Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions

22. Related Party Transactions

Intercompany Transactions

Intercompany transactions include activities between the Company and the Bank. Until January 1, 2011, the Company’s Trust department administered the 401(k) Plan’s assets. The 401(k) Plan’s assets are now managed by a third party administrator. The Bank’s Trust department administers the Pension Plan assets and Pension Plan assets are managed by professional investment firms as well as by investment professionals that are teammates of the Bank.

Related Party Transactions

Certain Directors, Executive Officers, and their related interests are loan clients of the Bank. All such loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions. The total loans outstanding to these related parties aggregated $1.8 million and $2.1 million at December 31, 2012 and 2011, respectively. During 2012, net paydowns on related party loans were $13 thousand. In addition, during 2012 one loan that totaled $350 thousand at December 31, 2011 was no longer determined to have a related interest and was removed from this classification. All such loans outstanding at December 31, 2012 were performing based on contractual terms.