FIRST BANCORP /PR/

Cash flows from operating activities:

$

344,866

$

298,724

$

302,864

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation and amortization

17,244

18,580

20,501

Amortization of intangible assets

3,509

6,416

7,735

Provision for credit losses

85,961

59,921

60,940

Deferred income tax (benefit) expense

(12,422)

14,131

6,105

10,096

8,706

7,799

(1,605)

Unrealized gain on derivative instruments

(829)

(537)

(301)

Net gain on disposals or sales, and impairments of premises

and equipment and other assets

(16)

(103)

(3,514)

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

(5,041)

(3,426)

(1,572)

Net (accretion) amortization of discounts, premiums, and

deferred loan fees and costs

(668)

1,223

Originations and purchases of loans held for sale

(170,634)

(165,291)

(147,460)

Sales and repayments of loans held for sale

174,124

160,593

149,888

Amortization of broker placement fees

Net (accretion) amortization of premiums and discounts on investment

(3,241)

5,069

4,967

(Increase) decrease in accrued interest receivable

(11,088)

5,598

(5,437)

Increase in accrued interest payable

2,745

5,358

18,430

Decrease (increase) in other assets

11,031

(10,514)

(16,619)

Increase (decrease) in other liabilities

2,208

(176)

(41,290)

Net cash provided by operating activities

448,556

404,150

362,963

Cash flows from investing activities:

Net disbursements on loans held for investment

(505,032)

(705,368)

(758,232)

Proceeds from sales of loans held for investment

3,734

18,362

7,736

Proceeds from sales of repossessed assets

55,373

64,337

53,870

Purchases of available-for-sale debt securities

(1,938,092)

(266,198)

(5,458)

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

2,163,513

997,081

549,644

Proceeds from principal repayments of held-to-maturity debt securities

53,715

38,353

85,988

Additions to premises and equipment

(11,032)

(10,008)

(22,599)

Proceeds from sales of premises and equipment and other assets

1,353

4,475

Net redemptions (purchases) of equity securities

7,404

(2,350)

5,643

Proceeds from the settlement of insurance claims - investing activities

Net cash (used in) provided by investing activities

(170,392)

136,232

(78,450)

Cash flows from financing activities:

Net (decrease) increase in deposits

(239,938)

260,843

470,981

Net repayments of short-term borrowings

(550,133)

Repayments of long-term borrowings

(269,850)

(97,000)

(19,795)

Proceeds from long-term borrowings

300,000

Repurchase of outstanding common stock

Dividends paid on common stock

(115,520)

(105,581)

(99,666)

Net cash used in financing activities

(778,980)

(44,131)

(101,854)

Net (decrease) increase in cash and cash equivalents

(500,816)

496,251

182,659

Cash and cash equivalents at beginning of year

663,164

480,505

Cash and cash equivalents at end of year

$

658,599

$

$

663,164

Cash and cash equivalents include:

$

657,149

$

1,158,215

$

661,925

Money market investments

1,450

1,200

1,239

$

658,599

$

$

663,164