Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 21, 2014 | Jun. 28, 2013 | |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'ANH | ' | ' |
Entity Registrant Name | 'ANWORTH MORTGAGE ASSET CORPORATION | ' | ' |
Entity Central Index Key | '0001047884 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 136,543,235 | ' |
Entity Public Float | ' | ' | $788,889,511 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Agency MBS: | ' | ' |
Agency MBS pledged to counterparties at fair value | $8,060,567,000 | $8,523,557,000 |
Agency MBS at fair value | 462,478,000 | 668,726,000 |
Paydowns receivable | 33,401,000 | 52,410,000 |
Available-for-sale Securities, Total | 8,556,446,000 | 9,244,693,000 |
Cash and cash equivalents | 7,368,000 | 2,910,000 |
Interest and dividends receivable | 23,310,000 | 25,839,000 |
Derivative instruments at fair value | 22,551,000 | 111,000 |
Prepaid expenses and other | 9,816,000 | 11,552,000 |
Total Assets: | 8,619,491,000 | 9,285,105,000 |
Liabilities: | ' | ' |
Accrued interest payable | 30,117,000 | 20,376,000 |
Repurchase agreements | 7,580,000,000 | 8,020,000,000 |
Junior subordinated notes | 37,380,000 | 37,380,000 |
Derivative instruments at fair value | 55,914,000 | 96,144,000 |
Dividends payable on Series A Preferred Stock | 1,035,000 | 1,011,000 |
Dividends payable on Series B Preferred Stock | 394,000 | 414,000 |
Dividends payable on common stock | 11,097,000 | 21,302,000 |
Accrued expenses and other | 1,368,000 | 761,000 |
Total Liabilities: | 7,717,305,000 | 8,197,388,000 |
Series B Cumulative Convertible Preferred Stock: par value $0.01 per share; liquidating preference $25.00 per share ($25,241 and $26,652, respectively); 1,010 and 1,066 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively | 23,924,000 | 25,222,000 |
Stockholders' Equity: | ' | ' |
Series A Cumulative Preferred Stock: par value $0.01 per share; liquidating preference $25.00 per share ($47,984 and $46,935, respectively); 1,919 and 1,877 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively | 46,537,000 | 45,447,000 |
Common Stock: par value $0.01 per share; authorized 200,000 shares, 138,717 and 142,013 issued and outstanding at December 31, 2013 and December 31, 2012, respectively | 1,387,000 | 1,420,000 |
Additional paid-in capital | 1,185,369,000 | 1,197,793,000 |
Accumulated other comprehensive income (loss) consisting of unrealized losses and gains | -92,008,000 | 79,776,000 |
Accumulated deficit | -263,023,000 | -261,941,000 |
Total Stockholders' Equity: | 878,262,000 | 1,062,495,000 |
Total Liabilities and Stockholders' Equity: | $8,619,491,000 | $9,285,105,000 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Series B Cumulative Convertible Preferred Stock, par value | $0.01 | $0.01 |
Series B Cumulative Convertible Preferred Stock, liquidating preference per share | $25 | $25 |
Series B Cumulative Convertible Preferred Stock, liquidating preference | $25,241 | $26,652 |
Series B Cumulative Convertible Preferred Stock, shares issued | 1,010 | 1,066 |
Series B Cumulative Convertible Preferred Stock, shares outstanding | 1,010 | 1,066 |
Series A Cumulative Preferred Stock, par value | $0.01 | $0.01 |
Series A Cumulative Preferred Stock, liquidating preference per share | $25 | $25 |
Series A Cumulative Preferred Stock, liquidating preference | $47,984 | $46,935 |
Series A Cumulative Preferred Stock, shares issued | 1,919 | 1,877 |
Series A Cumulative Preferred Stock, shares outstanding | 1,919 | 1,877 |
Common Stock, par value | $0.01 | $0.01 |
Common Stock, authorized | 200,000 | 200,000 |
Common Stock, issued | 138,717 | 142,013 |
Common Stock, outstanding | 138,717 | 142,013 |
STATEMENTS_OF_INCOME
STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income: | ' | ' | ' |
Interest on Agency MBS | $174,728 | $195,763 | $224,130 |
Other income | 56 | 90 | 50 |
Interest and Dividend Income, Operating, Total | 174,784 | 195,853 | 224,180 |
Interest expense: | ' | ' | ' |
Interest expense on repurchase agreements | 91,690 | 84,720 | 87,975 |
Interest expense on junior subordinated notes | 1,280 | 1,353 | 1,290 |
Interest Expense, Total | 92,970 | 86,073 | 89,265 |
Net interest income | 81,814 | 109,780 | 134,915 |
Gain on sales of Agency MBS | 9,237 | 4,434 | ' |
Recovery on Non-Agency MBS | 397 | 1,426 | 2,225 |
Expenses: | ' | ' | ' |
Management fee to related party | -11,961 | -11,585 | ' |
Compensation, incentive compensation and benefits | ' | ' | -10,979 |
Other expenses | -3,767 | -3,837 | -3,285 |
Total expenses | -15,728 | -15,422 | -14,264 |
Net income | 75,720 | 100,218 | 122,876 |
Dividend on Series A Cumulative Preferred Stock | -4,142 | -4,045 | -4,044 |
Dividend on Series B Cumulative Convertible Preferred Stock | -1,594 | -1,728 | -1,841 |
Net income to common stockholders | $69,984 | $94,445 | $116,991 |
Basic earnings per common share | $0.49 | $0.68 | $0.91 |
Diluted earnings per common share | $0.49 | $0.67 | $0.90 |
Basic weighted average number of shares outstanding | 142,455 | 138,382 | 128,601 |
Diluted weighted average number of shares outstanding | 146,400 | 142,485 | 132,759 |
STATEMENTS_OF_COMPREHENSIVE_IN
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $75,720 | $100,218 | $122,876 |
Available-for-sale Agency MBS, fair value adjustment | -225,208 | 32,985 | 62,598 |
Reclassification adjustment for net (gains) on sales of Agency MBS included in net income | -9,237 | -4,434 | ' |
Unrealized gain (losses) on cash flow hedges | 3,411 | -52,691 | -103,164 |
Reclassification adjustment for interest expense on swap agreements included in net income | 59,250 | 53,693 | 68,345 |
Other comprehensive income (loss) | -171,784 | 29,553 | 27,779 |
Comprehensive income (loss) | ($96,064) | $129,771 | $150,655 |
STATEMENTS_OF_STOCKHOLDERS_EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Series A Preferred Stock | Common Stock | Additional Paid-In Capital | Accum. Other Comp. Income (Loss) Agency MBS | Accum. Other Comp. (Loss) Derivatives | Accum. (Deficit) |
In Thousands, except Share data | |||||||
Beginning Balance at Dec. 31, 2010 | $868,281 | $45,397 | $1,209 | $1,053,959 | $84,650 | ($62,206) | ($254,728) |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 1,876,000 | 120,901,000 | ' | ' | ' | ' |
Issuance of common stock | 96,893 | ' | 140 | 96,753 | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | 14,048,000 | ' | ' | ' | ' |
Redemption of common stock | -5,269 | ' | -8 | -5,261 | ' | ' | ' |
Redemption of common stock (in shares) | ' | ' | -834,000 | ' | ' | ' | ' |
Other comprehensive income, fair value adjustments and reclassifications | 27,779 | ' | ' | ' | 62,598 | -34,819 | ' |
Net income | 122,876 | ' | ' | ' | ' | ' | 122,876 |
Amortization of restricted stock | 282 | ' | ' | 282 | ' | ' | ' |
Dividend declared - $2.156252 per Series A preferred share | -4,044 | ' | ' | ' | ' | ' | -4,044 |
Dividend declared - $1.5625 per Series B preferred share | -1,842 | ' | ' | ' | ' | ' | -1,842 |
Dividend declaredb$0.94, $0.69 and $0.50 per common share in 2011,2012 and 2013 respectively | -122,669 | ' | ' | ' | ' | ' | -122,669 |
Ending Balance at Dec. 31, 2011 | 982,287 | 45,397 | 1,341 | 1,145,733 | 147,248 | -97,025 | -260,407 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 1,876,000 | 134,115,000 | ' | ' | ' | ' |
Issuance of Series A Preferred Stock | 50 | 50 | ' | ' | ' | ' | ' |
Issuance of Series A Preferred Stock (in shares) | ' | 1,000 | ' | ' | ' | ' | ' |
Issuance of common stock | 56,188 | ' | 86 | 56,102 | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | 8,632,000 | ' | ' | ' | ' |
Redemption of common stock | -4,251 | ' | -7 | -4,244 | ' | ' | ' |
Redemption of common stock (in shares) | ' | ' | -734,000 | ' | ' | ' | ' |
Other comprehensive income, fair value adjustments and reclassifications | 29,553 | ' | ' | ' | 28,551 | 1,002 | ' |
Net income | 100,218 | ' | ' | ' | ' | ' | 100,218 |
Amortization of restricted stock | 202 | ' | ' | 202 | ' | ' | ' |
Dividend declared - $2.156252 per Series A preferred share | -4,044 | ' | ' | ' | ' | ' | -4,044 |
Dividend declared - $1.5625 per Series B preferred share | -1,726 | ' | ' | ' | ' | ' | -1,726 |
Dividend declaredb$0.94, $0.69 and $0.50 per common share in 2011,2012 and 2013 respectively | -95,982 | ' | ' | ' | ' | ' | -95,982 |
Ending Balance at Dec. 31, 2012 | 1,062,495 | 45,447 | 1,420 | 1,197,793 | 175,799 | -96,023 | -261,941 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 1,877,000 | 142,013,000 | ' | ' | ' | ' |
Issuance of Series A Preferred Stock | 1,090 | 1,090 | ' | ' | ' | ' | ' |
Issuance of Series A Preferred Stock (in shares) | ' | 42,000 | ' | ' | ' | ' | ' |
Issuance of common stock | 25,372 | ' | 44 | 25,328 | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | 4,350,000 | ' | ' | ' | ' |
Redemption of common stock | -38,031 | ' | -77 | -37,954 | ' | ' | ' |
Redemption of common stock (in shares) | ' | ' | -7,646,000 | ' | ' | ' | ' |
Other comprehensive income, fair value adjustments and reclassifications | -171,784 | ' | ' | ' | -234,445 | 62,661 | ' |
Net income | 75,720 | ' | ' | ' | ' | ' | 75,720 |
Amortization of restricted stock | 202 | ' | ' | 202 | ' | ' | ' |
Dividend declared - $2.156252 per Series A preferred share | -4,142 | ' | ' | ' | ' | ' | -4,142 |
Dividend declared - $1.5625 per Series B preferred share | -1,594 | ' | ' | ' | ' | ' | -1,594 |
Dividend declaredb$0.94, $0.69 and $0.50 per common share in 2011,2012 and 2013 respectively | -71,066 | ' | ' | ' | ' | ' | -71,066 |
Ending Balance at Dec. 31, 2013 | $878,262 | $46,537 | $1,387 | $1,185,369 | ($58,646) | ($33,362) | ($263,023) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 1,919,000 | 138,717,000 | ' | ' | ' | ' |
STATEMENTS_OF_STOCKHOLDERS_EQU1
STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Dividend declared common share, per share | $0.50 | $0.69 | $0.94 |
Series A Preferred Stock | ' | ' | ' |
Dividend declared, per preferred share | $2.16 | $2.16 | $2.16 |
Series B Preferred Stock | ' | ' | ' |
Dividend declared, per preferred share | $1.56 | $1.56 | $1.56 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities: | ' | ' | ' |
Net income | $75,720 | $100,218 | $122,876 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Amortization of premium and discounts (Agency MBS) | 62,033 | 72,774 | 58,552 |
Gain on sales of Agency MBS | -9,237 | -4,434 | ' |
Amortization of restricted stock | 202 | 202 | 282 |
Non-cash incentive compensation | ' | ' | 877 |
Recovery on Non-Agency MBS | -397 | -1,426 | -2,225 |
Changes in assets and liabilities: | ' | ' | ' |
Decrease (increase) in interest receivable | 2,529 | 2,246 | -988 |
Decrease (increase) in prepaid expenses and other | 1,737 | 1,775 | -8,711 |
Increase (decrease) in accrued interest payable | 9,732 | -3,186 | 3,462 |
Increase (decrease) in accrued expenses | 607 | -282 | 97 |
Net cash provided by operating activities | 142,926 | 167,887 | 174,222 |
Available-for-sale Agency MBS: | ' | ' | ' |
Proceeds from sale | 636,807 | 141,438 | ' |
Purchases | -2,591,994 | -3,231,919 | -3,600,881 |
Principal payments | 2,356,590 | 2,550,225 | 2,239,583 |
Net cash provided by (used in) investing activities | 401,403 | -540,256 | -1,361,298 |
Financing Activities: | ' | ' | ' |
Borrowings from repurchase agreements | 42,833,039 | 43,857,077 | 35,770,255 |
Repayments on repurchase agreements | -43,273,039 | -43,432,077 | -34,550,255 |
Proceeds from common stock issued, net of common stock repurchased | -15,293 | 49,655 | 87,292 |
Common stock dividends paid | -81,271 | -102,763 | -121,159 |
Net cash (used in) provided by financing activities | -539,871 | 366,402 | 1,185,332 |
Net increase (decrease) in cash and cash equivalents | 4,458 | -5,967 | -1,744 |
Cash and cash equivalents at beginning of period | 2,910 | 8,877 | 10,621 |
Cash and cash equivalents at end of period | 7,368 | 2,910 | 8,877 |
Supplemental Disclosure of Cash Flow Information: | ' | ' | ' |
Cash paid for interest | 83,237 | 89,258 | 85,803 |
Conversions of Series B Preferred Stock into common stock | 2,633 | 2,283 | 7,851 |
Common stock repurchased | 38,031 | 4,251 | 5,269 |
Change in payable for securities purchased | ' | -20,679 | -343,141 |
Series B Preferred Stock | ' | ' | ' |
Financing Activities: | ' | ' | ' |
Proceeds on Series B Preferred Stock issued | 1,335 | 265 | 5,064 |
Series A Preferred stock dividends paid | -1,615 | -1,761 | -1,821 |
Series A Preferred Stock | ' | ' | ' |
Financing Activities: | ' | ' | ' |
Proceeds on Series B Preferred Stock issued | 1,090 | 50 | ' |
Series A Preferred stock dividends paid | ($4,117) | ($4,044) | ($4,044) |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Organization and Significant Accounting Policies | ' | ||||||||||||||||||||||||||||||||||||
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||||||||||||||
Anworth Mortgage Asset Corporation, or Anworth, was incorporated in Maryland on October 20, 1997 and commenced operations on March 17, 1998. We are in the business of investing primarily in United States, or U.S., agency mortgage-backed securities, or Agency MBS. Agency MBS are securities representing obligations guaranteed by the U.S. government, such as Ginnie Mae, or guaranteed by federally sponsored enterprises, such as Fannie Mae or Freddie Mac. Our principal business objective is to generate net income for distribution to our stockholders based upon the spread between the interest income on our mortgage-related assets and the costs of borrowing to finance our acquisition of those assets. | |||||||||||||||||||||||||||||||||||||
We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, or the Code. As a REIT, we routinely distribute substantially all of the taxable income generated from our operations to our stockholders. As long as we retain our REIT status, we generally will not be subject to federal or state taxes on our income to the extent that we distribute our taxable net income to our stockholders. | |||||||||||||||||||||||||||||||||||||
Effective as of December 31, 2011, we entered into a Management Agreement, or the Management Agreement with Anworth Management, LLC, or the Manager, which effected the externalization of our management function, or the Externalization. Since the effective date, our day-to-day operations have been conducted by the Manager through the authority delegated to it under the Management Agreement and pursuant to the policies established by our board of directors. The Manager is supervised and directed by our board of directors and is responsible for (i) the selection, purchase and sale of our investment portfolio; (ii) our financing and hedging activities; and (iii) providing us with management services. The Manager will also perform such other services and activities relating to our assets and operations as may be appropriate. In exchange for these services, the Manager receives a management fee paid monthly in arrears in an amount equal to one-twelfth of 1.20% of our Equity (as defined in the Management Agreement). Our board of directors affirmatively elected to renew the Management Agreement for another one-year term expiring on December 31, 2014. | |||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | |||||||||||||||||||||||||||||||||||||
The accompanying financial statements are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles utilized in the United States of America, or GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Material estimates that are susceptible to change relate to the determination of the fair value of securities, amortization of security premiums and accretion of security discounts and accounting for derivatives and hedging activities. Actual results could materially differ from these estimates. In the opinion of management, all material adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. | |||||||||||||||||||||||||||||||||||||
The following is a summary of our significant accounting policies: | |||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. The carrying amount of cash equivalents approximates their fair value. | |||||||||||||||||||||||||||||||||||||
Reverse Repurchase Agreements | |||||||||||||||||||||||||||||||||||||
We use securities purchased under agreements to resell, or reverse repurchase agreements, as a means of investing excess cash. Although legally structured as a purchase and subsequent resale, reverse repurchase agreements are treated as financing transactions under which the counterparty pledges securities (U.S. treasury securities or Agency MBS) and accrued interest as collateral to secure a loan. The difference between the purchase price that we pay and the resale price that we receive represents interest paid to us and is included in “Other income” on our statements of income. It is our policy to generally take possession of securities purchased under reverse repurchase agreements at the time such agreements are made. | |||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities (MBS) | |||||||||||||||||||||||||||||||||||||
Agency MBS are securities that are obligations (including principal and interest) which are guaranteed by the U.S. government, such as Ginnie Mae, or guaranteed by federally sponsored enterprises, such as Fannie Mae or Freddie Mac. Our investment grade Agency MBS portfolio is invested primarily in fixed-rate and adjustable-rate mortgage-backed pass-through certificates and hybrid adjustable-rate MBS. Hybrid adjustable-rate MBS have an initial interest rate that is fixed for a certain period, usually three to ten years, and then adjusts annually for the remainder of the term of the loan. We structure our investment portfolio to be diversified with a variety of prepayment characteristics, investing in mortgage-related assets with prepayment penalties, investing in certain mortgage security structures that have prepayment protections and purchasing mortgage-related assets at a premium and at a discount. Our portfolio also includes a small amount of Non-Agency MBS (approximately $79 thousand) and this is now included with the Agency MBS. Prior year balances have been presented consistent with this treatment. | |||||||||||||||||||||||||||||||||||||
We classify our MBS as either trading investments, available-for-sale investments or held-to-maturity investments. Our management determines the appropriate classification of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. We currently classify all of our MBS as available-for-sale. All assets that are classified as available-for-sale are carried at fair value and unrealized gains or losses are generally included in “Other comprehensive income (loss)” as a component of stockholders’ equity. Losses that are credit-related on securities classified as available-for-sale, which are determined by management to be other-than-temporary in nature, are reclassified from “Other comprehensive income” to income (loss). | |||||||||||||||||||||||||||||||||||||
The most significant source of our revenue is derived from our investments in MBS. Interest income on our Agency MBS is accrued based on the actual coupon rate and the outstanding principal amount of the underlying mortgages. Premiums and discounts are amortized or accreted into interest income over the estimated lives of the securities using the effective interest yield method, adjusted for the effects of actual and estimated prepayments based on the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 320-10. Our policy for estimating prepayment speeds for calculating the effective yield is to evaluate historical performance, street consensus prepayment speeds and current market conditions. If our estimate of prepayments is materially incorrect, as compared to the aforementioned references, we may be required to make an adjustment to the amortization or accretion of premiums and discounts that would have an impact on future income, which could be material and adverse. | |||||||||||||||||||||||||||||||||||||
Securities are recorded on the date the securities are purchased or sold. Realized gains or losses from securities transactions are determined based on the specific identified cost of the securities. | |||||||||||||||||||||||||||||||||||||
The following table shows our investments’ gross unrealized losses and fair value of those individual securities that have been in a continuous unrealized loss position at December 31, 2013 and December 31, 2012, aggregated by investment category and length of time (dollar amounts in thousands): | |||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | ||||||||||||||||||||||||||||
of | Value | Losses | of | Value | Losses | of | Value | Losses | |||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||||||
Agency MBS | 202 | $ | 4,262,712 | $ | (122,890 | ) | 230 | $ | 763,911 | $ | (23,089 | ) | 432 | $ | 5,026,623 | $ | (145,979 | ) | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | ||||||||||||||||||||||||||||
of | Value | Losses | of | Value | Losses | of | Value | Losses | |||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||||||
Agency MBS | 68 | $ | 907,972 | $ | (2,457 | ) | 207 | $ | 283,638 | $ | (4,117 | ) | 275 | $ | 1,191,610 | $ | (6,574 | ) | |||||||||||||||||||
We do not consider those Agency MBS that have been in a continuous loss position for 12 months or more to be other-than-temporarily impaired. The unrealized losses on our investments in Agency MBS were caused by fluctuations in interest rates. We purchased the Agency MBS primarily at a premium relative to their face value and the contractual cash flows of those investments are guaranteed by the U.S. government or government-sponsored agencies. Since September 2008, the government-sponsored agencies have been in the conservatorship of the U.S. government. We do not expect to sell the Agency MBS at a price less than the amortized cost basis of our investments. Because the decline in market value of the Agency MBS is attributable to changes in interest rates and not the credit quality of the Agency MBS in our portfolio, and because we do not have the intent to sell these investments nor is it more likely than not that we will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity, we do not consider these investments to be other-than-temporarily impaired at December 31, 2013. | |||||||||||||||||||||||||||||||||||||
Repurchase Agreements | |||||||||||||||||||||||||||||||||||||
We finance the acquisition of our MBS primarily through the use of repurchase agreements. Under these repurchase agreements, we sell securities to a lender and agree to repurchase the same securities in the future for a price that is higher than the original sales price. The difference between the sale price that we receive and the repurchase price that we pay represents interest paid to the lender. Although structured as a sale and repurchase obligation, a repurchase agreement operates as a financing under which we pledge our securities and accrued interest as collateral to secure a loan which is equal in value to a specified percentage of the estimated fair value of the pledged collateral. We retain beneficial ownership of the pledged collateral. Upon the maturity of a repurchase agreement, we are required to repay the loan and concurrently receive back our pledged collateral from the lender or, with the consent of the lender, we may renew such agreement at the then-prevailing financing rate. These repurchase agreements may require us to pledge additional assets to the lender in the event the estimated fair value of the existing pledged collateral declines. | |||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||||||||||||||
Interest Rate Risk Management | |||||||||||||||||||||||||||||||||||||
We primarily use short-term (less than or equal to 12 months) repurchase agreements to finance the purchase of MBS. These obligations expose us to variability in interest payments due to changes in interest rates. We continuously monitor changes in interest rate exposures and evaluate hedging opportunities. | |||||||||||||||||||||||||||||||||||||
Our objective is to limit the impact of interest rate changes on earnings and cash flows. We achieve this by entering into interest rate swap agreements, which effectively convert a percentage of our repurchase agreements to fixed-rate obligations over a period of up to ten years. Under interest rate swap contracts, we agree to pay an amount equal to a specified fixed rate of interest times a notional principal amount and to receive in return an amount equal to a specified variable-rate of interest times a notional amount, generally based on the London Interbank Offered Rate, or LIBOR. The notional amounts are not exchanged. We account for these swap agreements as cash flow hedges in accordance with ASC 815-10. We do not issue or hold derivative contracts for speculative purposes. | |||||||||||||||||||||||||||||||||||||
For all interest rate swap agreements entered into prior to September 9, 2013, we are exposed to credit losses in the event of non-performance by counterparties to interest rate swap agreements. In order to limit credit risk associated with swap agreements, our current practice is to only enter into swap agreements with large financial institution counterparties who are market makers for these types of instruments, limit our exposure on each swap agreement to a single counterparty under our defined guidelines and either pay or receive collateral to or from each counterparty on a periodic basis to cover the net fair market value position of the swap agreements held with that counterparty. | |||||||||||||||||||||||||||||||||||||
For all interest rate swap agreements entered into on or after September 9, 2013, all swap participants are required by rules of the Commodities Futures Trading Commission, or CFTC, under authority granted to it pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, to clear swaps through a registered derivatives clearing organization, or “swap execution facility,” through standardized documents under which each swap counterparty transfers its position to another entity whereby a central clearinghouse effectively becomes the counterparty on each side of the swap. Both the swap execution facility and the central clearing house could require greater initial and periodic margin (collateral) requirements and additional transaction fees. It is the intent of the Dodd-Frank Act that the clearing of swaps in this manner is designed to avoid concentration of risk in any single entity by spreading and centralizing the risk in the clearinghouse and its members. | |||||||||||||||||||||||||||||||||||||
Accounting for Derivatives and Hedging Activities | |||||||||||||||||||||||||||||||||||||
In accordance with ASC 815-10, a derivative that is designated as a hedge is recognized as an asset/liability and measured at estimated fair value. In order for our interest rate swap agreements to qualify for hedge accounting, upon entering into the swap agreement, we must anticipate that the hedge will be highly “effective” as defined by ASC 815-10. | |||||||||||||||||||||||||||||||||||||
On the date we enter into a derivative contract, we designate the derivative as a hedge of the variability of cash flows that are to be received or paid in connection with a recognized asset or liability (a “cash flow” hedge). Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge, to the extent that the hedge is effective, are recorded in “Other comprehensive income” and reclassified to income when the forecasted transaction affects income (e.g., when periodic settlement interest payments are due on repurchase agreements). The swap agreements are carried on our balance sheets at their fair value, based on values obtained from large financial institutions who are market makers for these types of instruments. Hedge ineffectiveness, if any, is recorded in current-period income. | |||||||||||||||||||||||||||||||||||||
We formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. If it is determined that a derivative is not (or has ceased to be) highly effective as a hedge, we discontinue hedge accounting. | |||||||||||||||||||||||||||||||||||||
When we discontinue hedge accounting, the gain or loss on the derivative remains in “Accumulated other comprehensive income” and is reclassified into income when the forecasted transaction affects income. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, we will carry the derivative at its fair value on our balance sheet, recognizing changes in the fair value in current-period income. | |||||||||||||||||||||||||||||||||||||
For purposes of the cash flow statement, cash flows from derivative instruments are classified with the cash flows from the hedged item. | |||||||||||||||||||||||||||||||||||||
For more details on the amounts and other qualitative information on our swap agreements, see Note 12. For more information on the fair value of our swap agreements, see Note 6. | |||||||||||||||||||||||||||||||||||||
Credit Risk | |||||||||||||||||||||||||||||||||||||
At December 31, 2013, we have attempted to limit our exposure to credit losses on our MBS by purchasing securities primarily through Freddie Mac and Fannie Mae. The payment of principal and interest on the Freddie Mac and Fannie Mae MBS are guaranteed by those respective enterprises. In September 2008, both Freddie Mac and Fannie Mae were placed in the conservatorship of the U.S. government. While it is the intent that the conservatorship will help stabilize Freddie Mac’s and Fannie Mae’s losses and overall financial position, there can be no assurance that it will succeed or that, if necessary, Freddie Mac or Fannie Mae will be able to satisfy its guarantees of Agency MBS. In August 2011, the ratings of each of U.S. sovereign debt, Fannie Mae and Freddie Mac were downgraded from AAA to AA+ by Standard & Poor’s, and affirmed at Aaa by Moody’s Investors Service, or Moody’s, with each of Standard & Poor’s and Moody’s revising the outlook on U.S. sovereign debt, Fannie Mae and Freddie Mac to negative. Each of Standard & Poor’s and Moody’s has indicated that it would likely change its ratings on Fannie Mae and Freddie Mac if it was to change its rating on the U.S. government. In June 2013, Standard & Poor’s affirmed its AA+ long-term sovereign credit rating on the United States and revised the outlook from negative to stable, and in July 2013, Moody’s affirmed its Aaa government bond rating of the United States and revised the outlook from negative to stable. We do not know what effect any changes in the ratings of U.S. sovereign debt, Fannie Mae and Freddie Mac will ultimately have on the U.S. economy, the value of our securities, or the ability of Fannie Mae and Freddie Mac to satisfy its guarantees of Agency MBS if necessary. | |||||||||||||||||||||||||||||||||||||
Our adjustable-rate MBS are subject to periodic and lifetime interest rate caps. Periodic caps can limit the amount an interest rate can increase during any given period. Some adjustable-rate MBS subject to periodic payment caps may result in a portion of the interest being deferred and added to the principal outstanding. | |||||||||||||||||||||||||||||||||||||
Other-than-temporary losses on our available-for-sale MBS, as measured by the amount of decline in estimated fair value attributable to credit losses that are considered to be other-than-temporary, are charged against income, resulting in an adjustment of the cost basis of such securities. Based on the criteria in ASC-320-10, the determination of whether a security is other-than-temporarily impaired, or OTTI, involves judgments and assumptions based on both subjective and objective factors. When a security is impaired, an OTTI is considered to have occurred if (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or (iii) we do not expect to recover its amortized cost basis (i.e., there is a credit-related loss). The following are among, but not all of, the factors considered in determining whether and to what extent an OTTI exists and the portion that is related to credit loss: (i) the expected cash flow from the investment; (ii) whether there has been an other-than-temporary deterioration of the credit quality of the underlying mortgages; (iii) the credit protection available to the related mortgage pool for MBS; (iv) any other market information available, including analysts’ assessments and statements, public statements and filings made by the debtor or counterparty; (v) management’s internal analysis of the security, considering all known relevant information at the time of assessment; and (vi) the magnitude and duration of historical decline in market prices. Because management’s assessments are based on factual information as well as subjective information available at the time of assessment, the determination as to whether an other-than-temporary decline exists and, if so, the amount considered impaired, is also subjective and therefore constitutes material estimates that are susceptible to significant change. | |||||||||||||||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||||||||||||||
We have elected to be taxed as a REIT and to comply with the provisions of the Code with respect thereto. Accordingly, we will not be subject to federal income tax to the extent that our distributions to our stockholders satisfy the REIT requirements and that certain asset, income and stock ownership tests are met. | |||||||||||||||||||||||||||||||||||||
We have no unrecognized tax benefits and do not anticipate any increase in unrecognized benefits during 2014 relative to any tax positions taken prior to January 1, 2014. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income taxes accounts; and no such accruals existed at December 31, 2013. Through 2013, we filed both REIT and taxable REIT subsidiary U.S. federal and California income tax returns. These returns are generally open to examination by the IRS and the California Franchise Tax Board for all years after 2009 and 2008, respectively. | |||||||||||||||||||||||||||||||||||||
Cumulative Convertible Preferred Stock | |||||||||||||||||||||||||||||||||||||
We classify our Series B Cumulative Convertible Preferred Stock, or Series B Preferred Stock, on our balance sheets using the guidance in ASC 480-10-S99. The Series B Preferred Stock contains certain fundamental change provisions that allow the holder to redeem the preferred stock for cash only if certain events occur, such as a change in control. As redemption under these circumstances is not solely within our control, we have classified the Series B Preferred Stock as temporary equity. | |||||||||||||||||||||||||||||||||||||
We have analyzed whether the conversion features in the Series B Preferred Stock should be bifurcated under the guidance in ASC 815-10 and have determined that bifurcation is not necessary. | |||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||||||||||
In accordance with ASC 718-10 and ASC 505-50, any compensation cost relating to share-based payment transactions is recognized in the financial statements. | |||||||||||||||||||||||||||||||||||||
Restricted stock is expensed over the vesting period (see Note 11). | |||||||||||||||||||||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||||||||||||||||||
Basic earnings per share, or EPS, is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which includes stock options and convertible preferred stock) and adding back the Series B Preferred Stock dividends, unless the effect is to reduce a loss or increase the income per share. | |||||||||||||||||||||||||||||||||||||
The computation of EPS for the years ended December 31, 2013, 2012 and 2011 is as follows (amounts in thousands, except per share data): | |||||||||||||||||||||||||||||||||||||
Net Income | Average | Earnings | |||||||||||||||||||||||||||||||||||
Available to | Shares | per | |||||||||||||||||||||||||||||||||||
Common | Share | ||||||||||||||||||||||||||||||||||||
Stockholders | |||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 69,984 | 142,455 | $ | 0.49 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,594 | 3,945 | - | ||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 71,578 | 146,400 | $ | 0.49 | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 94,445 | 138,382 | $ | 0.68 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,728 | 4,103 | (0.01 | ) | |||||||||||||||||||||||||||||||||
Diluted EPS | $ | 96,173 | 142,485 | $ | 0.67 | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 116,991 | 128,601 | $ | 0.91 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,841 | 4,158 | (0.01 | ) | |||||||||||||||||||||||||||||||||
Diluted EPS | $ | 118,832 | 132,759 | $ | 0.9 | ||||||||||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, options to purchase 5,000 shares, 320,700 shares and 592,480 shares of our common stock, respectively, were outstanding and not included in the computation of diluted EPS, as their exercise price and option expense exceeded the average stock price for those respective years. | |||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||||||
In accordance with ASC 220-10-55-2, comprehensive income is divided into net income and other comprehensive income, which includes unrealized gains and losses on marketable securities classified as available-for-sale, and unrealized gains and losses on derivative financial instruments that qualify for cash flow hedge accounting under ASC 815-10. | |||||||||||||||||||||||||||||||||||||
RECENT ACCOUNTING PRONOUNCEMENTS | |||||||||||||||||||||||||||||||||||||
In December 2011, the FASB issued ASU 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This ASU requires the disclosure in tabular format in a footnote of the gross amounts subject to rights of set-off, the gross amounts of any set-off and the net amounts shown on the balance sheet. This ASU also requires the disclosure of any agreements subject to such netting arrangements. This ASU will affect all financial instruments such as securities lending agreements, repurchase agreements, reverse repurchase agreements, and derivatives instruments. As there are differences in the offsetting requirements in GAAP and International Financial Reporting Standards (IFRS), the objective of this disclosure is to facilitate comparison between companies that prepare their financial statements according to those different reporting requirements. This ASU became effective for our financial statements beginning with the quarter ended March 31, 2013. We have adopted this ASU and it did not have a material impact on our financial statements. | |||||||||||||||||||||||||||||||||||||
On January 31, 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This ASU clarifies that ordinary trade receivables and other receivables are not in the scope of ASU 2011-11 and specifically, that ASU 2011-11 applies only to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either subject to rights of set-off or to master netting arrangements. This ASU is only a clarification of the ASU mentioned in the paragraph above and it became effective for our financial statements beginning with the quarter ended March 31, 2013. We have adopted this ASU and it did not have a material impact on our financial statements. | |||||||||||||||||||||||||||||||||||||
On February 5, 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU will require entities to: (1) present (either on the face of the statement where net income is presented or in the notes) the effect on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period; and (2) cross-reference to other disclosures currently required under GAAP for other reclassification items that are not required under GAAP to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account instead of directly related to income or expense. This ASU became effective for our financial statements beginning with the quarter ended March 31, 2013. We have adopted this ASU and it did not have a material impact on our financial statements. | |||||||||||||||||||||||||||||||||||||
In the first quarter of 2013, the FASB issued ASU 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” This ASU requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, as the sum of the following: (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors; and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about the obligations including the terms and conditions of the arrangement. Examples of obligations within the scope of this ASU include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. This ASU is effective for our financial statements beginning with the quarter ending March 31, 2014. We do not believe this ASU will have a material impact on our financial statements. | |||||||||||||||||||||||||||||||||||||
In July 2013, the FASB issued ASU 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” Prior to the amendments in this ASU, only interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate (LIBOR) were considered as acceptable benchmark interest rates. This ASU now also allows the use of the Fed Funds Effective Swap Rate as an acceptable benchmark interest rate. This ASU is effective prospectively for qualifying new or re-designated hedging relationships entered into on or after July 17, 2013. We have adopted this ASU and it did not have a material impact on our financial statements. |
Reverse_Repurchase_Agreements
Reverse Repurchase Agreements | 12 Months Ended |
Dec. 31, 2013 | |
Reverse Repurchase Agreements | ' |
NOTE 2. REVERSE REPURCHASE AGREEMENTS | |
At December 31, 2013, we did not have any reverse repurchase agreements outstanding. During the year ended December 31, 2013, the maximum amount of reverse repurchase agreements outstanding was $210 million and the average daily amount outstanding was approximately $7.2 million. These investments are used as a means of investing excess cash. The collateral for these loans was principally U.S. Treasury securities with an aggregate fair value equal to the amount of the loans. At December 31, 2012, there were no reverse repurchase agreements outstanding. |
Mortgage_Backed_Securities_MBS
Mortgage Backed Securities (MBS) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Mortgage Backed Securities (MBS) | ' | ||||||||||||||||||||||||
NOTE 3. MORTGAGE-BACKED SECURITIES (MBS) | |||||||||||||||||||||||||
The following tables summarize our Agency MBS classified as available-for-sale as of December 31, 2013 and December 31, 2012, which are carried at their fair value (amounts in thousands): | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
By Agency | Ginnie Mae | Freddie Mac | Fannie Mae | Non-Agency | Total | ||||||||||||||||||||
MBS | MBS | ||||||||||||||||||||||||
Amortized cost | $ | 13,374 | $ | 3,618,312 | $ | 4,950,005 | $ | - | $ | 8,581,691 | |||||||||||||||
Paydowns receivable(1) | - | 33,401 | - | - | 33,401 | ||||||||||||||||||||
Unrealized gains | 10 | 18,384 | 68,860 | 79 | 87,333 | ||||||||||||||||||||
Unrealized losses | (124 | ) | (89,263 | ) | (56,592 | ) | - | (145,979 | ) | ||||||||||||||||
Fair value | $ | 13,260 | $ | 3,580,834 | $ | 4,962,273 | $ | 79 | $ | 8,556,446 | |||||||||||||||
By Security Type | ARMs | Hybrids | 15-Year | 30-Year | Floating-Rate | Total | |||||||||||||||||||
Fixed-Rate | Fixed-Rate | CMOs(2) | MBS | ||||||||||||||||||||||
Amortized cost | $ | 1,594,183 | $ | 5,168,156 | $ | 1,714,427 | $ | 103,476 | $ | 1,449 | $ | 8,581,691 | |||||||||||||
Paydowns receivable(1) | 2,843 | 30,558 | - | - | - | 33,401 | |||||||||||||||||||
Unrealized gains | 46,294 | 31,668 | 1,695 | 7,591 | 85 | 87,333 | |||||||||||||||||||
Unrealized losses | (2,560 | ) | (85,614 | ) | (57,774 | ) | (29 | ) | (2 | ) | (145,979 | ) | |||||||||||||
Fair value | $ | 1,640,760 | $ | 5,144,768 | $ | 1,658,348 | $ | 111,038 | $ | 1,532 | $ | 8,556,446 | |||||||||||||
_____________ | |||||||||||||||||||||||||
-1 | Paydowns receivable are generated when the Company receives notice from Freddie Mac of prepayments but does not receive the actual cash with respect to such prepayments until the 15th day of the following month. | ||||||||||||||||||||||||
-2 | Non-Agency MBS are included in the Floating-Rate CMOs category. | ||||||||||||||||||||||||
During the year ended December 31, 2013, we received proceeds of approximately $637 million from the sale of Agency MBS and recognized gross realized gains on sales of approximately $14.89 million and gross realized losses on sales of approximately $5.65 million. During the year ended December 31, 2012, we received proceeds of approximately $141 million from the sale of Agency MBS and recognized gross realized gains on sales of approximately $4.4 million. There were no gross realized losses on sales during the year ended December 31, 2012. | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
By Agency | Ginnie Mae | Freddie Mac | Fannie Mae | Non-Agency | Total | ||||||||||||||||||||
MBS | MBS | ||||||||||||||||||||||||
Amortized cost | $ | 15,646 | $ | 3,133,758 | $ | 5,867,079 | $ | - | $ | 9,016,483 | |||||||||||||||
Paydowns receivable(1) | - | 52,410 | - | - | 52,410 | ||||||||||||||||||||
Unrealized gains | 25 | 51,681 | 130,308 | 360 | 182,374 | ||||||||||||||||||||
Unrealized losses | (204 | ) | (2,683 | ) | (3,687 | ) | - | (6,574 | ) | ||||||||||||||||
Fair value | $ | 15,467 | $ | 3,235,166 | $ | 5,993,700 | $ | 360 | $ | 9,244,693 | |||||||||||||||
By Security Type | ARMs | Hybrids | 15-Year | 30-Year | Floating-Rate | Total | |||||||||||||||||||
Fixed-Rate | Fixed-Rate | CMOs(2) | MBS | ||||||||||||||||||||||
Amortized cost | $ | 1,866,616 | $ | 5,202,362 | $ | 1,629,854 | $ | 315,438 | $ | 2,213 | $ | 9,016,483 | |||||||||||||
Paydowns receivable(1) | 5,605 | 46,805 | - | - | - | 52,410 | |||||||||||||||||||
Unrealized gains | 64,208 | 66,623 | 25,401 | 25,773 | 369 | 182,374 | |||||||||||||||||||
Unrealized losses | (2,697 | ) | (3,817 | ) | (60 | ) | - | - | (6,574 | ) | |||||||||||||||
Fair value | $ | 1,933,732 | $ | 5,311,973 | $ | 1,655,195 | $ | 341,211 | $ | 2,582 | $ | 9,244,693 | |||||||||||||
-1 | Paydowns receivable are generated when the Company receives notice from Freddie Mac of prepayments but does not receive the actual cash with respect to such prepayments until the 15th day of the following month. | ||||||||||||||||||||||||
-2 | Non-Agency MBS are included in the Floating-Rate CMOs category. |
Repurchase_Agreements
Repurchase Agreements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Repurchase Agreements | ' | ||||||||||||||||||||||||
NOTE 4. REPURCHASE AGREEMENTS | |||||||||||||||||||||||||
We have entered into repurchase agreements with large financial institutions to finance most of our Agency MBS. The repurchase agreements are short-term borrowings that are secured by the market value of our MBS and bear fixed interest rates that have historically been based upon LIBOR. | |||||||||||||||||||||||||
At December 31, 2013 and December 31, 2012, the repurchase agreements had the following balances (in thousands), weighted average interest rates and remaining weighted average maturities: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Balance | Weighted | Balance | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||
Overnight | $ | - | 0 | % | $ | - | 0 | % | |||||||||||||||||
Less than 30 days | 3,105,000 | 0.39 | 4,120,000 | 0.47 | |||||||||||||||||||||
30 days to 90 days | 4,475,000 | 0.39 | 3,900,000 | 0.47 | |||||||||||||||||||||
Over 90 days to less than 1 year | - | - | - | - | |||||||||||||||||||||
1 year to 2 years | - | - | - | - | |||||||||||||||||||||
Demand | - | - | - | - | |||||||||||||||||||||
$ | 7,580,000 | 0.39 | % | $ | 8,020,000 | 0.47 | % | ||||||||||||||||||
Weighted average maturity | 38 days | 34 days | |||||||||||||||||||||||
Weighted average term to maturity (after accounting for swap agreements) | 1,010 days | 420 days | |||||||||||||||||||||||
Weighted average borrowing rate (after accounting for swap agreements) | 1.5 | % | 1.12 | % | |||||||||||||||||||||
Agency MBS pledged as collateral under the repurchase agreements and swap agreements | $ | 8,060,567 | $ | 8,523,557 | |||||||||||||||||||||
The following table presents information about certain assets and liabilities that are subject to master netting arrangements (or similar agreements) only in the event of default on a contract. See Notes 1, 6 and 12 for more information on the Company’s hedging instruments. | |||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||
Assets | Gross Amounts Not Offset | ||||||||||||||||||||||||
Gross Amounts | or Liabilities | in the Balance Sheets(1) | |||||||||||||||||||||||
of Recognized | Gross Amounts | Presented in | Cash | ||||||||||||||||||||||
31-Dec-13 | Assets or | Offset in the | the Balance | Financial | Collateral | Net | |||||||||||||||||||
(in thousands) | Liabilities | Balance Sheets | Sheets | Instruments | Received | Amounts | |||||||||||||||||||
Derivative assets at fair value(2) | $ | 22,551 | $ | - | $ | 22,551 | $ | (22,551 | ) | $ | - | $ | - | ||||||||||||
Total | $ | 22,551 | $ | - | $ | 22,551 | $ | (22,551 | ) | $ | - | $ | - | ||||||||||||
Repurchase Agreements(3) | $ | 7,580,000 | $ | - | $ | 7,580,000 | $ | (7,580,000 | ) | $ | - | $ | - | ||||||||||||
Derivative liabilities at fair value(2) | 55,914 | - | 55,914 | (55,914 | ) | - | - | ||||||||||||||||||
Total | $ | 7,635,914 | $ | - | $ | 7,635,914 | $ | (7,635,914 | ) | $ | - | $ | - | ||||||||||||
Net Amounts of | |||||||||||||||||||||||||
Assets | Gross Amounts Not Offset | ||||||||||||||||||||||||
Gross Amounts | or Liabilities | in the Balance Sheets(1) | |||||||||||||||||||||||
of Recognized | Gross Amounts | Presented in | Cash | ||||||||||||||||||||||
31-Dec-12 | Assets or | Offset in the | the Balance | Financial | Collateral | Net | |||||||||||||||||||
(in thousands) | Liabilities | Balance Sheets | Sheets | Instruments | Received | Amounts | |||||||||||||||||||
Derivative assets at fair value(2) | $ | 111 | $ | - | $ | 111 | $ | (111 | ) | $ | - | $ | - | ||||||||||||
Total | $ | 111 | $ | - | $ | 111 | $ | (111 | ) | $ | - | $ | - | ||||||||||||
Repurchase Agreements(3) | $ | 8,020,000 | $ | - | $ | 8,020,000 | $ | (8,020,000 | ) | $ | - | $ | - | ||||||||||||
Derivative liabilities at fair value(2) | 96,144 | - | 96,144 | (96,144 | ) | - | - | ||||||||||||||||||
Total | $ | 8,116,144 | $ | - | $ | 8,116,144 | $ | (8,116,144 | ) | $ | - | $ | - | ||||||||||||
_____________ | |||||||||||||||||||||||||
-1 | Amounts presented are limited to collateral pledged sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. | ||||||||||||||||||||||||
-2 | At December 31, 2013, we had pledged approximately $84.2 million in Agency MBS as collateral and paid another approximately $7.1 million on swap margin calls on our derivatives. At December 31, 2012, we had pledged approximately $110.6 million in Agency MBS as collateral and paid another approximately $8.7 million on swap margin calls on our derivatives. | ||||||||||||||||||||||||
-3 | At December 31, 2013, we had pledged approximately $7.98 billion in Agency MBS as collateral on our repurchase agreements. At December 31, 2012, we had pledged approximately $8.41 billion in Agency MBS as collateral on our repurchase agreements. |
Junior_Subordinated_Notes
Junior Subordinated Notes | 12 Months Ended |
Dec. 31, 2013 | |
Junior Subordinated Notes | ' |
NOTE 5. JUNIOR SUBORDINATED NOTES | |
On March 15, 2005, we issued $37,380,000 of junior subordinated notes to a newly-formed statutory trust, Anworth Capital Trust I, organized by us under Delaware law. The trust issued $36,250,000 in trust preferred securities to unrelated third party investors. Both the notes and the trust preferred securities require quarterly payments and bear interest at the prevailing three-month LIBOR rate plus 3.10%, reset quarterly. The first interest payment was made on June 30, 2005. Both the notes and the trust preferred securities will mature in 2035 and are currently redeemable, in whole or in part, without penalty. We used the net proceeds of this private placement to invest in Agency MBS. We have reviewed the structure of the transaction under ASC 810-10 and concluded that Anworth Capital Trust I does not meet the requirements for consolidation. On September 26, 2005, the notes, the trust preferred securities and the related agreements were amended. The only material change was that one of the class holders requested that interest payments be made quarterly on January 30, April 30, July 30 and October 30 instead of at the end of each calendar quarter. This became effective with the quarterly payment after September 30, 2005. As of the date of this filing, we have not redeemed any of these notes or trust preferred securities. |
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||||||
NOTE 6. FAIR VALUES OF FINANCIAL INSTRUMENTS | |||||||||||||||||
As defined in ASC 820-10, fair value is the price that would be received from the sale of an asset or paid to transfer or settle a liability in an orderly transaction between market participants in the principal (or most advantageous) market for the asset or liability. ASC 820-10 establishes a fair value hierarchy that ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the three following categories: | |||||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. This includes those financial instruments that are valued using models or other valuation methodologies where substantially all of the assumptions are observable in the marketplace, can be derived from observable market data or are supported by observable levels at which transactions are executed in the marketplace. We consider the inputs utilized to fair value our Agency MBS to be Level 2. Management bases the fair value for these investments primarily on third party bid price indications provided by dealers who make markets in these instruments. The Agency MBS market is primarily an over-the-counter market. As such, there are no standard, public market quotations or published trading data for individual MBS securities. As our portfolio consists of hundreds of similar, but distinct, securities that have each been traded with only one broker counterparty, we generally seek to have each Agency MBS security priced by one broker. The prices received are non-binding offers to trade, but are indicative quotations of the market value of our securities as of the market close on the last day of each quarter. The brokers receive trading data from several traders that participate in the active markets for these securities and directly observe numerous trades of securities similar to the securities owned by us. Given the volume of market activity for Agency MBS, it is our belief that the broker pricing accurately reflects market information for actual, contemporaneous transactions. We do not adjust quotes or prices we obtain from brokers and pricing services. In the limited instances where valuations are received on a security from multiple brokers, we use the median value of the prices received to determine fair value. To validate the prices we obtain, to ensure our fair value determinations are consistent with ASC 820, and to ensure that we properly classify these securities in the fair value hierarchy, we evaluate the pricing information we receive taking into account factors such as coupon, prepayment experience, fixed/adjustable rate, coupon index, time to reset and issuing agency, among other factors. Based on these factors, broker prices are compared to prices of similar securities provided by other brokers. If we determine (based on such a comparison and our market knowledge and expertise) that a security is priced significantly differently than similar securities, the broker is contacted and requested to revisit their valuation of the security. If a broker refuses to reconsider its valuation, we will request pricing from another broker and use the median value of the prices received to determine fair value. If we are unable to receive a valuation from another broker, the price received from an independent third party pricing service will be used, if it is determined (based on our market knowledge and expertise) to be more reliable than the broker pricing. However, the fair value reported may not be indicative of the amounts that could be realized in an actual market exchange. | |||||||||||||||||
Our derivative assets and derivative liabilities are comprised of swap agreements, in which we pay a fixed rate of interest and receive a variable rate of interest that is based on LIBOR. The fair value of these instruments is reported to us independently from dealers who are large financial institutions and are market makers for these types of instruments. The LIBOR swap rate is observable at commonly quoted intervals over the full term of the swap agreements and therefore is considered a Level 2 item. The fair value of the derivative instruments’ assets and liabilities are the estimated amounts the Company would either receive or pay to terminate these agreements at the reporting date, taking into account current interest rates and the Company’s credit worthiness. For more information on our swap agreements, see Note 1 and Note 12. | |||||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. This is comprised of financial instruments whose fair value is estimated based on internally developed models or methodologies utilizing significant inputs that are generally less readily observable from objective sources. | |||||||||||||||||
In determining the appropriate levels, we perform a detailed analysis of the assets and liabilities that are subject to ASC 820-10. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. | |||||||||||||||||
At December 31, 2013, fair value measurements were as follows (in thousands): | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Agency MBS(1) | $ | - | $ | 8,556,446 | $ | - | $ | 8,556,446 | |||||||||
Derivative instruments(2) | - | 22,551 | - | 22,551 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative instruments(2) | $ | - | $ | 55,914 | $ | - | $ | 55,914 | |||||||||
__________________ | |||||||||||||||||
-1 | For more detail about the fair value of our Agency MBS by agency and type of security, see Note 3 in the audited financial statements. | ||||||||||||||||
-2 | Derivative instruments are hedging instruments under ASC 815-10. For more detail about our derivative instruments, see Notes 1 and 12 in the audited financial statements. | ||||||||||||||||
Cash and cash equivalents, restricted cash, interest receivable, repurchase agreements and interest payable are reflected in our audited financial statements at their costs, which approximate their fair value because of the nature and short term of these instruments. | |||||||||||||||||
Junior subordinated notes are variable-rate debt and, as we believe the spread would be consistent with the expectations of market participants as of December 31, 2013 and December 31, 2012, the carrying value approximates fair value. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||||||
NOTE 7. INCOME TAXES | |||||||||||||||||||||||||||||
We have elected to be taxed as a REIT and to comply with the provisions of the Code with respect thereto. Accordingly, we will not be subject to federal or state income taxes to the extent that our distributions to stockholders satisfy the REIT requirements and certain asset, income and stock ownership tests are met. We believe we currently meet all REIT requirements regarding the ownership of our common stock and the distribution of our taxable net income. Therefore, we believe that we continue to qualify as a REIT under the provisions of the Code. | |||||||||||||||||||||||||||||
At December 31, 2012, total capital loss carryforwards available were $6.9 million. They were utilized in 2013. Income tax expense (benefit) for the years ended December 31, 2013, 2012 and 2011 was zero. None of the components of income tax expense are significant on a separately stated basis. | |||||||||||||||||||||||||||||
At December 31, 2013 and December 31, 2012, there were no significant deferred tax assets and deferred tax liabilities. | |||||||||||||||||||||||||||||
The tables below present tax information regarding Anworth’s dividend distributions for the fiscal year ended December 31, 2013: | |||||||||||||||||||||||||||||
Series A Cumulative Preferred Stock (CUSIP 03747 20 0) | |||||||||||||||||||||||||||||
Declaration | Record | Payable | 2013 | 2013 | 2013 | 2013 | Carry-Over | ||||||||||||||||||||||
Date | Date | Date | Total | Ordinary | Return | Long-Term | to 2014 | ||||||||||||||||||||||
Distribution | Income | of Capital | Capital | ||||||||||||||||||||||||||
Per Share | Gains | ||||||||||||||||||||||||||||
1/18/13 | 3/28/13 | 4/15/13 | $ | 0.539063 | $ | 0.539063 | $ | - | $ | - | $ | - | |||||||||||||||||
4/19/13 | 6/28/13 | 7/15/13 | 0.539063 | 0.529797 | - | 0.009266 | - | ||||||||||||||||||||||
7/19/13 | 9/30/13 | 10/15/13 | 0.539063 | 0.492073 | - | 0.04699 | - | ||||||||||||||||||||||
10/3/13 | 12/31/13 | 1/15/14 | 0.539063 | - | - | - | 0.539063 | ||||||||||||||||||||||
Total: | $ | 2.156252 | $ | 1.560933 | $ | - | $ | 0.056256 | $ | 0.539063 | |||||||||||||||||||
Series B Cumulative Convertible Preferred Stock (CUSIP 03747 30 9) | |||||||||||||||||||||||||||||
Declaration | Record | Payable | 2013 | 2013 | 2013 | 2013 | Carry-Over | ||||||||||||||||||||||
Date | Date | Date | Total | Ordinary | Return | Long-Term | to 2014 | ||||||||||||||||||||||
Distribution | Income | of Capital | Capital | ||||||||||||||||||||||||||
Per Share | Gains | ||||||||||||||||||||||||||||
1/18/13 | 3/28/13 | 4/15/13 | $ | 0.390625 | $ | 0.390625 | $ | - | $ | - | $ | - | |||||||||||||||||
4/19/13 | 6/28/13 | 7/15/13 | 0.390625 | 0.383813 | - | 0.006812 | - | ||||||||||||||||||||||
7/19/13 | 9/30/13 | 10/15/13 | 0.390625 | 0.35608 | - | 0.034545 | - | ||||||||||||||||||||||
10/3/13 | 12/31/13 | 1/15/14 | 0.390625 | - | - | - | 0.390625 | ||||||||||||||||||||||
Total: | $ | 1.5625 | $ | 1.130518 | $ | - | $ | 0.041357 | $ | 0.390625 | |||||||||||||||||||
Common Stock (CUSIP 03747 10 1) | |||||||||||||||||||||||||||||
Declaration | Record | Payable | 2013 | 2013 | 2013 | 2013 | Carry-Over | Carry-Over | |||||||||||||||||||||
Date | Date | Date | Total | Ordinary | Return | Long-Term | from 2012(1) | to 2014 | |||||||||||||||||||||
Distribution | Income | of Capital | Capital | ||||||||||||||||||||||||||
Per Share | Gains | ||||||||||||||||||||||||||||
12/14/12 | 12/28/12 | 1/29/13 | $ | 0.04 | $ | - | $ | - | $ | - | $ | 0.04 | $ | - | |||||||||||||||
3/28/13 | 4/8/13 | 4/29/13 | 0.15 | 0.15 | - | - | - | - | |||||||||||||||||||||
6/28/13 | 7/8/13 | 7/29/13 | 0.15 | 0.1474 | - | 0.0026 | - | - | |||||||||||||||||||||
9/30/13 | 10/10/13 | 10/29/13 | 0.12 | 0.094 | 0.0128 | 0.0132 | - | - | |||||||||||||||||||||
12/13/13 | 12/23/13 | 1/29/14 | 0.08 | - | - | - | - | 0.08 | |||||||||||||||||||||
Total: | $ | 0.54 | $ | 0.3914 | $ | 0.0128 | $ | 0.0158 | $ | 0.04 | $ | 0.08 | |||||||||||||||||
______________ | |||||||||||||||||||||||||||||
-1 | The $0.04 that is a carry-over from 2012 is also treated as 2013 ordinary income. | ||||||||||||||||||||||||||||
Series_B_Cumulative_Convertibl
Series B Cumulative Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2013 | |
Series B Cumulative Convertible Preferred Stock | ' |
NOTE 8. SERIES B CUMULATIVE CONVERTIBLE PREFERRED STOCK | |
The Series B Preferred Stock has a par value of $0.01 per share and a liquidation preference of $25.00 per share plus accrued and unpaid dividends (whether or not declared). The holders of the Series B Preferred Stock must be paid a dividend at a rate of 6.25% per year on the $25.00 liquidation preference before holders of our common stock are entitled to receive any dividends. The Series B Preferred Stock is senior to our common stock and on parity with our 8.625% Series A Cumulative Preferred Stock, or Series A Preferred Stock, with respect to the payment of distributions and amounts, upon liquidation, dissolution or winding up. So long as any shares of the Series B Preferred Stock remain outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds of the shares of the Series B Preferred Stock outstanding at the time, authorize or create, or increase the authorized or issued amount of, any class or series of capital stock ranking senior to the Series B Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up. | |
The Series B Preferred Stock has no maturity date and is not redeemable. The Series B Preferred Stock is convertible at the then-current conversion rate into shares of our common stock per $25.00 liquidation preference. The conversion rate is adjusted in any fiscal quarter in which the cash dividends paid to common stockholders results in an annualized common stock dividend yield that is greater than 6.25%. The conversion ratio is also subject to adjustment upon the occurrence of certain specific events such as a change of control. The Series B Preferred Stock is convertible into shares of our common stock at the option of the holder(s) of Series B Preferred Stock at any time at the then-prevailing conversion rate. On or after January 25, 2012, we may, at our option, under certain circumstances, convert each share of Series B Preferred Stock into a number of shares of our common stock at the then-prevailing conversion rate. We may exercise this conversion option only if our common stock price equals or exceeds 130% of the then-prevailing conversion price of the Series B Preferred Stock for at least twenty (20) trading days in a period of thirty (30) consecutive trading days (including the last trading day of such period) ending on the trading day immediately prior to our issuance of a press release announcing the exercise of the conversion option. The Series B Preferred Stock contains certain fundamental change provisions that allow the holder to redeem the Series B Preferred Stock for cash if certain events occur, such as a change in control. The Series B Preferred Stock generally does not have voting rights, except if dividends on the Series B Preferred Stock are in arrears for six or more quarterly periods (whether or not consecutive). Under such circumstances, the holders of Series B Preferred Stock, together with the holders of Series A Preferred Stock, would be entitled to elect two additional directors to our board of directors to serve until all unpaid dividends have been paid or declared and set aside for payment. In addition, certain material and adverse changes to the terms of the Series B Preferred Stock may not be taken without the affirmative vote of at least two-thirds of the outstanding shares of Series B Preferred Stock and Series A Preferred Stock voting together as a single class. Through December 31, 2013, we have declared and set aside for payment the required dividends for the Series B Preferred Stock. | |
During the year ended December 31, 2013, there were three transactions to convert an aggregate of 111,000 shares of Series B Preferred Stock into an aggregate of 425,907 shares of our common stock at a weighted average conversion rate of 3.8370. During the year ended December 31, 2013, we issued an aggregate of 54,566 shares of Series B Preferred Stock at a weighted average price of $24.50 per share, which provided net proceeds to us of approximately $1.34 million. |
Public_Offerings_and_Capital_S
Public Offerings and Capital Stock | 12 Months Ended |
Dec. 31, 2013 | |
Public Offerings and Capital Stock | ' |
NOTE 9. PUBLIC OFFERINGS AND CAPITAL STOCK | |
At December 31, 2013, our authorized capital included 200 million shares of common stock, of which 138,717,419 shares were issued and outstanding. | |
