FIRST BANCORP PR

Cash flows from operating activities:

$

302,864

$

305,072

$

281,025

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

20,501

22,289

24,965

Amortization of intangible assets

7,735

8,816

11,407

60,940

27,696

Deferred income tax expense

6,105

54,216

118,323

7,799

5,407

5,460

(1,605)

Unrealized gain on derivative instruments

(301)

(1,098)

(4,227)

Net gain on disposals or sales, and impairments of premises

and equipment and other assets

(3,514)

(706)

(32)

Net gain on sales of loans and loans held-for-sale valuation adjustments

(1,572)

(5,498)

(14,791)

Net amortization of discounts, premiums, and deferred loan fees and

costs

1,223

(7,853)

(25,294)

Originations and purchases of loans held for sale

(147,460)

(214,962)

(503,200)

Sales and repayments of loans held for sale

149,888

235,199

528,253

Amortization of broker placement fees

Net amortization of premiums and discounts on investment securities

4,967

3,435

26,549

(Increase) decrease in accrued interest receivable

(5,437)

(11,340)

7,701

Increase (decrease) in accrued interest payable

18,430

1,706

(2,776)

(Increase) decrease in other assets

(16,619)

(2,437)

24,344

(Decrease) increase in other liabilities

(41,290)

20,437

(12,506)

Net cash provided by operating activities

362,963

440,485

399,721

Cash flows from investing activities:

Net (disbursements) repayments on loans held for investment

(758,232)

(603,853)

599,097

Proceeds from sales of loans held for investment

7,736

62,168

81,458

Proceeds from sales of repossessed assets

53,870

46,281

55,867

Purchases of available-for-sale debt securities

(5,458)

(512,327)

(3,447,921)

Proceeds from principal repayments and maturities of available-for-sale

549,644

626,802

1,445,873

Purchases of held-to-maturity debt securities

(289,784)

Proceeds from principal repayments and maturities of held-to-maturity

85,988

32,153

12,677

Additions to premises and equipment

(22,599)

(20,459)

(13,349)

Proceeds from sales of premises and equipment and other assets

4,475

1,196

Net redemptions (purchases) of other investments securities

5,643

(23,637)

5,322

Proceeds from the settlement of insurance claims - investing activities

Net cash paid from business combination

(3,381)

Net cash used in investing activities

(78,450)

(681,460)

(1,262,975)

Cash flows from financing activities:

Net increase (decrease) in deposits

470,981

(1,706,118)

2,472,579

Net (repayments) proceeds of short-term borrowings

(550,133)

550,133

Repayments of long-term borrowings

(19,795)

(500,000)

(240,000)

Proceeds from long-term borrowings

300,000

200,000

Repurchase of outstanding common stock

Dividends paid on common stock

(99,666)

(87,824)

(65,021)

Dividends paid on preferred stock

(2,453)

Redemption of preferred stock-

Series A through E

Net cash (used in) provided by financing activities

(101,854)

(1,821,578)

1,912,479

Net increase (decrease) in cash and cash equivalents

182,659

(2,062,553)

1,049,225

Cash and cash equivalents at beginning of year

480,505

1,493,833

Cash and cash equivalents at end of period

$

663,164

$

480,505

$

Cash and cash equivalents include:

$

661,925

$

478,480

$

2,540,376

Money market investments

1,239

2,025

2,682

$

663,164

$

480,505

$