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
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash Flows From Operating Activities:    
Net income (loss) $ (105,911) $ 316,294
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Amortization of premiums and discounts on investment securities and commercial real estate assets, net 16,663 22,157
Other-than-temporary impairment losses 807 297
Realized and unrealized gains on investment securities, net (37,805) (199,389)
Gain on residential mortgage loans held-for-sale (18,537) (2,260)
Loss on residential mortgage loans held-for-investment and collateralized borrowings in securitization trusts 9,441 20,525
Loss on servicing asset 177,975 34,768
Loss on termination and option expiration of interest rate swaps and swaptions 24,487 63,076
Unrealized loss (gain) on interest rate swaps and swaptions 99,859 (35,258)
Unrealized loss (gain) on other derivative instruments 48,818 (1,634)
Equity based compensation 7,754 5,619
Depreciation of fixed assets 664 652
Purchases of residential mortgage loans held-for-sale (580,932) (1,393,417)
Proceeds from sales of residential mortgage loans held-for-sale 68,813 75,272
Proceeds from repayment of residential mortgage loans held-for-sale 74,025 53,452
Net change in assets and liabilities:    
(Increase) decrease in accrued interest receivable (13,945) 8,518
Increase in deferred income taxes, net (7,716) (11,393)
Decrease (increase) in income taxes receivable 3,669 (7,175)
Decrease (increase) in prepaid and fixed assets 102 (228)
Decrease in other receivables 6,267 6,059
Increase in servicing advances (19,328) (3,338)
Increase (decrease) in accrued interest payable 6,544 (4,788)
Decrease in income taxes payable (70) (1,336)
(Decrease) increase in accrued expenses and other liabilities (6,076) 2,253
Net cash used in operating activities (244,432) (1,051,274)
Cash Flows From Investing Activities:    
Purchases of available-for-sale securities (9,964,377) (1,705,012)
Proceeds from sales of available-for-sale securities 3,776,295 2,572,015
Principal payments on available-for-sale securities 527,958 611,850
(Purchases) short sales of derivative instruments, net (15,475) (69,085)
Proceeds from sales (payments for termination) of derivative instruments, net 44,364 4,825
Proceeds from sales of trading securities 0 2,004,375
Proceeds from repayment of residential mortgage loans held-for-investment in securitization trusts 407,861 335,346
Originations and purchases of commercial real estate assets, net of deferred fees (276,438) (45,556)
Proceeds from repayment of commercial real estate assets 14,387 0
Purchases of mortgage servicing rights, net of purchase price adjustments (108,006) (8,166)
Purchases of Federal Home Loan Bank stock (11,206) (25,240)
Increase in due to counterparties, net 197,289 44,203
Increase in restricted cash (100,604) (74,132)
Net cash (used in) provided by investing activities (5,507,952) 3,645,423
Cash Flows From Financing Activities:    
Proceeds from repurchase agreements 30,339,583 28,285,657
Principal payments on repurchase agreements (25,678,009) (31,795,316)
Proceeds from issuance of collateralized borrowings in securitization trusts 1,394,312 771,271
Principal payments on collateralized borrowings in securitization trusts (331,110) (237,630)
Proceeds from Federal Home Loan Bank advances 215,000 500,000
Proceeds from issuance of common stock, net of offering costs 227 226
Repurchase of common stock (61,307) 0
Dividends paid on common stock (171,955) (190,570)
Net cash provided by (used in) financing activities 5,706,741 (2,666,362)
Net decrease in cash and cash equivalents (45,643) (72,213)
Cash and cash equivalents at beginning of period 737,831 1,005,792
Cash and cash equivalents at end of period 692,188 933,579
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 47,088 50,932
Cash (received) paid for taxes (5,194) 2,286
Noncash Activities:    
Transfers of residential mortgage loans held-for-sale to residential mortgage loans held-for-investment in securitization trusts 641,738 1,091,884
Transfers of residential mortgage loans held-for-sale to other receivables for foreclosed government-guaranteed loans 12,080 7,318
Additions to mortgage servicing rights due to sale of residential mortgage loans held-for-sale 522 816
Transfer of fair value of mortgage servicing rights to fair value of Ginnie Mae residential mortgage loans held-for-sale upon buyout 3,572 11,356
Cumulative-effect adjustment to equity for adoption of new accounting principle 0 (2,991)
Dividends declared but not paid at end of period 79,953 95,557
Reconciliation of residential mortgage loans held-for-sale:    
Residential mortgage loans held-for-sale at beginning of period 811,431 535,712
Purchases of residential mortgage loans held-for-sale 580,932 1,393,417
Transfers to residential mortgage loans held-for-investment in securitization trusts (641,738) (1,091,884)
Transfers to other receivables for foreclosed government-guaranteed loans (12,080) (7,318)
Transfer of fair value of mortgage servicing rights to fair value of Ginnie Mae residential mortgage loans held-for-sale upon buyout (3,572) (11,356)
Proceeds from sales of residential mortgage loans held-for-sale (68,813) (75,272)
Proceeds from repayment of residential mortgage loans held-for-sale (74,025) (53,452)
Realized and unrealized gains on residential mortgage loans held-for-sale 16,925 5,231
Residential mortgage loans held-for-sale at end of period $ 609,060 $ 695,078