At December 31, 2013, our authorized capital included 20 million shares of $0.01 par value preferred stock, of which 5.15 million shares had been designated 8.625% Series A Cumulative Preferred Stock (liquidation preference $25.00 per share) and 3.15 million shares had been designated 6.25% Series B Cumulative Convertible Preferred Stock (liquidation preference $25.00 per share). The undesignated shares of preferred stock may be issued in one or more classes or series, with such distinctive designations, rights and preferences as determined by our board of directors. The Series A Preferred Stock has no maturity date and we are not required to redeem it at any time. We may redeem the Series A Preferred Stock for cash, at our option, in whole or from time to time in part, at a redemption price of $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. To date, we have not redeemed any shares of our Series A Preferred Stock. At December 31, 2013, there were 1,919,378 shares of Series A Preferred Stock issued and outstanding and 1,009,640 shares of Series B Preferred Stock issued and outstanding. | |
On May 27, 2011, we entered into a Controlled Equity Offering Sales Agreement, or the 2011 Sales Agreement, with Cantor Fitzgerald & Co., or Cantor, to sell up to 20,000,000 shares of our common stock, 1,000,000 shares of our Series A Preferred Stock and 1,000,000 shares of our Series B Preferred Stock. During the year ended December 31, 2013, we issued under the 2011 Sales Agreement (i) an aggregate of 41,978 shares of our Series A Preferred Stock at a weighted average price of $26.08 per share, which provided net proceeds to us of approximately $1.09 million, net of sales commissions less reimbursement of fees, and (ii) an aggregate of 54,566 shares of our Series B Preferred Stock at a weighted average price of $24.50 per share, which provided net proceeds to us of approximately $1.34 million, net of sales commissions less reimbursement of fees. During the year ended December 31, 2013, we did not issue any shares of our common stock under the 2011 Sales Agreement. At December 31, 2013, there were 19,409,400 shares of common stock, 956,122 shares of Series A Preferred Stock and 894,518 shares of Series B Preferred Stock, respectively, available for sale under the 2011 Sales Agreement. | |
On October 3, 2011, we announced that our board of directors had authorized a share repurchase program which permits us to acquire up to 2,000,000 shares of our common stock. The shares are expected to be acquired at prevailing prices through open market transactions. The manner, price, number and timing of share repurchases will be subject to market conditions and applicable SEC rules. Our board of directors also authorized the Company to purchase an amount of our common stock up to the amount of common stock sold through our 2012 Dividend Reinvestment and Stock Purchase Plan. On December 13, 2013, we announced that our board of directors had authorized us to acquire up to an additional 5,000,000 shares of our common stock through our share repurchase program. During the year ended December 31, 2013, we repurchased an aggregate of 7,646,429 shares at a weighted average price of $4.95 per share under our share repurchase program. | |
Our Dividend Reinvestment and Stock Purchase Plan allows stockholders and non-stockholders to purchase shares of our common stock and to reinvest dividends therefrom to acquire additional shares of our common stock. On March 14, 2012, we filed a shelf registration statement on Form S-3 with the SEC, registering up to 27 million shares of our common stock for our 2012 Dividend Reinvestment and Stock Purchase Plan, or the 2012 Plan. During the year ended December 31, 2013, we issued an aggregate of 3,924,551 shares of our common stock at a weighted average price of $5.84 per share, resulting in proceeds to us of approximately $22.9 million. At December 31, 2013, there were approximately 16.8 million shares remaining under the 2012 Plan. Effective July 5, 2013, we reduced the discount rate on dividend reinvestment offered through our 2012 Plan from 1% to zero until further notice. | |
On December 28, 2009, we filed a shelf registration statement on Form S-3 with the SEC, and, on February 26, 2010, we filed a pre-effective amendment thereto with the SEC, offering up to $600 million of our capital stock. The registration statement was declared effective on March 26, 2010. At December 31, 2013, approximately $544.7 million of our capital stock was available for issuance under the registration statement. | |
On November 7, 2005, we filed a registration statement on Form S-8 with the SEC to register an aggregate of up to 3.5 million shares of our common stock to be issued pursuant to the Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan. To date, we have issued approximately 2,840,000 shares of common stock under the plan. This amount includes 273,469 shares of unexercised stock options and restricted stock and restricted stock units. |
Transactions_with_Affiliates
Transactions with Affiliates | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Transactions with Affiliates | ' | ||||||||||||||||||||||||||||
NOTE 10. TRANSACTIONS WITH AFFILIATES | |||||||||||||||||||||||||||||
Management Agreement and Externalization | |||||||||||||||||||||||||||||
Effective as of December 31, 2011, we entered into the Management Agreement, pursuant to which our day-to-day operations are conducted by the Manager. The Manager is supervised and directed by our board of directors and is responsible for (i) the selection, purchase and sale of our investment portfolio; (ii) our financing and hedging activities; and (iii) providing us with management services. The Manager will also perform such other services and activities relating to our assets and operations as may be appropriate. In exchange for these services, the Manager receives a management fee paid monthly in arrears in an amount equal to one-twelfth of 1.20% of our Equity (as defined in the Management Agreement). | |||||||||||||||||||||||||||||
On the effective date of the Management Agreement, the employment agreements with our executives were terminated, our employees became employees of the Manager, and we took such other actions as were reasonably necessary to implement the Management Agreement and to externalize our management function. In 2011, Messrs. Lloyd McAdams and Joseph E. McAdams had employment agreements with the Company. For the year ended December 31, 2011, we paid these executives a total of approximately $6.85 million in annual salaries, incentive compensation and bonuses. These amounts were included in the income statement line item “Compensation, incentive compensation and benefits.” | |||||||||||||||||||||||||||||
A trust controlled by Lloyd McAdams, our Chairman, Chief Executive Officer and President, and Heather U. Baines, an Executive Vice President of the Manager, beneficially owns 50% of the outstanding membership interests of the Manager; Joseph E. McAdams, the Chief Investment Officer of the Manager, beneficially owns 45% of the outstanding membership interests of the Manager; and Thad M. Brown, our Chief Financial Officer, owns 5% of the outstanding membership interests of the Manager. | |||||||||||||||||||||||||||||
Nothing in the Management Agreement prevents the Manager or any of its affiliates from engaging in other businesses or from rendering services of any kind to any other person or entity, including investment in or advisory service to others investing in any type of real estate investment, other than advising other REITs that invest more than 75% of their assets in U.S. agency residential MBS. Directors, officers and employees of the Manager may serve as our directors and officers. | |||||||||||||||||||||||||||||
Messrs. Lloyd McAdams, Joseph E. McAdams, Charles J. Siegel and John T. Hillman and Ms. Heather U. Baines and others are officers and employees of PIA Farmland, Inc. and its external manager, PIA, where they devote a portion of their time. PIA Farmland, Inc., a privately-held real estate investment trust investing in U.S. farmland properties to lease to independent farm operators, was incorporated in February 2013 and acquired its first farm property in October 2013. These officers and employees are under no contractual obligations to PIA Farmland, Inc., its external manager, PIA, or to Anworth or its external manager, Anworth Management, LLC, as to their time commitment. Mr. Steven Koomar, the Chief Executive Officer of PIA Farmland, Inc., has no involvement with either Anworth or its external manager, Anworth Management, LLC. | |||||||||||||||||||||||||||||
The terms of the Management Agreement, including the management fee payable, were not negotiated on an arm’s-length basis, and its terms may not be as favorable to us as if it was negotiated with an unaffiliated party. The management fee that we pay to the Manager is not tied to our performance. The management fee is paid regardless of our performance and it may not provide sufficient incentive to the Manager to seek to achieve risk-adjusted returns for our investment portfolio. | |||||||||||||||||||||||||||||
The Management Agreement may only be terminated without cause, as defined in the agreement, after the completion of its initial term on December 31, 2013, or the expiration of any annual renewal term. We are required to provide 180-days prior notice of non-renewal of the Management Agreement and must pay a termination fee on the last day of the initial term or any automatic renewal term, equal to three times the average annual management fee earned by the Manager during the prior 24-month period immediately preceding the most recently completed month prior to the effective date of termination. Our board of directors affirmatively elected to renew the Management Agreement for another one-year term expiring on December 31, 2014. We may only not renew the Management Agreement with or without cause with the consent of the majority of our independent directors. These provisions make it difficult to terminate the Management Agreement and increase the effective cost to us of not renewing the Management Agreement. | |||||||||||||||||||||||||||||
Certain of our former officers were previously granted restricted stock and other equity awards (see Note 11), including dividend equivalent rights, in connection with their service to us, and certain of our former officers had agreements under which they would receive payments if the Company is subject to a change in control (discussed later in this Note 10). In connection with the Externalization, certain of the agreements under which our officers were granted equity awards and would be paid payments in the event of a change in control were modified so that such agreements will continue with respect to our former officers and employees after they became officers and employees of the Manager. In addition, as officers and employees of the Manager, they will continue to be eligible to receive equity incentive awards under equity incentive plans in effect now or in the future. | |||||||||||||||||||||||||||||
Change in Control and Arbitration Agreements | |||||||||||||||||||||||||||||
On June 27, 2006, we entered into Change in Control and Arbitration Agreements with each of Mr. Thad M. Brown, our Chief Financial Officer, Mr. Charles J. Siegel, our then Senior Vice President-Finance, Ms. Bistra Pashamova, our then Senior Vice President and Portfolio Manager, and Mr. Evangelos Karagiannis, our then Vice President and Portfolio Manager, as well as certain of our other officers. In connection with the Externalization, we amended these agreements to provide that should a change in control (as defined in the amended agreements) occur, each of these officers will receive certain severance and other benefits valued as of December 31, 2011. Under the amended agreements, in the event that a change in control occurs, each of these officers will receive a lump sum payment equal to (i) 12 months annual base salary in effect on December 31, 2011, plus (ii) the average annual incentive compensation received for the two complete fiscal years prior December 31, 2011, plus (iii) the average annual bonus received for the two complete fiscal years prior to December 31, 2011, as well as other benefits. The amended Change in Control and Arbitration Agreements also provide for accelerated vesting of equity awards granted to these officers upon a change in control. | |||||||||||||||||||||||||||||
Agreements with Pacific Income Advisers, Inc. | |||||||||||||||||||||||||||||
On June 13, 2002, we entered into a sublease agreement with Pacific Income Advisers, Inc., or PIA, a company owned by trusts controlled by certain of our officers. Under this sublease agreement, as amended on July 8, 2003, we leased, on a pass-through basis, 5,500 square feet of office space from PIA and paid rent at an annual rate equal to PIA’s obligation, which was $57.46 per square foot. This sublease agreement terminated on June 30, 2012. During the years ended December 31, 2012 and December 31, 2011, we expensed $169 thousand and $326 thousand, respectively, in rent and related expenses to PIA under this sublease. | |||||||||||||||||||||||||||||
On January 26, 2012, we entered into a sublease agreement with PIA that became effective on July 1, 2012. Under the new sublease agreement, we lease, on a pass-through basis, 7,300 square feet of office space from PIA and pay rent at an annual rate equal to PIA’s obligation, which is currently $59.87 per square foot. The base monthly rental for us is $36,426.47, which will be increased 3% per annum beginning on July 1, 2013. The new sublease agreement runs through June 30, 2022 unless earlier terminated pursuant to the master lease. During the years ended December 31, 2013 and December 31, 2012, we paid or accrued $489 thousand and $227 thousand, respectively, in rent and other operating expenses to PIA under the new sublease agreement, which is included in “Other expenses” on the statements of income. | |||||||||||||||||||||||||||||
At December 31, 2013, the future minimum lease commitment was as follows (in whole dollars): | |||||||||||||||||||||||||||||
Year | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Commitment | |||||||||||||||||||||||||||||
Commitment | $ | 443,669 | $ | 456,987 | $ | 470,720 | $ | 484,852 | $ | 499,398 | $ | 1,866,754 | $ | 4,222,380 | |||||||||||||||
On July 25, 2008, we entered into an administrative services agreement with PIA, which was amended and restated on August 20, 2010. Under this agreement, PIA provides administrative services and equipment to us including human resources, operational support and information technology, and we pay an annual fee of 5 basis points on the first $225 million of stockholders’ equity and 1.25 basis points thereafter (paid quarterly in arrears) for those services. The administrative services agreement had an initial term of one year and renews for successive one-year terms thereafter unless either party gives notice of termination no less than 30 days before the expiration of the then-current annual term. We may also terminate the administrative services agreement upon 30 days prior written notice for any reason and immediately if there is a material breach by PIA. Included in “Other expenses” on the statements of income are fees of $211 thousand paid to PIA in connection with this agreement during the year ended December 31, 2013. During the years ended December 31, 2012 and 2011, we paid fees of $207 thousand and $199 thousand, respectively, to PIA in connection with this agreement. |
Equity_Compensation_Plan
Equity Compensation Plan | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Equity Compensation Plan | ' | ||||||||||||||||||||||||||
NOTE 11. EQUITY COMPENSATION PLAN | |||||||||||||||||||||||||||
2004 Equity Compensation Plan | |||||||||||||||||||||||||||
At our May 27, 2004 annual stockholders’ meeting, our stockholders adopted the Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan, or the Plan, which amended and restated our 1997 Stock Option and Awards Plan. The Plan authorized the grant of stock options and other stock-based awards, as of December 31, 2005, for an aggregate of up to 3,500,000 shares of our registered our common stock. The Plan authorizes our board of directors, or a committee of our Board, to grant incentive stock options, as defined under section 422 of the Code, options not so qualified, restricted stock, dividend equivalent rights, or DERs, phantom shares, stock-based awards that qualify as performance-based awards under Section 162(m) of the Code and other stock-based awards. The exercise price for any option granted under the Plan may not be less than 100% of the fair market value of the shares of common stock at the time the option is granted. At December 31, 2013, 660,414 shares remained available for future issuance under the Plan through any combination of stock options or other awards. The Plan does not provide for automatic annual increases in the aggregate share reserve or the number of shares remaining available for grant. We filed a registration statement on Form S-8 on November 7, 2005 to register an aggregate of up to 3,500,000 shares of our common stock to be issued pursuant to the Plan. | |||||||||||||||||||||||||||
A summary of stock option transactions for the plan follows: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Outstanding, beginning of year | 320,700 | $ | 13.736 | 592,480 | $ | 12.535 | 621,100 | $ | 12.48 | ||||||||||||||||||
Granted | - | - | - | - | - | - | |||||||||||||||||||||
Exercised | - | - | - | - | (260 | ) | 6.7 | ||||||||||||||||||||
Expired | (315,700 | ) | 13.8 | (271,780 | ) | 10.57 | (28,360 | ) | 11.4 | ||||||||||||||||||
Outstanding, end of year | 5,000 | $ | 9.72 | 320,700 | $ | 13.736 | 592,480 | $ | 12.535 | ||||||||||||||||||
Weighted average fair value of options expired during the year | $ | 13.8 | $ | 10.57 | $ | 11.4 | |||||||||||||||||||||
Options exercisable at year-end | 5,000 | 320,700 | 592,480 | ||||||||||||||||||||||||
The aggregate intrinsic value of options exercised during 2011 and those outstanding at December 31, 2013 and December 31, 2012 are immaterial. | |||||||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||||||
Exercise | Options | Remaining | |||||||||||||||||||||||||
Price | Outstanding and | Contractual | |||||||||||||||||||||||||
Exercisable | Life (Years) | ||||||||||||||||||||||||||
$ | 9.72 | 5,000 | 1.6 | ||||||||||||||||||||||||
The following table summarizes information about restricted stock transactions during the year ended December 31, 2013: | |||||||||||||||||||||||||||
Grant | Unvested | Restricted | Shares | Shares | Unvested | Weighted | |||||||||||||||||||||
Date Fair | Shares at | Shares | Vested in | Forfeited | Shares at | Average | |||||||||||||||||||||
Value | December 31, | Granted | 2013 | December 31, | Remaining | ||||||||||||||||||||||
2012 | 2013 | Contractual | |||||||||||||||||||||||||
Life (Years) | |||||||||||||||||||||||||||
$ | 4.24 | 46,649 | - | 15,542 | - | 31,107 | 1.8 | ||||||||||||||||||||
$ | 5.93 | 197,362 | - | - | - | 197,362 | 2.8 | ||||||||||||||||||||
244,011 | - | 15,542 | - | 228,469 | 2.7 | ||||||||||||||||||||||
In October 2005, our board of directors approved the grant of an aggregate of 200,780 shares of restricted stock to various employees under our 2004 Equity Plan. The stock price on the grant date was $7.72. The restricted stock vests 10% per year on each anniversary date for a ten-year period and shall also vest immediately upon the death of the grantee or upon the grantee reaching age 65. Each grantee shall have the right to sell 40% of the restricted stock any time after such shares have vested. The remaining 60% of such vested restricted stock may not be sold until after termination of employment with us. We amortize the restricted stock over the vesting period, which is the lesser of ten years or the remaining number of years to age 65. | |||||||||||||||||||||||||||
In October 2006, our board of directors approved a grant of an aggregate of 197,362 shares of performance-based restricted stock to various officers and employees under our 2004 Equity Plan. Such grant was made effective on October 18, 2006. The closing stock price on the effective date of the grant was $9.12. The shares were to vest in equal annual installments over the next three years provided that the annually compounded rate of return on our common stock, including dividends, exceeds 12% measured from the effective date of the grant to each of the next three anniversary dates. As the annually compounded rate of return did not exceed 12%, the shares will vest on the anniversary date thereafter when the annually compounded rate of return exceeds 12%. If the annually compounded rate of return does not exceed 12% within ten years after the effective date of the grant, then the shares will be forfeited. The shares will fully vest within the ten-year period upon the death of a grantee. Upon vesting, each grantee shall have the right to sell 40% of the restricted stock any time after such shares have vested. The remaining 60% of such vested restricted stock may not be sold, transferred or pledged until after termination of employment with us or upon the tenth anniversary of the effective date. | |||||||||||||||||||||||||||
The fair value of the aforementioned stock-based awards was estimated using the Black-Scholes model with the following weighted-average assumptions: | |||||||||||||||||||||||||||
2005 | 2006 | ||||||||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||||||||
Assumptions: | |||||||||||||||||||||||||||
Dividend yield | 6 | % | 4 | % | |||||||||||||||||||||||
Expected volatility | 29 | % | 28 | % | |||||||||||||||||||||||
Risk-free interest rate | 4.29 | % | 4.8 | % | |||||||||||||||||||||||
Expected lives | 10 years | 10 years | |||||||||||||||||||||||||
