Related-Party Transactions

Certain executive officers and directors of the Company and Bank, and companies with which they are affiliated, are clients of and have banking transactions with the Company in the ordinary course of business. These transactions are conducted on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not related to the Company.

Activity in related-party loans during 2018 and 2017 is shown below:



Related Party Loans
(in thousands)	2018			2017
Balance at beginning of year	$	16,268		$	13,529
Add: New loans	2,093			34,386
Less: Amounts collected	(3,588		)	(36,447		)
Add (deduct): Relationship changes	(1,552		)	4,800
Balance at end of year	$	13,221		$	16,268

Deposits from officers and directors and their related interests were $155.8 million at December 31, 2018, and $178.0 million at December 31, 2017.

A director of the Company owns an interest in an entity from which the Company leases space for its Rockville, Maryland location. Payments made in accordance with the lease were $566 thousand and $555 thousand in 2018 and 2017, respectively.

Company directors, or their related interests, held $1.4 million of the senior promissory notes outstanding as of December 31, 2017. These notes were paid off on March 30, 2018.

Company directors, or their related interests, held $1.0 million of the convertible subordinated notes outstanding as of December 31, 2018 and 2017.

Company directors, or their related interests, held $4.5 million and $7.1 million of participation loans from the Bank as of December 31, 2018 and 2017, respectively. Company and Bank directors, or their related interests, held $2.0 million and $4.9 million of participation loans from Church Street Capital as of December 31, 2018 and 2017, respectively.