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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Operating activities:      
Net income $ 50,072 $ 79,589 $ 82,873
Noncash items:      
Amortization of investment premiums 115,339 128,769 130,084
Amortization of equity-based awards 1,783 1,404 1,440
Other depreciation and amortization 107 111 124
Change in measurable hedge ineffectiveness related to interest rate swap agreements designated as cash flow hedges   36 (47)
Net change in receivables, other assets, accounts payable and accrued expenses (2,541) 2,167 646
Net cash provided by operating activities 164,760 212,076 215,120
Investing activities:      
Purchases of residential mortgage investments (2,302,656) (4,224,515) (3,185,113)
Interest receivable acquired with the purchase of residential mortgage investments (4,476) (6,739) (4,361)
Principal collections on residential mortgage investments, including changes in mortgage securities principal remittance receivable 3,608,325 3,914,865 3,817,351
Redemption of lending counterparty investment     60,000
Net cash provided by (used in) investing activities 1,301,193 (316,389) 687,877
Financing activities:      
Proceeds from repurchase arrangements and similar borrowings 173,854,358 177,916,331 127,822,442
Principal payments on repurchase arrangements and similar borrowings (175,206,052) (177,730,614) (125,760,487)
Proceeds from other secured borrowings     1,175,000
Principal payments on other secured borrowings     (4,050,000)
Decrease (increase) in cash collateral receivable from interest rate swap counterparties 10,709 (12,846) 20,533
Net (payments on) proceeds from interest rate swap settlements (8,734) 27,793  
Proceeds from issuance of preferred shares   52,051 1,898
Common stock repurchases (84,594) (3,460)  
Other capital stock transactions (72) (261) (57)
Dividends paid (75,186) (97,506) (109,779)
Net cash (used in) provided by financing activities (1,509,571) 151,488 (900,450)
Net change in cash and cash equivalents (43,618) 47,175 2,547
Cash and cash equivalents at beginning of year 103,907 56,732 54,185
Cash and cash equivalents at end of year $ 60,289 $ 103,907 $ 56,732