The accompanying notes are integral part of these statements. First BanCorp Consolidated Statements of Cash Flows 0 50 First BanCorp.> 2001 Year ended December 31, 2001 2000 1999 Cash flows from operating activities: Net income $ 86,001,444 $ 67,275,609 $ 62,074,949 Adjustments to reconcile net income to  net cash provided by operating activities: Depreciation and amortization 10,763,543 9,880,398 7,752,616 Provision for loan losses 61,030,000 45,718,500 47,960,500 Amortization of deferred loan costs (fees) 522,685 (144,768 (680,735) Net gain on sale of investments securities (9,606,314 (7,850,472 (1,376,672) Origination of loans held for sale (4,629,562 (18,222,990) Net gain on sale of loans (1,282,845 (5,753) Increase (decrease) in taxes payable 11,306,695 (19,474,679 2,345,647 Increase in deferred tax asset (5,840,872 (3,917,506 (6,702,849) Increase in accrued interest receivable (9,661,332 (10,052,025 (7,179,454) Increase in accrued interest payable 4,841,187 11,677,924 10,056,988 Decrease in other assets 23,332,778 4,218,642 12,843,340 (Decrease) increase in other liabilities (9,395,151 20,740,407 5,012,928 Total adjustments 71,380,812 50,796,421 51,803,566 Net cash provided by operating activities 157,382,256 118,072,030 113,878,515 Cash flows for investing activities: Principal collected on loans 897,831,839 646,581,300 719,964,127 Loans originated (1,334,581,873 (1,222,590,263 (1,270,442,873) Purchase of loans (481,200,701 (238,055,000 (118,603,000) Proceeds from sales of loans 42,343,060 1,272,540 Proceeds from sales of investment securities 847,716,293 58,452,236 9,630,866 Purchase of securities held to maturity  (254,818,754 (6,949,462 (277,624,203) Purchase of securities available for sale (12,462,323,482 (5,125,184,351 (6,069,805,410) Principal repayments and maturities of securities  held to maturity 74,529,997 500,000 Principal repayments of securities available for sale 10,377,705,993 4,692,427,578 6,267,048,544 Additions to premises and equipment (13,912,556 (19,153,597 (18,055,660) Purchase of FHLB stock (4,354,100 (710,000 (7,555,900) Net cash used in investing activities (2,311,064,284 (1,215,181,559 (763,670,969) Cash flows from financing activities: Net increase in deposits 764,012,251 780,840,486 791,686,207 Net increase (decrease) in federal funds purchased  and securities sold under repurchase agreements 1,134,888,478 403,553,556 (172,898,023) Net (decrease) increase in other short-term borrowings (152,484,084 65,889,375 FHLB advances taken  276,700,000 17,000,000 47,400,000 Payments of notes payable (62,000,000 (3,125,000 (68,600,000 Dividends (30,343,298 (19,212,141 (14,657,797 Issuance of preferred stock 100,069,250 72,437,500 86,850,217 Treasury stock acquired (1,929,685 (30,086,592 (32,510,611  Exercise of stock options 1,355,211 93,750 176,313 Net cash provided by financing activities 2,182,752,207 1,069,017,475 703,335,681 Net increase (decrease) in cash and cash equivalents 29,070,179 (28,092,054 53,543,227 Cash and cash equivalents at beginning of year 65,392,939 93,484,993 39,941,766 Cash and cash equivalents at end of year $ 94,463,118 $ 65,392,939 $ 93,484,993 Cash and cash equivalents include: Cash and due from banks $ 59,898,550 $ 63,372,591 $ 58,267,929 Money market instruments 34,564,568 2,020,348 35,217,064 $ 94,463,118 $ 65,392,939 $ 93,484,993 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )