer of a company that leases space to the Company. Fees paid by the Company totaled $15,000,  $15,000 and $16,000 for years ended December 31, 2016, 2015 and 2014.

A director of Republic Bancorp, Inc. is designated as a staff attorney with a local law firm. While this director has an arrangement where a percentage of revenues paid to the law firm by certain clients is remitted to him, fees paid to the law firm by the Company are not included in this arrangement. Fees paid by the Company to this law firm totaled $183,000, $183,000 and $160,000 in 2016, 2015 and 2014.

A director of the Bank is an executive of two consulting firms and a local chamber of commerce. Fees paid by the Company to these entities totaled $122,000,  $101,000 and $66,000 in 2016, 2015 and 2014.

A director of the Bank is a partner of an accounting firm that received fees from the Company of $1,000,  $2,000 and $9,000 in 2016, 2015 and 2014.

Loans made to executive officers and directors of Republic and their related interests during 2016 were as follows:

	(in thousands)
Beginning balance	$	52,070
Effect of changes in composition of related parties		(6,185)
New loans		21,618
Repayments		(29,549)
Ending balance	$	37,954

Deposits from executive officers, directors, and their affiliates totaled $81 million and $82 million at December 31, 2016 and 2015.

By an agreement dated December 14, 1989, as amended August 8, 1994, the Company 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 the Company 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 Mrs. Jean Trager, as the survivor of her husband Bernard M. Trager. The cash surrender value of the policies was approximately $2.1 million and $2.1 million as of December 31, 2016 and 2015.

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 the Company. The aggregate amount of such unreimbursed premiums constitutes indebtedness from the trust to the Company and is secured by a collateral assignment of the policies. As of December 31, 2016 and 2015, the net death benefit under the policies was approximately $3.5 million. Upon the termination of the agreement, whether by the death of Mrs. Trager or earlier cancellation, the Company is entitled to be repaid by the trust the amount of indebtedness outstanding at that time.