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Consolidated Statements of Cash Flows (unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net income $ 4,065 $ 4,085
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation expense 962 867
Net amortization of investment securities, premiums, and discounts 664 543
Stock based compensation expense 5 10
Change in fair value of mortgage servicing rights 262 247
Gain on sale of investment securities (8) 0
Gain on sales and dispositions of premises and equipment (11) (39)
Gain on sales and dispositions of other real estate and repossessed assets (144) (152)
Provision for other real estate owned (6) 174
Decrease in accrued interest receivable 174 248
Increase in cash surrender value -life insurance (35) (38)
Decrease in other assets 1,344 230
Decrease in accrued interest payable (8) (33)
Increase in other liabilities 195 1,565
Origination of mortgage loans for sale (28,950) (14,214)
Proceeds from the sale of mortgage loans 28,904 14,538
Gain on sale of mortgage loans, net (781) (448)
Other, net (154) (83)
Net cash provided by operating activities 6,478 7,500
Cash flows from investing activities:    
Net increase in loans (2,244) (19,664)
Purchase of available-for-sale debt securities (67,583) (39,607)
Proceeds from maturities of available-for-sale debt securities 14,245 12,364
Proceeds from calls of available-for-sale debt securities 10,875 19,500
Proceeds from sales of available-for-sale debt securities 720 0
Proceeds from sales of FHLB stock 120 39
Purchases of FHLB stock (3,315) 0
Purchases of premises and equipment (518) (738)
Proceeds from sales of premises and equipment 11 43
Proceeds from sales of other real estate and foreclosed assets 1,036 3,124
Net cash used in investing activities (46,653) (24,939)
Cash flows from financing activities:    
Net (decrease) increase in demand deposits (1,222) 8,789
Net increase in interest-bearing transaction accounts 23,194 29,751
Net decrease in time deposits (2,620) (6,561)
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase 7,872 (8,235)
Repayment of FHLB advances (13,000) (10,000)
FHLB advances 17,000 10,000
Cash dividends paid - common stock (523) (504)
Net cash provided by financing activities 30,701 23,240
Net (decrease) increase in cash and cash equivalents (9,474) 5,801
Cash and cash equivalents, beginning of period 42,809 28,439
Cash and cash equivalents, end of period 33,335 34,240
Cash paid during the year for:    
Interest 2,459 2,621
Income taxes 959 1,320
Noncash investing activities:    
Other real estate and repossessed assets acquired in settlement of loans $ 1,517 $ 305