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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Operating activities    
Net income $ 6,601 $ 12,472
Adjustments to reconcile net income to net cash provided by operating activities:    
Deferred income taxes, net (133) (1,245)
Impairment of Tax Credit Investments 1,954 4,102
Provision for loan and lease losses 8,651 (736)
SBA recourse (benefit) provision (5) 594
Depreciation, amortization and accretion, net 1,637 1,437
Share-based compensation 933 728
Net loss on sale of securities (4) (1)
Increase in bank-owned life insurance policies (672) (589)
Origination of loans held for sale 39,931 29,116
Sale of loans originated for sale 32,303 30,156
Gain on sale of SBA loans (839) (539)
Net loss (gain) on foreclosed properties, including impairment valuation (450) 21
Excess tax benefit from share-based compensation (19) (11)
Payments on operating leases (775) (759)
Payments received on operating leases 56 0
Net increase in accrued interest receivable and other assets 50,951 17,612
Net increase in accrued interest payable and other liabilities 42,042 12,435
Net cash provided by operating activities 1,306 11,297
Investing activities    
Proceeds from maturities, redemptions, and paydowns of available-for-sale securities 22,457 12,480
Proceeds from maturities, redemptions, and paydowns of held-to-maturity securities 2,844 3,176
Proceeds from sale of available-for-sale securities 839 2,026
Purchases of available-for-sale securities (17,753) (31,934)
Proceeds from sale of foreclosed properties 1,160 0
Net increase in loans and leases (343,016) (102,162)
Investments in limited partnerships 0 1,250
Returns of investments in limited partnerships 0 280
Investment in historic development entities (259) (2,137)
Distribution from historic development entities 30 0
Investment in Federal Home Loan Bank stock (6,892) (2,020)
Proceeds from the sale of Federal Home Loan Bank stock 1,375 2,540
Purchases of leasehold improvements and equipment, net (141) (11)
Purchases of bank-owned life insurance policies 8,000 0
Net cash used in investing activities (347,356) (119,012)
Financing activities    
Net increase in deposits 179,996 74,346
Proceeds from Federal Home Loan Bank advances 498,500 265,000
Repayment of Federal Home Loan Bank advances (383,243) (266,000)
Loss on early extinguishment of debt 744 0
Proceeds from the Federal Paycheck Protection Program Lending Facility, Investing Activities 29,605 0
Net increase in long-term borrowed funds 27 35
Cash dividends paid (2,824) (2,628)
Purchase of treasury stock (1,466) (3,709)
Net cash provided by financing activities 321,339 67,044
Net decrease in cash and cash equivalents (24,711) (40,671)
Cash and cash equivalents at the beginning of the period 67,102 86,546
Cash and cash equivalents at the end of the period 42,391 45,875
Cash paid during the period for:    
Interest paid on deposits and borrowings 11,064 15,744
Income taxes paid 1,356 1,308
Non-cash investing and financing activities:    
Transfer from loans and leases to foreclosed properties $ 80 $ 93