NET INTEREST INCOME ANALYSIS

12 Months Ended

Dec. 31, 2012

NET INTEREST INCOME ANALYSIS

NOTE 12 — NET INTEREST INCOME ANALYSIS (UNAUDITED)

The following tables summarize interest income, interest expense and weighted average interest rates as well as related changes due to changes in interest rates versus changes in volume (dollars in thousands):

	2012						2011						2010
	Amount			Average Rate			Amount			Average Rate			Amount			Average Rate
Interest income:
Residential mortgage investments	$	255,931			1.94	%	$	243,077			2.24	%	$	198,488			2.59	%
Other		698			0.16			301			0.12			1,290			0.49
		256,629			1.88			243,378			2.20			199,778			2.52
Interest expense:
Repurchase arrangements and similar borrowings		(69,101	)		0.56			(57,328	)		0.56			(47,502	)		0.66
Unsecured borrowings		(8,747	)		8.49			(8,747	)		8.49			(8,747	)		8.49
Other		—			0.07			(5	)		0.14			(2	)		0.19
		(77,848	)		0.62			(66,080	)		0.64			(56,251	)		0.78
	$	178,781			1.26		$	177,298			1.56		$	143,527			1.74

	Rate *			Volume *			Total *
Change from 2011 to 2012
Interest income:
Residential mortgage investments	$	(35,212	)	$	48,066		$	12,854
Other		104			293			397
		(35,108	)		48,359			13,251
Interest expense:
Repurchase arrangements and similar borrowings		—			11,773			11,773
Other		(2	)		(3	)		(5	)
		(2	)		11,770			11,768
	$	(35,106	)	$	36,589		$	1,483
Change from 2010 to 2011
Interest income:
Residential mortgage investments	$	(29,727	)	$	74,317		$	44,590
Other		(889	)		(101	)		(990	)
		(30,616	)		74,216			43,600
Interest expense:
Repurchase arrangements and similar borrowings		(7,839	)		17,665			9,826
Other		—			3			3
		(7,839	)		17,668			9,829
	$	(22,777	)	$	56,548		$	33,771

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