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CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands
6 Months Ended
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Operating Activities    
Net income $ 14,883 $ 17,323
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for loan losses 705  
Depreciation expense 3,538 3,124
Amortization of mortgage servicing rights 631 735
(Recovery)/additional impairment of valuation allowance on mortgage servicing rights 50 (150)
Securities amortization, net 2,616 1,432
Amortization of purchased intangible assets 697 839
Earnings on cash surrender value of life insurance policies (646) (621)
Gain on life insurance benefit   (307)
Securities gains, net (121) (315)
Gain on loans sold (3,448) (2,786)
Loans originated for sale (116,939) (123,492)
Proceeds from loan sales 114,958 137,984
Stock based compensation expense 477 415
Stock portion of director retainer fee expense 179 160
(Gain)/(Loss) on sale and write-down of OREO (186) 44
Prepayment penalty on FHLB advance   2,364
Change in other assets and liabilities (8,075) (840)
Net cash provided by operating activities 9,319 35,909
Investing Activities    
Net change in short term investments 245 245
Purchases of securities available for sale (143,309) (107,171)
Proceeds from calls, maturities, and payments on securities available for sale 64,011 69,938
Proceeds from sales of securities available for sale 78,123 82,339
Loan originations and payments, net (35,910) (49,778)
Purchases of premises and equipment (9,488) (3,540)
Proceeds from sale of OREO 1,616 942
Proceeds from redemption of restricted stock 2,835 2,784
Purchase of restricted stock (3,284)  
Proceeds from life insurance benefit   1,094
Cash paid for agency acquisition (11,289)  
Net cash used by investing activities (56,450) (3,147)
Financing Activities    
Net change in deposits 4,075 66,746
Net change in other borrowings 72,583 20,660
Proceeds from FHLB advances 395,000 355,000
Repayment of FHLB advances (427,024) (417,271)
Proceeds from line of credit 30,000  
Cash dividends on common stock (6,868) (5,638)
Purchase of treasury shares (306) (2,548)
Proceeds from exercise of stock options, including tax benefit 521 252
Net cash provided by financing activities 67,981 17,201
Net change in cash and cash equivalents 20,850 49,963
Cash and cash equivalents, beginning of year 67,578 62,485
Cash and cash equivalents, end of period 88,428 112,448
Supplemental cash flow information    
Interest paid 4,932 4,237
Income taxes paid 2,655 2,265
Supplemental non cash disclosure    
Loan balances transferred to foreclosed real estate $ 983 363
Loan balances transferred to loans held for sale   11,356
Due to broker for securities purchases   86,395
Due from broker for securities sales   $ 44,202