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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
CONSOLIDATED STATEMENTS OF CASH FLOWS    
Net income $ 7,345 $ 5,799
Adjustments to reconcile net income to net cash provided by operating activities:    
Gain on sale of investment securities (212)  
Depreciation and amortization 1,559 1,088
Loss on disposal of premises and equipment 14  
Provision for loan losses 938 1,258
Compensation expense for stock options 266 351
Net change in fair value of loans held for sale 82 241
Net change in fair value of derivative instruments 16 (59)
Net change in fair value of contingent assets   177
Gain on sale of OREO   (57)
SBA income (1,160)  
Proceeds from sale of loans 432,831 513,259
Loans originated for sale (421,092) (492,113)
Mortgage banking income (19,139) (20,407)
Increase in accrued interest receivable (266) (377)
Decrease (increase) in other assets 91 (110)
Earnings from investment in life insurance (218) (225)
Deferred income tax (benefit) (Footnote 1) (249) (465)
Increase in accrued interest payable 364 137
Increase in other liabilities (Footnote 1) 3,249 1,184
Net cash provided (used) by operating activities 4,419 9,681
Activity in available-for-sale securities:    
Maturities, repayments and calls 11,090 4,080
Sales 19,366  
Purchases (29,027) (12,768)
Proceeds from sale of OREO   494
Settlement of forward contracts (85) (21)
(Increase) Decrease in restricted stock (1,235) 2,233
Net increase in loans (104,640) (107,068)
Purchases of premises and equipment (634) (1,499)
Proceeds from settlement of loans   2,766
Net cash used in investing activities (105,165) (111,783)
Cash flows from financing activities:    
Net increase in deposits 106,331 154,818
Increase (Decrease) in short term borrowings 14,165 (57,795)
Repayments of long term debt (FHLB advances) (2,702)  
Repayment of long term debt (Acquisition note) (413) (619)
Repayment of long term debt (Subordinated debt) (63) (4,000)
Share based awards and exercises 8 15
Net cash provided by financing activities 117,326 92,419
Net change in cash and cash equivalents 16,580 (9,683)
Cash and cash equivalents at beginning of period 23,952 35,506
Cash and cash equivalents at end of period 40,532 25,823
Supplemental disclosure of cash flow information:    
Interest 11,951 7,392
Income taxes 1,539 1,565
Supplemental disclosure of cash flow information:    
Transfers from loans and leases to real estate owned 120  
Transfers from loans held for sale to loans held for investment 3,602  
Net loans sold, not settled $ (5,580) $ 4,490