14 The accompanying notes are an integral part of these financial statements. California Bank of Commerce STATEMENT OF CASH FLOWS (Continued) For the Years Ended December 31, 2011 and 2010 2011 2010 Cash flows from financing activities: Increase in demand, interest bearing and savings  deposits  $  53,581,476 $  24,247,569 Net (decrease) increase in time deposits  6,705,250 6,695,059 Proceeds from sale of preferred stock, net of redemption of preferred stock  6,749,443 - Payment of dividends on preferred stock  (181,667) (218,000) (Repayment) proceeds from other borrowings  (10,000,000)  11,000,000 Net cash provided by financing activities  56,854,502 41,724,628 Increase (decrease) in cash and cash equivalents  36,738,791 (20,344,814) Cash and cash equivalents at beginning of period  10,223,291 30,568,105 Cash and cash equivalents at end of period  $ 46,962,082 $ 10,223,291 Supplemental disclosure of cash flow information: Cash paid during the year for:  Interest $  1,503,558 $  1,578,921  Income  taxes  495,350 $  800 Non-cash investing activities: Net change in unrealized gains on available-for- sale  investment  securities  $  82,844 $  (91,917)