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## Note 18. Lease Commitments (Continued) 

## NOTES TO THE CONSOLIDATED FEVANCLU. STATEMENTS December 31,2012 

## BLUE RIDGE BANKSHARES, INC. 

At December 31, 2012, the aggregate future minimum rental commitments (base rents) under this noncancellable operating lease are as follows: 

## Note 19. Concentration of Credit Risk 

Rent expense for 2012 and 2011 was $ 13 8,510 and $50,334, respectively. 

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The majority of the Bank’s loans are made to customers in the Bank’s trade area and a substantial portion ofthe loans are secured by real estate. Accordingly, the ultimate collectibility ofthe Bank’s loan portfolio is susceptible to changes in local economic conditions including the agribusiness sector and the real estate market. A summary of loans by type is shown in Note 4. Collateral required by the Bank is determined on an individual basis depending on the nature of the loan and the fmancial condition of the borrower. In addition, investment in state and municipal securities include govemmental entities within the Bank’s market area. 

## Note 20. Transactions With Related Parties 

During the year, officers and directors and their related interests were customers of and had transactions with the Bank durmg the normal course of business. These transactions were made on substantially the same terms as those prevailing for other customers and did not involve any abnormal risk. Loan transactions to such related parties are shown in the following schedule: 

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The Bank held related party deposits of approximately $3,277,000 and $1,511,000 at December 31, 2012 and 2011, respectively. 

