CONSOLIDATED STATEMENTS OF CASH FLOWS See Notes to Consolidated Financial Statements. Note 2 contains noncash investing and financing activities.  Fifth Third Bancorp 71 For the years ended December 31 ($ in millions)   2010  2009 2008 Operating Activities  Net income (loss) attributable to Bancorp  $753  737 (2,113) Adjustments to reconcile net income (loss) attributable to Bancorp to net cash provided by operating activities:  Provision for loan and lease losses  1,538  3,543 4,560 Depreciation, amortization and accretion  457  341 8 Stock-based compensation expense  64 45 57 Provision (benefit) for deferred income taxes  176 184 (1,140) Realized securities gains  (60) (27) (41) Realized securities gains - non-qualifying hedges on mortgage servicing rights  (14)  (64)  (120)  Realized securities losses  13 37 127  Realized securities losses - non-qualifying hedges on mortgage servicing rights  - 7 - Provision for mortgage servicing rights  36 24 207 Net losses (gains) on sales of loans and fair value adjustments on loans held for sale  114 116 (47) Capitalized mortgage servicing rights  (297) (373) (195) Loss on recalculation of the timing of tax benefits on leveraged leases  - - 130 Impairment charges on goodwill  - - 965 Loans originated for sale, net of repayments  (18,231) (22,252) (11,527) Proceeds from sales of loans held for sale  18,634 21,504 11,273 Dividends representing return on equity method investments  31 22 13 Excess tax benefit related to stock-based compensation  (4) - - Gain on sale of processing business, net of tax  - (1,052) - Net change in:  Trading securities  67 1,000 134 Other assets  9 826 (478) Accrued taxes, interest and expenses  (63) (1,200) 925 Other liabilities  82  376 355 Net Cash Provided by Operating Activities  3,305 3,794 3,093 Investing Activities  Sales:  Available-for-sale securities  2,578  3,750 7,226 Loans  538 331 5,216 Disposal of bank premises and equipment  10  20 34 Repayments / maturities:  Available-for-sale securities  4,620 117,901 67,883  Held-to-maturity securities   1  3  3 Purchases:  Available-for-sale securities  (5,218) (126,942) (76,317) Held-to-maturity securities  (1) - (11) Bank premises and equipment  (224) (173) (410) Restricted cash from the initial consolidation of variable interest entities  63 - - Dividends representing return of equity method investments  8 9 11 Proceeds from sale of processing business  - 562 - Net cash (paid) acquired in business combinations  - (16) 66 Net change in:  Other short-term investments  1,861 209 (2,910) Loans and leases  (2,507) 5,497 (6,553) Operating lease equipment  (21)  (75) (142) Net Cash Provided by (Used In) Investing Activities  1,708 1,076 (5,904) Financing Activities  Net change in:  Core deposits  784 9,550 (2,820) Certificates - $100,000 and over, including other foreign office  (3,429) (4,159) 1,927  Federal funds purchased  97 (104) (4,352) Other short-term borrowings  38 (8,544) 4,478 Proceeds from issuance of long-term debt 14 527 2,157 Repayment of long-term debt  (2,473) (3,065) (2,272) Issuance of common shares  - 986 - Issuance of preferred shares, Series G, F  - - 4,480 Exchange of preferred shares, Series G  - (269) - Dividends on exchange of preferred shares, Series G  - 35 - Dividends paid on common shares  (32) (27) (639) Dividends paid on preferred shares  (205) (220) (48) Retirement of preferred shares, Series D, E  - - (9) Dividends on redemption of preferred shares, Series D, E  - - (19) Capital contribution from noncontrolling interest  30 - - Other, net  4 (1) 7 Net Cash (Used In) Provided by Financing Activities  (5,172) (5,291) 2,890 (Decrease) Increase in Cash and Due from Banks  (159)  (421)  79  Cash and Due from Banks at Beginning of Year  2,318  2,739 2,660 Cash and Due from Banks at End of Year  $2,159  $2,318 2,739 Cash Payments  Interest  $920 1,416 2,053 Income taxes  79 109 416