We recognize the compensation expense related to restricted stock over the ten-year vesting period. The weighted average remaining term of the two grants is 2.7 years. During the years ended December 31, 2013 and December 31, 2012, we expensed approximately $202 thousand and $202 thousand, respectively, related to these restricted stock grants. At our May 24, 2007 annual meeting of stockholders, our stockholders adopted the Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan, or the 2007 Dividend Equivalent Rights Plan. A dividend equivalent right, or DER, is a right to receive amounts equal in value to the dividend distributions paid on a share of our common stock. DERs are paid in either cash or shares of our common stock, whichever is specified by our Compensation Committee at the time of grant, at such times as dividends are paid on shares of our common stock during the period between the date a DER is issued and the date the DER expires or earlier terminates. The Compensation Committee may impose such other conditions to the grant of DERs as it may deem appropriate. The maximum term for DERs under the 2007 Dividend Equivalent Rights Plan is ten years from the date of grant. Prior to January 1, 2012, an aggregate of 582,000 DERs were issued to our officers under the 2007 Dividend Equivalent Rights Plan. These DERs are not attached to any stock and only have the right to receive the same cash distribution per common share distributed to our common stockholders during the term of the grant. All of these grants have a five-year term from the date of the grant. During the years ended December 31, 2013, December 31, 2012 and December 31, 2011, we paid or accrued $291 thousand, $402 thousand and $547 thousand, respectively, related to DERs granted. | |||||||||||||||||||||||||||
Certain of our officers have previously been granted restricted stock and other equity incentive awards, including dividend equivalent rights, in connection with their service to us. In connection with the Externalization, certain of the agreements under which our officers have been granted equity awards were modified so that such agreements will continue with respect to our officers after they became officers and employees of the Manager. As a result, these awards and any future grants will be accounted for as non-employee awards. In addition, as officers of the Company and employees of the Manager, they will continue to be eligible to receive equity incentive awards under equity incentive plans in effect now or in the future. In accordance with the Externalization effective as of December 31, 2011, the DERs previously granted to all of our officers, with the exception of our Chief Executive Officer and Chief Financial Officer, were terminated under the 2007 Dividend Equivalent Rights Plan and were reissued under the 2004 Equity Compensation Plan with the same amounts, terms and conditions. During the three months ended March 31, 2013, grants of an aggregate of 300,000 DERs that were issued to various officers under the 2007 Dividend Equivalents Right Plan expired. In February 2013, our board of directors approved grants of an aggregate of 300,000 DERs to our Chief Executive Officer and Chief Financial Officer under the 2007 Dividend Equivalent Rights Plan and to various officers of the Manager under the 2004 Equity Compensation Plan. Portions of the grants expire in 2016, 2017 and 2018. In December 2013, grants of an aggregate of 150,000 DERs that were issued to various officers under the 2007 DER Plan expired and our board of directors approved grants of an aggregate of 150,000 DERs to replace those expiring. Portions of the new grants expire in 2014, 2015 and 2016. |
Hedging_Instruments
Hedging Instruments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Hedging Instruments | ' | ||||||||||||||||||||||||
NOTE 12. HEDGING INSTRUMENTS | |||||||||||||||||||||||||
At December 31, 2013, we were a counterparty to interest rate swap agreements, which are derivative instruments as defined by ASC 815-10, with an aggregate notional amount of $5.375 billion and a weighted average maturity of approximately 3.9 years. During the year ended December 31, 2013, six of our outstanding swap agreements with an aggregate notional amount of $375 million matured. During the year ended December 31, 2013, we entered into 38 new swap agreements with an aggregate notional amount of $2.59 billion and terms of up to ten years. We utilize swap agreements to manage interest rate risk relating to our repurchase agreements (the hedged item) and do not anticipate entering into derivative transactions for speculative or trading purposes. In accordance with the swap agreements, we will pay a fixed-rate of interest during the term of the swap agreements (ranging from 0.578% to 3.06%) and receive a payment that varies with the three-month LIBOR rate. | |||||||||||||||||||||||||
At December 31, 2013 and December 31, 2012, our swap agreements had the following notional amounts (in thousands), weighted average interest rates and remaining term in months: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Notional | Weighted | Remaining | Notional | Weighted | Remaining | ||||||||||||||||||||
Amount | Average | Term in | Amount | Average | Term in | ||||||||||||||||||||
Interest | Months | Interest | Months | ||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||
Less than 12 months | $ | 410,000 | 2.07 | % | 4 | $ | 375,000 | 3.32 | % | 2 | |||||||||||||||
1 year to 2 years | 680,000 | 2.07 | 18 | 410,000 | 2.07 | 16 | |||||||||||||||||||
2 years to 3 years | 1,145,000 | 1.82 | 29 | 680,000 | 2.07 | 30 | |||||||||||||||||||
3 years to 5 years | 1,715,000 | 1.18 | 48 | 1,595,000 | 1.64 | 45 | |||||||||||||||||||
5 years to 7 years | 925,000 | 2.11 | 76 | 100,000 | 1.18 | 72 | |||||||||||||||||||
7 years to 10 years | 500,000 | 2.84 | 107 | - | - | - | |||||||||||||||||||
$ | 5,375,000 | 1.81 | % | 47 | $ | 3,160,000 | 1.98 | % | 34 | ||||||||||||||||
Swap Agreements by Counterparty | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
JPMorgan Securities | $ | 1,175,000 | $ | 800,000 | |||||||||||||||||||||
Deutsche Bank Securities | 1,165,000 | 800,000 | |||||||||||||||||||||||
RBS Greenwich Capital | 800,000 | 485,000 | |||||||||||||||||||||||
Nomura Securities International | 650,000 | 450,000 | |||||||||||||||||||||||
ING Financial Markets LLC | 650,000 | 150,000 | |||||||||||||||||||||||
Bank of New York | 260,000 | 100,000 | |||||||||||||||||||||||
Chicago Mercantile Exchange(1) | 400,000 | - | |||||||||||||||||||||||
Morgan Stanley | 150,000 | 150,000 | |||||||||||||||||||||||
Credit Suisse | 75,000 | 175,000 | |||||||||||||||||||||||
LBBW Securities, LLC | 50,000 | 50,000 | |||||||||||||||||||||||
$ | 5,375,000 | $ | 3,160,000 | ||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||
-1 | For all swap agreements entered into after September 9, 2013, the counterparty will be the Chicago Mercantile Exchange regardless of who the trading party is. See the section entitled “Derivative Financial Instruments – Interest Rate Risk Management” in Note 1 for additional details. | ||||||||||||||||||||||||
During the year ended December 31, 2013, there was a decrease in unrealized losses of approximately $62.7 million, from approximately $96 million in unrealized losses at December 31, 2012 to approximately $33.3 million in unrealized losses, on our swap agreements included in “Other comprehensive income” (this decrease in unrealized losses consisted of unrealized gains on cash flow hedges of approximately $3.4 million and a reclassification adjustment for interest expense included in net income of approximately $59.3 million). | |||||||||||||||||||||||||
At December 31, 2013, we had asset and liability derivatives of approximately $22.6 million and $55.9 million, respectively (shown on our audited balance sheets). | |||||||||||||||||||||||||
During the year ended December 31, 2013, there was no gain or loss recognized in earnings due to hedge ineffectiveness. We have determined that our hedges are still considered “highly effective.” There were no components of the derivative instruments’ gain or loss excluded from the assessment of hedge effectiveness. The maximum length of our swap agreements is ten years. We do not anticipate any discontinuance of the swap agreements and thus do not expect to recognize any gain or loss into earnings because of this. | |||||||||||||||||||||||||
For more information on our accounting policies, the objectives and risk exposures relating to derivatives and hedging agreements, see the section on “Derivative Financial Instruments” in Note 1. For more information on the fair value of our swap agreements, see Note 6. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies | ' |
NOTE 13. COMMITMENTS AND CONTINGENCIES | |
Lease Commitment and Administrative Services Commitment—We sublease office space and use administrative services from PIA as more fully described in Note 10. |
Other_Expenses
Other Expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Expenses | ' | ||||||||||||
NOTE 14. OTHER EXPENSES | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Legal and accounting fees | $ | 503 | $ | 520 | $ | 608 | |||||||
Printing and stockholder communications | 211 | 205 | 219 | ||||||||||
Directors and Officers insurance | 469 | 436 | 431 | ||||||||||
DERs expense(1) | 291 | 402 | - | ||||||||||
Amortization of restricted stock(2) | 202 | 202 | - | ||||||||||
Software implementation and maintenance | 295 | 287 | 258 | ||||||||||
Administrative service fees | 211 | 207 | 199 | ||||||||||
Rent | 489 | 396 | 326 | ||||||||||
Stock exchange and filing fees | 215 | 238 | 192 | ||||||||||
Custodian fees | 136 | 136 | 131 | ||||||||||
Sarbanes-Oxley consulting fees | 107 | 119 | 113 | ||||||||||
Board of directors fees and expenses | 324 | 327 | 334 | ||||||||||
Securities data services | 131 | 124 | 110 | ||||||||||
Other | 183 | 238 | 364 | ||||||||||
Total of other expenses: | $ | 3,767 | $ | 3,837 | $ | 3,285 | |||||||
__________________ | |||||||||||||
-1 | For the year ended December 31, 2011, “DERs expense” of $547 thousand was included in “Compensation expense.” | ||||||||||||
-2 | For the year ended December 31, 2011, “Amortization of restricted stock” of $202 thousand was included in “Compensation expense.” |
Summarized_Quarterly_Results_U
Summarized Quarterly Results (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summarized Quarterly Results (Unaudited) | ' | ||||||||||||||||
NOTE 15. SUMMARIZED QUARTERLY RESULTS (UNAUDITED) | |||||||||||||||||
The following tables summarize quarterly results for the years ended December 31, 2013 and December 31, 2012. Earnings per share amounts for each quarter and the full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amounts because of substantial differences in the average shares outstanding during each period and, with regard to diluted earnings per share amounts, they may also differ because of the inclusion of the effect of potentially dilutive securities only in the periods in which such effect would have been dilutive. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which includes stock options and convertible preferred stock) and adding back the Series B Preferred Stock dividends, unless the effect is to reduce a loss or increase the income per share. | |||||||||||||||||
For the year ended December 31, 2013 (in thousands, except per share amounts): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest income net of amortization of premium and discount: | |||||||||||||||||
Interest on Agency MBS | $ | 43,450 | $ | 45,231 | $ | 42,646 | $ | 43,403 | |||||||||
Other income | 17 | 13 | 11 | 13 | |||||||||||||
43,467 | 45,244 | 42,657 | 43,416 | ||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense on repurchase agreements | 20,902 | 20,046 | 22,484 | 28,258 | |||||||||||||
Interest expense on junior subordinated notes | 320 | 320 | 321 | 318 | |||||||||||||
21,222 | 20,366 | 22,805 | 28,576 | ||||||||||||||
Net interest income | 22,245 | 24,878 | 19,852 | 14,840 | |||||||||||||
Gain on sale of Agency MBS | 5,170 | 2,076 | 1,991 | - | |||||||||||||
Recovery on Non-Agency MBS | 129 | 103 | 100 | 64 | |||||||||||||
Expenses | (3,920 | ) | (4,059 | ) | (3,935 | ) | (3,814 | ) | |||||||||
Net income | 23,624 | 22,998 | 18,008 | 11,090 | |||||||||||||
Dividend on Series A Cumulative Preferred Stock | (1,034 | ) | (1,035 | ) | (1,035 | ) | (1,035 | ) | |||||||||
Dividend on Series B Cumulative Convertible Preferred Stock | (412 | ) | (394 | ) | (394 | ) | (394 | ) | |||||||||
Net income to common stockholders | $ | 22,178 | $ | 21,569 | $ | 16,579 | $ | 9,661 | |||||||||
Basic earnings per common share | $ | 0.16 | $ | 0.15 | $ | 0.12 | $ | 0.07 | |||||||||
Diluted earnings per common share | $ | 0.15 | $ | 0.15 | $ | 0.12 | $ | 0.07 | |||||||||
Basic weighted average number of shares outstanding | 142,903 | 144,252 | 142,380 | 140,314 | |||||||||||||
Diluted weighted average number of shares outstanding | 146,945 | 148,126 | 146,287 | 144,272 | |||||||||||||
For the year ended December 31, 2012 (in thousands, except per share amounts): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest income net of amortization of premium and discount: | |||||||||||||||||
Interest on Agency MBS | $ | 53,249 | $ | 50,327 | $ | 47,177 | $ | 45,010 | |||||||||
Other income | 14 | 16 | 14 | 46 | |||||||||||||
53,263 | 50,343 | 47,191 | 45,056 | ||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense on repurchase agreements | 20,574 | 20,669 | 21,408 | 22,069 | |||||||||||||
Interest expense on junior subordinated notes | 345 | 340 | 339 | 329 | |||||||||||||
20,919 | 21,009 | 21,747 | 22,398 | ||||||||||||||
Net interest income | 32,344 | 29,334 | 25,444 | 22,658 | |||||||||||||
Gain on sale of Agency MBS | - | - | - | 4,434 | |||||||||||||
Recovery on Non-Agency MBS | 623 | 350 | 299 | 154 | |||||||||||||
Expenses | (3,845 | ) | (3,872 | ) | (3,792 | ) | (3,913 | ) | |||||||||
Net income | 29,122 | 25,812 | 21,951 | 23,333 | |||||||||||||
Dividend on Series A Cumulative Preferred Stock | (1,011 | ) | (1,011 | ) | (1,011 | ) | (1,012 | ) | |||||||||
Dividend on Series B Cumulative Convertible Preferred Stock | (450 | ) | (449 | ) | (412 | ) | (416 | ) | |||||||||
Net income to common stockholders | $ | 27,661 | $ | 24,352 | $ | 20,528 | $ | 21,905 | |||||||||
Basic earnings per common share | $ | 0.2 | $ | 0.18 | $ | 0.15 | $ | 0.15 | |||||||||
Diluted earnings per common share | $ | 0.2 | $ | 0.18 | $ | 0.15 | $ | 0.15 | |||||||||
Basic weighted average number of shares outstanding | 135,064 | 137,064 | 139,209 | 142,140 | |||||||||||||
Diluted weighted average number of shares outstanding | 139,292 | 141,292 | 143,148 | 146,159 | |||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
NOTE 16. SUBSEQUENT EVENTS | |
On January 27, 2014, we declared a Series A Preferred Stock dividend of $0.539063 per share and a Series B Preferred Stock dividend of $0.390625 per share, each of which is payable on April 15, 2014 to our holders of record of Series A Preferred Stock and Series B Preferred Stock, respectively, as of the close of business on March 31, 2014. | |
From January 1, 2014 through February 21, 2014, we issued an aggregate of 49,230 shares of our common stock at a weighted average price of $4.55 per share under our 2012 Dividend Reinvestment and Stock Purchase Plan, resulting in net proceeds to us of approximately $224 thousand. | |
From January 1, 2014 through February 21, 2014, we repurchased an aggregate of 2,223,414 shares of our common stock at a weighted average price of $4.76 per share under our share repurchase program. | |
From January 1, 2014 through February 21, 2014, we entered into two new swap agreements with an aggregate notional amount of $75 million and terms of up to six years. From January 1, 2014 through February 21, 2014, two swap agreements with an aggregate notional amount of $150 million matured. | |
Organization_and_Significant_A1
Organization and Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents include cash on hand and highly liquid investments with original maturities of three months or less. The carrying amount of cash equivalents approximates their fair value. | |||||||||||||||||||||||||||||||||||||
Reverse Repurchase Agreements | ' | ||||||||||||||||||||||||||||||||||||
Reverse Repurchase Agreements | |||||||||||||||||||||||||||||||||||||
We use securities purchased under agreements to resell, or reverse repurchase agreements, as a means of investing excess cash. Although legally structured as a purchase and subsequent resale, reverse repurchase agreements are treated as financing transactions under which the counterparty pledges securities (U.S. treasury securities or Agency MBS) and accrued interest as collateral to secure a loan. The difference between the purchase price that we pay and the resale price that we receive represents interest paid to us and is included in “Other income” on our statements of income. It is our policy to generally take possession of securities purchased under reverse repurchase agreements at the time such agreements are made. | |||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities (MBS) | ' | ||||||||||||||||||||||||||||||||||||
Mortgage-Backed Securities (MBS) | |||||||||||||||||||||||||||||||||||||
Agency MBS are securities that are obligations (including principal and interest) which are guaranteed by the U.S. government, such as Ginnie Mae, or guaranteed by federally sponsored enterprises, such as Fannie Mae or Freddie Mac. Our investment grade Agency MBS portfolio is invested primarily in fixed-rate and adjustable-rate mortgage-backed pass-through certificates and hybrid adjustable-rate MBS. Hybrid adjustable-rate MBS have an initial interest rate that is fixed for a certain period, usually three to ten years, and then adjusts annually for the remainder of the term of the loan. We structure our investment portfolio to be diversified with a variety of prepayment characteristics, investing in mortgage-related assets with prepayment penalties, investing in certain mortgage security structures that have prepayment protections and purchasing mortgage-related assets at a premium and at a discount. Our portfolio also includes a small amount of Non-Agency MBS (approximately $79 thousand) and this is now included with the Agency MBS. Prior year balances have been presented consistent with this treatment. | |||||||||||||||||||||||||||||||||||||
We classify our MBS as either trading investments, available-for-sale investments or held-to-maturity investments. Our management determines the appropriate classification of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. We currently classify all of our MBS as available-for-sale. All assets that are classified as available-for-sale are carried at fair value and unrealized gains or losses are generally included in “Other comprehensive income (loss)” as a component of stockholders’ equity. Losses that are credit-related on securities classified as available-for-sale, which are determined by management to be other-than-temporary in nature, are reclassified from “Other comprehensive income” to income (loss). | |||||||||||||||||||||||||||||||||||||
The most significant source of our revenue is derived from our investments in MBS. Interest income on our Agency MBS is accrued based on the actual coupon rate and the outstanding principal amount of the underlying mortgages. Premiums and discounts are amortized or accreted into interest income over the estimated lives of the securities using the effective interest yield method, adjusted for the effects of actual and estimated prepayments based on the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 320-10. Our policy for estimating prepayment speeds for calculating the effective yield is to evaluate historical performance, street consensus prepayment speeds and current market conditions. If our estimate of prepayments is materially incorrect, as compared to the aforementioned references, we may be required to make an adjustment to the amortization or accretion of premiums and discounts that would have an impact on future income, which could be material and adverse. | |||||||||||||||||||||||||||||||||||||
Securities are recorded on the date the securities are purchased or sold. Realized gains or losses from securities transactions are determined based on the specific identified cost of the securities. | |||||||||||||||||||||||||||||||||||||
The following table shows our investments’ gross unrealized losses and fair value of those individual securities that have been in a continuous unrealized loss position at December 31, 2013 and December 31, 2012, aggregated by investment category and length of time (dollar amounts in thousands): | |||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | ||||||||||||||||||||||||||||
of | Value | Losses | of | Value | Losses | of | Value | Losses | |||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||||||
Agency MBS | 202 | $ | 4,262,712 | $ | (122,890 | ) | 230 | $ | 763,911 | $ | (23,089 | ) | 432 | $ | 5,026,623 | $ | (145,979 | ) | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | ||||||||||||||||||||||||||||
of | Value | Losses | of | Value | Losses | of | Value | Losses | |||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||||||
Agency MBS | 68 | $ | 907,972 | $ | (2,457 | ) | 207 | $ | 283,638 | $ | (4,117 | ) | 275 | $ | 1,191,610 | $ | (6,574 | ) | |||||||||||||||||||
We do not consider those Agency MBS that have been in a continuous loss position for 12 months or more to be other-than-temporarily impaired. The unrealized losses on our investments in Agency MBS were caused by fluctuations in interest rates. We purchased the Agency MBS primarily at a premium relative to their face value and the contractual cash flows of those investments are guaranteed by the U.S. government or government-sponsored agencies. Since September 2008, the government-sponsored agencies have been in the conservatorship of the U.S. government. We do not expect to sell the Agency MBS at a price less than the amortized cost basis of our investments. Because the decline in market value of the Agency MBS is attributable to changes in interest rates and not the credit quality of the Agency MBS in our portfolio, and because we do not have the intent to sell these investments nor is it more likely than not that we will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity, we do not consider these investments to be other-than-temporarily impaired at December 31, 2013. | |||||||||||||||||||||||||||||||||||||
Repurchase Agreements | ' | ||||||||||||||||||||||||||||||||||||
Repurchase Agreements | |||||||||||||||||||||||||||||||||||||
