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CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash flows from operating activities    
Net income $ 4,110 $ 3,467
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation of fixed assets 413 327
Amortization of core deposit intangibles 192 52
Gain on mortgage servicing rights (121) 0
Stock-based compensation expense 188 154
Provision expense for loan losses 489 422
Net securities premium amortization 502 397
Net (gain) loss on sales of securities (529) 7
Originations of loans held for sale (90,076) (36,793)
Proceeds from sales of loans 88,516 29,137
Net gain on sales of loans (2,282) (1,200)
Accretion on acquired purchase credit impaired loans (443) (584)
Increase in cash surrender value of life insurance (118) (79)
Amortization of debt issuance costs 7 14
Net increase in accrued interest receivable and other assets (14,059) (2,457)
Net increase in accrued interest payable and other liabilities 6,853 629
Net cash used by operating activities (6,358) (6,507)
Cash flows from investing activities    
Net increase in loans (16,005) (4,022)
Principal payments on securities available-for-sale 8,266 5,752
Purchases of securities available-for-sale (35,950) (32,153)
Additions to premises and equipment (844) (290)
Proceeds from:    
Sale of securities available-for-sale 27,581 6,000
Net cash used in acquisition (29,464) 0
Net cash used in investing activities (46,416) (24,713)
Cash flows from financing activities    
Net increase in deposits 70,360 16,828
Change in short-term borrowings (40,675) (1,649)
Issuances of long-term FHLB advances 24,975 20,000
Change in secured borrowing (17) (18)
Share buyback - redeemed stock (620) (1,104)
Common stock dividends paid (309) (233)
Proceeds from exercised stock options 61 125
Payments related to tax-withholding for share based compensation awards (64) (43)
Net cash provided by financing activities 53,711 33,906
Net change in cash and cash equivalents 937 2,686
Beginning cash and cash equivalents 103,930 33,296
Ending cash and cash equivalents 104,867 35,982
Supplemental disclosure of cash flow information:    
Interest paid 4,511 4,397
Taxes paid 40 360
Transfer from loans held for sale to loans held for investment 40 239
Transfer from loans to other real estate owned $ 1,172 $ 373