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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Operating Activities    
Net income $ 5,797 $ 5,246
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 436 403
Provision for loan losses 375 600
Net gain on sales of debt and equity securities (133) (864)
Net unrealized loss on equity securities 205  
Net gain on sale of other real estate owned, repossessed assets and premises and equipment (1) (1)
Net gain on sale of loan held for investment   (99)
Net gain on sale of loans (44) (152)
Proceeds from sales of residential mortgages held-for-sale 1,949 4,675
Origination of residential mortgages held-for-sale (2,309) (4,264)
Income on bank-owned life insurance (137) (191)
Stock-based compensation expense 58 51
Net decrease in trading securities   3,596
Deferred income tax provision 110 130
Net increase in income taxes payable (294) (601)
Net (increase) decrease in accrued interest receivable (28) 622
Amortization of mortgage servicing rights and change in valuation allowance 31 47
Net amortization of premiums and discounts on investment securities 740 839
Net decrease in accrued interest payable (13) (37)
Increase in other assets (388) (1,203)
(Decrease) increase in other liabilities (260) 36
Net cash provided by operating activities 6,094 8,833
Investing Activities    
Proceeds from payments, maturities and calls of debt securities available-for-sale 22,380 27,255
Proceeds from the sale of debt securities available-for-sale 4,159 19,358
Proceeds from the sale of equity securities 1,390 5,262
Purchases of debt securities available-for-sale (3,166) (40,602)
Purchases of equity securities (6,090) (3,868)
Proceeds from redemption of investment in restricted bank stock 4,505 2,977
Purchase of restricted stock (5,672) (3,934)
Proceeds from sale of loan held for investment   99
Net increase in loans (46,627) (62,093)
Net purchases of premises and equipment (1,590) (241)
Redemption of bank-owned life insurance   752
Proceeds from sales of other real estate owned and repossessed assets 1 1
Net cash used in investing activities (30,710) (55,034)
Financing Activities    
Net increase in non-interest bearing deposits 6,270 1,359
Net (decrease) increase in interest-bearing deposits (14,492) 36,600
Net increase in short-term borrowings 29,890 14,247
Cash dividends paid, net of reinvestment (1,927) (1,858)
Proceeds from issuance of common stock 270 380
Net cash provided by financing activities 20,011 50,728
(Decrease) increase in cash and cash equivalents (4,605) 4,527
Cash and cash equivalents at beginning of year 16,331 10,721
Cash and cash equivalents at end of period 11,726 15,248
Supplemental Cash Flow Disclosures    
Interest paid 3,593 2,627
Income taxes paid $ 1,313 2,434
Non-cash transactions:    
Unsettled trades to purchase securities   $ (2,598)