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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Operating Activities    
Numerator for basic and diluted earnings per share - net income $ 4,363,000 $ 4,070,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 449,000 524,000
Provision for (credit to) loan losses 125,000 60,000
Net gain on investment securities available-for-sale (334,000) (717,000)
Provision for repossessed assets and other real estate owned 89,000
Net gain on sale of other real estate owned, repossessed assets and premises and equipment (1,000) (70,000)
Net gain on sale of loans (120,000) (182,000)
Proceeds from sales of residential mortgages held-for-sale 3,556,000 6,487,000
Origination of residential mortgages held-for-sale (2,633,000) (6,391,000)
Income on bank-owned life insurance (144,000) (142,000)
Stock-based compensation expense 42,000 46,000
Net decrease in trading securities 730,000 336,000
Deferred income tax provision (83,000) 49,000
Net increase (decrease) in income taxes payable 6,000 (453,000)
Net decrease in accrued interest receivable 186,000 244,000
Amortization of mortgage servicing rights and change in valuation allowance 36,000 31,000
Net amortization of premiums and discounts on investment securities 940,000 1,101,000
Net decrease in accrued interest payable (7,000)
Increase in other assets (493,000) (304,000)
Decrease in other liabilities (27,000) (1,008,000)
Net cash provided by operating activities 6,598,000 3,763,000
Investing Activities    
Proceeds from payments, maturities and calls of investment securities available-for-sale 51,888,000 51,926,000
Proceeds from the sale of investment securities available-for-sale 28,814,000 26,795,000
Purchases of investment securities available-for-sale (58,655,000) (30,319,000)
Proceeds from redemption of investment in restricted bank stock 1,482,000 1,318,000
Purchase of restricted bank stock (1,496,000) (1,179,000)
Net decrease (increase) in loans 10,663,000 (23,595,000)
Net purchases of premises and equipment (105,000) (214,000)
Proceeds from sales of other real estate owned and repossessed assets 1,000 3,007,000
Net cash provided by investing activities 32,592,000 27,739,000
Financing Activities    
Net increase in non-interest bearing deposits 19,107,000 10,140,000
Net decrease in interest-bearing deposits (15,608,000) (35,651,000)
Net decrease in short-term borrowings (470,000) (2,293,000)
Tax benefit from exercise of stock options 12,000 20,000
Cash dividends paid, net of reinvestment (1,772,000) (1,717,000)
Proceeds from issuance of common stock 499,000 378,000
Net cash provided by (used in) financing activities 1,768,000 (29,123,000)
Increase in cash and cash equivalents 40,958,000 2,379,000
Cash and cash equivalents at beginning of year 16,991,000 18,245,000
Cash and cash equivalents at end of period 57,949,000 20,624,000
Supplemental Cash Flow Disclosures    
Interest paid 2,324,000 2,231,000
Income taxes paid 1,555,000 1,650,000
Non-cash transactions:    
Transfer of loans to repossessed assets or other real estate owned 215,000
Unsettled trades to purchase securities $ 4,729,000