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, 2018
Dec. 31, 2017
Dec. 31, 2016
Operating activities (1):      
Net income [1] $ 146,248 $ 72,923 $ 77,476
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:      
Depreciation of premises and equipment [1] 13,725 11,183 10,215
Writedown of foreclosed properties and former bank premises [1] 1,324 1,891 1,017
Amortization, net [1] 12,603 14,021 13,555
Amortization (accretion) related to acquisition, net [1] (6,711) (866) 1,534
Provision for credit losses [1] 13,551 10,756 9,100
Gains on securities transactions, net [1] (383) (800) (205)
BOLI income [1] (7,198) (5,306) (5,513)
Deferred tax expense (benefit) [1] 17,821 5,624 243
Decrease (increase) in loans held for sale, net [1] 40,662 (4,175) (457)
Losses (gains) on sales of foreclosed properties and former bank premises, net [1] (220) 143 (217)
Gain on Shore Premier sale [1] (19,966) 0 0
Goodwill impairment losses [1] 864 0 0
Stock-based compensation expenses [1] 6,132 4,648 3,270
Issuance of common stock for services [1] 914 724 533
Net decrease (increase) in other assets [1] (26,606) (5,785) (14,810)
Net increase (decrease) in other liabilities [1] 24,005 5,352 (1,898)
Net cash and cash equivalents provided by (used in) operating activities [1] 216,765 110,333 93,843
Investing activities:      
Purchases of AFS securities and restricted stock (1,047,611) (298,958) (259,020)
Purchases of HTM securities (485,629) (7,836) (2,390)
Proceeds from sales of AFS securities and restricted stock 515,764 139,046 69,516
Proceeds from maturities, calls and paydowns of AFS securities 173,597 115,124 115,670
Proceeds from maturities, calls and paydowns of HTM securities 0 5,048 2,686
Proceeds from sale of marketable equity securities 28,913 0 0
Proceeds from sale of loans held for investment 581,324 0 0
Net increase in loans held for investment (704,582) (838,668) (637,207)
Net increase in premises and equipment 1,698 (9,261) (6,339)
Proceeds from BOLI settlements 0 2,497 0
Proceeds from sales of foreclosed properties and former bank premises 6,295 2,448 5,837
Cash paid in acquisitions (14,304) (231) (4,077)
Cash acquired in acquisitions 174,496 5,038 207
Net cash and cash equivalents provided by (used in) investing activities (770,039) (885,753) (715,117)
Financing activities:      
Net increase in noninterest-bearing deposits 81,028 105,093 20,688
Net increase in interest-bearing deposits 351,084 502,018 394,865
Net increase in short-term borrowings 58,645 217,371 187,804
Cash paid for contingent consideration (565) (3,003) 0
Proceeds from issuance of long-term debt 225,000 20,000 178,000
Repayments of long-term debt (40,000) (10,000) (57,500)
Cash dividends paid - common stock (58,001) (35,393) (33,672)
Cancellation of warrants (1,530) 0 0
Repurchase of common stock 0 0 (33,177)
Issuance of common stock 2,347 1,037 1,429
Vesting of restricted stock, net of shares held for taxes (2,908) (1,567) (586)
Net cash and cash equivalents provided by financing activities 615,100 795,556 657,851
Increase (decrease) in cash and cash equivalents 61,826 20,136 36,577
Cash and cash equivalents at beginning of the period 199,373 179,237 142,660
Cash and cash equivalents at end of the period 261,199 199,373 179,237
Cash payments for:      
Interest 99,227 47,775 29,576
Income taxes 10,830 24,000 27,900
Supplemental schedule of noncash investing and financing activities      
Transfers from loans (foreclosed properties) to foreclosed properties (loans) 493 910 1,297
Stock received as consideration for sale of loans held for investment 28,913 0 0
Securities transferred from HTM to AFS 187,425 0 0
Issuance of common stock in exchange for net assets in acquisition 794,809 [2] 0 453
Transactions related to acquisitions      
Assets acquired 3,253,328 293 4,668
Liabilities assumed [3] $ 2,873,718 $ 5,437 $ 4,807
[1] Discontinued operations have an immaterial impact to the Company's Consolidated Statement of Cash Flows. The change in loans held for sale and goodwill impairment losses included in the Operating Activities section above are fully attributable to discontinued operations.
[2] Includes conversion of Xenith warrants to the Company's warrants.
[3] 2018 includes contingent consideration related to DHFB and OAL acquisitions.