Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2013

Accumulated Other Comprehensive Income

12. Accumulated Other Comprehensive Income

The Company records unrealized gains and losses on its agency securities and its TBA securities as described in Note 4.  As discussed in Note 7, the Company ceased hedge accounting for its interest rate swaps effective September 30, 2013.  Beginning October 1, 2013, changes in the fair value of interest rate swaps are recorded directly to net income.  The cumulative unrealized loss on interest rate swaps in AOCI as of September 30, 2013 is being amortized to net income as the hedged forecasted transactions occur.  The following table rolls forward the components of AOCI, including reclassification adjustments, for the year ended December 31, 2013.

	Unrealized gain/(loss) on available for sale agency securities			Unrealized gain/(loss) on unsettled agency securities			Unrealized gain/(loss) on other investments			Unrealized gain/(loss) on derivative instruments			Total
Beginning balance, accumulated other comprehensive income (loss) at January 1, 2013	$	499,343		$	1,217		$	(107	)	$	(237,599	)	$	262,854
Other comprehensive income (loss) before reclassifications		(680,967	)		642			(520	)		(21,054	)		(701,899	)
Balance Sheet Reclassification:
Amount reclassified to mortgage-backed securities available for sale		-			(1,859	)		-			24,891			23,032
Income Statement Reclassifications:
Amounts reclassified to net loss on the sale of mortgage-backed securities		283,012			-			-			-			283,012
Amounts reclassified for impairment loss on mortgage-backed securities		8,102			-			-			-			8,102
Amounts reclassified to interest expense		-			-			-			116,847			116,847
Net current period other comprehensive income (loss)		(389,853	)		(1,217	)		(520	)		120,684			(270,906	)
Ending balance, accumulated other comprehensive income (loss) at December 31, 2013	$	109,490		$	-		$	(627	)	$	(116,915	)	$	(8,052	)