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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:      
Net income $ 93,229 $ 21,297 $ 392,287
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 17,649 21,060 20,983
Amortization of intangible assets 4,896 5,143 4,943
Provision for loan and lease losses 86,733 172,045 109,530
Deferred income tax expense (benefit) 23,879 80 (306,010)
Stock-based compensation 6,876 6,037 4,221
Gain on sale of investments, net (6,104) 0 (262)
Gain on extinguishment of debt (4,217) 0 0
Other-than-temporary impairments on debt securities [1] 6,687 16,517 388
Equity in loss of unconsolidated entity 0 0 7,279
Unrealized loss (gain) on derivative instruments 78 (164) (936)
Gain on sales of premises and equipment and other assets (700) (64) (21)
Net gain on sale of loans (10,273) (7,379) (7,715)
Net amortization/accretion of premiums, discounts, and deferred loan fees and costs (8,819) (6,229) (2,431)
Originations and purchases of loans held for sale (488,833) (428,348) (311,305)
Gain on sale of merchant contracts 0 (7,000) 0
Sales and repayments of loans held for sale 493,821 436,461 328,822
Loans held for sale valuation adjustment 0 (191) 0
Bargain purchase gain 0 (13,443) 0
Gain from recovery of investments previously written off (1,547) 0 0
Amortization of broker placement fees 2,881 4,563 6,662
Net amortization/accretion of premiums and discounts on investment securities 6,890 7,046 5,417
Decrease in accrued interest receivable 2,934 1,703 3,216
Decrease in accrued interest payable (29,200) 6,241 6,812
Decrease in other assets 17,716 20,625 19,724
(Decrease) increase in other liabilities (15,144) 5,891 (17,251)
Net cash provided by operating activities 199,432 261,891 264,353
Cash flows from investing activities:      
Principal collected on loans 2,830,830 2,969,616 3,483,131
Proceeds from sale of loans held for investment 31,852 107,702 74,058
Proceeds from sale of repossessed assets 56,369 61,808 66,683
Proceeds from sale of available-for-sale securities 219,780 0 4,861
Purchases of available-for-sale securities (619,636) (250,585) (170,419)
Purchases of held-to-maturity investment securities 0 (4,530) 0
Proceeds from principal repayments and maturities of securities available for sale 390,286 296,950 233,046
Proceeds from principal repayments and maturities of securities held to maturity 5,293 5,068 4,617
Additions to premises and equipment (10,370) (12,456) (22,262)
Proceeds from sale of premises and equipment and other assets 2,279 4,035 1,320
Net cash received from acquisition 0 217,659 0
Net cash outflows from purchase/sale of insurance contracts (960) 0 0
Proceeds from sale of merchant contracts 0 10,000 0
Net (purchases) redemptions/sales of other equity securities (10,823) (6,417) 2,939
Loans originated and purchased (2,813,253) (2,959,871) (3,423,241)
Proceeds From Recovery Of Investments Previously Written Off 1,547 0 0
Net cash provided by investing activities 83,194 438,979 254,733
Cash flows from financing activities:      
Net decrease in deposits (542,019) (673,347) (402,641)
Net FHLB advances proceeds 215,000 130,000 25,000
Dividends paid on preferred stock (223) 0 0
Issuance costs of common stock issued in exchange for preferred stock Series A through E 0 0 (62)
Repurchase of outstanding common stock (1,132) (1,173) (946)
Change in securities sold under agreements to repurchase (400,000) (200,000) 0
Repayments of junior subordinated debentures (7,025) 0 0
Net cash used in financing activities (735,399) (744,520) (378,649)
Net decrease in cash and cash equivalents (452,773) (43,650) 140,437
Cash and cash equivalents at beginning of year 752,458 796,108 655,671
Cash and cash equivalents at end of year 299,685 752,458 796,108
Cash and cash equivalents include:      
Cash and Cash Equivalents, at Carrying Value, Total $ 752,458 $ 752,458 $ 655,671
[1]
(1) For the years ended December 31, 2016 and 2015, approximately $6.3 million and $15.9 million, respectively, of the credit impairment recognized in earnings consisted of credit losses on Puerto Rico government debt securities. The remaining impairment losses were associated with credit losses on private label MBS.