Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 12,220	$ 11,391
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	1,049	754
Investment amortization, net	583	903
Provision for loan losses	1,487	1,045
Provision for real estate owned		113
Stock-based compensation expense	412	454
(Increase) decrease in deferred tax asset	(1)
(Gain) loss on sale of investment securities available for sale	27
Income on bank owned life insurance, net	(236)	(261)
Gain on sale of fixed assets	(66)	(90)
Net realized gain on sale of real estate owned	(5)	(33)
Net change in operating assets and liabilities:
Accrued interest receivable	(527)	(118)
Other assets	(287)	(2,120)
Accrued interest payable	270	293
Other liabilities	(174)	1,054
Net cash provided by operating activities	14,752	13,385
Activity for investment securities available for sale:
Purchases	(27,232)	(38,520)
Maturities/calls and principal repayments	8,179	19,645
Net increase in loans	(62,508)	(58,436)
Proceeds from sale of real estate owned	115
Redemption of BOLI policies		429
Proceeds from sale of fixed assets	80	113
Purchase of fixed assets	(512)	(1,511)
Proceeds from sale of other real estate owned		457
Purchase of other investments, at cost	(177)
Redemption of other investments, at cost	1,750	2,776
Net cash used in investing activities	(80,305)	(75,047)
Cash flows from financing activities:
Net increase in deposits	50,966	105,257
Repurchase of common stock		(3,946)
Repurchase of preferred stock		(86)
Cash received upon exercise of stock options	843	1,139
Dividends paid on common stock	(2,026)	(1,551)
Dividends paid on preferred stock	(116)	(90)
Net cash provided by financing activities	49,667	100,723
Net change in cash and cash equivalents	(15,886)	39,061
Cash and cash equivalents, beginning of period	124,101	63,025
Cash and cash equivalents, end of period	108,215	102,086
Cash paid during the year for:
Interest on deposits and other borrowings	1,491	3,562
Income taxes	$ 4,257	$ 4,532

GRANDSOUTH BANCORPORATION 10-Q