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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Mar. 31, 2020
Cash flows from operating activities:      
Net income $ 916 $ 2,306  
Adjustments to reconcile net income to net cash provided by operating activities:      
Provision for loan and lease losses 2,850  
Provision for unfunded commitments (100)  
Provision for depreciation and amortization 303 417  
Amortization of core deposit intangible 191 146  
Amortization of debt issuance costs 12 12  
Compensation expense associated with restricted stock 106 72  
Tax benefits from vesting of restricted stock 3 (4)  
Net gain on sale or call of securities (84) (92)  
Amortization of investment premiums and accretion of discounts, net 320 343  
Amortization of premiums and accretion of discounts on acquired loans, net (332) (299)  
Loss on disposal of fixed assets 232  
Loss (gain) on sale of OREO 23 (23)  
Increase in cash surrender value of life insurance (123) (129)  
Deferred compensation and salary continuation plan payments (271) (219)  
Increase in deferred compensation and salary continuation plans 214 238  
Decrease (increase) in deferred loan fees and costs 33 (54)  
(Increase) decrease in other assets (1,602) 595  
Increase in other liabilities 976 53  
Net cash provided by operating activities 3,767 3,262  
Cash flows from investing activities:      
Proceeds from maturities and payments of available-for-sale securities 17,410 11,101  
Proceeds from sale of available-for-sale securities 29,339 67,402  
Purchases of available-for-sale securities (40,038) (5,204)  
Loan originations, net of principal repayments (24,900) (14,973)  
Net repayment on loan pools 5,868 12,100  
Purchase of premises and equipment (85) (460)  
Proceeds from the sale of OREO 12 54  
Acquisition of Merchants Holding Company, net of cash paid (2,875)  
Net cash (used) provided by investing activities (12,394) 67,145  
Cash flows from financing activities:      
Net decrease in demand, money market and savings (16,555) (53,469)  
Net decrease in certificates of deposit (8,229) (20,169)  
Advances on term debt 10,000 130,000  
Repayment of term debt (110,900)  
Proceeds from stock options exercised 40  
Repurchase of common stock (12,230) $ (13,600)
Cash paid for shares surrendered for tax-withholding purposes (120) (94)  
Cash dividends paid on common stock (903) (651)  
Net cash used by financing activities (28,037) (55,243)  
Net (decrease) increase in cash and cash equivalents (36,664) 15,164  
Cash and cash equivalents at beginning of year 80,604 47,365  
Cash and cash equivalents at end of period 43,940 62,529 43,940
Supplemental disclosures of cash flow activity:      
Transfer of loans to other real estate owned 8 34  
Investment in qualified affordable housing partnership 1,000  
Unrealized gain on investment securities available-for-sale, net of gains included in net income 4,749 3,569  
Changes in net deferred tax asset related to changes in net unrealized gain on investment securities available-for-sale (1,403) (1,055)  
Changes in accumulated other comprehensive income due to net unrealized gain on investment securities available-for-sale 3,346 2,514  
Cash paid during the period for:      
Income taxes 350 1,040  
Interest 1,167 1,232  
Operating leases 246 215  
Supplemental disclosures of non cash financing activities:      
Stock issued under employee plans 58  
Cash dividend declared on common shares and payable after period-end 838 725 $ 838
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 215,055  
Goodwill 11,006  
Liabilities assumed - fair value $ 191,154