Related Parties

12 Months Ended

Dec. 31, 2022

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, 2022, Tower owned 245,410 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)	2022		2021		2020

Leasing agent fees	$	125	$	31	$	—
Operation of parking garages	100		71		81
Building management fees	2,118		2,046		2,110
Property construction management fees	184		143		251
Project consulting fees	—		84		335
Dividends paid on Company stock held by Tower	248		234		229
Total	$	2,775	$	2,609	$	3,006

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 $13.4 million at December 31, 2022. There were no borrowings under this line during 2022, and no balance outstanding at December 31, 2022. There were no borrowings during 2021 and 2020, and there was no balance outstanding at December 31, 2021 or 2020. Letters of credit may be collateralized under this line of credit; however, there were no letters of credit outstanding during 2022, 2021 or 2020, 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 2022, 2021 and 2020.

Tower leases office space in the Kansas City bank headquarters building owned by the Company. Rent paid to the Company totaled $82 thousand in 2022, $83 thousand in 2021, and $87 thousand in 2020, at $17.44, $17.25 and $17.19 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.