Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 9,337 $ 8,961
Adjustments to reconcile net income to net cash provided by operating activities:    
Origination of loans for sale (55,525) (42,212)
Sale of loans originated for sale 55,643 43,980
Depreciation and amortization, net of accretion 2,594 2,548
Deferred tax expense 256 377
Reclassification related to tax effect of unrealized gains 0 (111)
Amortization of mortgage servicing rights 65 64
Stock based compensation expense 204 192
Net surrender value of restricted stock awards (72) 0
Gain on sale of securities, net (1,200) (860)
Gain on sale of loans held-for-sale, net (1,619) (1,200)
Gain on sale of foreclosed real estate (54) (103)
Provision for loan losses 1,308 1,200
Net change in:    
Interest receivable (369) (176)
Other assets 1,044 (455)
Accrued expenses and other liabilities (1,072) 93
Total adjustments 1,203 3,337
Net cash - operating activities 10,540 12,298
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from maturities of certificates of deposit in other financial institutions 3,370 245
Purchase of certificates of deposit in other financial institutions (490) (1,036)
Proceeds from maturities and pay downs of securities available-for-sale 22,551 25,033
Proceeds from sales of securities available-for-sale 34,545 56,347
Purchase of securities available-for-sale (58,632) (89,399)
Loan participations purchased 0 (796)
Net change in loans receivable (50,727) (37,390)
Purchase of Federal Home Loan Bank Stock (241) 0
Purchase of premises and equipment, net (1,011) (1,657)
Proceeds from sale of foreclosed real estate 1,565 1,278
Write down of foreclosed real estate 135 0
Cash and cash equivalents from acquisition activity, net 18,261 0
Change in cash value of bank owned life insurance (493) (460)
Net cash - investing activities (31,167) (47,835)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Change in deposits 11,850 13,233
Proceeds from FHLB advances 77,000 9,000
Repayment of FHLB advances (51,100) (17,000)
Repayment of trust preferred security related to First Personal Merger (4,124) 0
Change in other borrowed funds (3,453) 355
Proceeds from exercise of incentive stock options 0 14
Dividends paid (3,432) (3,264)
Net cash - financing activities 26,741 2,338
Net change in cash and cash equivalents 6,114 (33,199)
Cash and cash equivalents at beginning of period 11,025 44,224
Cash and cash equivalents at end of period 17,139 11,025
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
Cash paid during the period for: Interest 4,947 2,591
Cash paid during the period for: Income taxes 1,130 1,895
Acquisition activity:    
Fair value of assets acquired, including cash and cash equivalents 137,449 0
Value of goodwill and other intangible assets 8,481 0
Fair value of liabilities assumed 130,313 0
Cash paid for acquisition $ 8,689 $ 0
Issuance of common stock for acquisition 6,928 0
Noncash activities:    
Transfers from loans to foreclosed real estate $ 282 $ 349