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Consolidated Statement of Cash Flows
$ in Thousands
12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Cash flows from operating activities    
Net income $ 6,316 $ 42,602
Net cash (used in) provided by operating activities 10,655 6,466
Adjustments to reconcile net income (loss) to net cash provided by operating activities    
Depreciation 1,115 1,199
Amortization of intangible assets 880 951
Amortization of mortgage servicing rights, net 304 341
Amortization of bond premiums, net 1,649 1,396
Income tax valuation adjustment 0 (39,759)
Share based compensation 124 461
Provision for loan losses 300 375
Provision for deferred income taxes 3,388 1,579
Earnings on bank-owned life insurance (883) (909)
OREO valuation adjustment 137 291
Securities gains, net (142) (339)
Gain on sale of OREO (130) (161)
Gain on extinguishment of debt (1,000) (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 28,939 32,631
Origination of loans held for sale (27,421) (28,328)
Gain on sale of loans (783) (828)
Change in assets and liabilities    
(Increase) decrease in other assets 122 338
Increase (decrease) in other liabilities (281) (3,624)
Cash flows from investing activities    
Proceeds from paydowns of securities available for sale 42,102 31,928
Proceeds from calls and maturities 13,690 5,965
Proceeds from sales of securities available for sale 41,661 91,409
Purchases of securities available for sale (94,035) (167,840)
Redemption of Federal Reserve Bank stock 310 179
Purchase of Federal Home Loan Bank stock 0 (2,028)
Purchase of Federal Reserve Bank stock (1,054) (1,165)
Net increase in loans (53,865) (95,774)
Purchase of premises and equipment (549) (574)
Proceeds from sales of OREO 3,452 1,933
Sale of branches, net of premium received (31,444) 0
Net cash (used in) provided by investing activities (79,732) (135,967)
Cash flows from financing activities    
Net increase in deposits (1) [1] 71,879 19,680
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase (7,562) (7,961)
Net proceeds of advances from the Federal Home Loan Bank 9,000 56,000
Repayment of notes payable 0 (8,500)
Repurchase of subordinated debentures (9,000) 0
Net proceeds from the issuance of common stock 0 68,248
Dividends paid on preferred stock (329) (478)
Net cash provided by (used in) financing activities 63,929 107,989
Cash and cash equivalents (5,148) (21,512)
Cash and cash equivalents    
Beginning of period 27,655 49,167
End of period 22,507 27,655
Cash payments for    
Interest 2,650 7,358
Income taxes 270 121
Transfers from loans to other real estate owned 43 292
Transfer from loan portfolio and sold in secondary market 0 3,848
Loan transfers to branch assets held for sale 1,607 11,524
Premises and equipment transferred to branch assets held for sale 0 5,149
Series B Preferred Stock    
Cash flows from financing activities    
Redemption of Series C Cumulative Perpetual Preferred Stock (59) 0
Series C Preferred Stock    
Cash flows from financing activities    
Redemption of Series C Cumulative Perpetual Preferred Stock $ 0 $ (19,000)
[1] Deposits impacted by branch sales during 2016. See Note 19 for additional information.