SHAREHOLDERS' EQUITY

Preferred Stock

The Company declared its regular quarterly dividend of $0.53125 per share on its 8.50% Series A Cumulative Redeemable Preferred Stock and $0.4765625 per share on its 7.625% Series B Cumulative Redeemable Preferred Stock for the third quarter of 2013 payable on October 15, 2013 to shareholders of record as of October 7, 2013.

Common Stock

The following table presents a summary of the changes in the number of common shares outstanding since December 31, 2 012:



	2013
Balance as of January 1, 2013	54,268,915
Common stock issued under DRIP	509,831
Common stock issued under ATM program	180,986
Common stock issued or redeemed under stock and incentive plans	270,158
Common stock forfeited for tax withholding on share-based compensation	(52,385	)
Common stock repurchased during the period (weighted average price of $7.94 per share)	(751,456	)
Balance as of September 30, 2013	54,426,049

The Company has approximately 7,416,520 shares of common stock that remain available to offer and sell through its sales agent, JMP Securities LLC, under its "at the market", or "ATM" program, as of September 30, 2013. The Company did not issue any common shares under this program during the three months ended September 30, 2013.

The Company's Dividend Reinvestment and Share Purchase Plan ("DRIP") allows registered shareholders to automatically reinvest some or all of their quarterly dividends in shares of the Company’s stock and provides an opportunity for investors to purchase shares of the Company’s stock, potentially at a discount to the prevailing market price. Of the 3,000,000 shares reserved for issuance under the Company's DRIP, there are 2,472,324 shares remaining for issuance as of September 30, 2013. The Company declared a third quarter common stock dividend of $0.27 per share payable on October 31, 2013 to shareholders of record as of October 7, 2013. There was no discount for shares purchased through the DRIP during the third quarter of 2013.

Of the $50,000 authorized by the Company's Board of Directors for the repurchase of its common stock through December 31, 2014, approximately $43,115 remains available as of September 30, 2013.

Incentive Plans. Pursuant to the Company’s 2009 Stock and Incentive Plan, the Company may grant stock-based compensation to eligible employees, directors or consultants or advisers to the Company, including stock awards, stock options, SARs, dividend equivalent rights, performance shares, incentive awards, and restricted stock units. Of the 2,500,000 shares of common stock authorized for issuance under this plan, 1,550,118 shares remain available for issuance as of September 30, 2013. Total stock-based compensation expense recognized by the Company for the three and nine months ended September 30, 2013 was $612 and $1,726, respectively, compared to $490 and $1,410, respectively, for the three and nine months ended September 30, 2012.

The following table presents a rollforward of the restricted stock activity for the periods indicated:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Restricted stock outstanding as of beginning of period	526,803		454,117		448,283		365,506
Restricted stock granted	—		—		255,158		220,821
Restricted stock vested	(2,917	)	(2,917	)	(179,555	)	(135,127	)
Restricted stock outstanding as of end of period	523,886		451,200		523,886		451,200

The restricted stock granted during the nine months ended September 30, 2013 and September 30, 2012 had fair values of $2,708 and $2,073, respectively, at their grant dates. As of September 30, 2013, the balance of the Company’s outstanding restricted stock remaining to be amortized into compensation expense is $3,951 of which $640 is expected to be amortized in the remaining three months of 2013, $1,643 in 2014, $1,155 in 2015, $447 in 2016, and $66 in 2017.

As of September 30, 2013, the Company also has 25,000 SARs outstanding which were granted pursuant to the Company's 2004 Stock Incentive Plan and are all vested and exercisable at their exercise price of $7.06 per share any time prior to their expiration date of December 31, 2013. No new awards may be granted under this plan. As of September 30, 2013 and December 31, 2012, the fair value of the Company’s outstanding SARs of $43 and $66, respectively, are recorded as liabilities on its consolidated balance sheet for the respective periods.

Additional Paid-In Capital

The following table presents a rollforward of the Company's changes in additional paid-in capital since December 31, 2012:



	2013
Balance as of January 1, 2013	$	759,214
Common stock issuances:
DRIP issuances	5,401
ATM issuances	1,954
Incentive plans	147
Adjustments related to tax withholding for share-based compensation	(545		)
Common stock repurchases	(5,956		)
Amortization of restricted stock, net of additional grants	1,736
Capitalized expenses	(89		)
Balance as of September 30, 2013	$	761,862

Accumulated Other Comprehensive Income

Accumulated other comprehensive income as of September 30, 2013 and December 31, 2012 is comprised of the following items:



	September 30, 2013			December 31, 2012
Available for sale investments:
Unrealized gains	$	49,669		$	104,869
Unrealized losses	(72,057		)	(12,623		)
	(22,388		)	92,246
Hedging instruments:
Unrealized gains	3,779			—
Unrealized losses	(15,754		)	(39,735		)
	(11,975		)	(39,735		)
Accumulated other comprehensive income	$	(34,363	)	$	52,511

Due to the Company’s REIT status, the items comprising other comprehensive income do not have related tax effects.