Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 19:      Related Party Transactions

The Bank has contracted with a subsidiary of a company which was previously partially owned by one of the Company’s directors.  The director retired from the affiliated entity at the end of 2013.  The Bank paid the affiliated entity $2,000 during the six months ended December 31, 2014 for support services, and an additional $13,000 for computer hardware and software used by the Bank for its computer network.  For FY 2014, expenditures were $3,000 for support services and $33,000 for computer hardware and software.

In 2007, the Bank made a construction loan, in the normal course of lending, to this same affiliated entity for the construction of an office building.  In FY 2008 the construction was completed and the loan was refinanced into $7,500,000 permanent financing.  On July 9, 2008, 80.00%, or $6,000,000 was sold to the Montana Board of Investments.  As of December 31, 2014 this loan’s principal balance was $5,849,000 ($1,170,000 net of participation sold). The loan is no longer considered a related party transaction due to the director’s retirement from the affiliated entity.  See the disclosure for loans receivable from directors and senior officers and their related parties in Note 5:  Loans for further information.