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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Operating activities:    
Net income $ 10,091 $ 11,660
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 1,379 1,552
Right-of-use lease asset amortization 706 699
Stock-based compensation expense 846 804
Tax benefit of exercised stock options (6) (150)
Amortization of purchased loan premium 229 236
Provision for loan losses 4,200 125
Amortization of security premiums and accretion of discounts, net 574 905
Net gain on sale of securities (281) (274)
Net gain on sale and valuation of other real estate owned (23) (81)
Net gain on sale of loans (11)  
Originations of mortgages held for sale (26,112) (13,227)
Proceeds from sales of mortgages held for sale 25,462 13,373
Net loss on disposal of premises and equipment 82  
Increase in bank owned life insurance investment (518) (327)
Changes in assets and liabilities:    
Increase in other assets (2,086) (661)
Decrease in accrued expenses and other liabilities (1,446) (117)
Net cash provided by operating activities 13,086 14,517
Investing activities:    
Proceeds from sales/calls/maturities/paydowns of available for sale securities 66,171 75,128
Proceeds from calls/maturities/paydowns of held to maturity securities 12,640 3,835
Proceeds from sales of restricted equity securities 1,700 866
Purchase of available for sale securities (107,834) (53,589)
Purchase of restricted equity securities (1,720) (1,995)
Proceeds from sale of other real estate owned 134 638
Net increase in loans (115,608) (42,707)
Principal recoveries of loans previously charged off 453 363
Purchase of premises and equipment, net (186) (121)
Purchase small business investment company fund investment (345) (875)
Proceeds from sale of loans 632 705
Net cash used in investing activities (143,963) (17,752)
Financing activities:    
Net increase in deposits 205,894 12,267
Net decrease in federal funds purchased (23,497) (19,369)
Net decrease in short-term Federal Home Loan Bank borrowings   5,000
Proceeds from long-term Federal Home Loan Bank borrowings 40,000 10,137
Payments on long-term Federal Home Loan Bank borrowings (40,500) (917)
Proceeds from issuance of common stock 11 698
Cash dividends paid (3,353) (2,002)
Repurchase of common stock (878)  
Net cash provided by financing activities 177,677 5,814
Net increase in cash and cash equivalents 46,800 2,579
Cash and cash equivalents:    
Beginning of the period 28,684 34,219
End of the period 75,484 36,798
Supplemental disclosures of cash flow information:    
Interest paid 10,312 11,554
Income taxes paid $ 3,306 2,195
Transfers of loans to other real estate owned   4,198
Right-of-use lease assets in exchange for lease liability   7,408
Transfers of building premises and equipment to held for sale   $ 337