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, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash Flows From Operating Activities:      
Net income (loss) from continuing operations $ 323,962 $ (44,290) $ 308,239
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities:      
Amortization of premiums and discounts on investment securities, net 167,097 93,830 67,651
Amortization of deferred debt issuance costs on term notes payable and convertible senior notes 1,680 1,029 714
Other-than-temporary impairment losses 14,312 470 789
Realized and unrealized (gains) losses on investment securities (280,118) 344,468 35,401
Loss on servicing asset 697,659 69,033 91,033
Gain on residential mortgage loans held-for-investment and collateralized borrowings in securitization trusts 0 0 (22,683)
Realized and unrealized losses on interest rate swaps, caps and swaptions 178,803 33,174 930
Unrealized (gain) loss on other derivative instruments (34,745) 23,489 50,099
Equity based compensation 9,162 12,995 11,330
Excess consideration in the acquisition of CYS Investments, Inc. 0 77,602 0
Net change in assets and liabilities:      
(Increase) decrease in accrued interest receivable (6,045) 12,366 (24,689)
(Increase) decrease in deferred income taxes, net (24,912) 41,988 (11,030)
(Decrease) increase in accrued interest payable (10,379) 44,820 67,118
Change in other operating assets and liabilities, net 20,161 (8,104) (229)
Net cash provided by operating activities of discontinued operations 0 0 32,108
Net cash provided by operating activities 1,056,637 702,870 606,781
Cash Flows From Investing Activities:      
Purchases of available-for-sale securities (24,656,050) (12,621,282) (18,232,105)
Proceeds from sales of available-for-sale securities 15,879,823 15,202,406 8,708,941
Principal payments on available-for-sale securities 3,599,834 2,434,071 1,553,051
Purchases of mortgage servicing rights, net of purchase price adjustments (611,765) (976,393) (484,261)
(Payments for) proceeds from sales of mortgage servicing rights (1,898) 637 355
(Purchases) short sales of derivative instruments, net (76,752) (83,887) (103,175)
(Payments for termination and settlement) proceeds from sales and settlement of derivative instruments, net (749,226) 354,822 85,811
Proceeds from sales of beneficial interests in securitization trusts 0 0 190,160
Proceeds from repayment of residential mortgage loans held-for-investment in securitization trusts 0 0 332,085
Payments for reverse repurchase agreements (2,056,825) (4,085,482) 0
Proceeds from reverse repurchase agreements 2,598,640 4,085,127 0
Net cash paid for the acquisition of CYS Investments, Inc. 0 (13,552) 0
(Decrease) increase in due to counterparties, net (35,100) 449,274 (805,158)
Change in other investing assets and liabilities, net 31,575 44,257 83,976
Net cash used in investing activities of discontinued operations 0 0 (813,939)
Net cash (used in) provided by investing activities (6,077,744) 4,789,998 (9,484,259)
Cash Flows From Financing Activities:      
Proceeds from repurchase agreements 236,071,952 151,887,922 139,559,059
Principal payments on repurchase agreements (230,057,965) (156,949,180) (128,973,036)
Principal payments on collateralized borrowings in securitization trusts 0 0 (328,978)
Proceeds from Federal Home Loan Bank advances 160,000 0 0
Principal payments on Federal Home Loan Bank advances (815,024) (350,000) (2,784,976)
Proceeds from revolving credit facilities 450,000 397,400 123,000
Principal payments on revolving credit facilities (460,000) (107,400) (173,000)
Proceeds from issuance of term notes payable 393,920 0 0
Proceeds from convertible senior notes 0 0 282,113
Proceeds from issuance of preferred stock, net of offering costs 0 (36) 702,537
Proceeds from issuance of common stock, net of offering costs 336,253 215 449
Repurchase of common stock (19) 0 0
Dividends paid on preferred stock (75,801) (58,394) (13,173)
Dividends paid on common stock (463,147) (270,626) (422,885)
Net cash provided by financing activities of discontinued operations 0 0 1,146,168
Net cash provided by (used in) financing activities 5,540,169 (5,450,099) 9,117,278
Net increase in cash, cash equivalents and restricted cash 519,062 42,769 239,800
Cash, cash equivalents and restricted cash of continuing operations at beginning of period 1,097,764 1,054,995 758,916
Cash, cash equivalents and restricted cash of discontinued operations at beginning of period 0 0 56,279
Cash, cash equivalents and restricted cash at beginning of period 1,097,764 1,054,995 815,195
Cash, cash equivalents and restricted cash at end of period 1,616,826 1,097,764 1,054,995
Supplemental Disclosure of Cash Flow Information:      
Cash paid for interest 720,213 419,878 227,518
Cash paid (received) for taxes, net 28,202 397 (856)
Acquisition of the assets and liabilities of CYS Investments, Inc.      
Available-for-sale securities 0 10,034,557 0
Cash and cash equivalents 0 386 0
Restricted cash 0 1,062 0
Accrued interest receivable 0 30,646 0
Reverse repurchase agreements 0 761,460 0
Other assets 0 11,977 0
Repurchase agreements 0 (8,743,527) 0
Derivative liabilities, net 0 (451,026) 0
Due to counterparties, net 0 (279,715) 0
Accrued interest payable 0 (27,487) 0
Other liabilities 0 (821) 0
Deconsolidation of the assets and liabilities of variable interest entities      
Recognition of beneficial interests in securitization trusts 0 0 59,826
Distribution of TH Commercial Holdings LLC to Granite Point Mortgage Trust Inc. in exchange for common shares 0 0 651,000
Distribution of Granite Point Mortgage Trust Inc. common stock 0 0 650,848
Cumulative-effect adjustment for adoption of new accounting principle 442 9,918 0
Dividends declared but not paid at end of period 128,125 135,551 12,552
Loans Held-for-Sale, Residential Mortgages [Member]      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of assets in securitization trusts 0 0 2,894,507
Accrued Interest Receivable [Member]      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of assets in securitization trusts 0 0 15,386
Borrowings [Member]      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of liabilities in securitization trusts 0 0 2,920,970
Accrued Interest Payable [Member]      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of liabilities in securitization trusts 0 0 8,271
Other Liabilities [Member]      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of liabilities in securitization trusts 0 0 10,826
Preferred Stock      
Acquisition of the assets and liabilities of CYS Investments, Inc.      
Issuance of stock in connection with the acquisition of CYS Investments, Inc. 0 275,000 0
Common Stock Including Additional Paid in Capital [Member]      
Acquisition of the assets and liabilities of CYS Investments, Inc.      
Issuance of stock in connection with the acquisition of CYS Investments, Inc. $ 0 $ 1,125,114 $ 0