Note 21. Related Parties

The Company has entered into transactions with its directors and principal officers of the Company, their immediate families and affiliated companies in which they are the principal stockholders (related parties). The aggregate amount of loans to such related parties was $8.9 million and $2.6 million at December 31, 2016 and 2015, respectively. All such loans, in the opinion of management, were made in the normal course of business on the same terms, including interest rate, collectability and collateral, as those prevailing at the time for comparable transactions.


(Dollars in thousands
Balance, January 1, 2016	$	2,570
New loans and extensions to existing loans		6,818
Repayments and other reductions		(525	)

Balance, December 31, 2016	$	8,863

Unfunded commitments to extend credit to related parties were $2.0 million and $1.6 million at December 31, 2016 and 2015, respectively.

The Company maintains deposit accounts with some related parties. The aggregate amount of these deposit accounts at December 31, 2016 and 2015 amounted to $696 thousand and $499 thousand, respectively.

On May 28, 2015, the Company issued $7.0 million of 6.50% subordinated debt. Related parties purchased and held principal note amounts of $285 thousand. As of December 31, 2016, the Company owed these related parties $291 thousand in principal and accrued interest with regard to the subordinated debt.