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Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Operating Activities    
Net income $ 6,512 $ 6,430
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 850 843
Provision for loan losses   250
Net gain on investment securities available-for-sale (1,087) (819)
Net loss on sale of other real estate owned and repossessed assets 2 150
Net gain on sale of loans (171) (359)
Proceeds from sales of residential mortgages held-for-sale 4,192 15,332
Origination of residential mortgages held-for-sale (4,151) (13,742)
Income on bank-owned life insurance (219) (226)
Stock-based compensation expense 60 48
Net increase in trading securities (4,122)  
Deferred income tax provision 153 216
Net decrease in income taxes payable (331) (117)
Net (increase) decrease in accrued interest receivables (25) 159
Amortization of mortgage servicing rights and change in valuation allowance 46 38
Net amortization of premiums and discounts on investment securities 1,571 1,656
Net decrease in accrued interest payable (55) (104)
(Increase) decrease in other assets (389) 3,761
Decrease in other liabilities (133) (372)
Net cash provided by operating activities 2,703 13,144
Investing Activities    
Proceeds from payments, maturities and calls of investment securities available-for-sale 67,329 96,892
Proceeds from the sale of investment securities available-for-sale 19,504 13,552
Purchases of investment securities available-for-sale (56,153) (126,775)
Proceeds from redemption of investment in restricted bank stock 2,452 552
Purchase of restricted bank stock (2,409) (176)
Net increase in loans (35,790) (12,027)
Net purchases of premises and equipment (812) (1,326)
Proceeds from sales of repossessed assets 43 562
Net cash used in investing activities (5,836) (28,746)
Financing Activities    
Net increase in non-interest bearing deposits 6,996 1,438
Net increase in interest-bearing deposits 58,768 24,876
Net decrease in short-term borrowings (6,508) (4,430)
Repayments of long-term debt (5,000) (287)
Tax benefit from exercise of stock options 29 2
Cash dividends paid, net of reinvestment (2,498) (2,339)
Proceeds from issuance of common stock 477 413
Net cash provided by financing activities 52,264 19,673
Increase in cash and cash equivalents 49,131 4,071
Cash and cash equivalents at beginning of year 16,286 15,453
Cash and cash equivalents at end of period 65,417 19,524
Supplemental Cash Flow Disclosures    
Interest paid 3,436 3,961
Income taxes paid 2,060 1,725
Non-cash transactions:    
Transfer of loans to repossessed assets or other real estate owned 265 1,196
Unsettled trades to purchase securities $ 230