We finance the acquisition of our MBS primarily through the use of repurchase agreements. Under these repurchase agreements, we sell securities to a lender and agree to repurchase the same securities in the future for a price that is higher than the original sales price. The difference between the sale price that we receive and the repurchase price that we pay represents interest paid to the lender. Although structured as a sale and repurchase obligation, a repurchase agreement operates as a financing under which we pledge our securities and accrued interest as collateral to secure a loan which is equal in value to a specified percentage of the estimated fair value of the pledged collateral. We retain beneficial ownership of the pledged collateral. Upon the maturity of a repurchase agreement, we are required to repay the loan and concurrently receive back our pledged collateral from the lender or, with the consent of the lender, we may renew such agreement at the then-prevailing financing rate. These repurchase agreements may require us to pledge additional assets to the lender in the event the estimated fair value of the existing pledged collateral declines. | |||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||||||||||||||
Interest Rate Risk Management | |||||||||||||||||||||||||||||||||||||
We primarily use short-term (less than or equal to 12 months) repurchase agreements to finance the purchase of MBS. These obligations expose us to variability in interest payments due to changes in interest rates. We continuously monitor changes in interest rate exposures and evaluate hedging opportunities. | |||||||||||||||||||||||||||||||||||||
Our objective is to limit the impact of interest rate changes on earnings and cash flows. We achieve this by entering into interest rate swap agreements, which effectively convert a percentage of our repurchase agreements to fixed-rate obligations over a period of up to ten years. Under interest rate swap contracts, we agree to pay an amount equal to a specified fixed rate of interest times a notional principal amount and to receive in return an amount equal to a specified variable-rate of interest times a notional amount, generally based on the London Interbank Offered Rate, or LIBOR. The notional amounts are not exchanged. We account for these swap agreements as cash flow hedges in accordance with ASC 815-10. We do not issue or hold derivative contracts for speculative purposes. | |||||||||||||||||||||||||||||||||||||
For all interest rate swap agreements entered into prior to September 9, 2013, we are exposed to credit losses in the event of non-performance by counterparties to interest rate swap agreements. In order to limit credit risk associated with swap agreements, our current practice is to only enter into swap agreements with large financial institution counterparties who are market makers for these types of instruments, limit our exposure on each swap agreement to a single counterparty under our defined guidelines and either pay or receive collateral to or from each counterparty on a periodic basis to cover the net fair market value position of the swap agreements held with that counterparty. | |||||||||||||||||||||||||||||||||||||
For all interest rate swap agreements entered into on or after September 9, 2013, all swap participants are required by rules of the Commodities Futures Trading Commission, or CFTC, under authority granted to it pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, to clear swaps through a registered derivatives clearing organization, or “swap execution facility,” through standardized documents under which each swap counterparty transfers its position to another entity whereby a central clearinghouse effectively becomes the counterparty on each side of the swap. Both the swap execution facility and the central clearing house could require greater initial and periodic margin (collateral) requirements and additional transaction fees. It is the intent of the Dodd-Frank Act that the clearing of swaps in this manner is designed to avoid concentration of risk in any single entity by spreading and centralizing the risk in the clearinghouse and its members. | |||||||||||||||||||||||||||||||||||||
Accounting for Derivatives and Hedging Activities | |||||||||||||||||||||||||||||||||||||
In accordance with ASC 815-10, a derivative that is designated as a hedge is recognized as an asset/liability and measured at estimated fair value. In order for our interest rate swap agreements to qualify for hedge accounting, upon entering into the swap agreement, we must anticipate that the hedge will be highly “effective” as defined by ASC 815-10. | |||||||||||||||||||||||||||||||||||||
On the date we enter into a derivative contract, we designate the derivative as a hedge of the variability of cash flows that are to be received or paid in connection with a recognized asset or liability (a “cash flow” hedge). Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge, to the extent that the hedge is effective, are recorded in “Other comprehensive income” and reclassified to income when the forecasted transaction affects income (e.g., when periodic settlement interest payments are due on repurchase agreements). The swap agreements are carried on our balance sheets at their fair value, based on values obtained from large financial institutions who are market makers for these types of instruments. Hedge ineffectiveness, if any, is recorded in current-period income. | |||||||||||||||||||||||||||||||||||||
We formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. If it is determined that a derivative is not (or has ceased to be) highly effective as a hedge, we discontinue hedge accounting. | |||||||||||||||||||||||||||||||||||||
When we discontinue hedge accounting, the gain or loss on the derivative remains in “Accumulated other comprehensive income” and is reclassified into income when the forecasted transaction affects income. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, we will carry the derivative at its fair value on our balance sheet, recognizing changes in the fair value in current-period income. | |||||||||||||||||||||||||||||||||||||
For purposes of the cash flow statement, cash flows from derivative instruments are classified with the cash flows from the hedged item. | |||||||||||||||||||||||||||||||||||||
For more details on the amounts and other qualitative information on our swap agreements, see Note 12. For more information on the fair value of our swap agreements, see Note 6. | |||||||||||||||||||||||||||||||||||||
Credit Risk | ' | ||||||||||||||||||||||||||||||||||||
Credit Risk | |||||||||||||||||||||||||||||||||||||
At December 31, 2013, we have attempted to limit our exposure to credit losses on our MBS by purchasing securities primarily through Freddie Mac and Fannie Mae. The payment of principal and interest on the Freddie Mac and Fannie Mae MBS are guaranteed by those respective enterprises. In September 2008, both Freddie Mac and Fannie Mae were placed in the conservatorship of the U.S. government. While it is the intent that the conservatorship will help stabilize Freddie Mac’s and Fannie Mae’s losses and overall financial position, there can be no assurance that it will succeed or that, if necessary, Freddie Mac or Fannie Mae will be able to satisfy its guarantees of Agency MBS. In August 2011, the ratings of each of U.S. sovereign debt, Fannie Mae and Freddie Mac were downgraded from AAA to AA+ by Standard & Poor’s, and affirmed at Aaa by Moody’s Investors Service, or Moody’s, with each of Standard & Poor’s and Moody’s revising the outlook on U.S. sovereign debt, Fannie Mae and Freddie Mac to negative. Each of Standard & Poor’s and Moody’s has indicated that it would likely change its ratings on Fannie Mae and Freddie Mac if it was to change its rating on the U.S. government. In June 2013, Standard & Poor’s affirmed its AA+ long-term sovereign credit rating on the United States and revised the outlook from negative to stable, and in July 2013, Moody’s affirmed its Aaa government bond rating of the United States and revised the outlook from negative to stable. We do not know what effect any changes in the ratings of U.S. sovereign debt, Fannie Mae and Freddie Mac will ultimately have on the U.S. economy, the value of our securities, or the ability of Fannie Mae and Freddie Mac to satisfy its guarantees of Agency MBS if necessary. | |||||||||||||||||||||||||||||||||||||
Our adjustable-rate MBS are subject to periodic and lifetime interest rate caps. Periodic caps can limit the amount an interest rate can increase during any given period. Some adjustable-rate MBS subject to periodic payment caps may result in a portion of the interest being deferred and added to the principal outstanding. | |||||||||||||||||||||||||||||||||||||
Other-than-temporary losses on our available-for-sale MBS, as measured by the amount of decline in estimated fair value attributable to credit losses that are considered to be other-than-temporary, are charged against income, resulting in an adjustment of the cost basis of such securities. Based on the criteria in ASC-320-10, the determination of whether a security is other-than-temporarily impaired, or OTTI, involves judgments and assumptions based on both subjective and objective factors. When a security is impaired, an OTTI is considered to have occurred if (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or (iii) we do not expect to recover its amortized cost basis (i.e., there is a credit-related loss). The following are among, but not all of, the factors considered in determining whether and to what extent an OTTI exists and the portion that is related to credit loss: (i) the expected cash flow from the investment; (ii) whether there has been an other-than-temporary deterioration of the credit quality of the underlying mortgages; (iii) the credit protection available to the related mortgage pool for MBS; (iv) any other market information available, including analysts’ assessments and statements, public statements and filings made by the debtor or counterparty; (v) management’s internal analysis of the security, considering all known relevant information at the time of assessment; and (vi) the magnitude and duration of historical decline in market prices. Because management’s assessments are based on factual information as well as subjective information available at the time of assessment, the determination as to whether an other-than-temporary decline exists and, if so, the amount considered impaired, is also subjective and therefore constitutes material estimates that are susceptible to significant change. | |||||||||||||||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||||||||||||||
We have elected to be taxed as a REIT and to comply with the provisions of the Code with respect thereto. Accordingly, we will not be subject to federal income tax to the extent that our distributions to our stockholders satisfy the REIT requirements and that certain asset, income and stock ownership tests are met. | |||||||||||||||||||||||||||||||||||||
We have no unrecognized tax benefits and do not anticipate any increase in unrecognized benefits during 2014 relative to any tax positions taken prior to January 1, 2014. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income taxes accounts; and no such accruals existed at December 31, 2013. Through 2013, we filed both REIT and taxable REIT subsidiary U.S. federal and California income tax returns. These returns are generally open to examination by the IRS and the California Franchise Tax Board for all years after 2009 and 2008, respectively. | |||||||||||||||||||||||||||||||||||||
Cumulative Convertible Preferred Stock | ' | ||||||||||||||||||||||||||||||||||||
Cumulative Convertible Preferred Stock | |||||||||||||||||||||||||||||||||||||
We classify our Series B Cumulative Convertible Preferred Stock, or Series B Preferred Stock, on our balance sheets using the guidance in ASC 480-10-S99. The Series B Preferred Stock contains certain fundamental change provisions that allow the holder to redeem the preferred stock for cash only if certain events occur, such as a change in control. As redemption under these circumstances is not solely within our control, we have classified the Series B Preferred Stock as temporary equity. | |||||||||||||||||||||||||||||||||||||
We have analyzed whether the conversion features in the Series B Preferred Stock should be bifurcated under the guidance in ASC 815-10 and have determined that bifurcation is not necessary. | |||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||||||||||
In accordance with ASC 718-10 and ASC 505-50, any compensation cost relating to share-based payment transactions is recognized in the financial statements. | |||||||||||||||||||||||||||||||||||||
Restricted stock is expensed over the vesting period (see Note 11). | |||||||||||||||||||||||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||||||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||||||||||||||||||
Basic earnings per share, or EPS, is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which includes stock options and convertible preferred stock) and adding back the Series B Preferred Stock dividends, unless the effect is to reduce a loss or increase the income per share. | |||||||||||||||||||||||||||||||||||||
The computation of EPS for the years ended December 31, 2013, 2012 and 2011 is as follows (amounts in thousands, except per share data): | |||||||||||||||||||||||||||||||||||||
Net Income | Average | Earnings | |||||||||||||||||||||||||||||||||||
Available to | Shares | per | |||||||||||||||||||||||||||||||||||
Common | Share | ||||||||||||||||||||||||||||||||||||
Stockholders | |||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 69,984 | 142,455 | $ | 0.49 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,594 | 3,945 | - | ||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 71,578 | 146,400 | $ | 0.49 | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 94,445 | 138,382 | $ | 0.68 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,728 | 4,103 | (0.01 | ) | |||||||||||||||||||||||||||||||||
Diluted EPS | $ | 96,173 | 142,485 | $ | 0.67 | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 116,991 | 128,601 | $ | 0.91 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,841 | 4,158 | (0.01 | ) | |||||||||||||||||||||||||||||||||
Diluted EPS | $ | 118,832 | 132,759 | $ | 0.9 | ||||||||||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, options to purchase 5,000 shares, 320,700 shares and 592,480 shares of our common stock, respectively, were outstanding and not included in the computation of diluted EPS, as their exercise price and option expense exceeded the average stock price for those respective years. | |||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||||||
In accordance with ASC 220-10-55-2, comprehensive income is divided into net income and other comprehensive income, which includes unrealized gains and losses on marketable securities classified as available-for-sale, and unrealized gains and losses on derivative financial instruments that qualify for cash flow hedge accounting under ASC 815-10. | |||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||||||||||||||||||||||
RECENT ACCOUNTING PRONOUNCEMENTS | |||||||||||||||||||||||||||||||||||||
In December 2011, the FASB issued ASU 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This ASU requires the disclosure in tabular format in a footnote of the gross amounts subject to rights of set-off, the gross amounts of any set-off and the net amounts shown on the balance sheet. This ASU also requires the disclosure of any agreements subject to such netting arrangements. This ASU will affect all financial instruments such as securities lending agreements, repurchase agreements, reverse repurchase agreements, and derivatives instruments. As there are differences in the offsetting requirements in GAAP and International Financial Reporting Standards (IFRS), the objective of this disclosure is to facilitate comparison between companies that prepare their financial statements according to those different reporting requirements. This ASU became effective for our financial statements beginning with the quarter ended March 31, 2013. We have adopted this ASU and it did not have a material impact on our financial statements. | |||||||||||||||||||||||||||||||||||||
On January 31, 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This ASU clarifies that ordinary trade receivables and other receivables are not in the scope of ASU 2011-11 and specifically, that ASU 2011-11 applies only to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either subject to rights of set-off or to master netting arrangements. This ASU is only a clarification of the ASU mentioned in the paragraph above and it became effective for our financial statements beginning with the quarter ended March 31, 2013. We have adopted this ASU and it did not have a material impact on our financial statements. | |||||||||||||||||||||||||||||||||||||
On February 5, 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU will require entities to: (1) present (either on the face of the statement where net income is presented or in the notes) the effect on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period; and (2) cross-reference to other disclosures currently required under GAAP for other reclassification items that are not required under GAAP to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account instead of directly related to income or expense. This ASU became effective for our financial statements beginning with the quarter ended March 31, 2013. We have adopted this ASU and it did not have a material impact on our financial statements. | |||||||||||||||||||||||||||||||||||||
In the first quarter of 2013, the FASB issued ASU 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” This ASU requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, as the sum of the following: (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors; and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. This ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about the obligations including the terms and conditions of the arrangement. Examples of obligations within the scope of this ASU include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. This ASU is effective for our financial statements beginning with the quarter ending March 31, 2014. We do not believe this ASU will have a material impact on our financial statements. | |||||||||||||||||||||||||||||||||||||
In July 2013, the FASB issued ASU 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” Prior to the amendments in this ASU, only interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate (LIBOR) were considered as acceptable benchmark interest rates. This ASU now also allows the use of the Fed Funds Effective Swap Rate as an acceptable benchmark interest rate. This ASU is effective prospectively for qualifying new or re-designated hedging relationships entered into on or after July 17, 2013. We have adopted this ASU and it did not have a material impact on our financial statements. |
Organization_and_Significant_A2
Organization and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Investments' Gross Unrealized Losses and Fair Value of Securities in Continuous Unrealized Loss Position, Aggregated by Investment Category and Length of Time | ' | ||||||||||||||||||||||||||||||||||||
The following table shows our investments’ gross unrealized losses and fair value of those individual securities that have been in a continuous unrealized loss position at December 31, 2013 and December 31, 2012, aggregated by investment category and length of time (dollar amounts in thousands): | |||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | ||||||||||||||||||||||||||||
of | Value | Losses | of | Value | Losses | of | Value | Losses | |||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||||||
Agency MBS | 202 | $ | 4,262,712 | $ | (122,890 | ) | 230 | $ | 763,911 | $ | (23,089 | ) | 432 | $ | 5,026,623 | $ | (145,979 | ) | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||
Description of Securities | Number | Fair | Unrealized | Number | Fair | Unrealized | Number | Fair | Unrealized | ||||||||||||||||||||||||||||
of | Value | Losses | of | Value | Losses | of | Value | Losses | |||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||||||
Agency MBS | 68 | $ | 907,972 | $ | (2,457 | ) | 207 | $ | 283,638 | $ | (4,117 | ) | 275 | $ | 1,191,610 | $ | (6,574 | ) | |||||||||||||||||||
Computation of Earnings Per Share | ' | ||||||||||||||||||||||||||||||||||||
The computation of EPS for the years ended December 31, 2013, 2012 and 2011 is as follows (amounts in thousands, except per share data): | |||||||||||||||||||||||||||||||||||||
Net Income | Average | Earnings | |||||||||||||||||||||||||||||||||||
Available to | Shares | per | |||||||||||||||||||||||||||||||||||
Common | Share | ||||||||||||||||||||||||||||||||||||
Stockholders | |||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 69,984 | 142,455 | $ | 0.49 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,594 | 3,945 | - | ||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 71,578 | 146,400 | $ | 0.49 | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 94,445 | 138,382 | $ | 0.68 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,728 | 4,103 | (0.01 | ) | |||||||||||||||||||||||||||||||||
Diluted EPS | $ | 96,173 | 142,485 | $ | 0.67 | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 116,991 | 128,601 | $ | 0.91 | ||||||||||||||||||||||||||||||||
Effect of dilutive securities | 1,841 | 4,158 | (0.01 | ) | |||||||||||||||||||||||||||||||||
Diluted EPS | $ | 118,832 | 132,759 | $ | 0.9 | ||||||||||||||||||||||||||||||||
MortgageBacked_Securities_MBS_
Mortgage-Backed Securities (MBS) (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Agency MBS and Non-Agency MBS, Classified as Available-for-Sale Which are Carried at Fair Value | ' | ||||||||||||||||||||||||
The following tables summarize our Agency MBS classified as available-for-sale as of December 31, 2013 and December 31, 2012, which are carried at their fair value (amounts in thousands): | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
By Agency | Ginnie Mae | Freddie Mac | Fannie Mae | Non-Agency | Total | ||||||||||||||||||||
MBS | MBS | ||||||||||||||||||||||||
Amortized cost | $ | 13,374 | $ | 3,618,312 | $ | 4,950,005 | $ | - | $ | 8,581,691 | |||||||||||||||
Paydowns receivable(1) | - | 33,401 | - | - | 33,401 | ||||||||||||||||||||
Unrealized gains | 10 | 18,384 | 68,860 | 79 | 87,333 | ||||||||||||||||||||
Unrealized losses | (124 | ) | (89,263 | ) | (56,592 | ) | - | (145,979 | ) | ||||||||||||||||
