2. Transactions with Affiliates and Related Parties

In the normal course of business, the Company makes loans to executive officers and directors of the Company and its subsidiary and to entities and individuals affiliated with those executive officers and directors. These loans are made on terms no less favorable to the Company than those prevailing at the time for comparable transactions with unrelated persons or, in the case of certain residential real estate loans, on terms that are widely available to employees of the Company who are not directors or executive officers.

Changes in the loans to such executive officers, directors and affiliates during 2018, 2017 and 2016 were as follows:


	Year Ended December 31,
(dollars in thousands)	2018		2017		2016
Balance at beginning of year	$	61,603	$	94,466	$	58,936
New loans made		6,756		3,762		36,017
Repayments		(2,271)		(36,625)		(487)
Balance at end of year	$	66,088	$	61,603	$	94,466

The Company has participated in various transactions with BWC, BOW, BNPP and its affiliates, in each case while such entities were affiliates and related parties of the Company. These transactions were subject to review by the FRB, FDIC and other regulatory authorities. The transactions were required to be on terms at least as favorable to the Company as those prevailing at the time for similar non-affiliate transactions. These transactions included the provision of services, sales and purchases of assets, foreign exchange activities, financial guarantees, international services, interest rate swaps and intercompany deposits and borrowings.

The Company participates in forward and spot transactions with BOW as the counterparty. These positions as of December 31, 2018, 2017 and 2016 are summarized below along with other transactions with its related parties.


	As of December 31,
(dollars in thousands)	2018		2017		2016
Cash and due from banks	$	55,454	$	41,874	$	39,408
Other assets		19,358		23,872		2,765
Noninterest-bearing demand deposits		(346)		(456)		(2,990)
Other liabilities		—		—		(18,709)
Noninterest income from affiliates		5,677		4,908		7,757
Noninterest expense to affiliates		(59)		(47)		(39)
Off-balance sheet transactions:
Commitments to purchase and sell foreign currencies(1)		—		—		74

⁽¹⁾

Represents the notional amount of derivative financial instruments that are carried on the consolidated balance sheets at fair value.

The Company does not transact in hedging or trading activities on behalf of BOW or BWC.

In 2016, BWC and the Company entered into an Expense Reimbursement Agreement whereby BWC agreed to reimburse the Company for certain expenses incurred by the Company that are provided for the ultimate benefit of BNPP and its subsidiaries. Expense reimbursements by BWC amounted to $14.6 million, $21.4 million and $24.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. For further discussion related to transactions with BWC including direct stock repurchase, see “Note 1. Organization and Summary of Significant Policies ─ Reorganization Transactions” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data for more information.