RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 12: RELATED PARTY TRANSACTIONS

In the ordinary course of business, the Company, through the Bank, has and expects to continue to conduct routine banking business with related parties, including its executive officers and directors. Related parties also include shareholders and their affiliates who directly or indirectly have 5% or more beneficial ownership in the Company.

Loans—In the opinion of management, loans to related parties were on substantially the same terms, including interest rates and collateral, as those prevailing at the time of comparable transactions with other persons and did not involve more than a normal risk of collectability or present any other unfavorable features to the Company. The Company had approximately $167.6 million and $158.7 million in loans to related parties at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, there were no loans made to related parties deemed nonaccrual, past due, restructured in a troubled debt restructuring or classified as potential problem loans.

Activity in loans to related parties as of the periods shown below was as follows:

	Years Ended December 31,
(Dollars in thousands)	2020		2019
Beginning balance	$	158,727	$	168,851
New loans		43,638		15,934
Repayments		(34,746)		(26,058)

Ending balance $ 167,619 $ 158,727

Unfunded Commitments—At December 31, 2020 and 2019, the Company had approximately $47.3 million and $48.7 million in unfunded loan commitments to related parties, respectively.

Deposits—The Company held related party deposits of approximately $210.1 million and $233.9 million at December 31, 2020 and 2019, respectively.

Advertising—The Company incurred advertising expenses of approximately $52,000 and $97,000 for the years ended December 31, 2020 and 2019, respectively, to a vendor that is solely owned by a director of the Company.