Mortgage-Backed Securities (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Agency Securities and MBS Portfolio Includes MBS not Issued or Guaranteed by U.S. Government Agency or U.S. Government Sponsored Entity

The following table presents the composition of the Company’s MBS at December 31, 2014.

	Amortized Cost		Gross Unrealized Loss			Gross Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	9,203,741	$	(13,737	)	$	183,889	$	9,373,893
Fixed-Rate		1,111,288		-			5,177		1,116,465
Total Fannie Mae		10,315,029		(13,737	)		189,066		10,490,358
Freddie Mac Certificates
ARMs		6,805,885		(21,794	)		76,790		6,860,881
Fixed-Rate		158,402		-			1,767		160,169
Total Freddie Mac		6,964,287		(21,794	)		78,557		7,021,050
Total Agency Securities		17,279,316		(35,531	)		267,623		17,511,408
Total Non-Agency ARMs		75,454		-			148		75,602
Total Mortgage-Backed Securities	$	17,354,770	$	(35,531	)	$	267,771	$	17,587,010

The following table presents the composition of the Company’s MBS at December 31, 2013.

	Amortized Cost		Gross Unrealized Loss			Gross Unrealized Gain		Estimated Fair Value
Agency Securities
Fannie Mae Certificates
ARMs	$	9,620,743	$	(44,871	)	$	167,848	$	9,743,720
Fixed-Rate		806,312		(1,798	)		3,832		808,346
Total Fannie Mae		10,427,055		(46,669	)		171,680		10,552,066
Freddie Mac Certificates
ARMs		6,671,013		(70,752	)		57,808		6,658,069
Fixed-Rate		338,738		(1,600	)		21		337,159
Total Freddie Mac		7,009,751		(72,352	)		57,829		6,995,228
Ginnie Mae Certificates
ARMs		-		-			-		-
Fixed-Rate		96,236		(998	)		-		95,238
Total Ginnie Mae		96,236		(998	)		-		95,238
Total Mortgage-Backed Securities	$	17,533,042	$	(120,019	)	$	229,509	$	17,642,532

Components of Carrying Value of Available-For-Sale MBS

The components of the carrying value of available-for-sale MBS at December 31, 2014 and 2013 are presented below.

	As of December 31
	2014			2013
Principal balance	$	16,864,583		$	17,044,190
Unamortized premium		490,187			488,854
Unamortized discount		-			(2	)
Gross unrealized gains		267,771			229,509
Gross unrealized losses		(35,531	)		(120,019	)
Carrying value/estimated fair value	$	17,587,010		$	17,642,532

Schedule of Interest Income

The following table presents components of interest income on the Company’s MBS portfolio for the three years ended December 31, 2014:

	Years Ended December 31
	2014			2013			2012
Coupon interest	$	456,415		$	616,632		$	667,644
Net premium amortization		(101,979	)		(165,924	)		(162,844	)
Interest income	$	354,436		$	450,708		$	504,800

Gross Gains and Losses from Securities Sales

Gross gains and losses from sales of securities for the three years ended December 31, 2014 were as follows:

	Years Ended December 31
	2014			2013			2012
Gross gains	$	15,821		$	18,717		$	66,084
Gross losses		(10,625	)		(301,729	)		(1,737	)
Net gain (loss)	$	5,196		$	(283,012	)	$	64,347

Schedule of MBS in Unrealized Loss Position

The Company monitors the performance and market value of its MBS portfolio on an ongoing basis, and on a quarterly basis reviews its MBS for impairment.  At December 31, 2014 and 2013, the Company had the following securities in a loss position as presented in the following two tables:

