Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2014
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS

 

18.RELATED PARTY TRANSACTIONS

The Company, through its subsidiaries, has entered into loan transactions with its directors, principal officers, and affiliated companies in which they are principal stockholders.  Such transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features.  There were no changes in terms or loan modifications from the preceding period. The following schedule summarizes the changes in loan amounts outstanding to these persons during the periods indicated (dollars in thousands):

 

 

 

 

 

 

 

 

 

2014

 

2013

Loans outstanding at January 1

$           34,883

 

$          51,543

 

New loans and advances
15,731 

 
8,496 

 

Loan repayments

(18,932)

 
(7,440)

 

Reclassification (1) (2)
2,875 

 
(17,716)

Balance at December 31

$           34,557

 

$          34,883

 

 

 

 

 

 

(1)

On January 1, 2014, the Company completed its acquisition of StellarOne, increasing the Company’s Board of Directors by eight directors and adding principal officers and affiliated companies.

(2)

Includes loans (i) to persons no longer affiliated with the Company and therefore not considered related party loans as of December 31, 2014 or (ii) that were not considered related party loans in 2013 that subsequently became related party loans in the current year.  For 2013, loans in the aggregate of $17.5 million to two former directors who retired from the Company’s Board of Directors in April 2013 are included.

 

The Company, through its subsidiaries, has also entered into deposit transactions with its directors, principal officers, and affiliated companies in which they are principal stockholders, all of which are under the same terms as other customers.  The aggregate amount of these deposit accounts was  $14.7 million and  $22.2 million, for the years ended December 31, 2014 and 2013, respectively. 

 

In March 2013, the Company entered into an agreement to purchase 500,000 shares of its common stock from Markel Corporation, at that time the Company’s largest shareholder, for an aggregate purchase price of $9,500,000, or $19.00 per share.  Steven A. Markel was a director of the Company and Vice Chairman of Markel Corporation at that time.  The repurchase was funded with cash on hand and the shares were retired.