DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2013

DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract]

Financial Instruments Other than Debt Securities

Fair value disclosures for financial instruments other than debt securities were as follows (in thousands):

	September 30, 2013				December 31, 2012
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Residential mortgage loans	$	7,242	$	7,300	$	8,063	$	8,200
Interest rate swap agreements		1,558		1,558		169		169
Financial liabilities:
Repurchase arrangements with initial terms of greater than 120 days		36,299		36,300		41,520		41,500
Unsecured borrowings		103,095		104,100		103,095		104,600
Interest rate swap agreements		11,425		11,425		32,868		32,868

Fair Value and Related Disclosures for Debt Securities

Fair value and related disclosures for debt securities were as follows (in thousands):

	Amortized		Gross Unrealized
	Cost Basis		Gains		Losses		Fair Value
As of September 30, 2013
Agency Securities classified as available-for-sale	$	13,504,096	$	244,090	$	21,678	$	13,726,508
Residential mortgage securities classified as held-to-maturity		4,561		224		–		4,785
As of December 31, 2012
Agency Securities classified as available-for-sale		13,519,657		328,412		1,963		13,846,106
Residential mortgage securities classified as held-to-maturity		5,989		309		–		6,298

Securities in Unrealized Loss Position

	September 30, 2013				December 31, 2012
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Securities in an unrealized loss position:
One year or greater	$	24,903	$	207	$	29,760	$	120
Less than one year		3,198,273		21,471		751,645		1,843
	$	3,223,176	$	21,678	$	781,405	$	1,963