The following tables summarize quarterly results for the years ended December 31, 2016 and December 31, 2015. Earnings per share amounts for each quarter and the full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amounts because of substantial differences in the average shares outstanding during each period and, with regard to diluted earnings per share amounts, they may also differ because of the inclusion of the effect of potentially dilutive securities only in the periods in which such effect would have been dilutive. Dilutive EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which includes stock options and convertible preferred stock) and adding back the Series B Preferred Stock dividends, unless the effect is to reduce a loss or increase the income per share.

For the year ended December 31, 2016 (in thousands, except per share amounts):

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Interest income:
Interest-Agency MBS	$	20,765		$	10,690		$	18,494		$	19,964
Interest-Non-Agency MBS		9,281			9,137			8,766			8,667
Interest-residential mortgage loans		9,313			9,111			8,359			7,854
Other interest income		12			12			11			17
		39,371			28,950			35,630			36,502
Interest expense:
Interest expense on repurchase agreements		9,398			8,960			8,615			9,532
Interest expense on asset-backed securities		8,599			8,414			7,918			7,548
Interest expense on junior subordinated notes		346			354			360			375
		18,343			17,728			16,893			17,455
Net interest income		21,028			11,222			18,737			19,047
Provision for loan losses		-			-			-			-
Net interest income after provision for loan losses		21,028			11,222			18,737			19,047
Operating expenses		(3,612	)		(3,660	)		(3,436	)		(3,511	)
Other income (loss):
Income-rental properties		410			428			424			425
(Loss) gain on sale of Agency MBS		(3,239	)		-			1,206			(39	)
Unrealized gain (loss) on Agency MBS held as trading investments		-			-			1,148			(14,925	)
Gain on sale of Non-Agency MBS		-			-			-			137
Impairment charge on Non-Agency MBS		-			-			-			(1,548	)
Gain on sales of residential mortgage loans held-for-investment		-			33			716			-
(Loss) gain on interest rate swaps, net		(50,219	)		(16,089	)		8,141			30,916
Gain (loss) on derivatives-TBA Agency MBS, net		15,354			8,061			3,412			(15,362	)
Gain (loss) on derivatives-Eurodollar Futures Contracts		22			(1,357	)		(2,060	)		672
Recovery on Non-Agency MBS		1			1			1			9
Total other (loss) income		(37,671	)		(8,923	)		12,988			285
Net (loss) income		(20,255	)		(1,361	)		28,289			15,821
Dividend on Series A Cumulative Preferred Stock		(1,035	)		(1,035	)		(1,035	)		(1,035	)
Dividend on Series B Cumulative Convertible Preferred Stock		(394	)		(394	)		(394	)		(394	)
Dividend on Series C Cumulative Redeemable Preferred Stock		(207	)		(207	)		(222	)		(231	)
Net (loss) income to common stockholders	$	(21,891	)	$	(2,997	)	$	26,638		$	14,161
Basic (loss) earnings per common share	$	(0.22	)	$	(0.03	)	$	0.28		$	0.15
Diluted (loss) earnings per common share	$	(0.22	)	$	(0.03	)	$	0.27		$	0.14
Basic weighted average number of shares outstanding		97,704			96,355			95,881			95,706
Diluted weighted average number of shares outstanding		97,704			96,355			100,590			100,485

For the year ended December 31, 2015 (in thousands, except per share amounts):