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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating activities:    
Net income $ 1,415 $ 3,503
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and intangibles amortization 483 545
Lease assets amortization 238 231
Stock-based compensation expense 285 266
Tax benefit of exercised stock options (6) (31)
Amortization of purchased loan premium 160 60
Provision for loan losses 3,300  
Amortization of security premiums and accretion of discounts, net 233 281
Net gain on sale of securities 39 14
Net gain on sale and valuation of other real estate owned (6) (50)
Net gain on sale of loans (11)  
Originations of mortgages held for sale (8,668) (1,976)
Proceeds from sales of mortgages held for sale 6,699 1,726
Increase in bank owned life insurance investment (174) (181)
Changes in assets and liabilities:    
Decrease (increase) in other assets 174 (366)
Increase in accrued expenses and other liabilities (846) (58)
Net cash provided by operating activities 3,315 3,964
Investing activities:    
Proceeds from sales/calls/maturities/paydowns of available for sale securities 9,893 19,264
Proceeds from calls/maturities/paydowns of held to maturity securities 11,065 626
Proceeds from sales/calls/maturities/paydowns of restricted equity securities 1,700  
Purchase of available for sale securities (25,069) (10,682)
Purchase of restricted equity securities (1,302) (626)
Proceeds from sale of other real estate owned 27 316
Net increase in loans (19,527) (4,351)
Principal recoveries of loans previously charged off 184 77
Purchase of premises and equipment, net (76) (199)
Purchase of small business investment company fund investment (250) (262)
Proceeds from sale of loans 632 705
Net cash used in investing activities (22,723) 4,868
Financing activities:    
Net (decrease) increase in deposits 57,610 3,148
Net increase in federal funds purchased (24,437) (19,440)
Net (decrease) increase in short-term Federal Home Loan Bank borrowings 10,000 (10,000)
Proceeds from long-term Federal Home Loan Bank borrowings 40,000  
Payments on long-term Federal Home Loan Bank borrowings (40,167) (375)
Proceeds from issuance of common stock 11 87
Cash dividends paid (1,121) (665)
Repurchase of common stock (806)  
Net cash provided by financing activities 21,090 (7,245)
Net (decrease) increase in cash and cash equivalents 1,682 1,587
Cash and cash equivalents:    
Beginning of the period 28,684 [1] 34,219
End of the period 30,366 35,806
Supplemental disclosures of cash flow information:    
Interest paid $ 3,689 3,512
Income taxes paid   439
Transfers of loans to other real estate owned   392
Right-of-use lease assets in exchange for lease liability   $ 7,408
[1] *Derived from audited consolidated financial statements