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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
OPERATING ACTIVITIES    
Net income $ 2,737 $ 95
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Provision for loan losses 550 3,350
Depreciation expense 862 892
Net amortization of investment securities 238 203
Net realized gains on investment securities available for sale (59) (117)
Net gains on loans held for sale (300) (292)
Amortization of deferred loan fees (85) (130)
Origination of mortgage loans held for sale (22,687) (20,215)
Sales of mortgage loans held for sale 21,451 20,370
Increase in accrued interest income receivable (215) (229)
Decrease in accrued interest payable (148) (180)
Earnings on bank owned life insurance (284) (336)
Deferred income taxes 613 (420)
Amortization of deferred issuance costs 20 20
Stock based compensation expense 64 65
Other, net 235 1,326
Net cash provided by operating activities 2,992 4,402
INVESTING ACTIVITIES    
Purchases of investment securities - available for sale (22,816) (18,894)
Purchases of investment securities - held to maturity (7,790) (4,708)
Proceeds from sales of investment securities - available for sale 7,206 7,422
Proceeds from maturities of investment securities - available for sale 12,165 12,057
Proceeds from maturities of investment securities - held to maturity 736 661
Purchases of regulatory stock (8,581) (7,608)
Proceeds from redemption of regulatory stock 7,638 8,499
Long-term loans originated (81,477) (108,221)
Principal collected on long-term loans 76,107 79,447
Loans purchased or participated (4,138) (4,948)
Loans sold or participated 0 18,900
Proceeds from sale of other real estate owned 60 47
Proceeds from life insurance policies 614 0
Purchases of premises and equipment (1,327) (663)
Net cash used in investing activities (21,603) (18,009)
FINANCING ACTIVITIES    
Net (decrease) increase in deposit balances (11,411) 37,637
Net increase (decrease) in other short-term borrowings 29,347 (26,173)
Principal borrowings on advances from Federal Home Loan Bank 4,500 3,042
Principal repayments on advances from Federal Home Loan Bank (5,000) (1,000)
Preferred stock redemption 0 (21,000)
Purchase of treasury stock (1,869) 0
Common stock dividends (563) (376)
Preferred stock dividends 0 (15)
Net cash provided by (used in) financing activities 15,004 (7,885)
NET DECREASE IN CASH AND CASH EQUIVALENTS (3,607) (21,492)
CASH AND CASH EQUIVALENTS AT JANUARY 1 34,073 48,510
CASH AND CASH EQUIVALENTS AT JUNE 30 $ 30,466 $ 27,018