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Consolidated Statements of Cash Flows
$ in Thousands
12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Cash flows from operating activities:      
Net income $ 5,259 $ 8,586 $ 5,727
Adjustments to reconcile net income to net cash provided by operating activities:      
Provision for loan and lease losses 3,175
Provision for depreciation and amortization 1,908 1,524 1,320
Amortization of core deposit intangible 185
Amortization of debt issuance costs 40 4
Compensation expense associated with stock options 24 42 54
Compensation expense associated with restricted stock 215 89 6
Net (gain) loss on sale or call of securities (244) (443) 159
Other than temporary impairment on investment securities 546
Amortization of investment premiums and accretion of discounts, net 1,715 1,876 1,662
Amortization of held-to-maturity fair value adjustments (97) (144) (155)
Loss on cancellation of interest rate swap 2,325
Loss (gain) on disposal of fixed assets 1 (4) 7
Write-down of fixed assets 238
Write-down of other real estate owned 66 290
Loss on sale of other real estate owned 109 26 8
Increase in cash surrender value of life insurance (613) (641) (628)
(Decrease) increase in deferred compensation and salary continuation plans (19) 28 1,388
(Increase) decrease in deferred loan fees and costs (454) (713) 146
Gain on repayment of junior subordinated debentures (406)
Increase (decrease) in deferred income taxes 495 584 (191)
Decrease (increase) in other assets 117 505 (946)
Increase (decrease) in other liabilities 306 (1,219) 2,464
Net cash provided by operating activities 11,884 10,338 14,080
Cash flows from investing activities:      
Proceeds from maturities and payments of available-for-sale securities 31,685 23,426 20,248
Proceeds from sale of available-for-sale securities 51,025 71,277 93,545
Purchases of available-for-sale securities (104,134) (69,362) (79,852)
Proceeds from maturities and payments of held-to-maturity securities 4,963 1,099 311
Purchases of held-to-maturity securities (244)
Investment in Qualified Zone Academy Bonds (2,000)
Investment in qualified affordable housing partnerships (697) (1,133) (2,371)
Net redemption (purchase) of Federal Home Loan Bank of San Francisco stock 1,263 (1,198)
Loan (originations), net of principal repayments (105,892) (46,554) (21,344)
Net repayment on (purchase of) purchased loans 18,666 (12,715) (48,775)
Purchase of life insurance (5,000)
Purchase of premises and equipment (2,873) (705) (2,729)
Proceeds from the sale of other real estate owned 636 3,111 802
Proceeds from settlement of note to former mortgage subsidiary 686
Payments to derivative counterparties for the termination of interest rate swaps (2,578)
Acquisition of branches, net of cash paid 142,411
Net cash provided (used) by investing activities 31,212 (30,293) (45,921)
Cash flows from financing activities:      
Net increase in demand deposits and savings accounts 84,722 35,382 46,470
Net decrease in certificates of deposit (32,838) (20,682) (3,728)
Advances on term debt 55,000 260,000 250,000
Repayment of term debt (131,172) (240,083) (250,000)
Repayment of junior subordinated debentures (4,629)
Debt issuance costs paid (225)
Proceeds from stock options exercised 10 156 23
Repurchase of common stock (4,562)
Redemption of preferred stock (20,000)
Preferred stock extinguishment costs (33)
Cash dividends paid on preferred stock (189) (200)
Cash dividends paid on common stock (1,603) (1,601) (1,626)
Net cash provided by (used in) financing activities (25,881) 12,725 31,748
Net increase (decrease) cash and cash equivalents 17,215 (7,230) (93)
Cash and cash equivalents at the beginning of year 51,192 58,422 58,515
Cash and cash equivalents at the end of year 68,407 51,192 58,422
Supplemental disclosures of cash flow activity:      
Income taxes 2,705 4,123 419
Interest 5,142 4,628 4,192
Supplemental disclosures of non cash investing activities:      
Transfer of loans to other real estate owned 147 3,888 689
Transfer of fixed asset to other real estate owned 170
Changes in unrealized (loss) gain on investment securities available-for-sale (2,964) (985) 6,307
Changes in net deferred tax asset related to changes in unrealized (loss) gain on investment securities available-for-sale 1,220 402 (2,596)
Changes in accumulated other comprehensive income due to changes in unrealized (loss) gain on investment securities available-for-sale (1,744) (583) 3,711
Accretion of held-to-maturity investment securities from other comprehensive income to interest income (97) (144) (155)
Changes in deferred tax related to accretion of held-to-maturity investment securities 40 59 64
Changes in accumulated other comprehensive income due to accretion of held-to-maturity investment securities (57) (85) (91)
Changes in unrealized loss on derivatives (348) (584) (333)
Changes in net deferred tax asset related to changes in unrealized loss on derivatives 143 242 136
Changes in accumulated other comprehensive income due to changes in unrealized loss on derivatives (205) (342) (197)
Reclassification of losses (gains) on derivatives 2,721 1,435 (1,900)
Changes in net deferred tax asset related to reclassification of losses (gains) on derivatives (1,120) (592) 782
Changes in accumulated other comprehensive income due to reclassification of losses (gains) on derivatives 1,601 843 (1,118)
Supplemental disclosures of non cash financing activities:      
Vested restricted stock issued under employee plans 84 36 66
Preferred stock accretion    
Dividend payable 401 400  
Transactions Related to Acquisition:      
Assets acquired - fair value 155,230
Goodwill 665
Liabilities assumed - fair value 149,239
Preferred Stock [Member]      
Cash flows from operating activities:      
Net income  
Supplemental disclosures of non cash financing activities:      
Preferred stock accretion 69
Dividend payable 50
Common Stock [Member]      
Cash flows from operating activities:      
Net income
Supplemental disclosures of non cash financing activities:      
Preferred stock accretion    
Dividend payable $ 401 $ 400 $ 399