Repurchase Agreements

9 Months Ended

Sep. 30, 2012

Repurchase Agreements

6. Repurchase Agreements

At September 30, 2012 and December 31, 2011, the Company had repurchase agreements in place in the amount of $23,583,180 and $16,162,375, respectively, to finance agency securities purchases. At September 30, 2012 and December 31, 2011, the weighted average interest rate on these borrowings was 0.40% and 0.37%, respectively. The Company’s repurchase agreements are collateralized by the Company’s agency securities and typically bear interest at rates that are closely related to LIBOR. At September 30, 2012 and December 31, 2011, the Company had repurchase agreements outstanding with 24 and 23 counterparties, respectively with a weighted average contractual maturity of 23 days. The following table presents the contractual repricing information regarding the Company’s repurchase agreements:

	September 30, 2012					December 31, 2011
	Balance		Weighted Average Contractual Rate			Balance		Weighted Average Contractual Rate
Within 30 days	$	20,060,323		0.40	%	$	16,162,375		0.37	%
30 days to 3 months		3,522,857		0.41			—		—
3 months to 36 months		—		—			—		—
	$	23,583,180		0.40	%	$	16,162,375		0.37	%

The fair value of securities, cash, and accrued interest the Company had pledged under repurchase agreements at September 30, 2012 and December 31, 2011 was $24,933,286 and $17,061,970 respectively.