	As of December 31, 2014
	Less than 12 Months					Greater than 12 Months					Total
	Fair Market		Unrealized			Fair Market		Unrealized			Fair Market		Unrealized
	Value		Loss			Value		Loss			Value		Loss
Fannie Mae Certificates
ARMs	$	806,600	$	(1,240	)	$	1,306,153	$	(12,497	)	$	2,112,753	$	(13,737	)
Fixed-Rate		-		-			-		-			-		-
Freddie Mac Certificates
ARMs		498,994		(792	)		1,737,760		(21,002	)		2,236,754		(21,794	)
Fixed-Rate		-		-			-		-			-		-
Total temporarily impaired securities	$	1,305,594	$	(2,032	)	$	3,043,913	$	(33,499	)	$	4,349,507	$	(35,531	)
Number of securities in an unrealized loss position				56					108					164

	As of December 31, 2013
	Less than 12 Months					Greater than 12 Months				Total
	Fair Market		Unrealized			Fair Market		Unrealized		Fair Market		Unrealized
	Value		Loss			Value		Loss		Value		Loss
Fannie Mae Certificates
ARMs	$	3,233,274	$	(44,871	)	$	-	$	-	$	3,233,274	$	(44,871	)
Fixed-Rate		281,760		(1,798	)		-		-		281,760		(1,798	)
Freddie Mac Certificates
ARMs		4,046,473		(70,752	)		-		-		4,046,473		(70,752	)
Fixed-Rate		316,835		(1,600	)		-		-		316,835		(1,600	)
Ginnie Mae Certificates
ARMs		-		-			-		-		-		-
Fixed-Rate		95,238		(998	)		-		-		95,238		(998	)
Total temporarily impaired securities	$	7,973,580	$	(120,019	)	$	-	$	-	$	7,973,580	$	(120,019	)
Number of securities in an unrealized loss position				279					-				279

Adjustable Rate Residential Mortgage

Information About Company's Adjustable Rate MBS that will Reprice or Amortize Based on Contractual terms

The following table presents certain information about the Company’s adjustable rate MBS that will reprice or amortize based on contractual terms, which do not consider prepayment assumptions, at December 31, 2014 and 2013.

	December 31, 2014								December 31, 2013
						Weighted								Weighted
						Average								Average
	Fair Value		% of Total			Coupon			Fair Value		% of Total			Coupon
Months to Coupon Reset
0 - 12	$	2,272,988		14.0	%		3.02	%	$	1,236,878		7.5	%		3.15	%
13 - 24		1,799,368		11.0	%		2.97	%		1,614,081		9.8	%		3.49	%
25 - 36		2,026,261		12.4	%		2.73	%		2,321,985		14.2	%		2.99	%
37 - 48		2,268,665		13.9	%		2.89	%		2,524,939		15.4	%		2.73	%
49 - 60		5,855,524		35.9	%		2.52	%		2,483,318		15.1	%		2.94	%
61 - 72		880,039		5.4	%		2.52	%		4,750,098		29.0	%		2.46	%
73 - 84		1,207,531		7.4	%		2.98	%		1,470,490		9.0	%		2.44	%
Total ARMS	$	16,310,376		100.0	%		2.75	%	$	16,401,789		100.0	%		2.80	%

Fixed Rate Residential Mortgage

Information About Company's Adjustable Rate MBS that will Reprice or Amortize Based on Contractual terms

The following table presents certain information about the Company’s fixed rate MBS that will reprice or amortize based on contractual terms, which do not consider prepayment assumptions, at December 31, 2014 and 2013.

	December 31, 2014								December 31, 2013
						Weighted								Weighted
						Average								Average
Wtd Average Months to Maturity	Fair Value		% of Total			Coupon			Fair Value		% of Total			Coupon
121-132	$	73,814		5.8	%		3.50	%	$	-		-			-
133-144		589,051		46.1	%		3.50	%		75,693		6.1	%		3.50	%
145-156		613,769		48.1	%		3.43	%		477,544		38.5	%		3.50	%
157-168		-		-			0.00	%		95,238		7.7	%		3.00	%
169-180		-		-			0.00	%		592,268		47.7	%		3.50	%
Total Fixed Rate Securities	$	1,276,634		100.0	%		3.47	%	$	1,240,743		100.0	%		3.46	%