Fair value | $ | 13,260 | $ | 3,580,834 | $ | 4,962,273 | $ | 79 | $ | 8,556,446 | |||||||||||||||
By Security Type | ARMs | Hybrids | 15-Year | 30-Year | Floating-Rate | Total | |||||||||||||||||||
Fixed-Rate | Fixed-Rate | CMOs(2) | MBS | ||||||||||||||||||||||
Amortized cost | $ | 1,594,183 | $ | 5,168,156 | $ | 1,714,427 | $ | 103,476 | $ | 1,449 | $ | 8,581,691 | |||||||||||||
Paydowns receivable(1) | 2,843 | 30,558 | - | - | - | 33,401 | |||||||||||||||||||
Unrealized gains | 46,294 | 31,668 | 1,695 | 7,591 | 85 | 87,333 | |||||||||||||||||||
Unrealized losses | (2,560 | ) | (85,614 | ) | (57,774 | ) | (29 | ) | (2 | ) | (145,979 | ) | |||||||||||||
Fair value | $ | 1,640,760 | $ | 5,144,768 | $ | 1,658,348 | $ | 111,038 | $ | 1,532 | $ | 8,556,446 | |||||||||||||
_____________ | |||||||||||||||||||||||||
-1 | Paydowns receivable are generated when the Company receives notice from Freddie Mac of prepayments but does not receive the actual cash with respect to such prepayments until the 15th day of the following month. | ||||||||||||||||||||||||
-2 | Non-Agency MBS are included in the Floating-Rate CMOs category. | ||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
By Agency | Ginnie Mae | Freddie Mac | Fannie Mae | Non-Agency | Total | ||||||||||||||||||||
MBS | MBS | ||||||||||||||||||||||||
Amortized cost | $ | 15,646 | $ | 3,133,758 | $ | 5,867,079 | $ | - | $ | 9,016,483 | |||||||||||||||
Paydowns receivable(1) | - | 52,410 | - | - | 52,410 | ||||||||||||||||||||
Unrealized gains | 25 | 51,681 | 130,308 | 360 | 182,374 | ||||||||||||||||||||
Unrealized losses | (204 | ) | (2,683 | ) | (3,687 | ) | - | (6,574 | ) | ||||||||||||||||
Fair value | $ | 15,467 | $ | 3,235,166 | $ | 5,993,700 | $ | 360 | $ | 9,244,693 | |||||||||||||||
By Security Type | ARMs | Hybrids | 15-Year | 30-Year | Floating-Rate | Total | |||||||||||||||||||
Fixed-Rate | Fixed-Rate | CMOs(2) | MBS | ||||||||||||||||||||||
Amortized cost | $ | 1,866,616 | $ | 5,202,362 | $ | 1,629,854 | $ | 315,438 | $ | 2,213 | $ | 9,016,483 | |||||||||||||
Paydowns receivable(1) | 5,605 | 46,805 | - | - | - | 52,410 | |||||||||||||||||||
Unrealized gains | 64,208 | 66,623 | 25,401 | 25,773 | 369 | 182,374 | |||||||||||||||||||
Unrealized losses | (2,697 | ) | (3,817 | ) | (60 | ) | - | - | (6,574 | ) | |||||||||||||||
Fair value | $ | 1,933,732 | $ | 5,311,973 | $ | 1,655,195 | $ | 341,211 | $ | 2,582 | $ | 9,244,693 | |||||||||||||
-1 | Paydowns receivable are generated when the Company receives notice from Freddie Mac of prepayments but does not receive the actual cash with respect to such prepayments until the 15th day of the following month. | ||||||||||||||||||||||||
-2 | Non-Agency MBS are included in the Floating-Rate CMOs category. |
Repurchase_Agreements_Tables
Repurchase Agreements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Repurchase Agreements Balances, Weighted Average Interest Rates and Remaining Weighted Average Maturities | ' | ||||||||||||||||||||||||
At December 31, 2013 and December 31, 2012, the repurchase agreements had the following balances (in thousands), weighted average interest rates and remaining weighted average maturities: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Balance | Weighted | Balance | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||
Overnight | $ | - | 0 | % | $ | - | 0 | % | |||||||||||||||||
Less than 30 days | 3,105,000 | 0.39 | 4,120,000 | 0.47 | |||||||||||||||||||||
30 days to 90 days | 4,475,000 | 0.39 | 3,900,000 | 0.47 | |||||||||||||||||||||
Over 90 days to less than 1 year | - | - | - | - | |||||||||||||||||||||
1 year to 2 years | - | - | - | - | |||||||||||||||||||||
Demand | - | - | - | - | |||||||||||||||||||||
$ | 7,580,000 | 0.39 | % | $ | 8,020,000 | 0.47 | % | ||||||||||||||||||
Weighted average maturity | 38 days | 34 days | |||||||||||||||||||||||
Weighted average term to maturity (after accounting for swap agreements) | 1,010 days | 420 days | |||||||||||||||||||||||
Weighted average borrowing rate (after accounting for swap agreements) | 1.5 | % | 1.12 | % | |||||||||||||||||||||
Agency MBS pledged as collateral under the repurchase agreements and swap agreements | $ | 8,060,567 | $ | 8,523,557 | |||||||||||||||||||||
Liabilities and Assets Subject to Netting Arrangements | ' | ||||||||||||||||||||||||
The following table presents information about certain assets and liabilities that are subject to master netting arrangements (or similar agreements) only in the event of default on a contract. See Notes 1, 6 and 12 for more information on the Company’s hedging instruments. | |||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||
Assets | Gross Amounts Not Offset | ||||||||||||||||||||||||
Gross Amounts | or Liabilities | in the Balance Sheets(1) | |||||||||||||||||||||||
of Recognized | Gross Amounts | Presented in | Cash | ||||||||||||||||||||||
31-Dec-13 | Assets or | Offset in the | the Balance | Financial | Collateral | Net | |||||||||||||||||||
(in thousands) | Liabilities | Balance Sheets | Sheets | Instruments | Received | Amounts | |||||||||||||||||||
Derivative assets at fair value(2) | $ | 22,551 | $ | - | $ | 22,551 | $ | (22,551 | ) | $ | - | $ | - | ||||||||||||
Total | $ | 22,551 | $ | - | $ | 22,551 | $ | (22,551 | ) | $ | - | $ | - | ||||||||||||
Repurchase Agreements(3) | $ | 7,580,000 | $ | - | $ | 7,580,000 | $ | (7,580,000 | ) | $ | - | $ | - | ||||||||||||
Derivative liabilities at fair value(2) | 55,914 | - | 55,914 | (55,914 | ) | - | - | ||||||||||||||||||
Total | $ | 7,635,914 | $ | - | $ | 7,635,914 | $ | (7,635,914 | ) | $ | - | $ | - | ||||||||||||
Net Amounts of | |||||||||||||||||||||||||
Assets | Gross Amounts Not Offset | ||||||||||||||||||||||||
Gross Amounts | or Liabilities | in the Balance Sheets(1) | |||||||||||||||||||||||
of Recognized | Gross Amounts | Presented in | Cash | ||||||||||||||||||||||
31-Dec-12 | Assets or | Offset in the | the Balance | Financial | Collateral | Net | |||||||||||||||||||
(in thousands) | Liabilities | Balance Sheets | Sheets | Instruments | Received | Amounts | |||||||||||||||||||
Derivative assets at fair value(2) | $ | 111 | $ | - | $ | 111 | $ | (111 | ) | $ | - | $ | - | ||||||||||||
Total | $ | 111 | $ | - | $ | 111 | $ | (111 | ) | $ | - | $ | - | ||||||||||||
Repurchase Agreements(3) | $ | 8,020,000 | $ | - | $ | 8,020,000 | $ | (8,020,000 | ) | $ | - | $ | - | ||||||||||||
Derivative liabilities at fair value(2) | 96,144 | - | 96,144 | (96,144 | ) | - | - | ||||||||||||||||||
Total | $ | 8,116,144 | $ | - | $ | 8,116,144 | $ | (8,116,144 | ) | $ | - | $ | - | ||||||||||||
_____________ | |||||||||||||||||||||||||
-1 | Amounts presented are limited to collateral pledged sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. | ||||||||||||||||||||||||
-2 | At December 31, 2013, we had pledged approximately $84.2 million in Agency MBS as collateral and paid another approximately $7.1 million on swap margin calls on our derivatives. At December 31, 2012, we had pledged approximately $110.6 million in Agency MBS as collateral and paid another approximately $8.7 million on swap margin calls on our derivatives. | ||||||||||||||||||||||||
-3 | At December 31, 2013, we had pledged approximately $7.98 billion in Agency MBS as collateral on our repurchase agreements. At December 31, 2012, we had pledged approximately $8.41 billion in Agency MBS as collateral on our repurchase agreements. |
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements on Recurring Basis | ' | ||||||||||||||||
At December 31, 2013, fair value measurements were as follows (in thousands): | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Agency MBS(1) | $ | - | $ | 8,556,446 | $ | - | $ | 8,556,446 | |||||||||
Derivative instruments(2) | - | 22,551 | - | 22,551 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative instruments(2) | $ | - | $ | 55,914 | $ | - | $ | 55,914 | |||||||||
__________________ | |||||||||||||||||
-1 | For more detail about the fair value of our Agency MBS by agency and type of security, see Note 3 in the audited financial statements. | ||||||||||||||||
-2 | Derivative instruments are hedging instruments under ASC 815-10. For more detail about our derivative instruments, see Notes 1 and 12 in the audited financial statements. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Tax Information Regarding Dividend Distributions | ' | ||||||||||||||||||||||||||||
The tables below present tax information regarding Anworth’s dividend distributions for the fiscal year ended December 31, 2013: | |||||||||||||||||||||||||||||
Series A Cumulative Preferred Stock (CUSIP 03747 20 0) | |||||||||||||||||||||||||||||
Declaration | Record | Payable | 2013 | 2013 | 2013 | 2013 | Carry-Over | ||||||||||||||||||||||
Date | Date | Date | Total | Ordinary | Return | Long-Term | to 2014 | ||||||||||||||||||||||
Distribution | Income | of Capital | Capital | ||||||||||||||||||||||||||
Per Share | Gains | ||||||||||||||||||||||||||||
1/18/13 | 3/28/13 | 4/15/13 | $ | 0.539063 | $ | 0.539063 | $ | - | $ | - | $ | - | |||||||||||||||||
4/19/13 | 6/28/13 | 7/15/13 | 0.539063 | 0.529797 | - | 0.009266 | - | ||||||||||||||||||||||
7/19/13 | 9/30/13 | 10/15/13 | 0.539063 | 0.492073 | - | 0.04699 | - | ||||||||||||||||||||||
10/3/13 | 12/31/13 | 1/15/14 | 0.539063 | - | - | - | 0.539063 | ||||||||||||||||||||||
Total: | $ | 2.156252 | $ | 1.560933 | $ | - | $ | 0.056256 | $ | 0.539063 | |||||||||||||||||||
Series B Cumulative Convertible Preferred Stock (CUSIP 03747 30 9) | |||||||||||||||||||||||||||||
Declaration | Record | Payable | 2013 | 2013 | 2013 | 2013 | Carry-Over | ||||||||||||||||||||||
Date | Date | Date | Total | Ordinary | Return | Long-Term | to 2014 | ||||||||||||||||||||||
Distribution | Income | of Capital | Capital | ||||||||||||||||||||||||||
Per Share | Gains | ||||||||||||||||||||||||||||
1/18/13 | 3/28/13 | 4/15/13 | $ | 0.390625 | $ | 0.390625 | $ | - | $ | - | $ | - | |||||||||||||||||
4/19/13 | 6/28/13 | 7/15/13 | 0.390625 | 0.383813 | - | 0.006812 | - | ||||||||||||||||||||||
7/19/13 | 9/30/13 | 10/15/13 | 0.390625 | 0.35608 | - | 0.034545 | - | ||||||||||||||||||||||
10/3/13 | 12/31/13 | 1/15/14 | 0.390625 | - | - | - | 0.390625 | ||||||||||||||||||||||
Total: | $ | 1.5625 | $ | 1.130518 | $ | - | $ | 0.041357 | $ | 0.390625 | |||||||||||||||||||
Common Stock (CUSIP 03747 10 1) | |||||||||||||||||||||||||||||
Declaration | Record | Payable | 2013 | 2013 | 2013 | 2013 | Carry-Over | Carry-Over | |||||||||||||||||||||
Date | Date | Date | Total | Ordinary | Return | Long-Term | from 2012(1) | to 2014 | |||||||||||||||||||||
Distribution | Income | of Capital | Capital | ||||||||||||||||||||||||||
Per Share | Gains | ||||||||||||||||||||||||||||
12/14/12 | 12/28/12 | 1/29/13 | $ | 0.04 | $ | - | $ | - | $ | - | $ | 0.04 | $ | - | |||||||||||||||
3/28/13 | 4/8/13 | 4/29/13 | 0.15 | 0.15 | - | - | - | - | |||||||||||||||||||||
6/28/13 | 7/8/13 | 7/29/13 | 0.15 | 0.1474 | - | 0.0026 | - | - | |||||||||||||||||||||
9/30/13 | 10/10/13 | 10/29/13 | 0.12 | 0.094 | 0.0128 | 0.0132 | - | - | |||||||||||||||||||||
12/13/13 | 12/23/13 | 1/29/14 | 0.08 | - | - | - | - | 0.08 | |||||||||||||||||||||
Total: | $ | 0.54 | $ | 0.3914 | $ | 0.0128 | $ | 0.0158 | $ | 0.04 | $ | 0.08 | |||||||||||||||||
Transactions_with_Affiliates_T
Transactions with Affiliates (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Future Minimum Lease Commitment | ' | ||||||||||||||||||||||||||||
At December 31, 2013, the future minimum lease commitment was as follows (in whole dollars): | |||||||||||||||||||||||||||||
Year | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Commitment | |||||||||||||||||||||||||||||
Commitment | $ | 443,669 | $ | 456,987 | $ | 470,720 | $ | 484,852 | $ | 499,398 | $ | 1,866,754 | $ | 4,222,380 | |||||||||||||||
Equity_Compensation_Plan_Table
Equity Compensation Plan (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Summary of Stock Option Transactions | ' | ||||||||||||||||||||||||||
A summary of stock option transactions for the plan follows: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Outstanding, beginning of year | 320,700 | $ | 13.736 | 592,480 | $ | 12.535 | 621,100 | $ | 12.48 | ||||||||||||||||||
Granted | - | - | - | - | - | - | |||||||||||||||||||||
Exercised | - | - | - | - | (260 | ) | 6.7 | ||||||||||||||||||||
Expired | (315,700 | ) | 13.8 | (271,780 | ) | 10.57 | (28,360 | ) | 11.4 | ||||||||||||||||||
Outstanding, end of year | 5,000 | $ | 9.72 | 320,700 | $ | 13.736 | 592,480 | $ | 12.535 | ||||||||||||||||||
Weighted average fair value of options expired during the year | $ | 13.8 | $ | 10.57 | $ | 11.4 | |||||||||||||||||||||
Options exercisable at year-end | 5,000 | 320,700 | 592,480 | ||||||||||||||||||||||||
Summary of Information about Stock Options Outstanding | ' | ||||||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | |||||||||||||||||||||||||||
Exercise | Options | Remaining | |||||||||||||||||||||||||
Price | Outstanding and | Contractual | |||||||||||||||||||||||||
Exercisable | Life (Years) | ||||||||||||||||||||||||||
$ | 9.72 | 5,000 | 1.6 | ||||||||||||||||||||||||
Summary of Information about Restricted Stock Transactions | ' | ||||||||||||||||||||||||||
The following table summarizes information about restricted stock transactions during the year ended December 31, 2013: | |||||||||||||||||||||||||||
Grant | Unvested | Restricted | Shares | Shares | Unvested | Weighted | |||||||||||||||||||||
Date Fair | Shares at | Shares | Vested in | Forfeited | Shares at | Average | |||||||||||||||||||||
Value | December 31, | Granted | 2013 | December 31, | Remaining | ||||||||||||||||||||||
2012 | 2013 | Contractual | |||||||||||||||||||||||||
Life (Years) | |||||||||||||||||||||||||||
$ | 4.24 | 46,649 | - | 15,542 | - | 31,107 | 1.8 | ||||||||||||||||||||
$ | 5.93 | 197,362 | - | - | - | 197,362 | 2.8 | ||||||||||||||||||||
244,011 | - | 15,542 | - | 228,469 | 2.7 | ||||||||||||||||||||||
Weighted-Average Assumptions for Fair Value of Stock-Based Awards Estimated using Black-Scholes Model | ' | ||||||||||||||||||||||||||
The fair value of the aforementioned stock-based awards was estimated using the Black-Scholes model with the following weighted-average assumptions: | |||||||||||||||||||||||||||
2005 | 2006 | ||||||||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||||||||
Assumptions: | |||||||||||||||||||||||||||
Dividend yield | 6 | % | 4 | % | |||||||||||||||||||||||
Expected volatility | 29 | % | 28 | % | |||||||||||||||||||||||
Risk-free interest rate | 4.29 | % | 4.8 | % | |||||||||||||||||||||||
Expected lives | 10 years | 10 years | |||||||||||||||||||||||||
Hedging_Instruments_Tables
Hedging Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Notional Amounts of Swap Agreement, Weighted Average Interest Rates and Remaining Term | ' | ||||||||||||||||||||||||
At December 31, 2013 and December 31, 2012, our swap agreements had the following notional amounts (in thousands), weighted average interest rates and remaining term in months: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Notional | Weighted | Remaining | Notional | Weighted | Remaining | ||||||||||||||||||||
Amount | Average | Term in | Amount | Average | Term in | ||||||||||||||||||||
Interest | Months | Interest | Months | ||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||
Less than 12 months | $ | 410,000 | 2.07 | % | 4 | $ | 375,000 | 3.32 | % | 2 | |||||||||||||||
1 year to 2 years | 680,000 | 2.07 | 18 | 410,000 | 2.07 | 16 | |||||||||||||||||||
2 years to 3 years | 1,145,000 | 1.82 | 29 | 680,000 | 2.07 | 30 | |||||||||||||||||||
3 years to 5 years | 1,715,000 | 1.18 | 48 | 1,595,000 | 1.64 | 45 | |||||||||||||||||||
5 years to 7 years | 925,000 | 2.11 | 76 | 100,000 | 1.18 | 72 | |||||||||||||||||||
7 years to 10 years | 500,000 | 2.84 | 107 | - | - | - | |||||||||||||||||||
$ | 5,375,000 | 1.81 | % | 47 | $ | 3,160,000 | 1.98 | % | 34 | ||||||||||||||||
Swap Agreements by Counterparty | ' | ||||||||||||||||||||||||
Swap Agreements by Counterparty | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
JPMorgan Securities | $ | 1,175,000 | $ | 800,000 | |||||||||||||||||||||
Deutsche Bank Securities | 1,165,000 | 800,000 | |||||||||||||||||||||||
RBS Greenwich Capital | 800,000 | 485,000 | |||||||||||||||||||||||
Nomura Securities International | 650,000 | 450,000 | |||||||||||||||||||||||
ING Financial Markets LLC | 650,000 | 150,000 | |||||||||||||||||||||||
Bank of New York | 260,000 | 100,000 | |||||||||||||||||||||||
Chicago Mercantile Exchange(1) | 400,000 | - | |||||||||||||||||||||||
Morgan Stanley | 150,000 | 150,000 | |||||||||||||||||||||||
Credit Suisse | 75,000 | 175,000 | |||||||||||||||||||||||
LBBW Securities, LLC | 50,000 | 50,000 | |||||||||||||||||||||||
$ | 5,375,000 | $ | 3,160,000 | ||||||||||||||||||||||
__________________ | |||||||||||||||||||||||||
-1 | For all swap agreements entered into after September 9, 2013, the counterparty will be the Chicago Mercantile Exchange regardless of who the trading party is. See the section entitled “Derivative Financial Instruments – Interest Rate Risk Management” in Note 1 for additional details. |
Other_Expenses_Tables
Other Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Expenses | ' | ||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Legal and accounting fees | $ | 503 | $ | 520 | $ | 608 | |||||||
Printing and stockholder communications | 211 | 205 | 219 | ||||||||||
Directors and Officers insurance | 469 | 436 | 431 | ||||||||||
DERs expense(1) | 291 | 402 | - | ||||||||||
Amortization of restricted stock(2) | 202 | 202 | - | ||||||||||
Software implementation and maintenance | 295 | 287 | 258 | ||||||||||
Administrative service fees | 211 | 207 | 199 | ||||||||||
Rent | 489 | 396 | 326 | ||||||||||
Stock exchange and filing fees | 215 | 238 | 192 | ||||||||||
Custodian fees | 136 | 136 | 131 | ||||||||||
Sarbanes-Oxley consulting fees | 107 | 119 | 113 | ||||||||||
Board of directors fees and expenses | 324 | 327 | 334 | ||||||||||
Securities data services | 131 | 124 | 110 | ||||||||||
Other | 183 | 238 | 364 | ||||||||||
Total of other expenses: | $ | 3,767 | $ | 3,837 | $ | 3,285 | |||||||
__________________ | |||||||||||||
-1 | For the year ended December 31, 2011, “DERs expense” of $547 thousand was included in “Compensation expense.” | ||||||||||||
-2 | For the year ended December 31, 2011, “Amortization of restricted stock” of $202 thousand was included in “Compensation expense.” |
Summarized_Quarterly_Results_U1
Summarized Quarterly Results (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summarized Quarterly Results | ' | ||||||||||||||||
The following tables summarize quarterly results for the years ended December 31, 2013 and December 31, 2012. Earnings per share amounts for each quarter and the full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amounts because of substantial differences in the average shares outstanding during each period and, with regard to diluted earnings per share amounts, they may also differ because of the inclusion of the effect of potentially dilutive securities only in the periods in which such effect would have been dilutive. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which includes stock options and convertible preferred stock) and adding back the Series B Preferred Stock dividends, unless the effect is to reduce a loss or increase the income per share. | |||||||||||||||||
For the year ended December 31, 2013 (in thousands, except per share amounts): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest income net of amortization of premium and discount: | |||||||||||||||||
Interest on Agency MBS | $ | 43,450 | $ | 45,231 | $ | 42,646 | $ | 43,403 | |||||||||
Other income | 17 | 13 | 11 | 13 | |||||||||||||
43,467 | 45,244 | 42,657 | 43,416 | ||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense on repurchase agreements | 20,902 | 20,046 | 22,484 | 28,258 | |||||||||||||
Interest expense on junior subordinated notes | 320 | 320 | 321 | 318 | |||||||||||||
21,222 | 20,366 | 22,805 | 28,576 | ||||||||||||||
Net interest income | 22,245 | 24,878 | 19,852 | 14,840 | |||||||||||||
Gain on sale of Agency MBS | 5,170 | 2,076 | 1,991 | - | |||||||||||||
Recovery on Non-Agency MBS | 129 | 103 | 100 | 64 | |||||||||||||
Expenses | (3,920 | ) | (4,059 | ) | (3,935 | ) | (3,814 | ) | |||||||||
Net income | 23,624 | 22,998 | 18,008 | 11,090 | |||||||||||||
Dividend on Series A Cumulative Preferred Stock | (1,034 | ) | (1,035 | ) | (1,035 | ) | (1,035 | ) | |||||||||
Dividend on Series B Cumulative Convertible Preferred Stock | (412 | ) | (394 | ) | (394 | ) | (394 | ) | |||||||||
Net income to common stockholders | $ | 22,178 | $ | 21,569 | $ | 16,579 | $ | 9,661 | |||||||||
Basic earnings per common share | $ | 0.16 | $ | 0.15 | $ | 0.12 | $ | 0.07 | |||||||||
Diluted earnings per common share | $ | 0.15 | $ | 0.15 | $ | 0.12 | $ | 0.07 | |||||||||
Basic weighted average number of shares outstanding | 142,903 | 144,252 | 142,380 | 140,314 | |||||||||||||
Diluted weighted average number of shares outstanding | 146,945 | 148,126 | 146,287 | 144,272 | |||||||||||||
For the year ended December 31, 2012 (in thousands, except per share amounts): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest income net of amortization of premium and discount: | |||||||||||||||||
Interest on Agency MBS | $ | 53,249 | $ | 50,327 | $ | 47,177 | $ | 45,010 | |||||||||
Other income | 14 | 16 | 14 | 46 | |||||||||||||
53,263 | 50,343 | 47,191 | 45,056 | ||||||||||||||
Interest expense: | |||||||||||||||||
Interest expense on repurchase agreements | 20,574 | 20,669 | 21,408 | 22,069 | |||||||||||||
Interest expense on junior subordinated notes | 345 | 340 | 339 | 329 | |||||||||||||
20,919 | 21,009 | 21,747 | 22,398 | ||||||||||||||
Net interest income | 32,344 | 29,334 | 25,444 | 22,658 | |||||||||||||
Gain on sale of Agency MBS | - | - | - | 4,434 | |||||||||||||
Recovery on Non-Agency MBS | 623 | 350 | 299 | 154 | |||||||||||||
Expenses | (3,845 | ) | (3,872 | ) | (3,792 | ) | (3,913 | ) | |||||||||
Net income | 29,122 | 25,812 | 21,951 | 23,333 | |||||||||||||
Dividend on Series A Cumulative Preferred Stock | (1,011 | ) | (1,011 | ) | (1,011 | ) | (1,012 | ) | |||||||||
Dividend on Series B Cumulative Convertible Preferred Stock | (450 | ) | (449 | ) | (412 | ) | (416 | ) | |||||||||
Net income to common stockholders | $ | 27,661 | $ | 24,352 | $ | 20,528 | $ | 21,905 | |||||||||
Basic earnings per common share | $ | 0.2 | $ | 0.18 | $ | 0.15 | $ | 0.15 | |||||||||
