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Mortgage Backed Securities

9 Months Ended

Sep. 30, 2013

Mortgage Backed Securities [Abstract]

NOTE 2. MORTGAGE-BACKED SECURITIES

The following table presents the Company's MBS portfolio as of September 30, 2013 and December 31, 2012:

(in thousands)
		September 30, 2013		December 31, 2012
Pass-Through Certificates:
	Hybrid Adjustable-rate Mortgages	$	120,205	$	59,485
	Adjustable-rate Mortgages		6,150		6,531
	Fixed-rate Mortgages		184,662		43,589
	Total Pass-Through Certificates		311,017		109,605
Structured MBS Certificates:
	Interest-Only Securities		15,371		2,884
	Inverse Interest-Only Securities		5,399		2,891
	Total Structured MBS Certificates		20,770		5,775
Total		$	331,787	$	115,380

The following table summarizes the Company's MBS portfolio as of September 30, 2013 and December 31, 2012, according to the contractual maturities of the securities in the portfolio. Actual maturities of MBS investments are generally shorter than stated contractual maturities and are affected by the contractual lives of the underlying mortgages, periodic payments of principal, and prepayments of principal.

(in thousands)
	September 30, 2013		December 31, 2012
Greater than five years and less than ten years	$	1,662	$	12,980
Greater than or equal to ten years		330,125		102,400
Total	$	331,787	$	115,380

The Company generally pledges its MBS assets as collateral under repurchase agreements. At September 30, 2013 and December 31, 2012, the Company had unpledged securities totaling $53.8 million and $5.8 million, respectively. The unpledged balance at September 30, 2013 includes unsettled securities purchases with a fair value of approximately $38.8 million that will be pledged as collateral under repurchase agreements on the settlement date in October 2013.