Related Parties

The Company’s Chief Executive Officer, its Vice Chairman, and its President are directors of Tower Properties Company (Tower) and, together with members of their immediate families, beneficially own approximately 64% of the outstanding stock of Tower. At December 31, 2014, Tower owned 233,796 shares of Company stock. Tower is primarily engaged in the business of owning, developing, leasing and managing real property.

Payments from the Company and its affiliates to Tower are summarized below. During 2012, the Company leased several surface parking lots in downtown Kansas City, owned by Tower, for employee use. In the fourth quarter of 2012, the Company purchased these lots from Tower for $7.1 million. Other payments, with the exception of dividend payments, relate to property management services, including construction oversight, on four Company-owned office buildings and related parking garages in downtown Kansas City.



(In thousands)	2014		2013		2012
Rent on leased parking lots	$	—	$	—	$	294
Leasing agent fees	502		50		63
Operation of parking garages	86		84		75
Building management fees	1,824		1,799		1,774
Property construction management fees	335		114		231
Dividends paid on Company stock held by Tower	200		191		489
Total	$	2,947	$	2,238	$	2,926

Tower has a $13.5 million line of credit with the Bank which is subject to normal credit terms and has a variable interest rate. The maximum borrowings outstanding under this line during 2014 were $3.0 million, and there was a balance of $1.3 million outstanding at December 31, 2014. The maximum borrowings outstanding during 2013 and 2012 were $2.0 million and $5.0 million, respectively, and there was no balance outstanding at December 31, 2013 or 2012. Interest of $15 thousand, $12 thousand, and $51 thousand was paid during 2014, 2013 and 2012, respectively. Letters of credit may be collateralized under this line of credit; however, there were no letters of credit outstanding during 2014, 2013 or 2012, and thus, no fees were received during these periods. From time to time, the Bank extends additional credit to Tower for construction and development projects. No construction loans were outstanding during 2014, 2013 and 2012.

Tower leases office space in the Kansas City bank headquarters building owned by the Company. Rent paid to the Company totaled $69 thousand in 2014, $67 thousand in 2013 and $66 thousand in 2012, at $15.17, $14.92 and $15.08 per square foot, respectively.

Directors of the Company and their beneficial interests have deposit accounts with the Bank and may be provided with cash management and other banking services, including loans, in the ordinary course of business. Such loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unrelated persons and did not involve more than the normal risk of collectability.

As discussed in Note 20 on Commitments, Contingencies, and Guarantees, the Company regularly purchases various state tax credits arising from third-party property redevelopment and resells the credits to third parties. During 2014, the Company sold state tax credits to its Chief Executive Officer, its Vice Chairman, and its President, in the amount of $396 thousand, $155 thousand, and $60 thousand, respectively, for personal tax planning. During 2013, the Company sold state tax credits to its Chief Executive Officer, his father (a former Chief Executive Officer), its Vice Chairman, and a member of its Board of Directors, in the amount of $846 thousand, $282 thousand, $456 thousand, and $200 thousand, respectively. During 2012, the Company's Chief Executive Officer purchased state tax credits of $465 thousand. The terms of the sales and the amounts paid were the same as the terms and amounts paid for similar tax credits by persons not related to the Company.