York Traditions Bank Statements of Cash Flows in thousands)  See accompanying notes to financial statements.  10 Years Ended December 31,  2013 2012 Cash Flows from Operating Activities 1, 439 Net income 1, 860 2, 816 Adjustments to reconcile change in net income to net cash 9, 628 10, 175 provided by operating activities:  15, 527)  14, 012)  Provision for loan losses 484 525 Provision for depreciation and amortization 452 446 Amortization of securities, net 377 313 Gain on sale of loans 1, 696)  3, 039)  Proceeds from sale of loans 104, 062 135, 093 Loans originated for sale 103, 030)  132, 037)  Deferred loan fees, net 41)  14 Gain on sale /call of investment securities 63)  Gain) loss on sale of foreclosed real estate 11 16)  Provision for loss on foreclosed real estate 100 Loss on sale of fixed assets 1 Deferred income tax (benefit) expense 185 120)  Stock -based compensation expense 104 58 Net increase in cash surrender value of bank -owned life Cash and Cash Equivalents,  End of Year insurance 139)  146)  Increase) decrease in accrued interest receivable and other assets 311 90)  Increase in other liabilities 133 414 Net Cash Provided by Operating Activities 3, 011 4, 331 Cash Flows from Investing Activities 22, 135)  Proceeds from sales of available - for -sale securities 439 Proceeds from calls, paydowns and maturities of securities avai table- for -sale 9, 628 Purchase of securities available -  for -sale Net sale of investment in restricted bank stocks 26 166 Net increase in loans 15, 545)  10, 889)  Purchases of property and equipment 2, 265)  1, 608)  Proceeds from sale of foreclosed real estate 109 367 Net Cash Used in Investing Activities 15, 801)  Cash Flows from Financing Activities Net increase ( decrease) in deposits 1, 131)  30, 752 Proceeds of long -term borrowings 2, 000 Payments of long -term borrowings 3, 750)  Cash dividends paid to preferred shareholders 51)  205)  Cash dividends paid on common stock 214)  Proceeds from issuance of common stock 20 613 Net Cash Provided by Financing Activities 838 27, 196 Net ( decrease) increase in cash and cash equivalents 18, 286)  15, 726 Cash and Cash Equivalents, Beginning of Year 23, 272 7, 546 Cash and Cash of 4, 986 23, 272 Supplementary Cash Flows Information Interest paid 2, 070 2, 625 Income taxes paid 904 1, 140 Loans transferred to foreclosed real estate 880