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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Operating activities:    
Net income $ 5,575 $ 7,047
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 939 1,061
Leased asset amortization 473 464
Stock-based compensation expense 566 536
Tax benefit of exercised stock options (6) (83)
Amortization of purchased loan premium 194 191
Provision for loan losses 4,200 125
Amortization of security premiums and accretion of discounts, net 413 623
Net gain on sale of securities (203) (224)
Net gain on sale and valuation of other real estate owned (6) (37)
Net gain on sale of loans (11)  
Originations of mortgages held for sale (23,625) (4,827)
Proceeds from sales of mortgages held for sale 23,730 4,334
Increase in bank owned life insurance investment (347) (365)
Changes in assets and liabilities:    
Increase in other assets (334) (1,486)
Decrease in accrued expenses and other liabilities (518) (304)
Net cash provided by operating activities 11,040 7,055
Investing activities:    
Proceeds from sales/calls/maturities/paydowns of available for sale securities 34,653 46,366
Proceeds from calls/maturities/paydowns of held to maturity securities 11,520 1,700
Proceeds from sales of restricted equity securities 1,700 866
Purchase of available for sale securities (71,128) (47,525)
Purchase of restricted equity securities (1,720) (784)
Proceeds from sale of other real estate owned 47 544
Net increase in loans (105,493) (29,947)
Principal recoveries of loans previously charged off 321 213
Purchase of premises and equipment, net (180) (270)
Purchase small business investment company fund investment (345) (525)
Proceeds from sale of loans 632 705
Net cash used in investing activities (129,993) (28,657)
Financing activities:    
Net increase in deposits 200,201 51,233
Net decrease in federal funds purchased (21,169) (19,440)
Net decrease in short-term Federal Home Loan Bank borrowings   (10,000)
Proceeds from long-term Federal Home Loan Bank borrowings 40,000  
Payments on long-term Federal Home Loan Bank borrowings (40,333) (751)
Proceeds from issuance of common stock 11 455
Cash dividends paid (2,237) (1,332)
Repurchase of common stock (878)  
Net cash provided by financing activities 175,595 20,165
Net increase (decrease) in cash and cash equivalents 56,642 (1,437)
Cash and cash equivalents:    
Beginning of the period 28,684 34,219
End of the period 85,326 32,782
Supplemental disclosures of cash flow information:    
Interest paid $ 7,284 7,469
Income taxes paid   1,285
Transfers of loans to other real estate owned   392
Right-of-use lease assets in exchange for lease liability   $ 7,408