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Consolidated Statements of Cash Flows
$ in Thousands
12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Cash flows from operating activities:      
Net income $ 7,344 $ 5,259 $ 8,586
Adjustments to reconcile net income to net cash provided by operating activities:      
Provision for loan and lease losses 950
Provision for depreciation and amortization 2,061 1,908 1,524
Amortization of core deposit intangible 221 185
Amortization of debt issuance costs 45 40 4
Compensation expense associated with stock options 23 24 42
Compensation expense associated with restricted stock 196 215 89
Tax benefits from vesting of restricted stock (53)
Net gain on sale or call of securities (137) (244) (443)
Other-than-temporary impairment on investment securities 0 546
Amortization of investment premiums and accretion of discounts, net 2,031 1,715 1,876
Accretion of held-to-maturity fair value adjustments (56) (97) (144)
Loss on cancellation of interest rate swap 2,325
Write-down of fixed assets 238
Write-down of other real estate owned 52 66
(Gain) loss on sale of other real estate owned (368) 109 (13)
Increase in cash surrender value of life insurance (548) (613) (641)
Life insurance death benefit (502)
Increase (decrease) in deferred compensation and salary continuation plans 18 (19) 28
Increase in deferred loan fees and costs (386) (454) (713)
Decrease in deferred income taxes 271 132 584
Deferred tax asset write down 2,490 363
Decrease in other assets 863 118 538
(Decrease) increase in other liabilities (961) 306 (1,219)
Net cash provided by operating activities 13,554 11,884 10,336
Cash flows from investing activities:      
Proceeds from maturities and payments of available-for-sale securities 23,551 31,685 23,426
Proceeds from sale of available-for-sale securities 64,349 51,025 71,277
Purchases of available-for-sale securities (150,888) (104,134) (69,362)
Proceeds from maturities and payments of held-to-maturity securities 1,098 4,963 1,099
Investment in Qualified Zone Academy Bonds (1,000) (2,000)
Investment in qualified affordable housing partnerships (124) (697) (1,133)
Net (purchase) redemption of Federal Home Loan Bank of San Francisco stock (72) 1,263
Loan (originations), net of principal repayments (76,016) (105,892) (46,554)
Net (purchase of) repayment on purchased loans (1,158) 18,666 (12,715)
Purchase of premises and equipment (584) (2,873) (705)
Proceeds from the sale of other real estate owned 2,111 636 3,111
Proceeds from life insurance policy 2,249
Payments to derivative counterparties for the termination of interest rate swaps (2,578)
Acquisition of branches, net of cash paid 142,411
Net cash (used) provided by investing activities (136,484) 31,212 (30,293)
Cash flows from financing activities:      
Net increase in demand deposits and savings accounts 124,201 84,722 35,382
Net decrease in certificates of deposit (26,135) (32,838) (20,682)
Advances on term debt 30,260 55,000 260,000
Repayment of term debt (32,080) (131,172) (240,083)
Debt issuance costs paid (223)
Proceeds from stock options exercised 245 10 156
Net proceeds from issuance of common stock 26,778
Redemption of preferred stock (20,000)
Preferred stock extinguishment costs (33)
Cash dividends paid on preferred stock (189)
Cash dividends paid on common stock (1,776) (1,603) (1,601)
Net cash provided by (used in) financing activities 121,493 (25,881) 12,727
Net increase (decrease) cash and cash equivalents (1,437) 17,215 (7,230)
Cash and cash equivalents at the beginning of year 68,407 51,192 58,422
Cash and cash equivalents at the end of year 66,970 68,407 51,192
Supplemental disclosures of cash flow activity:      
Income taxes 3,846 2,705 4,123
Interest 4,581 5,142 4,628
Supplemental disclosures of non cash investing activities:      
Transfer of loans to other real estate owned 981 147 3,888
Transfer of fixed asset to other real estate owned 170
Changes in unrealized gain (loss) on investment securities available-for-sale 892 (2,964) (985)
Changes in net deferred tax asset related to changes in unrealized (loss) gain on investment securities available-for-sale (368) 1,220 402
Changes in accumulated other comprehensive income (loss) due to changes in unrealized gain (loss) on investment securities available-for-sale 524 (1,744) (583)
Accretion of held-to-maturity fair value adjustment from other comprehensive income to interest income (56) (97) (144)
Changes in deferred tax related to accretion of held-to-maturity investment securities 23
Changes in accumulated other comprehensive income (loss) due to accretion of held-to-maturity investment securities (33) (97) (144)
Fair value adjustment for held-to-maturity securities transferred to available-for-sale (167)
Changes in deferred tax related to transfer of held-to-maturity investment securities to available-for-sale 69
Net fair value adjustment for held-to-maturity securities transferred to available-for-sale (98)
Changes in accumulated other comprehensive income (loss) related held-to-maturity investment securities (131) (97) (144)
Changes in unrealized loss on derivatives (348) (584)
Changes in net deferred tax asset related to changes in unrealized loss on derivatives 143 242
Changes in accumulated other comprehensive income (loss) due to changes in unrealized loss on derivatives (205) (342)
Reclassification of losses on derivatives 2,721 1,435
Changes in net deferred tax asset related to reclassification of losses on derivatives (1,120) (592)
Changes in accumulated other comprehensive income (loss) due to reclassification of losses on derivatives 1,601 843
Supplemental disclosures of non cash financing activities:      
Vested and granted restricted stock issued under employee plans 84 36
Stock compensation grants for the 2016 compensation plan 41
Preferred stock accretion    
Transfer of HTM to AFS 30,330
Cash dividend declared on common stock and payable after period-end 486 401 400
Transactions Related to Acquisition:      
Assets acquired - fair value 155,230
Goodwill 665
Liabilities assumed - fair value 149,239
Preferred Stock [Member]      
Supplemental disclosures of non cash financing activities:      
Preferred stock accretion $ 69