Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash Flows From Operating Activities:    
Net income $ 10,512 $ 532,353
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Amortization of premiums and discounts on available-for-sale securities, net 1,840 12,406
Other-than-temporary impairment losses 212 1,662
Realized and unrealized losses (gains) on investment securities, net 967 (77,653)
(Gain) loss on mortgage loans held-for-sale (8,620) 20,819
Gain on mortgage loans held-for-investment and collateralized borrowings in securitization trusts (21,142) (7,847)
Loss on servicing asset 62,331 45
Loss on termination and option expiration of interest rate swaps and swaptions 6,401 62,675
Unrealized loss (gain) on interest rate swaps and swaptions 182,420 (374,884)
Unrealized gain on other derivative instruments (51) (8,131)
Equity based compensation 10,224 999
Depreciation of fixed assets 463 256
Amortization of intangible assets 533 0
Purchases of mortgage loans held-for-sale (261,983) (954,027)
Proceeds from sales of mortgage loans held-for-sale 400,739 25,404
Proceeds from repayment of mortgage loans held-for-sale 11,160 9,649
Net change in assets and liabilities:    
Decrease/(increase) in accrued interest receivable 193 (11,467)
(Increase)/decrease in deferred income taxes, net (60,310) 52,692
(Increase)/decrease in income taxes receivable (290) 4,323
Increase in prepaid and fixed assets (929) (557)
(Increase)/decrease in other receivables (11,396) 28,437
Increase in servicing advances (8,532) (4,881)
Increase in Federal Home Loan Bank stock (60,000) 0
Increase in equity investments (3,000) 0
Decrease in accrued interest payable (3,756) (1,550)
(Decrease)/increase in income taxes payable (465) 1,320
Increase in accrued expenses and other liabilities 5,673 379
Net change in assets and liabilities due to purchase of entity 0 (3,306)
Net cash provided by (used in) operating activities 253,194 (684,272)
Cash Flows From Investing Activities:    
Purchases of available-for-sale securities (2,232,865) (3,142,095)
Proceeds from sales of available-for-sale securities 1,273,923 986,357
Principal payments on available-for-sale securities 474,696 556,549
Short sales and purchases of other derivative instruments 102,423 (49,526)
Proceeds from sales of other derivative instruments, net (74,476) 47,890
Purchases of trading securities (143,022) 0
Proceeds from sales of trading securities 143,378 0
Purchases of beneficial interests in securitization trusts 0 (30,550)
Proceeds from repayment of mortgage loans held-for-investment in securitization trusts 26,330 16,662
Purchases of mortgage servicing rights, net of purchase price adjustments (48,419) 0
Purchase of entity 0 6,404
Decrease in due to counterparties, net (183,167) (50,054)
Decrease/(increase) in restricted cash 114,682 (383,643)
Net cash used in investing activities (546,517) (2,054,814)
Cash Flows From Financing Activities:    
Proceeds from repurchase agreements 140,931,599 73,388,331
Principal payments on repurchase agreements (141,790,862) (71,109,686)
Proceeds from issuance of collateralized borrowings in securitization trusts 33,483 0
Principal payments on collateralized borrowings in securitization trusts (128,756) (16,600)
Proceeds from Federal Home Loan Bank advances 3,793,911 0
Principal payments on Federal Home Loan Bank advances (2,293,911) 0
Proceeds from issuance of common stock, net of offering costs 240 763,226
Proceeds from exercise of warrants 0 101,600
Repurchase of common stock 0 10,498
Dividends paid on common stock (95,172) (281,171)
Net cash provided by financing activities 450,532 2,835,202
Net increase in cash and cash equivalents 157,209 96,116
Cash and cash equivalents at beginning of period 1,025,487 821,108
Cash and cash equivalents at end of period 1,182,696 917,224
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 54,785 50,108
Cash paid (received) for taxes 3,903 (4,252)
Noncash Investing and Financing Activities:    
Consolidation of mortgage loans held-for-investment in securitization trusts 0 442,767
Consolidation of collateralized borrowings in securitization trusts 0 412,217
Cashless exercise of warrants 0 75
Distribution of Silver Bay common stock 0 343,481
Cash dividends declared but not paid at end of period 95,189 113,378
Reconciliation of mortgage loans held-for-sale:    
Mortgage loans held-for-sale at beginning of period 544,581 58,607
Purchases of mortgage loans held-for-sale 261,983 954,027
Proceeds from sales of mortgage loans held-for-sale (400,739) (25,404)
Proceeds from repayment of mortgage loans held-for-sale (11,160) (9,649)
Realized and unrealized (losses) gains on mortgage loans held-for-sale 5,176 (19,380)
Mortgage loans held-for-sale at end of period $ 399,841 $ 958,201