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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Operating Activities      
Net income $ 11,136 $ 8,824 $ 6,256
(Accretion), amortization and depreciation      
Securities 332 31 145
Bank premises and equipment 1,591 1,668 1,441
Core deposit intangible 388 454 533
Modification fees on Federal Home Loan Bank of Boston advances 232 232 234
Subordinated debt issuance costs 24 24 23
Mortgage servicing rights 51 48 169
Fair value adjustment on loans (64) (779) (1,207)
Fair value adjustment on deposits (8) (37) (78)
(Gains) and losses, including write-downs on sales and calls of securities available-for-sale, net (263) (318) (178)
(Gains) and losses, including write-downs on sales of loans, excluding capitalized servicing rights (82) (71) (95)
(Gains) and losses, including write-downs on CRA Mutual Fund (25) 18
(Gains) and losses, including write-downs of other real estate owned 408 274 1,717
(Gains) and losses, including write-downs on sale/disposals of premises and equipment 85 1
Gain from BOLI (341)
Provision for loan losses 955 1,728 1,020
Proceeds from loans sold 6,447 4,555 5,440
Loans originated for sale (6,697) (3,815) (6,014)
Decrease (increase) in deferred loan origination fees and costs, net 59 (132) (42)
Mortgage servicing rights originated (61) (43) (63)
Decrease in mortgage servicing rights impairment reserve (23)
Increase in interest receivable (267) (478) (229)
Deferred tax (benefit) expense (391) (494) 888
(Increase) decrease in prepaid expenses (174) (50) 123
Increase in cash surrender value of life insurance policies (392) (337) (343)
Decrease (increase) in income tax receivable 137 760 (173)
Increase in income tax payable 235
Decrease in other assets 846 48 790
Increase (decrease) in accrued expenses 352 769 (643)
(Decrease) increase in interest payable (159) 138 10
(Decrease) increase in other liabilities (835) 69 240
Stock based compensation - restricted stock awards 556 447 265
Net cash provided by operating activities 14,330 13,277 10,207
Investing Activities      
Redemptions (purchases) of Federal Home Loan Bank of Boston stock, net 1,254 (683) (602)
Purchases of securities available-for-sale (53,467) (41,631) (36,654)
Purchases of interest bearing time deposits with financial institutions (750)
Proceeds from sales of securities available-for-sale 41,814 10,036 199
Proceeds from calls of securities available-for-sale 75 695 16,141
Proceeds from maturities of securities available-for-sale 13,521 17,061 20,427
Reinvestment of CRA Mutual Fund (21) (19)
Loan originations and principle collections, net (19,172) (102,273) (32,536)
Recoveries of loans previously charged off 88 74 600
Proceeds from sales of other real estate owned 1,088 289 2,080
Capital expenditures (2,055) (1,393) (1,954)
Investment in BOLI (5,750)
Net cash and cash equivalents (paid) acquired in branch acquisition (298) 22,396
Net cash utilized by investing activities (23,375) (118,142) (9,903)
Financing Activities      
Increase in deposit transaction accounts, net 26,722 58,658 7,578
(Decrease) increase in time deposits, net (33,947) 44,300 (5,208)
Increase (decrease) in securities sold under agreements to repurchase, net 4,426 2,436 (3,867)
Short-term Federal Home Loan Bank of Boston advances, net 20,500 (17,500) 17,000
Long-term Federal Home Loan Bank of Boston advances, net (37,000) 30,000
Principal payments on note payable (34) (33) (31)
Decrease in finance lease obligation (109) (127) (59)
Stock options exercised 82 222 316
Issuance of shares for directors' fees 1 81
Common stock dividends paid (3,155) (3,133) (3,113)
Net cash (applied to) provided by financing activities (22,515) 114,824 12,697
Net (decrease) increase in cash and cash equivalents (31,560) 9,959 13,001
Cash and cash equivalents, beginning of year 58,445 48,486 35,485
Cash and cash equivalents, end of year 26,885 58,445 48,486
Cash paid during year      
Interest 9,212 6,864 4,049
Income taxes 2,378 1,443 2,291
Non-cash transfers      
From loans to other real estate owned 1,654 743
Finance Lease Obligation 1,373
Finance Lease Paid-off      
Fixed Asset (1,158)
Lease liability 1,254
Deferred gain applied to bank premises and equipment (96)
Transfer of unearned credit-related discount to allowance for loan losses 663
Adoption of new accounting principle - Other assets 1,552
Adoption of new accounting principle - Other liabilities (1,552)
Adoption of new accounting principle 16
BOLI proceeds included in other assets 621
Branch acquisition      
Cash and cash equivalents (paid) acquired (298) 22,387
Net loans acquired 7,849 7,097
Fixed assets acquired (including capital leases) 761 1,605
Accrued interest receivable acquired 5 12
Other assets acquired 6 20
Core deposit intangible 633
Goodwill 1,263
Deposits assumed 8,323 31,433
Capital lease assumed 1,476
Other liabilities assumed $ 3