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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
OPERATING ACTIVITIES    
Net income $ 1,160 $ 4,623
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Provision for loan losses 3,650 750
Depreciation expense 1,306 1,346
Net amortization of investment securities 342 254
Net realized (gains) losses on investment securities available for sale (177) 8
Net gains on loans held for sale (552) (594)
Amortization of deferred loan fees (174) (202)
Origination of mortgage loans held for sale (42,549) (39,214)
Sales of mortgage loans held for sale 37,327 41,946
Decrease (increase) in accrued interest income receivable 50 (188)
Decrease in accrued interest payable (18) (105)
Earnings on bank owned life insurance (505) (514)
Deferred income taxes (280) 805
Amortization of deferred issuance costs 29 0
Stock based compensation expense 89 179
Other, net (2,000) (2,536)
Net cash (used in) provided by operating activities (2,302) 6,558
INVESTING ACTIVITIES    
Purchases of investment securities - available for sale (24,896) (9,408)
Purchases of investment securities - held to maturity (8,633) (4,795)
Proceeds from sales of investment securities - available for sale 8,966 2,379
Proceeds from maturities of investment securities - available for sale 18,750 19,063
Proceeds from maturities of investment securities - held to maturity 2,166 4,233
Purchases of regulatory stock (8,833) (14,111)
Proceeds from redemption of regulatory stock 10,106 13,498
Long-term loans originated (145,189) (185,864)
Principal collected on long-term loans 120,875 140,143
Loans purchased or participated (4,948) (11,519)
Loans sold or participated 18,900 18,443
Proceeds from sale of other real estate owned 99 478
Proceeds from life insurance policy 0 1,140
Purchases of premises and equipment (1,012) (691)
Net cash used in investing activities (13,649) (27,011)
FINANCING ACTIVITIES    
Net increase (decrease) in deposit balances 59,442 (56)
Net (decrease) increase in other short-term borrowings (40,847) 14,108
Principal borrowings on advances from Federal Home Loan Bank 7,042 9,000
Principal repayments on advances from Federal Home Loan Bank (6,000) (3,000)
Preferred stock redemption (21,000) 0
Common stock dividends (661) (566)
Preferred stock dividends (15) (157)
Net cash (used in) provided by financing activities (2,039) 19,329
NET DECREASE IN CASH AND CASH EQUIVALENTS (17,990) (1,124)
CASH AND CASH EQUIVALENTS AT JANUARY 1 48,510 32,872
CASH AND CASH EQUIVALENTS AT SEPTEMBER 30 $ 30,520 $ 31,748