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Unaudited Consolidated Statement of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities    
Net income $ 4,101 $ 4,008
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation 848 868
Amortization of intangible assets 714 714
Amortization of mortgage servicing rights, net 219 257
Amortization of bond premiums, net 1,157 1,045
Share based compensation 77 0
Provision for loan losses 300 0
Provision for deferred income taxes 2,322 0
Earnings on bank-owned life insurance (665) (683)
OREO valuation adjustment 86 195
Securities gains, net (139) (297)
Gain on sale of OREO (99) (50)
Gain on extinguishment of debt 0 (1,750)
Gain on sale of branches (1,877) 0
Gain on sale of other assets (102) 0
Proceeds from sales of loans held for sale 18,813 26,561
Origination of loans held for sale (17,578) (21,901)
Gain on sale of loans (500) (664)
Change in assets and liabilities    
Decrease in other assets 316 92
Decrease in other liabilities (173) (4,449)
Net cash provided by operating activities 7,820 3,946
Cash flows from investing activities    
Proceeds from paydowns of securities available for sale 29,192 24,794
Proceeds from calls and maturities of securities available for sale 9,765 3,530
Proceeds from sales of securities available for sale 36,198 49,584
Purchases of securities available for sale (87,243) (149,842)
Redemption of Federal Reserve Bank stock 72 179
Purchase of Federal Home Loan Bank stock 0 (1,229)
Purchase of Federal Reserve Bank stock (1,054) (1,119)
Net increase in loans (34,753) (62,434)
Purchase of premises and equipment (411) (483)
Proceeds from sale of OREO 3,048 639
Sale of branches, net of premium received (31,444) 0
Net cash used in investing activities (76,630) (136,381)
Cash flows from financing activities    
Net increase in deposits 92,784 [1] 10,711
Net decrease in federal funds purchased and securities sold under agreements to repurchase (5,637) (7,822)
Net proceeds (repayments) of advances from the Federal Home Loan Bank (1,000) 85,000
Repayment of Notes Payable 0 (8,500)
Net proceeds from the issuance of Common Stock 0 68,960
Redemption of Series C Cumulative Perpetual Preferred Stock 0 (19,000)
Dividends paid on preferred stock (247) (395)
Net cash provided by financing activities 85,900 128,954
Net decrease in cash and cash equivalents 17,090 (3,481)
Cash and cash equivalents    
Beginning of period 27,655 49,167
End of period 44,745 45,686
Cash payments for    
Interest 2,004 6,710
Income taxes 232 81
Transfers from loans to other real estate owned 28 292
Transfers from loan portfolio and sold in secondary market 0 315
Loan transfers to branch assets held for sale $ 1,607 $ 0
[1] Deposits impacted by branch sales during 2016.