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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 $ 27 $ 6,020
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:    
Depreciation and amortization 1,364 1,741
Amortization of operating lease right-of-use assets 1,038 586
Accretion of loan discount (597) (816)
Amortization of FDIC indemnification asset   177
Amortization of core deposit intangible 341 363
Provision for loan losses 3,450 200
Earnings on bank-owned life insurance (386) (523)
Equity (gain) loss on mortgage affiliate (231) (18)
Stock-based compensation expense 1,404 104
(Gain) loss on other real estate owned 71 (2)
Net (increase) decrease in other assets 464 (4,420)
Net increase (decrease) in other liabilities 3,687 8,641
Net cash and cash equivalents provided by operating activities 10,291 11,690
Investing activities:    
Purchases of held to maturity investment securities (15,197)  
Purchases of available for sale investment securities (9,980) (15,313)
Proceeds from paydowns, maturities and calls of available for sale investment securities 8,907 3,172
Proceeds from paydowns, maturities and calls of held to maturity investment securities 28,271 1,778
Net (increase) decrease of FRB and FHLB stock (3,564) 1,095
Net (increase) decrease in loans (26,883) 21,815
Proceeds from bank-owned life insurance death benefit   344
Sales of other real estate owned, net of improvements 277 38
Purchases of bank premises and equipment (383) (7)
Net cash and cash equivalents provided by (used in) investing activities (18,552) 12,922
Financing activities:    
Net increase (decrease) in deposits (49,364) 13,464
Cash dividends paid on common stock (2,428) (2,170)
Issuance of common stock under Stock Incentive Plan 194 122
Net decrease (increase) in short-term borrowings 83,796 (32,798)
Net cash and cash equivalents provided by (used in) financing activities 32,198 (21,382)
Increase in cash and cash equivalents 23,937 3,230
Cash and cash equivalents at beginning of period 31,928 28,611
Cash and cash equivalents at end of period 55,865 31,841
Cash payments for:    
Interest $ 7,848 8,989
Supplemental schedule of noncash investing and financing activities    
Initial recognition of operating lease right-of-use assets   8,296
Initial recognition of operating lease liabilities   $ 9,305