NYCB 2017 Annual Report

82 NEW YORK COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, (in thousands) 2017 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 466,201 $ 495,401 $ (47,156) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Provision for (recoveries of) loan losses 37,242 4,180 (15,004) Depreciation and amortization 32,803 32,811 31,497 Amortization of discounts and premiums, net (4,555) (26,258) (8,069) Amortization of core deposit intangibles 208 2,391 5,344 Net gain on sales of securities (29,924) (3,347) (4,054) Gain on trading securities activity (316) -- -- Net gain on sales of loans (87,301) (57,398) (65,649) Stock-based compensation 36,029 32,661 30,205 Deferred tax expense (benefit) 21,444 44,746 (31,289) Changes in operating assets and liabilities: Decrease (increase) in other assets 451,873 326,790 (196,899) Increase (decrease) in other liabilities 23,329 (4,336) 15,425 Purchases of securities held for trading (202,450) -- -- Proceeds from sales of securities held for trading 202,766 -- -- Origination of loans held for sale (1,674,123) (4,646,773) (4,680,243) Proceeds from sales of loans originated for sale 2,053,484 4,554,785 4,545,466 Net cash provided by (used in) operating activities 1,326,710 755,653 (420,426) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from repayment of securities held to maturity 175,375 2,499,205 940,580 Proceeds from repayment of securities available for sale 387,772 50,192 9,889 Proceeds from sales of securities held to maturity 547,925 1,297 44,104 Proceeds from sales of securities available for sale 453,878 322,038 278,689 Purchases of securities held to maturity (13,030) (213,208) (20,021) Purchases of securities available for sale (1,163,043) (279,402) (318,027) Redemption of Federal Home Loan Bank stock 90,909 601,941 623,189 Purchases of Federal Home Loan Bank stock (103,794) (528,904) (771,833) Proceeds from sales of loans 2,289,377 1,675,550 1,923,208 Other changes in loans, net (1,575,846) (2,826,365) (4,072,135) Purchase of premises and equipment, net (27,783) (84,179) (34,802) Net cash provided by (used in) investing activities 1,061,740 1,218,165 (1,397,159) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase in deposits 214,260 461,145 98,024 Net (decrease) increase in short-term borrowed funds (460,000) (3,256,300) 768,100 Proceeds from long-term borrowed funds 3,000,000 1,181,000 11,243,500 Repayments of long-term borrowed funds (3,300,000) -- (10,489,682) Tax effect of stock plans (1) -- -- 2,486 Net proceeds from issuance of preferred stock 502,840 -- -- Proceeds received from follow-on common stock offering, net -- -- 629,682 Cash dividends paid on common stock (332,147) (330,810) (453,981) Cash dividends paid on preferred stock (24,621) -- -- Payments relating to treasury shares received for restricted stock award tax payments (1) (18,463) (8,677) (7,020) Net cash (used in) provided by financing activities (418,131) (1,953,642) 1,791,109 Net increase (decrease) in cash and cash equivalents 1,970,319 20,176 (26,476) Cash and cash equivalents at beginning of year 557,850 537,674 564,150 Cash and cash equivalents at end of year $ 2,528,169 $ 557,850 $ 537,674 Supplemental information: Cash paid for interest $447,476 $382,135 $540,818 Cash paid for income taxes 217,682 180,238 187,608 Cash paid for prepayment penalties on borrowings -- -- 914,965 Non-cash investing and financing activities: Transfers to other real estate owned from loans $ 9,973 $ 20,099 $ 47,096 Transfer of loans from held for investment to held for sale 1,910,121 1,659,743 1,897,075 Transfer of loans from held for sale to held for investment -- -- 153,578 Shares issued for restricted stock awards 11,028 8,985 7,708 Securities transferred from held to maturity to available for sale 3,040,305 -- -- (1) See Note 2, “Summary of Significant Accounting Policies” for a discussion of the Company’s adoption of Accounting Standards Update No. 2016-09. See accompanying notes to the consolidated financial statements.