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Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
OPERATING ACTIVITIES  
Net income$ 2,801$ 1,823
Adjustments to reconcile net income to net cash provided by operating activities:  
Provision for loan losses2,4852,355
Investment securities (gains) losses, net16(45)
Depreciation and amortization639581
Amortization of premium and discount on investment securities247(93)
Amortization of deferred loan fees, net(120)(37)
Earnings on bank-owned life insurance(209)(204)
Deferred income taxes(173)(384)
Stock based compensation expense59 
Losses on other real estate owned498750
Increase in accrued interest receivable(384)(447)
Increase (decrease) in accrued interest payable(73)33
Decrease in prepaid federal deposit insurance642545
Other, net(746)(1,240)
Net cash provided by operating activities5,6823,637
Investment securities available for sale:  
Proceeds from repayments and maturities56,94031,882
Proceeds from sale of securities24,3055,829
Purchases(77,429)(89,919)
Increase in loans, net(18,217)(14,431)
Proceeds from the sale of other real estate owned777923
Purchase of premises and equipment(321)(292)
Net cash used for investing activities(13,945)(66,008)
FINANCING ACTIVITIES  
Net increase in deposits21,98776,385
Increase (decrease) in short-term borrowings, net(724)962
Repayment of other borrowings(1,366)(3,830)
Common stock issuance2,210 
Proceeds from dividend reinvestment & purchase plan414396
Cash dividends(1,306)(1,225)
Net cash provided by financing activities21,21572,688
Increase in cash and cash equivalents12,95210,317
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD30,63541,153
CASH AND CASH EQUIVALENTS AT END OF PERIOD43,58751,470
Cash paid during the year for:  
Interest on deposits and borrowings6,8528,334
Income taxes515850
Non-cash investing transactions:  
Transfers from loans to other real estate owned$ 1,146$ 1,525