NET INTEREST INCOME ANALYSIS (Tables)

9 Months Ended

Sep. 30, 2012

Summary Of Interest Income, Interest Expense And Weighted Average Interest Rates

	Quarter Ended September 30
	2012						2011						Related Changes in
	Amount			Average Rate			Amount			Average Rate			Rate*			Volume*			Total*
Interest income:
Residential mortgage investments	$	63,463			1.86	%	$	62,890			2.17	%	$	(9,707	)	$	10,280		$	573
Other		154			0.15			59			0.09			54			41			95
		63,617			1.81			62,949			2.12			(9,653	)		10,321			668
Interest expense:
Repurchase arrangements and similar borrowings		(17,875	)		0.56			(15,744	)		0.57			(274	)		2,405			2,131
Unsecured borrowings		(2,186	)		8.49			(2,186	)		8.49			—			—			—
Other		—			—			—			0.08			—			—			—
		(20,061	)		0.62			(17,930	)		0.65			(274	)		2,405			2,131
	$	43,556			1.19		$	45,019			1.47		$	(9,379	)	$	7,916		$	(1,463	)
	Nine Months Ended September 30
	2012						2011						Related Changes in
	Amount			Average Rate			Amount			Average Rate			Rate*			Volume*			Total*
Interest income:
Residential mortgage investments	$	194,983			2.01	%	$	179,167			2.29	%	$	(23,646	)	$	39,462		$	15,816
Other		480			0.16			230			0.13			63			187			250
		195,463			1.95			179,397			2.25			(23,583	)		39,649			16,066
Interest expense:
Repurchase arrangements and similar borrowings		(48,429	)		0.53			(41,772	)		0.57			(3,055	)		9,712			6,657
Unsecured borrowings		(6,560	)		8.49			(6,560	)		8.49			—			—			—
Other		—			0.07			(5	)		0.14			(2	)		(3	)		(5	)
		(54,989	)		0.60			(48,337	)		0.65			(3,057	)		9,709			6,652
	$	140,474			1.35		$	131,060			1.60		$	(20,526	)	$	29,940		$	9,414

* The change in interest income and interest expense due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.