Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flows From Operating Activities:      
Net income from continuing operations $ 308,239 $ 317,921 $ 492,072
Adjustments to reconcile net income from continuing operations to net cash provided by (used in) operating activities:      
Amortization of premiums and discounts on investment securities, net 67,651 42,888 38,913
Amortization of deferred debt issuance costs on convertible senior notes 714 0 0
Other-than-temporary impairment losses 789 1,822 535
Realized and unrealized losses (gains) on investment securities, net 35,401 107,374 (363,379)
Loss on servicing asset 91,033 83,531 99,584
Gain on residential mortgage loans held-for-sale (2,383) (16,085) (14,285)
(Gain) loss on residential mortgage loans held-for-investment and collateralized borrowings in securitization trusts (22,683) 11,834 26,527
Realized and unrealized loss (gain) on interest rate swaps and swaptions 930 (66,444) 124,985
Unrealized loss (gain) on other derivative instruments 50,099 (37,463) (14,196)
Equity based compensation 11,330 15,197 9,002
Depreciation of fixed assets 969 1,283 1,362
Purchases of residential mortgage loans held-for-sale (573) (1,214,865) (2,599,737)
Proceeds from sales of residential mortgage loans held-for-sale 3,928 804,265 160,559
Proceeds from repayment of residential mortgage loans held-for-sale 5,335 143,587 98,631
Net change in assets and liabilities:      
(Increase) decrease in accrued interest receivable (24,689) (10,603) 17,126
(Increase) decrease in deferred income taxes, net (11,030) 13,766 (12,638)
Decrease (increase) in income taxes receivable 1,397 3,759 (5,286)
Increase in prepaid and fixed assets (629) (413) (930)
Decrease (increase) in other receivables 8,467 (162) 12,587
(Increase) decrease in servicing advances (4,903) 11,352 (10,009)
Increase (decrease) in accrued interest payable 67,118 10,200 (5,122)
Decrease in income taxes payable 0 0 (1,375)
(Decrease) increase in accrued expenses and other liabilities (11,837) (3,234) 13,386
Net cash provided by (used in) operating activities of discontinued operations 32,108 20,169 (5,060)
Net cash provided by (used in) operating activities 606,781 239,679 (1,936,748)
Cash Flows From Investing Activities:      
Purchases of available-for-sale securities (18,232,105) (21,310,083) (1,788,541)
Proceeds from sales of available-for-sale securities 8,708,941 14,404,458 6,985,567
Principal payments on available-for-sale securities 1,553,051 1,276,159 1,148,407
(Purchases) short sales of derivative instruments, net (103,175) (19,240) (90,183)
Proceeds from sales (payments for termination) of derivative instruments, net 85,811 76,040 4,081
Proceeds from sales of trading securities 0 0 2,004,375
Proceeds from sales of beneficial interests in securitization trusts 190,160 0 0
Proceeds from repayment of residential mortgage loans held-for-investment in securitization trusts 332,085 913,894 562,025
Purchases of mortgage servicing rights, net of purchase price adjustments (484,261) (317,709) (123,666)
Proceeds from sales of mortgage servicing rights 355 40,137 0
Purchases of equity securities (30,054) 0 0
Purchases of Federal Home Loan Bank stock 0 (11,206) (56,640)
Redemptions of Federal Home Loan Bank stock 114,030 0 0
(Decrease) increase in due to counterparties, net (805,158) 34,665 (71,493)
Net cash used in investing activities of discontinued operations (813,939) (757,393) (660,304)
Net cash (used in) provided by investing activities (9,484,259) (5,670,278) 7,913,628
Cash Flows From Financing Activities:      
Proceeds from repurchase agreements 139,559,059 111,505,422 47,142,696
Principal payments on repurchase agreements (128,973,036) (107,589,163) (55,126,234)
Proceeds from issuance of collateralized borrowings in securitization trusts 0 1,877,399 1,223,302
Principal payments on collateralized borrowings in securitization trusts (328,978) (832,405) (406,942)
Proceeds from Federal Home Loan Bank advances 0 215,000 1,490,000
Principal payments on Federal Home Loan Bank advances (2,784,976) 0 (205,000)
Proceeds from revolving credit facilities 123,000 70,000 0
Principal payments on revolving credit facilities (173,000) 0 0
