Related Parties

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

Related Parties

Related Parties

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, 2023, Tower owned 257,680 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)	2023		2022		2021
Leasing agent fees	$	434	$	125	$	31
Operation of parking garages	111		100		71
Building management fees	2,202		2,118		2,046
Property construction management fees	360		184		143
Project consulting fees	419		—		84
Dividends paid on Company stock held by Tower	265		248		234
Total	$	3,791	$	2,775	$	2,609

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 $11.0 million at December 31, 2023. There were no borrowings under this line during 2023, and no balance was outstanding at December 31, 2023. There were no borrowings during 2022 and 2021, and there was no balance outstanding at December 31, 2022 or 2021. Letters of credit may be collateralized under this line of credit; however, there were no letters of credit outstanding during 2023, 2022 or 2021, 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 2023, 2022 and 2021.

Tower leases office space in the Kansas City bank headquarters building owned by the Company. Rent paid to the Company totaled $82 thousand in 2023, $82 thousand in 2022, and $83 thousand in 2021, at $17.50, $17.44 and $17.25 per square foot, for years 2023, 2022, and 2021, 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.