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CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net income $ 3,775 $ 3,590
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for loan and lease losses 50 300
(Decrease) increase in deferred loan origination fees, net (53) 5
Depreciation and amortization 201 255
Gain on sale, call, and impairment of investment securities, net (19) (161)
Amortization of investment security premiums and discounts, net 1,969 2,447
Increase in cash surrender values of life insurance policies (228) (238)
Stock based compensation expense 234 310
Gain on sale of other real estate owned 0 (8)
Decrease (increase) in accrued interest receivable 163 (581)
Decrease in accrued interest payable and other (182) (347)
Net cash provided by operating activities 5,910 5,572
Cash flows from investing activities:    
Proceeds from the sale of available-for-sale investment securities 24,753 31,288
Proceeds from matured available-for-sale investment securities 0 1,930
Proceeds from called available-for-sale investment securities 1,499 145
Purchases of available-for-sale investment securities (81,850) (63,061)
Proceeds from principal repayments for available-for-sale investment securities 33,196 31,768
Proceeds from principal repayments for held-to-maturity investment securities 67 79
Net increase in interest-bearing deposits in banks 0 (249)
Net (increase) decrease in loans (2,956) 1,543
Proceed from sale of loans 1,349 0
Proceeds from sale of other real estate 0 395
Net increase in FHLB stock 0 (153)
Purchases of equipment (115) (119)
Net cash (used in) provided by investing activities (24,057) 3,566
Cash flows from financing activities:    
Net increase in demand, interest-bearing and 22,420 8,825
Net decrease in time deposits (2,680) (2,689)
Net increase (decrease) in short-term borrowings 3,000 (1,500)
Net (decrease) increase in long-term borrowings (3,000) 1,500
Proceeds from stock option exercise 123 351
Cash dividends paid (895) (975)
Cash paid to repurchase common stock (4,654) (5,006)
Net cash provided by financing activities 14,314 506
(Decrease) increase in cash and cash equivalents (3,833) 9,644
Cash and cash equivalents at beginning of year 38,467 27,589
Cash and cash equivalents at end of period $ 34,634 $ 37,233