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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Cash flows from operating activities:    
Net income $ 2,306 $ 3,241
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for unfunded commitments (100)
Provision for depreciation and amortization 417 506
Amortization of core deposit intangible 146 55
Amortization of debt issuance costs 12 11
Compensation expense associated with stock options 3
Compensation expense associated with restricted stock 72 71
Tax benefits from vesting of restricted stock (4) (31)
Net gain on sale or call of securities (92) (36)
Amortization of investment premiums and accretion of discounts, net 343 511
Amortization of premiums and accretion of discounts on acquired loans, net (299) (289)
(Gain) on disposal of fixed assets (5)
Gain on sale of OREO (23) (16)
Increase in cash surrender value of life insurance (129) (129)
Increase (decrease) in deferred compensation and salary continuation plans 19 (1)
Increase in deferred loan fees and costs (54) (3)
Decrease in other assets 595 488
Increase in other liabilities 53 682
Net cash provided by operating activities 3,262 5,058
Cash flows from investing activities:    
Proceeds from maturities and payments of available-for-sale securities 11,101 7,910
Proceeds from sale of available-for-sale securities 67,402 19,398
Purchases of available-for-sale securities (5,204) (20,334)
Investment in qualified affordable housing partnerships (31)
Loan originations, net of principal repayments (14,973) (23,136)
Net repayment on loan pools 12,100 3,150
Purchase of premises and equipment (460) (48)
Proceeds from the sale of OREO 54 51
Acquisition of Merchants Holding Company, net of cash paid (2,875)
Net cash uprovided (used) by investing activities 67,145 (13,040)
Cash flows from financing activities:    
Net decrease in demand, money market and savings (53,469) (40,959)
Net decrease in certificates of deposit (20,169) (13,022)
Advances on term debt 130,000 70,000
Repayment of term debt (110,900) (40,900)
Proceeds from stock options exercised 40 113
Cash paid for shares surrendered for tax-withholding purposes (94) (111)
Cash dividends paid on common stock (651) (486)
Net cash used by financing activities (55,243) (25,365)
Net increase (decrease) in cash and cash equivalents 15,164 (33,347)
Cash and cash equivalents at beginning of year 47,365 66,970
Cash and cash equivalents at end of period 62,529 33,623
Cash paid during the period for:    
Income taxes 1,040
Interest 1,232 1,043
Cash paid for operating leases 215 207
Supplemental disclosures of non cash investing activities:    
Transfer of loans to other real estate owned 34 60
Unrealized gain (loss) on investment securities available-for-sale 3,569 (3,443)
Changes in net deferred tax asset related to changes in unrealized (gain) loss on investment securities available-for-sale (1,055) 1,017
Changes in accumulated other comprehensive income due to unrealized gain (loss) on investment securities available-for-sale, net of tax 2,514 (2,426)
Reclassification of accumulated other comprehensive income due to tax rate change 52
Supplemental disclosures of non cash financing activities:    
Stock issued under employee plans 58 45
Cash dividend declared on common shares and payable after period-end 725 486
Right-of-use lease asset recorded on adoption of ASU No. 2016-02 3,998
Lease liability recorded on adoption of ASU No. 2016-02 4,363
Transactions related to the acquisition of Merchants Holding Company:    
Assets acquired - fair value 215,015
Goodwill 11,045
Liabilities assumed - fair value $ 191,153