Transactions with Affiliates and Related Parties

12 Months Ended

Dec. 31, 2021

Transactions with Affiliates and Related Parties

Transactions with Affiliates and Related Parties

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 2021, 2020 and 2019 were as follows:

	Year Ended December 31,
(dollars in thousands)	2021		2020		2019
Balance at beginning of year	$	91,226	$	85,280	$	66,088
New loans made		2,659		18,133		22,682
Repayments		(7,850)		(12,187)		(3,490)
Balance at end of year	$	86,035	$	91,226	$	85,280

The Company had 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 participated in forward and spot transactions with BOW (which ceased being an affiliate of the Company in February 2019) as the counterparty.

The Company’s transactions with its related parties for the years ended December 31, 2021, 2020 and 2019 are summarized below.

	December 31,
(dollars in thousands)	2021		2020		2019
Noninterest income from affiliates	$	—	$	—	$	382
Noninterest expense to affiliates		—		—		(4)

The Company had no other liabilities with affiliates and no off-balance sheet commitments with affiliates to purchase and sell foreign currencies as of December 31, 2021 and 2020.

The Company did not transact in hedging or trading activities on behalf of BOW or BWC, in each case while such entities were affiliates and related parties of the Company.

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. Payments received from BWC amounted to $7.2 million for the year ended December 31, 2019. Expenses incurred by the Company after 2019 are not subject to reimbursement by BWC under the Expense Reimbursement Agreement.