Related Parties

12 Months Ended

Dec. 31, 2021

The Company’s Chief Executive Officer, its Executive Chairman, and its former Vice Chairman are directors of Tower Properties Company (Tower) and, together with members of their immediate families, beneficially own approximately 66% of the outstanding stock of Tower. At December 31, 2021, Tower owned 233,724 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. These payments, with the exception of dividend payments, relate to property management services, including construction oversight, on three Company-owned office buildings and related parking garages in downtown Kansas City.


(In thousands)	2021		2020		2019

Leasing agent fees	$	31	$	—	$	154
Operation of parking garages	71		81		118
Building management fees	2,046		2,110		2,001
Property construction management fees	143		251		250
Project consulting fees	84		335		—
Dividends paid on Company stock held by Tower	234		229		210
Total	$	2,609	$	3,006	$	2,733

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 line of credit is collateralized by Company stock and based on collateral value had a maximum borrowing amount of approximately $12.9 million at December 31, 2021. There were no borrowings under this line during 2021, and no balance outstanding at December 31, 2021. There were no borrowings during 2020 and 2019, and there was no balance outstanding at December 31, 2020 or 2019. Letters of credit may be collateralized under this line of credit; however, there were no letters of credit outstanding during 2021, 2020 or 2019, 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 2021, 2020 and 2019.

Tower leases office space in the Kansas City bank headquarters building owned by the Company. Rent paid to the Company totaled $83 thousand in 2021, $87 thousand in 2020, and $75 thousand in 2019, at $17.25, $17.19 and $17.00 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. See Note 2 Loans and Allowance for Credit Losses for additional information for loans to directors and executive officers of the Company and the Bank, and to their affiliates.

As discussed in Note 21 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 2021, the Company

sold state tax credits to its Executive Chairman, its former Vice Chairman, and its Chief Executive Officer in the amount of $772 thousand, $619 thousand, and $291 thousand, respectively, for personal tax planning. During 2020, the Company sold state tax credits to its Executive Chairman, its former Vice Chairman, and its Chief Executive Officer in the amount of $603 thousand, $551 thousand, $223 thousand, respectively. During 2019, the Company sold state tax credits to its Executive Chairman, its former Vice Chairman, its Chief Executive Officer, and its former Chief Credit Officer in the amount of $865 thousand, $663 thousand, $166 thousand, and $83 thousand, respectively. 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.