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Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:  
Net income$ 3,905$ 3,420
Adjustments to reconcile net income to net cash provided by operating activities:  
Provision for depreciation and net amortization1,5981,504
Provision for loan losses1,1501,555
Deferred net loan origination costs(229)(230)
Gain on sale of loans(697)(915)
Provision for (recapture of) servicing right valuation allowance(43)154
Loss on sale of premises and equipment07
Loss on sale and write-down of foreclosed assets458133
Loss on sale of securities020
Increase in cash surrender value of life insurance(311)(307)
Changes in operating assets and liabilities:  
Accrued interest receivable135(304)
Other assets(119)611
Other liabilities(304)(106)
Net cash provided by operating activities5,5435,542
Proceeds from sale and maturities of:  
Securities available for sale11,61518,269
Securities held to maturity2,7040
Payment for purchase of:  
Securities available for sale(17,357)(17,849)
Securities held to maturity(831)0
Purchase of other investments0(2,484)
Net (increase) decrease in loans(1,324)2,189
Capital expenditures(129)(961)
Proceeds from sale of foreclosed assets832895
Purchase of bank-owned life insurance(93)0
Net cash provided by (used in) investing activities(4,583)59
Cash flows from financing activities:  
Net increase (decrease) in non-interest-bearing deposits9,486(3,966)
Net decrease in interest-bearing deposits(10,520)(2,338)
Net decrease in FHLB advances(2,310)(725)
Net decrease in other borrowings(9,766)(3,621)
Dividends declared(586)(565)
Proceeds from exercise of stock options240
Net cash used in financing activities(13,672)(11,215)
Net decrease in cash and cash equivalents(12,712)(5,614)
Cash and cash equivalents at beginning of period40,33126,337
Cash and cash equivalents at end of period27,61920,723
Cash paid during the period for:  
Interest6,8768,269
Income taxes1,650768
Noncash investing and financing activities:  
Loans charged off1,2681,171
Loans transferred to foreclosed assets8453,007
Loans originated on sale of foreclosed assets1,0750
Issuance of unvested restricted stock grants at fair value20075
Vesting of restricted stock grants$ 65$ 31