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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities:    
Net earnings [1] $ 4,781 $ 4,944
Adjustments to reconcile net earnings to net cash provided by operating activities:    
Provision for loan losses 600 450
Amortization of investment security premiums, net 870 977
Amortization of purchase accounting adjustment on loans (32) (80)
Amortization of purchase accounting adjustment on subordinated debentures 100
Amortization of intangibles 555 560
Depreciation 496 498
Increase in cash surrender value of bank owned life insurance [2] (319) (321)
Stock-based compensation 129 100
Deferred income taxes (571) 392
Net losses (gains) on sales of investment securities 146 (35)
Net gain on sales of premises, equipment and real estate owned (4) (1)
Net gains on sales of loans [2] (2,862) (2,629)
Proceeds from sales of loans 74,813 75,613
Origination of loans held for sale (80,372) (78,213)
Changes in assets and liabilities:    
Accrued interest and other assets (1,031) (152)
Accrued expenses, taxes, and other liabilities (2,459) 1,192
Net cash (used in) provided by operating activities (5,260) 3,395
Cash flows from investing activities:    
Net increase in loans (21,345) (28,096)
Maturities and prepayments of investment securities 30,903 25,745
Purchases of investment securities (24,741) (45,117)
Proceeds from sales of investment securities 9,491 1,535
Proceeds from sales of common stock investments 7
Redemption of bank stocks 6,584 4,516
Purchase of bank stocks (5,337) (5,127)
Proceeds from sales of premises and equipment and foreclosed assets 15 22
Purchases of premises and equipment, net (697) (1,055)
Net cash used in investing activities (5,127) (47,570)
Cash flows from financing activities:    
Net increase (decrease) in deposits 5,884 (267)
Federal Home Loan Bank advance borrowings 232,167 413,190
Federal Home Loan Bank advance repayments (229,767) (359,190)
Repayments on other borrowings (963) (5,092)
Proceeds from exercise of stock options 484
Payment of dividends (1,749) (1,651)
Net cash provided by financing activities 5,572 47,474
Net (decrease) increase in cash and cash equivalents (4,815) 3,299
Cash and cash equivalents at beginning of period 19,114 16,584
Cash and cash equivalents at end of period 14,299 19,883
Supplemental disclosure of cash flow information:    
Cash payments (refund) for income taxes 51 (1,000)
Cash paid for interest 3,420 2,079
Cash paid for operating leases 72 71
Supplemental schedule of noncash investing and financing activities:    
Transfer of loans to real estate owned 57 38
Investment securities purchases not yet settled 265
Operating lease asset and related lease liability recorded $ 353
[1] Share and per share values for the periods ended June 30, 2018 have been adjusted to give effect to the 5% stock dividend paid during December 2018.
[2] Not within the scope of ASC 606.