Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash Flows From Operating Activities    
Net income $ 340,651 $ 182,830
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Change in fair value of investments in excess mortgage servicing rights 24,397 274
Change in fair value of investments in excess mortgage servicing rights, equity method investees (8,608) (16,443)
Change in fair value of investments in servicer advances (4,328) 1,845
(Gain) / loss on remeasurement of consumer loans investment (71,250) 0
(Gain) / loss on settlement of investments (net) 44,290 5,514
Unrealized (gain) / loss on derivative instruments 8,504 17,425
Unrealized (gain) / loss on other ABS 226 1,073
(Gain) / loss on transfer of loans to REO (14,660) (1,075)
(Gain) / loss on transfer of loans to other assets (3,021) (143)
(Gain) / loss on Excess MSR recapture agreements (2,188) (2,247)
Accretion and other amortization (514,522) (360,467)
Other-than-temporary impairment 7,838 3,294
Valuation and loss provision on loans and real estate owned 41,845 2,408
Non-cash directors’ compensation 300 300
Deferred tax provision 12,998 5,885
Changes in:    
Restricted cash 16,179 (63,041)
Other assets 191,939 177,737
Due to affiliates (5,175) (45,026)
Accrued expenses and other liabilities 12,136 19,055
Other operating cash flows:    
Interest received from excess mortgage servicing rights 119,386 84,518
Interest received from servicer advance investments 132,758 124,934
Interest received from Non-Agency RMBS 73,108 31,715
Interest payments from residential mortgage loans, held-for-investment 2,815 0
Interest payments from PCD consumer loans, held-for-investment 34,265 0
Purchases of residential mortgage loans, held-for-sale (788,824) (611,160)
Proceeds from sales of purchased residential mortgage loans, held-for-sale 802,110 722,961
Principal repayments from purchased residential mortgage loans, held-for-sale 52,805 48,069
Net cash provided by (used in) operating activities 523,999 362,111
Cash Flows From Investing Activities    
Acquisition of investments in excess mortgage servicing rights (2,022) (131,488)
Acquisition of HLSS, net of cash acquired 0 (959,616)
SpringCastle Transaction (Note 1), net of cash acquired (49,943) 0
Purchase of servicer advance investments (11,588,537) (10,647,912)
Purchase of Agency RMBS (4,763,374) (3,040,422)
Purchase of Non-Agency RMBS (2,154,890) (763,095)
Purchase of residential mortgage loans (319) (664)
Purchase of derivatives (4,457) (4,370)
Purchase of real estate owned and other assets (10,936) (2,784)
Purchase of consumer loans (92,069) 0
Draws on revolving consumer loans (33,137) 0
Payments for settlement of derivatives (73,570) (61,212)
Return of investments in excess mortgage servicing rights 142,718 112,648
Return of investments in excess mortgage servicing rights, equity method investees 11,900 3,867
Principal repayments from servicer advance investments 13,101,409 11,646,489
Principal repayments from Agency RMBS 67,738 110,863
Principal repayments from Non-Agency RMBS 364,310 54,979
Principal repayments from residential mortgage loans 31,092 15,944
Proceeds from sale of residential mortgage loans 0 649,712
Principal repayments from consumer loans 199,022 0
Proceeds from sale of Agency RMBS 4,774,116 2,435,168
Proceeds from sale of Non-Agency RMBS 95,683 389,719
Proceeds from settlement of derivatives 9,642 22,841
Proceeds from sale of real estate owned 51,941 52,139
Net cash provided by (used in) investing activities 76,317 (117,194)
Cash Flows From Financing Activities    
Repayments of repurchase agreements (21,179,260) (5,644,864)
Margin deposits under repurchase agreements and derivatives (274,645) (441,696)
Repayments of notes and bonds payable (6,786,408) (5,445,381)
Payment of deferred financing fees (19,922) (38,486)
Common stock dividends paid (318,060) (197,011)
Borrowings under repurchase agreements 22,065,713 6,184,472
Return of margin deposits under repurchase agreements and derivatives 276,634 439,875
Borrowings under notes and bonds payable 5,568,875 4,211,548
Issuance of common stock 279,600 882,166
Costs related to issuance of common stock (825) (3,580)
Noncontrolling interest in equity of consolidated subsidiaries - contributions 0 0
Noncontrolling interest in equity of consolidated subsidiaries - distributions (73,279) (56,633)
Net cash provided by (used in) financing activities (461,577) (109,590)
Net Increase (Decrease) in Cash and Cash Equivalents 138,738 135,327
Cash and Cash Equivalents, Beginning of Period 249,936 [1] 212,985
Cash and Cash Equivalents, End of Period 388,674 [1] 348,312
Supplemental Disclosure of Cash Flow Information    
Cash paid during the period for interest 265,114 175,615
Cash paid during the period for income taxes 943 535
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Dividends declared but not paid 115,356 106,011
Transfer from residential mortgage loans to real estate owned and other assets 218,467 28,836
Non-cash distributions from Consumer Loan Companies 25 585
Portion of HLSS Acquisition paid in common stock 0 434,092
Non-cash contingent consideration 0 50,000
Real estate securities retained from loan securitizations 122,585 14,990
Remeasurement of Consumer Loan Companies noncontrolling interest 110,438 0
Transfer of loans from held-for-investment to held-for sale 316,199 0
Agency RMBS [Member]    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Purchase of Agency and Non-Agency RMBS, settled after quarter end 1,296,296 1,059,232
Sale of investments, primarily Agency RMBS, settled after quarter end 1,530,726 2,031,425
Accounting Standards Update 2014-11 [Member]    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Reclassification resulting from the application of ASU No. 2014-11 0 85,955
Excess MSRs Investees [Member]    
Other operating cash flows:    
Distributions of earnings from excess mortgage servicing rights, equity method investees $ 18,025 $ 31,876
[1] New Residential’s Condensed Consolidated Balance Sheets include the assets and liabilities of certain consolidated VIEs, the Buyer (Note 6) and the Consumer Loan SPVs (Note 9), which primarily hold investments in servicer advances and consumer loans, respectively, financed with notes and bonds payable. The Buyer’s balance sheet is included in Note 6 and the Consumer Loan SPVs’ balance sheet is included in Note 9. The creditors of the Buyer and the Consumer Loan SPVs do not have recourse to the general credit of New Residential and the assets of the Buyer and the Consumer Loan SPVs are not directly available to satisfy New Residential’s obligations.