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Consolidated Statements of Cash Flows (unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net income $ 6,605 $ 5,653
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for loan losses 250 0
Depreciation expense 1,454 1,305
Net amortization of investment securities, premiums, and discounts 1,007 809
Stock based compensation expense 5 15
Change in fair value of mortgage servicing rights 291 386
Gain on sale of investment securities (8) 0
Gain on sales and dispositions of premises and equipment (8) (41)
Gain on sales and dispositions of other real estate and repossessed assets (151) (149)
Provision for other real estate owned (6) 450
Increase (decrease) in accrued interest receivable (93) 264
Increase in cash surrender value -life insurance (45) (56)
Decrease (increase) in other assets 2,224 (181)
Increase (decrease) in accrued interest payable 5 (44)
Increase in other liabilities 1,251 2,603
Origination of mortgage loans for sale (40,008) (25,576)
Proceeds from the sale of mortgage loans 40,090 25,568
Gain on sale of mortgage loans, net (1,103) (778)
Other, net (194) (377)
Net cash provided by operating activities 11,566 9,851
Cash flows from investing activities:    
Net increase in loans (21,892) (24,155)
Purchase of available-for-sale debt securities (81,595) (41,321)
Proceeds from maturities of available-for-sale debt securities 24,188 18,015
Proceeds from calls of available-for-sale debt securities 11,440 24,605
Proceeds from sales of available-for-sale debt securities 720 0
Proceeds from sales of FHLB stock 400 39
Purchases of FHLB stock (4,915) (440)
Purchases of premises and equipment (709) (1,181)
Proceeds from sales of premises and equipment 11 45
Proceeds from sales of other real estate and foreclosed assets 1,443 3,945
Net cash used in investing activities (70,909) (20,448)
Cash flows from financing activities:    
Net increase in demand deposits 2,014 12,898
Net increase in interest-bearing transaction accounts 10,819 14,748
Net decrease in time deposits (10,179) (19,412)
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase 9,792 (11,541)
Repayment of FHLB advances (55,000) (10,000)
FHLB advances 92,000 21,000
Cash dividends paid - common stock (785) (755)
Net cash provided by financing activities 48,661 6,938
Net (decrease) increase in cash and cash equivalents (10,682) (3,659)
Cash and cash equivalents, beginning of period 42,809 28,439
Cash and cash equivalents, end of period 32,127 24,780
Cash paid during the year for:    
Interest 3,717 3,872
Income taxes 1,559 1,650
Noncash investing activities:    
Other real estate and repossessed assets acquired in settlement of loans $ 4,549 $ 1,817