RELATED PARTY TRANSACTIONS

Members of the Board of Directors, certain Corporation officers, and their immediate families directly, or through entities in which they are principal owners (more than 10% interest) or board members, were customers of, and had loans and other transactions with the Corporation. These loans are summarized as follows for the years ended December 31, 2017 and 2016 (in thousands):



	2017			2016
Balance at beginning of year	$	35,469		$	36,911
New loans or additional advances	6,872			5,742
Repayments	(3,188		)	(7,184		)
Balance at end of year	$	39,153		$	35,469

Deposits from principal officers, directors, and their affiliates at year-end 2017 and 2016 were $11.3 million and $10.3 million, respectively.

The Bank leased its branch located at 7 Southside Drive, Clifton Park, New York under a month to month lease from a member of the Corporation's Board of Directors with a monthly rent expense totaling $4 thousand. In April 2016, the Bank moved its Clifton Park branch to 25 Park Avenue, Clifton Park, New York under a lease agreement through March 2036 from the same member of the Corporation's Board of Directors with monthly lease payments of $11 thousand. In October 2016, the property was sold to an unrelated third party, from which the Bank continues to lease the property. The Bank also leases from this Board of Directors member its branch located at 1365 New Scotland Road, Slingerlands, New York, under a lease agreement through August 2019 with monthly rent expense totaling $4 thousand per month. Annual rent paid to this Board of Directors member totaled $51 thousand, $169 thousand, and $90 thousand for the years ended December 31, 2017, 2016, and 2015, respectively.

The Bank utilized legal services from a local law firm in which a member of the Board of Directors is a principal owner. Services totaled $17 thousand, $36 thousand, and $88 thousand for the years ended December 31, 2017, 2016, and 2015, respectively.

The Bank leases its branch located at 127 Court Street, Binghamton, New York under a lease agreement through June 2030 with monthly lease payments of $5 thousand. The lease originated with an entity in whom the employer of a Director of the Corporation had a twenty percent interest. In July 2017, the employer of the Director sold its interest in the property to an unrelated third party from which the Bank continues to lease the property. Annual rent paid to the leasing entity while there was a related party interest totaled $79 thousand and $62 thousand for the years ended December 31, 2017 and 2016, respectively. The Bank sold a $2.0 million loan participation and a $1.9 million loan participation to the same employer of a Director of the Corporation during the years ended December 31, 2017 and 2016, respectively. There were no similar transactions for the year ended December 31, 2015. As of December 31, 2017 and 2016, the Bank had outstanding loan participations with the same employer of a Director of the Corporation in the amount of $6.6 million and $4.7 million. CFS offers insurance products to its customers through the same employer of a Director of the Corporation. CFS earned income of less than $1 thousand related to these insurance products during the year ended December 31, 2017. CFS earned income of $2 thousand related to these insurance products for the year ended December 31, 2016. There were no similar transactions for the years ended December 31, 2015. The Bank purchased insurance products from the same employer of a Director of the Corporation in the amount of $34 thousand during the year ended December 31, 2017. There were no similar transactions for the years ended December 31, 2016 and December 31, 2015.

WMG provided trust services to members of the Board of Directors, certain Corporation officers, and their immediate families directly, or through entities in which they are principal owners or board members. WMG fee income for the trust services provided totaled $332 thousand, $328 thousand, and $904 thousand for the years ended December 31, 2017, 2016, and 2015, respectively.