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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:    
Net income $ 4,763 $ 5,950
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for loan and lease losses 4,150 0
Provision for (recovery of) unfunded commitments 105 (100)
Provision for depreciation and amortization 598 741
Amortization of core deposit intangible 383 337
Amortization of debt issuance costs 24 24
Compensation expense associated with restricted stock 211 193
Tax benefits from vesting of restricted stock (2) (6)
Net gain on sale or call of securities (224) (125)
Amortization of investment premiums and accretion of discounts, net 636 677
Amortization of premiums and accretion of discounts on acquired loans, net (711) (299)
Loss on disposal of fixed assets 132 0
Loss (gain) on sale of OREO 23 (41)
Increase in cash surrender value of life insurance (271) (284)
Deferred compensation and salary continuation plan payments (439) (603)
Increase in deferred compensation and salary continuation plans 426 483
Increase (decrease) in deferred loan fees and costs 3,765 (78)
(Increase) decrease in other assets (1,923) 884
Increase in other liabilities 1,024 111
Net cash provided by operating activities 12,670 7,864
Cash flows from investing activities:    
Proceeds from maturities of and payments on available-for-sale securities 37,121 24,616
Proceeds from sale of available-for-sale securities 49,761 85,740
Purchases of available-for-sale securities (73,692) (24,778)
Investment in qualified affordable housing partnerships (7) 0
Net purchase of Federal Home Loan Bank of San Francisco stock 0 (34)
Loan originations, net of principal repayments (182,677) (22,929)
Net repayment on loan pools 9,651 18,171
Purchase of premises and equipment (303) (1,262)
Proceeds from the sale of OREO 12 87
Acquisition of Merchants Holding Company, net of cash paid 0 (2,875)
Net cash (used) provided by investing activities (160,134) 76,736
Cash flows from financing activities:    
Net increase (decrease) in demand, money market and savings deposits 241,275 (56,585)
Net decrease in certificates of deposit (14,139) (29,829)
Advances on term debt 50,000 180,000
Repayment of term debt (40,000) (183,496)
Proceeds from stock options exercised 0 40
Repurchase of common stock (12,653) 0
Cash paid for shares surrendered for tax-withholding purposes (120) (94)
Cash dividends paid on common stock (1,741) (1,376)
Net cash provided (used) by financing activities 222,622 (91,340)
Net increase (decrease) in cash and cash equivalents 75,158 (6,740)
Cash and cash equivalents at beginning of year 80,604 47,365
Cash and cash equivalents at end of period 155,762 40,625
Cash paid during the period for:    
Income taxes 1,008 2,562
Interest 2,593 3,033
Operating leases 480 432
Supplemental disclosures of non cash investing activities:    
Transfer of loans to other real estate owned 8 15
Investment in qualified affordable housing partnership 1,000 0
Unrealized gain on investment securities available-for-sale, net of gains included in net income 6,454 7,681
Changes in net deferred tax asset related to changes in net unrealized gain on investment securities available-for-sale (1,907) (2,270)
Changes in accumulated other comprehensive income due to net unrealized gain on investment securities available-for-sale 4,547 5,411
Supplemental disclosures of non cash financing activities:    
Stock compensation grants 0 58
Cash dividend declared on common shares and payable after period-end 833 907
Right-of-use lease asset recorded on adoption of ASU No. 2016-02 0 3,998
Lease liability recorded on adoption of ASU No. 2016-02 0 4,363
Transactions related to the acquisition of Merchants Holding Company:    
Assets acquired - fair value 0 215,055
Goodwill 0 11,006
Liabilities assumed - fair value $ 0 $ 191,154