AGENCY MORTGAGE-BACKED SECURITIES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Available-for-sale Securities Reconciliation

The following tables present the Company’s available-for-sale Agency mortgage-backed securities portfolio as of December 31, 2012 and 2011 which were carried at their fair value:

December 31, 2012	Freddie Mac			Fannie Mae			Ginnie Mae			Total Mortgage- Backed Securities
	(dollars in thousands)
Agency mortgage-backed securities, par value	$	44,296,234		$	70,649,782		$	273,988		$	115,220,004
Unamortized discount		(9,515	)		(12,315	)		(389	)		(22,219	)
Unamortized premium		2,121,478			3,695,381			39,348			5,856,207
Amortized cost		46,408,197			74,332,848			312,947			121,053,992
Gross unrealized gains		1,166,299			1,913,334			17,583			3,097,216
Gross unrealized losses		(36,890	)		(146,533	)		(4,578	)		(188,001	)
Estimated fair value	$	47,537,606		$	76,099,649		$	325,952		$	123,963,207

	Amortized Cost		Gross Unrealized  Gain		Gross Unrealized  Loss			Estimated Fair Value
	(dollars in thousands)
Adjustable rate	$	5,786,718	$	259,013	$	(4,613	)	$	6,041,118
Fixed rate		115,267,274		2,838,203		(183,388	)		117,922,089
Total	$	121,053,992	$	3,097,216	$	(188,001	)	$	123,963,207

December 31, 2011	Freddie Mac			Fannie Mae			Ginnie Mae			Total Mortgage- Backed Securities
	(dollars in thousands)
Agency mortgage-backed securities, par value	$	34,395,542		$	63,066,372		$	500,968		$	97,962,882
Unamortized discount		(9,874	)		(13,632	)		(399	)		(23,905	)
Unamortized premium		1,139,881			2,205,138			15,949			3,360,968
Amortized cost		35,525,549			65,257,878			516,518			101,299,945
Gross unrealized gains		973,476			2,081,282			31,474			3,086,232
Gross unrealized losses		(15,243	)		(118,871	)		(1,008	)		(135,122	)
Estimated fair value	$	36,483,782		$	67,220,289		$	546,984		$	104,251,055

	Amortized Cost		Gross Unrealized  Gain		Gross Unrealized  Loss			Estimated Fair Value
	(dollars in thousands)
Adjustable rate	$	8,698,746	$	345,642	$	(3,188	)	$	9,041,200
Fixed rate		92,601,199		2,740,590		(131,934	)		95,209,855
Total	$	101,299,945	$	3,086,232	$	(135,122	)	$	104,251,055

Schedule of Agency Mortgage Backed Securities by Estimated Weighted Average Life Classification

The following table summarizes the Company’s Agency Mortgage-Backed Securities on December 31, 2012 and 2011, according to their estimated weighted-average life classifications:

	December 31, 2012				December 31, 2011
Weighted-Average Life	Fair Value		Amortized Cost		Fair Value		Amortized Cost
	(dollars in thousands)
Less than one year	$	1,264,094	$	1,250,405	$	1,715,530	$	1,697,101
Greater than one year through five years		119,288,168		116,510,310		97,344,791		94,534,782
Greater than five years through ten years		3,104,073		2,992,054		4,447,540		4,348,841
Greater than ten years		306,872		301,223		743,194		719,221
Total	$	123,963,207	$	121,053,992	$	104,251,055	$	101,299,945

Schedule of Continuous Unrealized Loss Position

The following table presents the gross unrealized losses and estimated fair value of the Company’s Agency mortgage-backed securities by length of time that such securities have been in a continuous unrealized loss position at December 31, 2012 and December 31, 2011.

	Unrealized Loss Position For:  (dollars in thousands)
	Less than 12 Months							12 Months or More							Total
December 31,	Estimated Fair Value		Unrealized Losses			Number of Securities		Estimated Fair Value		Unrealized Losses			Number of Securities		Estimated Fair Value		Unrealized Losses			Number of Securities
2012	$	11,220,514	$	(82,721	)		187	$	147,775	$	(105,280	)		39	$	11,368,289	$	(188,001	)		226
2011	$	1,087,552	$	(118,593	)		71	$	883,143	$	(16,529	)		36	$	1,970,695	$	(135,122	)		107