Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating activities:      
Net income [1],[2] $ 158,228 $ 193,528 $ 146,248
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation of premises and equipment [1],[2] 15,218 15,032 13,725
Write-down of foreclosed properties and former bank premises [1],[2] 5,526 1,906 1,324
Amortization, net [1],[2] 27,888 24,944 12,603
Accretion related to acquisitions, net [1],[2] (8,397) (7,899) (6,711)
Provision for credit losses [1],[2] 87,141 21,092 13,551
Gains on securities transactions, net [1],[2] (12,294) (7,675) (383)
BOLI income [1],[2] (9,554) (8,311) (7,198)
Deferred tax expense [1],[2] 2,690 15,057 17,821
Originations and purchases of loans held for sale [1],[2] (764,809) (345,116) 0
Proceeds from sales of loans held for sale [1],[2] 723,351 312,543 0
Losses (gains) on sales of foreclosed properties and former bank premises, net [1],[2] 29 102 (220)
Loss on debt extinguishment [1],[2] 31,116 16,397 0
Gain on sale of Shore Premier loans [1],[2] 0 0 (19,966)
Goodwill impairment losses [1],[2] 0 0 864
Stock-based compensation expenses [1],[2] 9,258 8,332 6,132
Issuance of common stock for services [1],[2] 804 910 914
Decrease (increase) in loans held for sale from discontinued operations, net [1],[2] 0 0 40,662
Net decrease (increase) in other assets [1],[2] (138,189) (57,859) (26,606)
Net increase in other liabilities [1],[2] 103,916 11,816 24,005
Net cash provided by operating activities [1],[2] 231,922 194,799 216,765
Investing activities:      
Purchases of AFS securities, restricted stock, and other investments (1,165,302) (444,398) (1,047,611)
Purchases of HTM securities 0 (47,217) (485,629)
Proceeds from sales of AFS securities and restricted stock 257,945 514,070 515,764
Proceeds from maturities, calls and paydowns of AFS securities 395,993 247,770 173,597
Proceeds from maturities, calls and paydowns of HTM securities 6,963 3,142 0
Proceeds from sale of marketable equity securities 0 0 28,913
Proceeds from sale of loans held for investment 0 0 581,324
Net increase in loans held for investment (1,393,424) (741,146) (704,582)
Net increase in premises and equipment (29,573) (15,892) 1,698
Proceeds from BOLI settlements 5,029 0 0
Proceeds from sales of foreclosed properties and former bank premises 4,063 12,118 6,295
Cash paid in acquisitions 0 (12) (14,304)
Cash acquired in acquisitions 0 46,164 174,496
Net cash provided by (used in) investing activities (1,918,306) (425,401) (770,039)
Financing activities:      
Net increase in noninterest-bearing deposits 1,398,564 191,125 81,028
Net increase in interest-bearing deposits 1,019,352 916,656 351,084
Net increase (decrease) in short-term borrowings (85,365) (872,229) 58,645
Cash paid for contingent consideration 0 (565) (565)
Proceeds from issuance of long-term debt 0 550,000 225,000
Repayments of long-term debt (619,616) (220,614) (40,000)
Cash dividends paid - common stock (78,860) (78,345) (58,001)
Cash dividends paid - preferred stock (5,658) 0 0
Cancellation of warrants 0 0 (1,530)
Repurchase of common stock (49,879) (80,280) 0
Issuance of common stock 1,013 1,988 2,347
Issuance of preferred stock, net 166,356 0 0
Vesting of restricted stock, net of shares held for taxes (2,261) (2,301) (2,908)
Net cash provided by (used in) financing activities 1,743,646 405,435 615,100
Increase (decrease) in cash and cash equivalents 57,262 174,833 61,826
Cash, cash equivalents and restricted cash at beginning of the period 436,032 261,199 199,373
Cash, cash equivalents and restricted cash at end of the period 493,294 436,032 261,199
Cash payments for:      
Interest 101,045 159,934 99,227
Income taxes 26,103 25,058 10,830
Supplemental schedule of noncash investing and financing activities      
Transfers from loans (foreclosed properties) to foreclosed properties (loans) 615 1,878 493
Transfers from bank premises to OREO 7,949 0 0
Transfers to LHFI from LHFS (1,050) 0 0
Stock received as consideration for sale of loans held for investment 0 0 28,913
Securities Transfer From HTM to AFS 0 0 187,425
Issuance of common stock in exchange for net assets in acquisition 0 499,974 794,809 [3]
Transactions related to acquisitions      
Assets acquired 0 2,849,673 3,253,328
Liabilities assumed [4] $ 0 $ 2,558,063 $ 2,873,718
[1] Discontinued operations have an immaterial impact to the Company’s Consolidated Statements of Cash Flows. The change in goodwill impairment losses included in the Operating Activities section above are attributable to discontinued operations.
[2] Loans held for sale activity is included in the Operating Activities section above. Due to the increased mortgage related activity during 2020 and 2019, the loans held for sale activity is segregated between originations and purchases of loans held for sale and proceeds from sales of loans held for sale. 2018 loans held for sale activity is included in the change in loans held for sale and is attributable to discontinued operations which has an immaterial impact on the Company’s Consolidated Statements of Cash Flows.
[3] Includes conversion of Xenith warrants to the Company’s warrants.
[4] 2018 includes contingent consideration related to DHFB and OAL acquisitions.