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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
CONSOLIDATED STATEMENTS OF CASH FLOWS    
Net income $ 2,006 $ 1,270
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 291 285
Provision for loan losses 219 554
Compensation expense for stock options 61 3
Net change in fair value of loans held for sale (90) 3
Net change in fair value of derivative instruments (16) (207)
proceeds from sale of loans 112,948 136,321
Loans originated for sale (96,265) (127,337)
Mortgage banking income (4,908) (4,821)
Increase in accrued interest receivable (112) 172
Increase in other assets (161) (1,177)
Earnings from investment in life insurance (72) (78)
Deferred income tax benefit (See Footnote 1) 45 (40)
Increase in accrued interest payable 129 130
Increase in other liabilities (See Footnote 1) 1,064 367
Net cash provided by operating activities 15,139 5,445
Activity in available-for-sale securities:    
Maturities, repayments and calls 2,390 1,006
Purchases (1,944)  
Proceeds from sale of OREO   10
Settlement of forward contracts (36) (6)
Decrease in restricted stock 823 982
Net increase in loans (27,607) (45,576)
Purchases of premises and equipment (86) (1,116)
Proceeds from settlement of loans   2,766
Net cash used in investing activities (26,460) (41,934)
Cash flows from financing activities:    
Net increase in deposits 58,583 52,194
Decrease in short term borrowings (32,068) (22,040)
Repayment of long term debt (Acquisition note) (206) (207)
Repayment of long term debt (Subordinated debt)   (4,000)
Net cash provided by financing activities 26,309 25,947
Net change in cash and cash equivalents 14,988 (10,542)
Cash and cash equivalents at beginning of period 23,952 35,506
Cash and cash equivalents at end of period 38,940 24,964
Supplemental disclosure of cash flow information:    
Interest 3,718 $ 1,974
Income taxes 2,735  
Supplemental disclosure of cash flow information:    
Transfers from loans and leases to real estate owned 120  
Transfer from loans held for sale to loans held for investment $ 3,602