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Transactions with Affiliates
9 Months Ended
Sep. 30, 2017
Transactions with Affiliates [Abstract]  
Transactions with Affiliates

Note 7. Transactions with Affiliates



The Bank maintains deposits for various affiliated companies totaling approximately $3.5  million and $5.5 million as of September 30, 2017 and December 31, 2016, respectively. 



The Bank has entered into lending transactions in the ordinary course of business with directors, executive officers, principal stockholders and affiliates of such persons. All loans were made on substantially the same terms, including interest rate and collateral, as those prevailing at the time for comparable loans with persons not related to the BankAt September 30, 2017, these loans were current as to principal and interest payments and did not involve more than normal risk of collectability.  Loans to these related parties included in Loans, net of deferred loan fees and costs, amounted to $1.4 million at September 30, 2017 and $649,000 at December 31, 2016.



The Bank periodically purchases securities under agreements to resell and engages in other securities transactions as follows.  The Company executed transactions through J.V.B. Financial Group, LLC, (JVB), a broker dealer in which the Company’s Chairman has a minority interest. The Company’s Chairman also serves as Vice Chairman of Institutional Financial Markets Inc., the parent company of JVB. In 2017, the Company purchased $2.8 million of government guaranteed SBA loans from JVB for Community Reinvestment Act purposes.  The Company also purchased securities under agreements to resell through JVB primarily consisting of G.N.M.A. certificates which are full faith and credit obligations of the United States government issued at competitive rates.  JVB was in compliance with all of the terms of the agreements at September 30, 2017 and had complied with all terms for all prior repurchase agreements. There were $65.1 million and $39.2 million of repurchase agreements outstanding at September 30, 2017 and December 31, 2016, respectively.    



Mr. Hersh Kozlov, a director of the Company, is a partner at Duane Morris LLP, an international law firm.  The Company paid Duane Morris LLP $2.5 million and $2.4 million for legal services for the nine months ended September 30, 2017 and September 30, 2016, respectively.