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CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
In Thousands
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Operating Activities    
Net income $ 2,936 $ 2,287
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for loan losses 700 580
Depreciation and amortization 449 506
Amortization of premium and discount on investment securities, net 285 92
Amortization of net deferred loan origination fees (81) (80)
Investment securities losses 28 6
Origination of loans held for sale (6,077) (2,974)
Proceeds from sale of loans 6,145 3,069
Mortgage loans held for sale gains, net (148) (95)
Increase in accrued interest receivable (39) (67)
Decrease in accrued interest payable (65) (120)
Deferred federal income taxes 20 (221)
Earnings on bank owned life insurance (217) (210)
Decrease in prepaid FDIC insurance 302 337
Other, net (469) (282)
Net cash provided by operating activities 3,769 2,828
Investment securities available for sale:    
Proceeds from sales or mergers 66  
Proceeds from maturities or paydowns 61,653 133,356
Purchases (68,589) (164,074)
Redemption of Federal Home Loan Bank stock 18  
Purchase of Federal Home Loan Bank stock (526)  
Net decrease (increase) in loans (12,227) 1,217
Investment in limited partnership (262)  
Purchase of fixed annuity   (1,500)
Purchase of bank-owned life insurance (141)  
Proceeds from the sale of other real estate owned 34 170
Purchase of premises and equipment (55) (69)
Net cash used for investing activities (20,029) (30,900)
Financing Activities    
Net increase (decrease) in deposits (3,039) 19,691
Increase in short-term borrowings 20,151 11,876
Repayment of other borrowed funds (956) (2,915)
Proceeds from exercise of stock options   600
Cash dividends paid (1,151) (1,163)
Net cash provided by financing activities 15,005 28,089
Increase (decrease) in cash and cash equivalents (1,255) 17
Cash and cash equivalents at beginning of period 10,652 21,287
Cash and cash equivalents at end of period 9,397 21,304
Amount paid for interest 2,764 4,200
Amount paid for income taxes 642 980
Noncash investing activities:    
Transfer of other real estate owned 3,267 849
Changes in the unrealized holding gains and losses on available-for- sale securities $ 1,060 $ 602