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06 | CONSOLIDATED STATEMENTS OF CASH FLOWDecember 31, 2025 (unaudited) and 2024(dollars in thousands)2025 2024CASH FLOWSOperating ActivitiesNet Income $ 13,274 $ 11,526 Items not requiring (providing) cashDepreciation and amortization 1,095 953 Provision for credit losses 771 1,239 Amortization of premiums and discounts on debt securities 486 374 Net realized losses on sale and writedowns of other real estate owned 22 -Amortization of intangibles 55 55 Net realized gain on premises and equipment - (12)Deferred income taxes (50) 95Net realized (gain) loss on available for sale debt securities 2,446 (5) Changes in:Interest receivable 71 (682)Right-of-use assets 95 169 Other assets 43 (2,943)Operating lease liability (104) (175)Other liabilities and interest payments (854) 1,662 NET CASH PROVIDED BY OPERATING ACTIVITIES 17,350 12,256 Investing ActivitiesPurchases of available for sale debt securities (2,479) (7,267)Proceeds from maturities, calls and paydowns ofavailable for sale debt securities 13,102 13,996 Proceeds from the sale of available for sale debt securities 29,802 440 Purchase of Federal Reserve and other bank stock (77) (209) Net change in loans (58,680) (74,981)Proceeds from sale of other real estate owned 83 -Purchase of premises and equipment (5,466) (1,938)Proceeds from the sale of premises and equipment - 12 NET CASH USED IN INVESTING ACTIVITIES (23,715) (69,947)Financing ActivitiesNet increase in deposits 9,956 1,370 Repurchase of common stock - (582)Dividends paid (3,432) (2,706)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 6,524 (1,918) Increase (decrease) in cash and cash equivalents 159 (59,609)Cash and cash equivalents, Beginning of Year 34,548 94,157 CASH AND CASH EQUIVALENTS, END OF YEAR $ 34,707 $ 34,548Supplemental Cash Flow InformationInterest paid $ 16,583 $ 18,148 Income taxes paid 3,445 2,732 Loans transferred to other real estate owned 184 -Cancellation of lease 881 -