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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Cash flows from operating activities    
Net income $ 2,234 $ 930
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 1,150 1,227
(Gain) Loss on disposal of premises and equipment   (24)
Deferred income tax expense 1,016 626
Total loss on sales/provision of other real estate owned   75
Stock-based compensation 987 427
Provision for credit losses (187) 486
Net amortization of investment securities 107 13
Accretion of discounts on convertible subordinated debentures and promissory notes, net   (19)
Change in fair value of equity securities 11  
Stock dividends received on correspondent bank stock (76) (52)
Increase in cash surrender value of company-owned life insurance (199) (212)
Net gain on mortgage loans sold (2,610) (1,323)
Net gain on sales of securities   (83)
Origination of mortgage loans held for sale (244,645) (91,273)
Proceeds from mortgage loans sold 235,061 89,933
Net changes in operating assets and liabilities:    
Accounts receivable 88 1,070
Accrued interest receivable and other assets (729) (518)
Accrued interest payable and other liabilities (858) (504)
Net cash (used) provided by operating activities (8,650) 779
Activity in available-for-sale securities:    
Maturities, prepayments, and calls 9,545 9,774
Sales   22,507
Purchases   (33,968)
Purchase of correspondent bank stock (1,846) (2,929)
Purchases of premises and equipment (168) (370)
Payments received on promissory notes from related parties 3,701  
Loan and note receivable originations and principal collections, net (28,885) (68,383)
Net cash used in investing activities (17,653) (73,369)
Cash flows from financing activities    
Net change in deposits 27,625 19,049
Proceeds from Subordinated Notes issuances, net   285
Proceeds from the exercise of stock options   16
Proceeds from issuance of common stock, net 1,909 365
Settlement of restricted stock (181)  
Payments on Credit Note payable   (2,736)
Dividends paid on preferred stock (1,123) (1,147)
Payments to Federal Home Loan Bank Topeka borrowings (126,200) (140,683)
Proceeds from Federal Home Loan Bank Topeka borrowings 173,235 165,246
Net cash provided by financing activities 75,265 40,395
Net change in cash and cash equivalents 48,962 (32,195)
Cash and cash equivalents, beginning of year 9,502 62,685
Cash and cash equivalents, end of period 58,464 30,490
Supplemental cash flow information:    
Interest paid on deposits and borrowed funds 3,540 2,522
Income tax payment, net of refunds received 517 105
Available-for-sale-reclass of equity securities 703  
Reclass on equity securities $ 52  
Supplemental noncash disclosures:    
Expiration of convertible subordinated debentures   $ 4,749