In conducting its business, FNCB has engaged in, and intends to continue to engage in, banking and financial transactions with its directors, executive officers and their related parties.

 

FNCB has granted loans, letters of credit and lines of credit to directors, executive officers and their related parties. The following table summarizes the changes in the total amounts of such outstanding loans, advances under lines of credit, net of participations sold, as well as repayments during the years ended and

 

 

 

 

Previously included in related party loans was a commercial line of credit with a company owned by a director that was paid off during the year ended The aggregate balance outstanding for this loan was million at FNCB had sold a participation interest in this line to the same director in the amount of million, of which million was outstanding at FNCB had received a basis point servicing fee from this director on the participation balance.

 

Deposits from directors, executive officers and their related parties held by the Bank at and amounted to million and million, respectively. Interest paid on the deposits amounted to thousand, thousand, and thousand for the years ended and respectively.

 

In the course of its operations, FNCB acquires goods and services from, and transacts business with, various companies of related parties, which include, but are not limited to, employee health insurance, fidelity bond and errors and omissions insurance, legal services, and repair of repossessed automobiles for resale. FNCB recorded payments to related parties for goods and services of million, million, and million in and respectively.

 

The Notes held by directors and/or their related parties totaled million at and million at On FNCB solicited consent from all existing Noteholders to amend the Notes by reducing the interest rate payable on the Notes from to effective and prepaying of the principal amount outstanding on A group of Noteholders holding million of the principal balance outstanding on the Notes at comprised of both related parties or their interests and non-related parties, offered to purchase the Notes of any Noteholder who did not wish to consent to the amendments. There were non-related party Noteholders, who elected to have their Notes purchased by the group, for a total principal balance of million. Of the million, million was purchased by related parties or their interests. On FNCB made an million principal reduction on the Notes. Total principal payments on Notes held by directors and/or their related parties totaled million, of which million was used to purchase the Notes referenced above. On FNCB accelerated a million principal repayment, which was due and payable on of which million was paid to directors and/or their related interests.

 

 

The following table summarizes the activity related to FNCB’s subordinated debt for the years ended and

 

 

On FNCB paid all previously deferred and accrued interest on the Notes for the period through which totaled million. Included in the total paid was million which was paid to FNCB’s directors and/or their related parties. Regular quarterly interest payments on the Notes paid by FNCB to its directors and/or their related parties totaled thousand in and thousand in Interest expense recorded on the Notes for directors and/or their related parties amounted to thousand and thousand for the years ended and respectively. Interest accrued and unpaid on the Notes to directors and/or their related parties totaled thousand at and million at