Related Party Transactions

12 Months Ended

Dec. 31, 2020

6. Related Party Transactions

In the ordinary course of business, CTB has made extensions of credit and had transactions with certain directors and executive officers of CTBI or our subsidiaries, including their associates (as defined by the Securities and Exchange Commission). We believe such extensions of credit and transactions were made on substantially the same terms, including interest rate and collateral, as those prevailing at the same time for comparable transactions with other persons.

Activity for related party extensions of credit during 2020 and 2019 is as follows:

(in thousands)	2020			2019
Related party extensions of credit, beginning of year	$	37,816		$	19,463
New loans and advances on lines of credit		2,193			1
Repayments		(1,948	)		(1,686	)
Increase due to changes in related parties		0			20,038
Related party extensions of credit, end of year	$	38,061		$	37,816

The aggregate balances of related party deposits at December 31, 2020 and 2019 were $23.4 million and $20.9 million, respectively.

A director of CTBI is a shareholder in a law firm that provided services to CTBI and its subsidiaries during the years 2020, 2019, and 2018. Approximately $0.8 million in legal fees and $0.1 million in expenses paid on behalf of CTBI, $0.9 million total, were paid to this law firm during 2020. A refund was issued for several years of adjustments reducing the total paid in 2020 to $0.6 million. Approximately $1.1 million in legal fees and $0.1 million in expenses, $1.2 million total, were paid during 2019, and approximately $1.1 million in legal fees and $0.1 million in expenses, $1.2 million total, were paid during 2018.