RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2016

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, 2016 and 2015 (in thousands):



	2016			2015
Balance at beginning of year	$	36,911		$	37,802
New loans or additional advances	5,742			7,116
Repayments	(7,184		)	(8,007		)
Balance at end of year	$	35,469		$	36,911

Deposits from principal officers, directors, and their affiliates at year-end 2016 and 2015 were $10.3 million and $11.8 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 $169 thousand, $90 thousand and $73 thousand for the years ended December 31, 2016, and 2015 and 2014, 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 $36 thousand, $88 thousand and $67 thousand for the years ended December 31, 2016, 2015, and 2014, respectively.

The Bank leases its branch located at 127 Court Street, Binghamton, New York under a lease agreement through June 2030 from an entity in whom the employer of a Director of the Corporation has a twenty percent interest. The monthly lease payments are $5 thousand and annual rent paid to the leasing entity totaled $62 thousand for the year ended December 31, 2016. The Bank sold a $1.9 million loan participation to the same employer of a Director of the Corporation during the year ended December 31, 2016. There were no similar transactions for the years ended December 31, 2015 and 2014. As of December 31, 2016, the Bank has outstanding loan participations with the same employer of a Director of the Corporation in the amount of $4.7 million. CFS offers insurance products to its customers through the same employer of a Director of the Corporation. 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 and 2014.

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 $328 thousand, $904 thousand, and $858 thousand for the years ended December 31, 2016, 2015, and 2014, respectively.