Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 12,097 $ 9,337
Adjustments to reconcile net income to net cash provided by operating activities:    
Origination of loans for sale (78,175) (55,525)
Sale of loans originated for sale 76,832 55,643
Depreciation and amortization, net of accretion 1,888 2,594
Deferred tax expense 1,172 256
Amortization of mortgage servicing rights 60 65
Stock based compensation expense 301 204
Net surrender value of restricted stock awards (63) (72)
Gain on sale of securities, net (621) (1,200)
Gain on sale of loans held-for-sale, net (1,885) (1,619)
Gain on sale of premises and equipment, net (133)
Gain on sale of foreclosed real estate (78) (54)
Benefit from bank owned life insurance (205)
Provision for loan losses 2,584 1,308
Net change in:    
Interest receivable (397) (369)
Other assets (5,407) 1,044
Accrued expenses and other liabilities 2,987 (1,072)
Total adjustments (1,140) 1,203
Net cash - operating activities 10,957 10,540
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from maturities of certificates of deposit in other financial institutions 739 3,370
Purchase of certificates of deposit in other financial institutions (885) (490)
Proceeds from maturities and pay downs of securities available-for-sale 31,595 22,551
Proceeds from sales of securities available-for-sale 37,939 34,545
Purchase of securities available-for-sale (93,205) (58,632)
Net change in loans receivable (54,838) (50,727)
Sale (purchase) of Federal Home Loan Bank Stock 60 (241)
Purchase of premises and equipment, net (3,041) (1,011)
Proceeds from sale of premises and equipment 243
Proceeds from sale of foreclosed real estate 1,227 1,565
Write down of foreclosed real estate 120 135
Cash and cash equivalents from acquisition activity, net 52,560 18,261
Change in cash value of bank owned life insurance (688) (493)
Net cash - investing activities (28,174) (31,167)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Change in deposits 80,550 11,850
Proceeds from FHLB advances 77,000
Repayment of FHLB advances (29,000) (51,100)
Repayment of trust preferred security related to First Personal Merger (4,124)
Change in other borrowed funds (129) (3,453)
Dividends paid (4,085) (3,432)
Net cash - financing activities 47,336 26,741
Net change in cash and cash equivalents 30,119 6,114
Cash and cash equivalents at beginning of period 17,139 11,025
Cash and cash equivalents at end of period 47,258 17,139
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
Interest 9,099 4,947
Income taxes 1,605 1,130
Acquisition activity:    
Fair value of assets acquired, including cash and cash equivalents 172,925 137,449
Value of goodwill and other intangible assets 5,856 8,481
Fair value of liabilities assumed 145,546 130,313
Cash paid for acquisition 15,743 8,689
Issuance of common stock for acquisition 17,492 6,928
Noncash activities:    
Transfers from loans to foreclosed real estate $ 639 $ 282