NOTE 13: RELATED PARTY TRANSACTIONS

In the ordinary course of business, the Company, through its Bank subsidiary, has and expects to continue to conduct routine banking business with related parties, including its executive officers and directors. Related parties also include shareholders and their affiliates in which they directly or indirectly have 5% or more beneficial ownership in the Company.

Loans—In the opinion of management, loans to related parties were on substantially the same terms, including interest rates and collateral, as those prevailing at the time of comparable transactions with other persons and did not involve more than a normal risk of collectability or present any other unfavorable features to the Company. The Company had approximately $205.8 million and $142.5 million in loans to related parties at December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, there were no loans made to related parties deemed nonaccrual, past due, restructured or classified as potential problem loans.

For the years ended December 31, 2017, 2016 and 2015, loans to related parties are summarized as follows:


	For the Years Ended December 31,
(Dollars in thousands)	2017		2016
Balance at beginning of year	$	142,516	$	136,514
New loans		108,698		81,302
Repayments		(45,446)		(75,300)
Balance at end of year	$	205,768	$	142,516

Unfunded Commitments—At December 31, 2017 and 2016, the Company had approximately $69.7 million and $48.6 million in unfunded loan commitments to related parties, respectively.

Deposits—The Company held related party deposits of approximately $224.4 million and $254.7 million at December 31, 2017 and 2016, respectively.

Advertising—The Company incurred advertising expenses of approximately $192,000 and $94,000 for the years ended December 31, 2017 and 2016, respectively, to a vendor that is solely owned by a director of the Company.