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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
$ in Thousands
9 Months Ended
Sep. 30, 2018
USD ($)
Sep. 30, 2017
USD ($)
Cash flows from operating activities    
Net income $ 3,923 $ 1,978
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 1,707 1,831
(Gain) Loss on disposal of premises and equipment   (24)
Deferred income tax expense 1,361 1,400
Total loss on sales/provision of other real estate owned   311
Stock-based compensation 1,423 796
Provision for credit losses (169) 792
Net amortization of investment securities 150 509
Accretion of discounts on convertible subordinated debentures and promissory notes, net   (18)
Change in fair value of equity securities 11  
Stock dividends received on correspondent bank stock (111) (101)
Increase in cash surrender value of company-owned life insurance (298) (317)
Net gain on mortgage loans sold (3,769) (2,222)
Net gain on sales of securities   (126)
Origination of mortgage loans held for sale (364,962) (169,705)
Proceeds from mortgage loans sold 372,298 155,003
Net changes in operating assets and liabilities:    
Accounts receivable 856 (863)
Accrued interest receivable and other assets (1,731) (1,321)
Accrued interest payable and other liabilities (2,132) 397
Net cash (used) provided by operating activities 8,557 (11,680)
Activity in available-for-sale securities:    
Maturities, prepayments, and calls 11,663 13,958
Sales 250 52,118
Purchases (250) (32,802)
Purchase of correspondent bank stock (726) (1,114)
Purchases of premises and equipment (525) (447)
Net cash paid for acquisitions   (1,000)
Payments received on promissory notes from related parties 3,701  
Proceeds from sales of other real estate owned   1,867
Loan and note receivable originations and principal collections, net (41,359) (116,962)
Net cash used in investing activities (27,246) (84,382)
Cash flows from financing activities    
Net change in deposits 62,522 59,145
Proceeds from Subordinated Notes issuances, net   285
Payments on Subordinated Notes (6,875)  
Proceeds from the exercise of stock options   5
Proceeds from issuance of common stock, net 34,450 3,860
Settlement of restricted stock (181)  
Payments on Credit Note payable   (2,736)
Dividends paid on preferred stock (1,378) (1,731)
Redemption of preferred stock Series A-C (20,783)  
Redemption of convertible preferred stock Series D (4,054)  
Redemption costs (131)  
Payments to Federal Home Loan Bank Topeka borrowings (188,200) (262,383)
Proceeds from Federal Home Loan Bank Topeka borrowings 204,235 257,246
Net cash provided by financing activities 79,605 53,691
Net change in cash and cash equivalents 60,916 (42,371)
Cash and cash equivalents, beginning of year 9,502 62,685
Cash and cash equivalents, end of period 70,418 20,314
Supplemental cash flow information:    
Interest paid on deposits and borrowed funds 5,712 4,016
Income tax payment, net of refunds received 552 200
Supplemental noncash disclosures:    
Expiration of convertible subordinated debentures   $ 4,749
Reclass of promissory note to loans 2,134  
Available-for-sale-reclass of equity securities 703  
Reclass on equity securities $ 52