XML 25 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Transactions with Affiliates
9 Months Ended
Sep. 30, 2018
Transactions with Affiliates [Abstract]  
Transactions with Affiliates

Note 7. Transactions with Affiliates



The Bank maintains deposits for various affiliated companies totaling approximately $797,000 and $4.7 million as of September 30, 2018 and December 31, 2017, 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 lender.  At September 30, 2018, 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 amounted to $1.8 million at September 30, 2018 and $1.7 million at December 31, 2017.



The Bank periodically purchases securities under agreements to resell and engages in other securities transactions through J.V.B. Financial Group, LLC, (JVB), a broker dealer in which the Company’s Chairman is Chairman and has a minority interest. The Company’s Chairman also serves as President of Cohen & Company Financial Limited (formerly Euro Dekania Management Ltd.), a wholly-owned subsidiary of Cohen & Company Inc. (formerly Institutional Financial Markets Inc.), the parent company of JVB. In 2018, the Company purchased $6.7 million of government guaranteed SBA loans for Community Reinvestment Act purposes from JVB. Prices for these loans are verified to market rates and no separate commissions or fees are paid to that firm. The Company purchased securities under agreements to resell through JVB primarily consisting of Government National Mortgage Association 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, 2018 and had complied with all terms for all prior repurchase agreements. There were $64.5 million and $64.3 million of repurchase agreements outstanding at September 30, 2018 and December 31, 2017, 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 $2.2 million and $2.5 million for legal services for the nine months ended September 30, 2018 and September 30, 2017, respectively.