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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Operating activities:    
Net income $ 15,705 $ 13,688
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and intangibles amortization 2,039 1,985
Lease assets amortization 936  
Stock-based compensation expense 1,075 946
Tax benefit of exercised stock options (260) (48)
Amortization of purchased loan premium 311 258
Deferred tax expense 420 772
Provision for loan losses 325  
Amortization of security premiums and accretion of discounts, net 1,170 1,543
Net gain on sale of securities (235) (70)
Net gain on sale and valuation of other real estate owned (56) (42)
Net loss on disposal of premises and equipment 7  
Net gain on sale of loans (14) (118)
Originations of mortgages held for sale (21,061) (1,018)
Proceeds from sales of mortgages held for sale 20,706 872
Increase in bank owned life insurance investment (724) (735)
Changes in assets and liabilities:    
Decrease (increase) in other assets 686 (249)
Increase in accrued expenses and other liabilities (16) 1,905
Net cash provided by operating activities 21,014 19,689
Investing activities:    
Proceeds from sales/calls/maturities/paydowns of available for sale securities 94,371 47,811
Proceeds from calls/maturities/paydowns of held to maturity securities 6,290 3,929
Proceeds from sales/calls/maturities/paydowns of restricted equity securities 1,511 2,005
Purchase of available for sale securities (70,972) (53,082)
Purchase of restricted equity securities (2,566) (510)
Proceeds from sale of other real estate owned 826 2,129
Net increase in loans (66,338) (43,362)
Principal recoveries of loans previously charged off 587 514
Purchase of premises and equipment, net (367) (4,527)
Purchase of small business investment company fund investment (2,142) (945)
Purchase of loans held for investment   (8,991)
Proceeds from bank owned life insurance investment 218  
Proceeds from sale of loans 1,516 5,635
Net cash used in investing activities (37,066) (49,394)
Financing activities:    
Net (decrease) increase in deposits (1,527) 69,211
Net increase in federal funds purchased 4,997 14,591
Net decrease in short-term Federal Home Loan Bank borrowings (20,000) (30,500)
Proceeds from long-term Federal Home Loan Bank borrowings 40,000  
Payments on long-term Federal Home Loan Bank borrowings (10,947) (11,482)
Proceeds from issuance of common stock 893 146
Cash dividends paid (2,899)  
Net cash provided by financing activities 10,517 41,966
Net (decrease) increase in cash and cash equivalents (5,535) 12,261
Cash and cash equivalents:    
Beginning of the period 34,219 21,958
End of the period 28,684 34,219
Supplemental disclosures of cash flow information:    
Interest paid 15,465 11,540
Income taxes paid 3,145 2,198
Transfers of loans to other real estate owned 4,198 396
Transfers of building premises and equipment to held for sale 337 $ 1,252
Right-of-use lease assets in exchange for lease liability $ 7,408