Related Party Transactions

12 Months Ended

Dec. 31, 2020

NOTE 13, Related Party Transactions

In the ordinary course of business, the Company has granted loans to principal stockholders, executive officers and directors and their affiliates. These loans were made on substantially the same terms and conditions, including interest rates, collateral and repayment terms, as those prevailing at the same time for comparable transactions with unrelated persons, and, in the opinion of management and the Company’s board of directors, do not involve more than normal risk or present other unfavorable features. None of the principal stockholders, executive officers or directors had direct or indirect loans exceeding 10 percent of stockholders’ equity at December 31, 2020.

Annual activity consisted of the following:

(dollars in thousands)	2020			2019
Balance, beginning of year	$	3,910		$	4,012
Additions		3,531			297
Reductions		(3,221	)		(399	)
Balance, end of year	$	4,220		$	3,910

Deposits from related parties held by the Company at December 31, 2020 and 2019 amounted to $17.2 million and $18.2 million, respectively.