Proceeds from convertible senior notes 282,113 0 0
Proceeds from issuance of preferred stock, net of offering costs 702,537 0 0
Proceeds from issuance of common stock, net of offering costs 449 502 539
Repurchase of common stock 0 (61,307) (115,174)
Dividends paid on preferred stock (13,173) 0 0
Dividends paid on common stock (422,885) (331,865) (381,586)
Net cash provided by financing activities of discontinued operations 1,146,168 391,818 59,349
Net cash provided by (used in) financing activities 9,117,278 5,245,401 (6,319,050)
Net increase (decrease) in cash, cash equivalents and restricted cash 239,800 (185,198) (342,170)
Cash, cash equivalents and restricted cash of continuing operations at beginning of period 758,916 944,055 1,342,563
Cash, cash equivalents and restricted cash of discontinued operations at beginning of period 56,279 56,338 0
Cash, cash equivalents and restricted cash at beginning of period 815,195 1,000,393 1,342,563
Cash, cash equivalents and restricted cash at end of period 1,054,995 815,195 1,000,393
Supplemental Disclosure of Cash Flow Information:      
Cash paid for interest 227,518 116,147 92,286
Cash (received) paid for taxes (856) (5,146) 2,739
Deconsolidation of variable interest entities:      
Recognition of beneficial interests in securitization trusts 59,826 0 0
Distribution of TH Commercial Holdings LLC to Granite Point Mortgage Trust Inc. in exchange for common shares 651,000 0 0
Distribution of Granite Point Mortgage Trust Inc. common stock 824,322    
Transfers of residential mortgage loans held-for-sale to residential mortgage loans held-for-investment in securitization trusts 0 (1,031,226) (2,046,437)
Transfers of residential mortgage loans held-for-sale to other receivables for foreclosed government-guaranteed loans (3,396) (16,721) (16,723)
Transfer of fair value of mortgage servicing rights to fair value of Ginnie Mae residential mortgage loans held-for-sale upon buyout (9) (5,162) (15,756)
Additions to mortgage servicing rights due to sale of residential mortgage loans held-for-sale 20 924 1,844
Cumulative-effect adjustment to equity for adoption of new accounting principle 0 0 (2,991)
Dividends declared but not paid at end of period 12,552 83,437 92,016
Reconciliation of residential mortgage loans held-for-sale:      
Residential mortgage loans held-for-sale at beginning of period 40,146 811,431 535,712
Purchases of residential mortgage loans held-for-sale 573 1,214,865 2,599,737
Transfers to residential mortgage loans held-for-investment in securitization trusts 0 (1,031,226) (2,046,437)
Transfers to other receivables for foreclosed government-guaranteed loans (3,396) (16,721) (16,723)
Transfer of fair value of mortgage servicing rights to fair value of Ginnie Mae residential mortgage loans held-for-sale upon buyout (9) (5,162) (15,756)
Proceeds from sales of residential mortgage loans held-for-sale (3,928) (804,265) (160,559)
Proceeds from repayment of residential mortgage loans held-for-sale (5,335) (143,587) (98,631)
Realized and unrealized gains on residential mortgage loans held-for-sale 2,363 14,811 14,088
Residential mortgage loans held-for-sale at end of period 30,414 40,146 811,431
Cumulative Distributions to Stockholders      
Deconsolidation of variable interest entities:      
Distribution of Granite Point Mortgage Trust Inc. common stock 650,848 0 0
Loans Held-for-Investment, Residential Mortgages [Member]      
Deconsolidation of variable interest entities:      
Deconsolidation of assets in securitization trusts 2,984,507 0 0
Accrued Income Receivable [Member]      
Deconsolidation of variable interest entities:      
Deconsolidation of assets in securitization trusts 15,386 0 0
Collateralized Borrowings [Member]      
Deconsolidation of variable interest entities:      
Deconsolidation of liabilities in securitization trusts 2,920,970 0 0
Accrued Liabilities [Member]      
Deconsolidation of variable interest entities:      
Deconsolidation of liabilities in securitization trusts 8,271 0 0
Other Liabilities [Member]      
Deconsolidation of variable interest entities:      
Deconsolidation of liabilities in securitization trusts $ 10,826 $ 0 $ 0