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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Operating activities:    
Net income $ 24,203 $ 25,987
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:    
Depreciation and amortization - premises and equipment 4,526 5,526
Amortization of operating lease right-of-use assets 1,901  
Amortization of core deposit intangible 1,077 1,083
Accretion of loan discount (2,689) (3,673)
Amortization of FDIC indemnification asset 531 527
Provision for loan losses 350 3,700
Earnings on bank-owned life insurance (1,300) (1,113)
Equity (gain) loss on mortgage affiliate (1,175) 198
Stock based compensation expense 352 327
Gain on bank-owned life insurance death benefit   (350)
(Gain) loss on other real estate owned (38) 61
Provision for deferred income taxes (1,197)  
Net (increase) decrease in other assets (3,642) 979
Net increase (decrease) in other liabilities 5,710 (407)
Net cash and cash equivalents provided by operating activities 27,532 31,762
Investing activities:    
Purchases of held to maturity investment securities (10,233)  
Purchases of available for sale investment securities (35,082)  
Proceeds from paydowns, maturities and calls of available for sale investment securities 18,151 11,073
Proceeds from paydowns, maturities and calls of held to maturity investment securities 23,685 4,701
Sales of FRB and FHLB stock 4,920 3,905
Net (increase) decrease in loans 37,883 (97,621)
Purchase of bank-owned life insurance   (12,000)
Proceeds from bank-owned life insurance death benefit 343 1,574
Proceeds from sales of other real estate owned, net of improvements 93 1,927
Proceeds from sales of bank premise and equipment and assets held for sale   2,136
Purchases of bank premises and equipment (504) (2,045)
Net cash and cash equivalents provided by (used in) investing activities 39,256 (86,350)
Financing activities:    
Net increase in deposits 81,149 158,564
Cash dividends paid on common stock (6,514) (5,764)
Issuance of common stock under Stock Incentive Plan 604 325
Net decrease in short-term borrowings (122,066) (89,537)
Net cash and cash equivalents provided by (used in) financing activities (46,827) 63,588
Increase in cash and cash equivalents 19,961 9,000
Cash and cash equivalents at beginning of period 28,611 25,463
Cash and cash equivalents at end of period 48,572 34,463
Cash payments for:    
Interest 27,097 18,140
Income taxes 3,467 $ 6,672
Supplemental schedule of noncash investing and financing activities    
Initial recognition of operating lease right-of-use assets 8,615  
Initial recognition of operating lease liabilities $ 9,099