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
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash Flows From Operating Activities:    
Net income $ 281,504 $ 204,102
Adjustments to reconcile net income to net cash used in operating activities:    
Amortization of premiums and discounts on investment securities and commercial real estate loans held-for-investment, net 32,556 7,415
Other-than-temporary impairment losses 535 212
Realized and unrealized gains on investment securities, net (263,512) (58,504)
Gain on residential mortgage loans held-for-sale (18,300) (6,233)
Loss (gain) on residential mortgage loans held-for-investment and collateralized borrowings in securitization trusts 19,441 (18,940)
Loss on servicing asset 96,317 73,042
Loss on termination and option expiration of interest rate swaps and swaptions 124,984 51,712
Unrealized loss on interest rate swaps and swaptions 55,079 81,805
Unrealized gain on other derivative instruments (15,563) (5,625)
Equity based compensation 7,366 12,256
Depreciation of fixed assets 1,002 768
Amortization of intangible assets 0 533
Purchases of residential mortgage loans held-for-sale (2,151,417) (991,990)
Proceeds from sales of residential mortgage loans held-for-sale 137,612 415,889
Proceeds from repayment of residential mortgage loans held-for-sale 80,152 25,164
Net change in assets and liabilities:    
Decrease (increase) in accrued interest receivable 9,279 (2,302)
Increase in deferred income taxes, net (19,592) (65,496)
Increase in income taxes receivable (6,854) 0
Increase in prepaid and fixed assets (221) (1,481)
Decrease (increase) in other receivables 8,563 (10,885)
Increase in servicing advances (3,465) (12,485)
Decrease in accrued interest payable (4,780) (5,353)
Decrease in income taxes payable (1,215) (430)
Increase in accrued expenses and other liabilities 6,324 13,912
Net cash used in operating activities (1,624,205) (292,914)
Cash Flows From Investing Activities:    
Purchases of available-for-sale securities (1,732,979) (4,017,640)
Proceeds from sales of available-for-sale securities 3,666,974 3,176,234
Principal payments on available-for-sale securities 918,798 783,308
Short sales and purchases of other derivative instruments, net 3,592 590
(Payments for termination) proceeds from sales of other derivative instruments, net (93,352) 49,729
Purchases of trading securities 0 (2,138,647)
Proceeds from sales of trading securities 2,004,375 1,145,410
Proceeds from repayment of residential mortgage loans held-for-investment in securitization trusts 435,967 51,763
Purchases of commercial real estate loans held-for-investment (290,683) 0
Purchases of mortgage servicing rights, net of purchase price adjustments (90,088) (57,106)
Purchases of Federal Home Loan Bank stock (53,640) (60,000)
Purchases of equity investments 0 (3,000)
Decrease in due to counterparties, net (57,265) (149,658)
(Increase) decrease in restricted cash (47,258) 91,226
Net cash provided by (used in) investing activities 4,664,441 (1,127,791)
Cash Flows From Financing Activities:    
Proceeds from repurchase agreements 37,275,034 200,827,955
Principal payments on repurchase agreements (42,224,569) (200,803,527)
Proceeds from issuance of collateralized borrowings in securitization trusts 1,104,093 693,717
Principal payments on collateralized borrowings in securitization trusts (309,341) (407,684)
Proceeds from Federal Home Loan Bank advances 1,415,000 3,796,411
Principal payments on Federal Home Loan Bank advances (205,000) (2,296,411)
Proceeds from issuance of common stock, net of offering costs 404 399
Repurchase of common stock (3,683) 0
Dividends paid on common stock (286,127) (190,361)
Net cash (used in) provided by financing activities (3,234,189) 1,620,499
Net (decrease) increase in cash and cash equivalents (193,953) 199,794
Cash and cash equivalents at beginning of period 1,005,792 1,025,487
Cash and cash equivalents at end of period 811,839 1,225,281
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 73,187 81,100
Cash paid for taxes 2,389 3,905
Noncash Investing and Financing Activities:    
Transfers of residential mortgage loans held-for-sale to residential mortgage loans held-for-investment in securitization trusts 1,705,885 656,581
Transfers of residential mortgage loans held-for-sale to other receivables for foreclosed government-guaranteed loans 12,764 0
Additions to mortgage servicing rights due to sale of residential mortgage loans held-for-sale 1,568 0
Cumulative-effect adjustment to equity for adoption of new accounting principle (2,991) 0
Shares repurchase payable at end of period 8,793 0
Cash dividends declared but not paid at end of period 95,459 95,205
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 2,151,417 991,990
Transfers to residential mortgage loans held-for-investment in securitization trusts (1,705,885) (656,581)
Transfers to other receivables for foreclosed government-guaranteed loans (12,764) 0
Proceeds from sales of residential mortgage loans held-for-sale (137,612) (415,889)
Proceeds from repayment of residential mortgage loans held-for-sale (80,152) (25,164)
Realized and unrealized gains on residential mortgage loans held-for-sale 17,292 6,128
Residential mortgage loans held-for-sale at end of period $ 768,008 $ 445,065