12.

Offsetting Assets and Liabilities

The following tables present information about certain assets and liabilities that are subject to master netting arrangements (or similar agreements) and can potentially be offset on the Company's consolidated balance sheet at March 31, 2013 and December 31, 2012:

Offsetting of Repurchase Agreements and Derivative Liabilities

						Net Amounts
			Gross Amounts			of Liabilities		Gross Amounts Not Offset in
	Gross Amounts		Offset in the			Presented in the		the Consolidated Balance Sheet
	of Recognized		Consolidated			Consolidated		Financial			Cash Collateral
	Liabilities		Balance Sheet			Balance Sheet		Instruments			Pledged			Net Amount
March 31, 2013
Repurchase agreements	$	295,609,039	$	-		$	295,609,039	$	(293,331,431	)	$	(2,277,608	)	$	-
Interest rate swap agreements		1,305,317		(218,977	)		1,086,340		-			(1,086,340	)		-
Total	$	296,914,356	$	(218,977	)	$	296,695,379	$	(293,331,431	)	$	(3,363,948	)	$	-
December 31, 2012
Repurchase agreements	$	116,080,467	$	-		$	116,080,467	$	(114,745,162	)	$	(1,335,305	)	$	-
Interest rate swap agreements		1,144,744		-			1,144,744		-			(1,144,744	)		-

	$	117,225,211	$	-		$	117,225,211	$	(114,745,162	)	$	(2,480,049	)	$	-

Offsetting of TBA Assets
						Net Amounts
			Gross Amounts			of Assets		Gross Amounts Not Offset in
	Gross Amounts		Offset in the			Presented in the		the Consolidated Balance Sheet
	of Recognized		Consolidated			Consolidated		Financial			Cash Collateral
	Assets		Balance Sheet			Balance Sheet		Instruments			Pledged			Net Amount
March 31, 2013
TBAs	$	436,876	$	-		$	436,876	$	-		$	-		$	-
Total	$	436,876	$	-		$	436,876	$	-		$	-		$	-
December 31, 2012
TBAs	$	-	$	-		$	-	$	-		$	-		$	-

Total	$	-	$	-		$	-	$	-		$	-		$	-

At March 31, 2013, the Company netted gross assets of $81,485 against gross liability of $193,634 which are amounts receivable and payable, respectively, to counterparts on the purchase and simultaneous sale of TBA contracts during the three months ended March 31, 2013.