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, 2015
Jun. 30, 2014
Cash Flows From Operating Activities:    
Net income $ 316,294 $ 10,512
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Amortization of premiums and discounts on investment securities and commercial real estate loans held-for-investment, net 22,157 1,840
Other-than-temporary impairment losses 297 212
Realized and unrealized (gains) losses on investment securities, net (199,389) 967
Gain on residential mortgage loans held-for-sale (2,260) (8,620)
Loss (gain) on residential mortgage loans held-for-investment and collateralized borrowings in securitization trusts 20,525 (21,142)
Loss on servicing asset 34,768 62,331
Loss on termination and option expiration of interest rate swaps and swaptions 63,076 6,401
Unrealized (gain) loss on interest rate swaps and swaptions (35,258) 182,420
Unrealized gain on other derivative instruments (1,634) (51)
Equity based compensation 5,619 10,224
Depreciation of fixed assets 652 463
Amortization of intangible assets 0 533
Purchases of residential mortgage loans held-for-sale (1,382,061) (261,983)
Proceeds from sales of residential mortgage loans held-for-sale 75,272 400,739
Proceeds from repayment of residential mortgage loans held-for-sale 53,452 11,160
Net change in assets and liabilities:    
Decrease in accrued interest receivable 8,518 193
Increase in deferred income taxes, net (11,393) (60,310)
Increase in income taxes receivable (7,175) (290)
Increase in prepaid and fixed assets (228) (929)
Decrease (increase) in other receivables 6,059 (11,396)
Increase in servicing advances (3,338) (8,532)
Decrease in accrued interest payable (4,788) (3,756)
Decrease in income taxes payable (1,336) (465)
Increase in accrued expenses and other liabilities 2,253 5,673
Net cash (used in) provided by operating activities (1,039,918) 316,194
Cash Flows From Investing Activities:    
Purchases of available-for-sale securities (1,705,012) (2,232,865)
Proceeds from sales of available-for-sale securities 2,572,015 1,273,923
Principal payments on available-for-sale securities 611,850 474,696
Short sales and purchases of other derivative instruments 4,825 102,423
Proceeds from sales of other derivative instruments, net (69,085) (74,476)
Purchases of trading securities 0 (143,022)
Proceeds from sales of trading securities 2,004,375 143,378
Proceeds from repayment of residential mortgage loans held-for-investment in securitization trusts 335,346 26,330
Purchases of commercial real estate loans held-for-investment (45,556) 0
Purchases of mortgage servicing rights, net of purchase price adjustments (19,522) (48,419)
Purchases of Federal Home Loan Bank stock (25,240) (60,000)
Purchases of equity investments 0 (3,000)
Increase (decrease) in due to counterparties, net 44,203 (183,167)
(Increase) decrease in restricted cash (74,132) 114,682
Net cash provided by (used in) investing activities 3,634,067 (609,517)
Cash Flows From Financing Activities:    
Proceeds from repurchase agreements 28,285,657 140,931,599
Principal payments on repurchase agreements (31,795,316) (141,790,862)
Proceeds from issuance of collateralized borrowings in securitization trusts 771,271 33,483
Principal payments on collateralized borrowings in securitization trusts (237,630) (128,756)
Proceeds from Federal Home Loan Bank advances 500,000 3,793,911
Principal payments on Federal Home Loan Bank advances 0 (2,293,911)
Proceeds from issuance of common stock, net of offering costs 226 240
Dividends paid on common stock (190,570) (95,172)
Net cash (used in) provided by financing activities (2,666,362) 450,532
Net (decrease) increase in cash and cash equivalents (72,213) 157,209
Cash and cash equivalents at beginning of period 1,005,792 1,025,487
Cash and cash equivalents at end of period 933,579 1,182,696
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 50,932 54,785
Cash paid for taxes 2,286 3,903
Noncash Investing and Financing Activities:    
Transfers of residential mortgage loans held-for-sale to residential mortgage loans held-for-investment in securitization trusts 1,091,884 0
Transfers of residential mortgage loans held-for-sale to other receivables for foreclosed government-guaranteed loans 7,318 0
Additions to mortgage servicing rights due to sale of residential mortgage loans held-for-sale 816 0
Cumulative-effect adjustment to equity for adoption of new accounting principle (2,991) 0
Cash dividends declared but not paid at end of period 95,557 95,189
Reconciliation of residential mortgage loans held-for-sale:    
Residential mortgage loans held-for-sale at beginning of period 535,712 544,581
Purchases of residential mortgage loans held-for-sale 1,382,061 261,983
Transfers to residential mortgage loans held-for-investment in securitization trusts (1,091,884) 0
Transfers to other receivables for foreclosed government-guaranteed loans (7,318) 0
Proceeds from sales of residential mortgage loans held-for-sale (75,272) (400,739)
Proceeds from repayment of residential mortgage loans held-for-sale (53,452) (11,160)
Realized and unrealized gains on residential mortgage loans held-for-sale 5,231 5,176
Residential mortgage loans held-for-sale at end of period $ 695,078 $ 399,841