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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Operating Activities    
Net income $ 5,180 $ 5,165
(Accretion), amortization and depreciation:    
Securities 116 204
Bank premises and equipment 979 889
Core deposit intangible 395 455
Modification fees on Federal Home Loan Bank of Boston advances 176 173
Subordinated debt issuance costs 17 18
Mortgage servicing rights 149 182
Fair value adjustment on loans (969) (1,429)
Fair value adjustment on deposits (64) (97)
(Gains) and losses, including write-downs    
Loss and (gain) and write-downs on sales and calls of securities, available-for-sale, net (14) 157
Gains on sales of loans, excluding capitalized servicing rights (79) (152)
Write-downs of other real estate owned 395
Loss on sale/disposals of premises and equipment 1 13
Provision for loan losses 953 1,332
Proceeds from loans sold 4,495 6,814
Loans originated for sale (4,977) (6,736)
Increase in deferred loan origination fees and costs, net (38) (91)
Mortgage servicing rights originated (53) (71)
(Decrease) increase in mortgage servicing rights impairment reserve (24) 13
(Increase) decrease in interest receivable (84) 47
(Increase) decrease in prepaid expenses (59) 18
Increase in cash surrender value of life insurance policies (259) (267)
Decrease in income tax receivable 43 433
Decrease in other assets 920 218
(Decrease) increase in accrued expenses (384) 1,079
Increase (decrease) in interest payable 157 (125)
(Decrease) increase in other liabilities (16) 1,310
Stock based compensation - restricted stock awards 200 142
Net cash provided by operating activities 7,184 9,380
Investing Activities    
Redemption of Federal Home Loan Bank of Boston stock, net of purchases 173 239
Purchases of securities available-for-sale (36,654) (45,317)
Proceeds from sales of securities available for sale 3,860
Proceeds from calls of securities available-for-sale 11,141 11,811
Proceeds from maturities of securities available-for-sale 19,618 29,125
Loan originations and principle collections, net (14,776) (57,351)
Recoveries of loans previously charged off 232 111
Proceeds from sales of other real estate owned 177
Capital expenditures (1,306) (1,168)
Cash and cash equivalents acquired from acquisition 22,387
Net cash provided (utilized) by investing activities 992 (58,690)
Financing Activities    
Increase in deposit transaction accounts, net 18,714 35,320
Increase (decrease) in time deposits, net 136 (3,026)
Decrease in securities sold under agreements to repurchase, net (1,006) (333)
Principal payments on Federal Home Loan Bank of Boston advances (10,000) (18)
Principal payments on note payable (23) (25)
Decrease in capital lease obligation (139) (3)
Stock options exercised 312 87
Issuance of shares for directors' fees 81 142
Common stock dividends paid (2,333) (2,314)
Net cash provided by financing activities 5,742 29,830
Net increase (decrease) in cash and cash equivalents 13,918 (19,480)
Cash and cash equivalents, beginning of period 35,485 62,118
Cash and cash equivalents, end of period 49,403 42,638
Cash paid during year    
Interest 2,810 2,714
Income taxes 1,958 842
Non-cash transfers    
From loans to other real estate owned 743 $ 2,823
Empire State Bank branch acquisition    
Cash and cash equivalents acquired 22,387  
Net loans acquired 7,097  
Fixed assets acquired (including capital lease) 1,605  
Accrued interest receivable acquired 12  
Other assets acquired 20  
Core deposit intangible 632  
Goodwill 1,263  
Deposits assumed 31,433  
Capital lease assumed 1,580  
Other liabilities assumed $ 3