Diluted earnings per common share | $ | 0.2 | $ | 0.18 | $ | 0.15 | $ | 0.15 | |||||||||
Basic weighted average number of shares outstanding | 135,064 | 137,064 | 139,209 | 142,140 | |||||||||||||
Diluted weighted average number of shares outstanding | 139,292 | 141,292 | 143,148 | 146,159 | |||||||||||||
Organization_and_Significant_A3
Organization and Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 24 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
Description of management fee | ' | ' | ' | 'The Manager is supervised and directed by our board of directors and is responsible for (i) the selection, purchase and sale of our investment portfolio; (ii) our financing and hedging activities; and (iii) providing us with management services. The Manager will also perform such other services and activities relating to our assets and operations as may be appropriate. In exchange for these services, the Manager receives a management fee paid monthly in arrears in an amount equal to one-twelfth of 1.20% of our Equity (as defined in the Management Agreement). |
Monthly management fee payment in arrears, one-twelfth of percentage of equity | ' | ' | ' | 1.20% |
MBS initial fixed interest rate required, period | 'three to ten years | ' | ' | 'three to ten years |
Options to purchase common stock not included in the computation of diluted EPS | 5,000 | 320,700 | 592,480 | ' |
Minimum | ' | ' | ' | ' |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
MBS initial fixed interest rate required, period | '3 years | ' | ' | '3 years |
Maximum | ' | ' | ' | ' |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' |
MBS initial fixed interest rate required, period | '10 years | ' | ' | '10 years |
Non-Agency MBS included with the Agency MBS | 79 | ' | ' | 79 |
Derivative, fixed rate obligation period | '10 years | ' | ' | ' |
Investments_Gross_Unrealized_L
Investments' Gross Unrealized Losses and Fair Value of Securities in Continuous Unrealized Loss Position, Aggregated by Investment Category and Length of Time (Detail) (Agency MBS, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Investment | Investment |
Agency MBS | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Less Than 12 Months Number of Securities | 202 | 68 |
Less Than 12 Months Fair Value | $4,262,712 | $907,972 |
Less Than 12 Months Unrealized Losses | -122,890 | -2,457 |
12 Months or More Number of Securities | 230 | 207 |
12 Months or More Fair Value | 763,911 | 283,638 |
12 Months or More Unrealized Losses | -23,089 | -4,117 |
Total Number of Securities | 432 | 275 |
Total Fair Value | 5,026,623 | 1,191,610 |
Total Unrealized Losses | ($145,979) | ($6,574) |
Computation_of_Earnings_Per_Sh
Computation of Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income Available to Common Stockholders, Basic EPS | $9,661 | $16,579 | $21,569 | $22,178 | $21,905 | $20,528 | $24,352 | $27,661 | $69,984 | $94,445 | $116,991 |
Net Income Available to Common Stockholders, Effect of dilutive securities | ' | ' | ' | ' | ' | ' | ' | ' | 1,594 | 1,728 | 1,841 |
Net Income Available to Common Stockholders, Diluted EPS | ' | ' | ' | ' | ' | ' | ' | ' | $71,578 | $96,173 | $118,832 |
Average Shares, Basic EPS | 140,314 | 142,380 | 144,252 | 142,903 | 142,140 | 139,209 | 137,064 | 135,064 | 142,455 | 138,382 | 128,601 |
Average Shares, Effect of dilutive securities | ' | ' | ' | ' | ' | ' | ' | ' | 3,945 | 4,103 | 4,158 |
Average Shares, Diluted EPS | 144,272 | 146,287 | 148,126 | 146,945 | 146,159 | 143,148 | 141,292 | 139,292 | 146,400 | 142,485 | 132,759 |
Basic EPS | $0.07 | $0.12 | $0.15 | $0.16 | $0.15 | $0.15 | $0.18 | $0.20 | $0.49 | $0.68 | $0.91 |
Effect of dilutive securities on earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ($0.01) | ($0.01) |
Diluted EPS | $0.07 | $0.12 | $0.15 | $0.15 | $0.15 | $0.15 | $0.18 | $0.20 | $0.49 | $0.67 | $0.90 |
Reverse_Repurchase_Agreements_
Reverse Repurchase Agreements - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Maximum | ' |
Repurchase Agreement Counterparty [Line Items] | ' |
Reverse repurchase agreements outstanding amount | $210 |
Average Daily Amount | ' |
Repurchase Agreement Counterparty [Line Items] | ' |
Reverse repurchase agreements outstanding amount | $7.20 |
Agency_MBS_and_NonAgency_MBS_C
Agency MBS and Non-Agency MBS, Classified as Available-for-Sale which are Carried at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Paydowns receivable | $33,401 | $52,410 | ||
Available-for-sale Securities, Total | 8,556,446 | 9,244,693 | ||
Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 8,581,691 | 9,016,483 | ||
Paydowns receivable | 33,401 | [1] | 52,410 | [1] |
Unrealized gains | 87,333 | 182,374 | ||
Unrealized losses | -145,979 | -6,574 | ||
Available-for-sale Securities, Total | 8,556,446 | 9,244,693 | ||
Non-Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 0 | ' | ||
Paydowns receivable | 0 | [1] | ' | [1] |
Unrealized gains | 79 | 360 | ||
Unrealized losses | 0 | ' | ||
Fair value | 79 | 360 | ||
Ginnie Mae | Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 13,374 | 15,646 | ||
Paydowns receivable | 0 | [1] | ' | [1] |
Unrealized gains | 10 | 25 | ||
Unrealized losses | -124 | -204 | ||
Available-for-sale Securities, Total | 13,260 | 15,467 | ||
Freddie Mac | Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 3,618,312 | 3,133,758 | ||
Paydowns receivable | 33,401 | [1] | 52,410 | [1] |
Unrealized gains | 18,384 | 51,681 | ||
Unrealized losses | -89,263 | -2,683 | ||
Available-for-sale Securities, Total | 3,580,834 | 3,235,166 | ||
Fannie Mae | Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 4,950,005 | 5,867,079 | ||
Paydowns receivable | 0 | [1] | ' | [1] |
Unrealized gains | 68,860 | 130,308 | ||
Unrealized losses | -56,592 | -3,687 | ||
Available-for-sale Securities, Total | 4,962,273 | 5,993,700 | ||
ARMs | Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 1,594,183 | 1,866,616 | ||
Paydowns receivable | 2,843 | [1] | 5,605 | [1] |
Unrealized gains | 46,294 | 64,208 | ||
Unrealized losses | -2,560 | -2,697 | ||
Available-for-sale Securities, Total | 1,640,760 | 1,933,732 | ||
Hybrids | Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 5,168,156 | 5,202,362 | ||
Paydowns receivable | 30,558 | [1] | 46,805 | [1] |
Unrealized gains | 31,668 | 66,623 | ||
Unrealized losses | -85,614 | -3,817 | ||
Available-for-sale Securities, Total | 5,144,768 | 5,311,973 | ||
15-Year Fixed-Rate | Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 1,714,427 | 1,629,854 | ||
Paydowns receivable | 0 | [1] | ' | [1] |
Unrealized gains | 1,695 | 25,401 | ||
Unrealized losses | -57,774 | -60 | ||
Available-for-sale Securities, Total | 1,658,348 | 1,655,195 | ||
30-Year Fixed-Rate | Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 103,476 | 315,438 | ||
Paydowns receivable | 0 | [1] | ' | [1] |
Unrealized gains | 7,591 | 25,773 | ||
Unrealized losses | -29 | ' | ||
Available-for-sale Securities, Total | 111,038 | 341,211 | ||
Floating-Rate CMOs | Agency MBS | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized cost | 1,449 | [2] | 2,213 | [2] |
Paydowns receivable | 0 | [1],[2] | ' | [1],[2] |
Unrealized gains | 85 | [2] | 369 | [2] |
Unrealized losses | -2 | [2] | ' | [2] |
Available-for-sale Securities, Total | $1,532 | [2] | $2,582 | [2] |
[1] | Paydowns receivable are generated when the Company receives notice from Freddie Mac of prepayments but does not receive the actual cash with respect to such prepayments until the 15th day of the following month. | |||
[2] | Non-Agency MBS are included in the Floating-Rate CMOs category. |
MortgageBacked_Securities_MBS_1
Mortgage-Backed Securities (MBS) - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Proceeds from sale of available-for-sale agency MBS | $636,807,000 | $141,438,000 |
MBS | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Gross realized gains on sales of MBS | 14,890,000 | 4,400,000 |
Gross realized losses on sales of MBS | $5,650,000 | $0 |
Repurchase_Agreements_Balances
Repurchase Agreements Balances, Weighted Average Interest Rates and Remaining Weighted Average Maturities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets Sold Under Agreements To Repurchase [Line Items] | ' | ' |
Repurchase agreements | $7,580,000 | $8,020,000 |
Weighted average interest rate | 0.39% | 0.47% |
Weighted average maturity | '38 days | '34 days |
Weighted average term to maturity (after accounting for swap agreements) | '1010 days | '420 days |
Weighted average borrowing rate (after accounting for swap agreements) | 1.50% | 1.12% |
Agency MBS pledged as collateral under the repurchase agreements and swap agreements | 8,060,567 | 8,523,557 |
Overnight | ' | ' |
Assets Sold Under Agreements To Repurchase [Line Items] | ' | ' |
Repurchase agreements | ' | ' |
Weighted average interest rate | 0.00% | 0.00% |
Less than 30 days | ' | ' |
Assets Sold Under Agreements To Repurchase [Line Items] | ' | ' |
Repurchase agreements | 3,105,000 | 4,120,000 |
Weighted average interest rate | 0.39% | 0.47% |
30 days to 90 days | ' | ' |
Assets Sold Under Agreements To Repurchase [Line Items] | ' | ' |
Repurchase agreements | 4,475,000 | 3,900,000 |
Weighted average interest rate | 0.39% | 0.47% |
Over 90 days to less than 1 year | ' | ' |
Assets Sold Under Agreements To Repurchase [Line Items] | ' | ' |
Repurchase agreements | ' | ' |
Weighted average interest rate | ' | ' |
1 year to 2 years | ' | ' |
Assets Sold Under Agreements To Repurchase [Line Items] | ' | ' |
Repurchase agreements | ' | ' |
Weighted average interest rate | ' | ' |
Demand | ' | ' |
Assets Sold Under Agreements To Repurchase [Line Items] | ' | ' |
Repurchase agreements | ' | ' |
Weighted average interest rate | ' | ' |
Liabilities_and_Assets_Subject
Liabilities and Assets Subject to Netting Arrangements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Derivative Assets Derivative Liabilities And Repurchase Agreements Subject To Netting Agreements [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | $22,551 | $111 | ||
Gross Assets Offset in the Balance Sheets | ' | ' | ||
Net Amounts of Assets Presented in the Balance Sheets | 22,551 | 111 | ||
Gross Assets Not Offset Financial instruments | -22,551 | [1] | -111 | [1] |
Gross Assets Not Offset Cash Collateral Received | ' | [1] | ' | [1] |
Gross Assets Not Offset Net Amounts | ' | ' | ||
Derivative instruments at fair value | 55,914 | 96,144 | ||
Derivative Financial Instruments, Assets | ' | ' | ||
Derivative Assets Derivative Liabilities And Repurchase Agreements Subject To Netting Agreements [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | 22,551 | [2] | 111 | [2] |
Gross Assets Offset in the Balance Sheets | ' | [2] | ' | [2] |
Net Amounts of Assets Presented in the Balance Sheets | 22,551 | [2] | 111 | [2] |
Gross Assets Not Offset Financial instruments | -22,551 | [1],[2] | -111 | [1],[2] |
Gross Assets Not Offset Cash Collateral Received | ' | [1],[2] | ' | [1],[2] |
Gross Assets Not Offset Net Amounts | ' | [2] | ' | [2] |
Repurchase Agreements | ' | ' | ||
Derivative Assets Derivative Liabilities And Repurchase Agreements Subject To Netting Agreements [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 7,580,000 | [3] | 8,020,000 | [3] |
Gross Liabilities Offset in the Balance Sheets | ' | [3] | ' | [3] |
Net Amounts of Liabilities Presented in the Balance Sheets | 7,580,000 | [3] | 8,020,000 | [3] |
Gross Liabilities Not Offset Financial instruments | -7,580,000 | [1],[3] | -8,020,000 | [1],[3] |
Gross Liabilities Not Offset Cash Collateral Received | ' | [1],[3] | ' | [1],[3] |
Gross Liabilities Not Offset Net Amounts | ' | [3] | ' | [3] |
Derivative Financial Instruments, Liabilities | ' | ' | ||
Derivative Assets Derivative Liabilities And Repurchase Agreements Subject To Netting Agreements [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 55,914 | [2] | 96,144 | [2] |
Gross Liabilities Offset in the Balance Sheets | ' | [2] | ' | [2] |
Derivative instruments at fair value | 55,914 | [2] | 96,144 | [2] |
Gross Liabilities Not Offset Financial instruments | -55,914 | [1],[2] | -96,144 | [1],[2] |
Gross Liabilities Not Offset Cash Collateral Received | ' | [1],[2] | ' | [1],[2] |
Gross Liabilities Not Offset Net Amounts | ' | [2] | ' | [2] |
Liabilities Subject To Netting Arrangements | ' | ' | ||
Derivative Assets Derivative Liabilities And Repurchase Agreements Subject To Netting Agreements [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 7,635,914 | 8,116,144 | ||
Gross Liabilities Offset in the Balance Sheets | ' | ' | ||
Net Amounts of Liabilities Presented in the Balance Sheets | 7,635,914 | 8,116,144 | ||
Gross Liabilities Not Offset Financial instruments | -7,635,914 | [1] | -8,116,144 | [1] |
Gross Liabilities Not Offset Cash Collateral Received | ' | [1] | ' | [1] |
Gross Liabilities Not Offset Net Amounts | ' | ' | ||
[1] | Amounts presented are limited to collateral pledged sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. | |||
[2] | At December 31, 2013, we had pledged approximately $84.2 million in Agency MBS as collateral and paid another approximately $7.1 million on swap margin calls on our derivatives. At December 31, 2012, we had pledged approximately $110.6 million in Agency MBS as collateral and paid another approximately $8.7 million on swap margin calls on our derivatives. | |||
[3] | At December 31, 2013, we had pledged approximately $7.98 billion in Agency MBS as collateral on our repurchase agreements. At December 31, 2012, we had pledged approximately $8.41 billion in Agency MBS as collateral on our repurchase agreements. |
Liabilities_and_Assets_Subject1
Liabilities and Assets Subject to Netting Arrangements (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Assets Derivative Liabilities And Repurchase Agreements Subject To Netting Agreements [Line Items] | ' | ' |
Pledged in Agency MBS as collateral | $84,200,000 | $110,600,000 |
Paid swap margin calls on our derivatives | 7,100,000 | 8,700,000 |
Pledged in Agency MBS as collateral on our repurchase agreements | $7,980,000,000 | $8,410,000,000 |
Junior_Subordinated_Notes_Addi
Junior Subordinated Notes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 15, 2005 | |
Subordinated Borrowing [Line Items] | ' | ' | ' |
Junior subordinated notes | $37,380,000 | $37,380,000 | $37,380,000 |
First interest payment date | 30-Jun-05 | ' | ' |
Trust preferred securities | ' | ' | $36,250,000 |
Debt, payment terms | 'On September 26, 2005, the notes, the trust preferred securities and the related agreements were amended. The only material change was that one of the class holders requested that interest payments be made quarterly on January 30, April 30, July 30 and October 30 instead of at the end of each calendar quarter. This became effective with the quarterly payment after September 30, 2005. | ' | ' |
Junior Subordinated Notes | ' | ' | ' |
Subordinated Borrowing [Line Items] | ' | ' | ' |
Interest rate above prevailing three-month LIBOR rate | 3.10% | ' | ' |
Debt, maturity date | '2035 | ' | ' |
Trust Preferred Securities | ' | ' | ' |
Subordinated Borrowing [Line Items] | ' | ' | ' |
Interest rate above prevailing three-month LIBOR rate | 3.10% | ' | ' |
Debt, maturity date | '2035 | ' | ' |
Fair_Value_Measurements_on_Rec
Fair Value Measurements on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Liabilities: | ' | ' | |
Liabilities fair value measurement | $55,914 | $96,144 | |
Fair Value, Measurements, Recurring | Agency MBS | ' | ' | |
Assets: | ' | ' | |
Asset fair value measurement | 8,556,446 | [1] | ' |
Fair Value, Measurements, Recurring | Derivative instruments, assets | ' | ' | |
Assets: | ' | ' | |
Asset fair value measurement | 22,551 | [2] | ' |
Fair Value, Measurements, Recurring | Derivative instruments, liabilities | ' | ' | |
Liabilities: | ' | ' | |
Liabilities fair value measurement | 55,914 | [2] | ' |
Level 1 | Fair Value, Measurements, Recurring | Agency MBS | ' | ' | |
Assets: | ' | ' | |
Asset fair value measurement | 0 | [1] | ' |
Level 1 | Fair Value, Measurements, Recurring | Derivative instruments, assets | ' | ' | |
Assets: | ' | ' | |
Asset fair value measurement | 0 | [2] | ' |
Level 1 | Fair Value, Measurements, Recurring | Derivative instruments, liabilities | ' | ' | |
Liabilities: | ' | ' | |
Liabilities fair value measurement | 0 | [2] | ' |
Level 2 | Fair Value, Measurements, Recurring | Agency MBS | ' | ' | |
Assets: | ' | ' | |
Asset fair value measurement | 8,556,446 | [1] | ' |
Level 2 | Fair Value, Measurements, Recurring | Derivative instruments, assets | ' | ' | |
Assets: | ' | ' | |
Asset fair value measurement | 22,551 | [2] | ' |
Level 2 | Fair Value, Measurements, Recurring | Derivative instruments, liabilities | ' | ' | |
Liabilities: | ' | ' | |
Liabilities fair value measurement | 55,914 | [2] | ' |
Level 3 | Fair Value, Measurements, Recurring | Agency MBS | ' | ' | |
Assets: | ' | ' | |
Asset fair value measurement | 0 | [1] | ' |
Level 3 | Fair Value, Measurements, Recurring | Derivative instruments, assets | ' | ' | |
Assets: | ' | ' | |
Asset fair value measurement | 0 | [2] | ' |
Level 3 | Fair Value, Measurements, Recurring | Derivative instruments, liabilities | ' | ' | |
Liabilities: | ' | ' | |
Liabilities fair value measurement | $0 | [2] | ' |
[1] | (1)For more detail about the fair value of our Agency MBS by agency and type of security, see Note 3 in the audited financial statements | ||
[2] | (2)Derivative instruments are hedging instruments under ASC 815-10. For more detail about our derivative instruments, see Notes 1 and 12 in the audited financial statements |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Income Taxes [Line Items] | ' | ' | ' | |
Capital loss carry-forwards | ' | $6,900,000 | ' | |
Capital loss carry-forwards, utilization year | '2013 | ' | ' | |
Income tax expense (benefit) | $0 | $0 | $0 | |
Common Stock | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | |
Carry-Over from 2012 | $0.04 | [1] | ' | ' |
Common Stock | Declaration Date 12/14/12 | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | |
Carry-Over from 2012 | $0.04 | [1] | ' | ' |
[1] | The $0.04 that is a carry-over from 2012 is also treated as 2013 ordinary income. |
Tax_Information_Regarding_Divi
Tax Information Regarding Dividend Distributions (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | ||
Series A Preferred Stock | ' | |
Dividends [Line Items] | ' | |
Total Distribution Per Share | $2.16 | |
Ordinary Income | $1.56 | |
Return of Capital | ' | |
Long-Term Capital Gains | $0.06 | |
Carry-Over to 2014 | $0.54 | |
Series A Preferred Stock | Declaration Date 01/18/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 18-Jan-13 | |
Record Date | 28-Mar-13 | |
Payable Date | 15-Apr-13 | |
Total Distribution Per Share | $0.54 | |
Ordinary Income | $0.54 | |
Return of Capital | ' | |
Long-Term Capital Gains | ' | |
Carry-Over to 2014 | ' | |
Series A Preferred Stock | Declaration Date 04/19/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 19-Apr-13 | |
Record Date | 28-Jun-13 | |
Payable Date | 15-Jul-13 | |
Total Distribution Per Share | $0.54 | |
Ordinary Income | $0.53 | |
Return of Capital | ' | |
Long-Term Capital Gains | $0.01 | |
Carry-Over to 2014 | ' | |
Series A Preferred Stock | Declaration Date 07/19/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 19-Jul-13 | |
Record Date | 30-Sep-13 | |
Payable Date | 15-Oct-13 | |
Total Distribution Per Share | $0.54 | |
Ordinary Income | $0.49 | |
Return of Capital | ' | |
Long-Term Capital Gains | $0.05 | |
Carry-Over to 2014 | ' | |
Series A Preferred Stock | Declaration Date 10/03/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 3-Oct-13 | |
Record Date | 31-Dec-13 | |
Payable Date | 15-Jan-14 | |
Total Distribution Per Share | $0.54 | |
Ordinary Income | ' | |
Return of Capital | ' | |
Long-Term Capital Gains | ' | |
Carry-Over to 2014 | $0.54 | |
Series B Preferred Stock | ' | |
Dividends [Line Items] | ' | |
Total Distribution Per Share | $1.56 | |
Ordinary Income | $1.13 | |
Return of Capital | ' | |
Long-Term Capital Gains | $0.04 | |
Carry-Over to 2014 | $0.39 | |
Series B Preferred Stock | Declaration Date 01/18/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 18-Jan-13 | |
Record Date | 28-Mar-13 | |
Payable Date | 15-Apr-13 | |
Total Distribution Per Share | $0.39 | |
Ordinary Income | $0.39 | |
Return of Capital | ' | |
Long-Term Capital Gains | ' | |
Carry-Over to 2014 | ' | |
Series B Preferred Stock | Declaration Date 04/19/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 19-Apr-13 | |
Record Date | 28-Jun-13 | |
Payable Date | 15-Jul-13 | |
Total Distribution Per Share | $0.39 | |
Ordinary Income | $0.38 | |
Return of Capital | ' | |
Long-Term Capital Gains | $0.01 | |
Carry-Over to 2014 | ' | |
Series B Preferred Stock | Declaration Date 07/19/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 19-Jul-13 | |
Record Date | 30-Sep-13 | |
Payable Date | 15-Oct-13 | |
Total Distribution Per Share | $0.39 | |
Ordinary Income | $0.36 | |
Return of Capital | ' | |
Long-Term Capital Gains | $0.03 | |
Carry-Over to 2014 | ' | |
Series B Preferred Stock | Declaration Date 10/03/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 3-Oct-13 | |
Record Date | 31-Dec-13 | |
Payable Date | 15-Jan-14 | |
Total Distribution Per Share | $0.39 | |
Ordinary Income | ' | |
Return of Capital | ' | |
Long-Term Capital Gains | ' | |
Carry-Over to 2014 | $0.39 | |
Common Stock | ' | |
Dividends [Line Items] | ' | |
Total Distribution Per Share | $0.54 | |
Ordinary Income | $0.39 | |
Return of Capital | $0.01 | |
Long-Term Capital Gains | $0.02 | |
Carry-Over from 2012 | $0.04 | [1] |
Carry-Over to 2014 | $0.08 | |
Common Stock | Declaration Date 12/14/12 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 14-Dec-12 | |
Record Date | 28-Dec-12 | |
Payable Date | 29-Jan-13 | |
Total Distribution Per Share | $0.04 | |
Ordinary Income | ' | |
Return of Capital | ' | |
Long-Term Capital Gains | ' | |
Carry-Over from 2012 | $0.04 | [1] |
Carry-Over to 2014 | ' | |
Common Stock | Declaration Date 03/28/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 28-Mar-13 | |
Record Date | 8-Apr-13 | |
Payable Date | 29-Apr-13 | |
Total Distribution Per Share | $0.15 | |
Ordinary Income | $0.15 | |
Return of Capital | ' | |
Long-Term Capital Gains | ' | |
Carry-Over from 2012 | ' | [1] |
Carry-Over to 2014 | ' | |
Common Stock | Declaration Date 06/28/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 28-Jun-13 | |
Record Date | 8-Jul-13 | |
Payable Date | 29-Jul-13 | |
Total Distribution Per Share | $0.15 | |
Ordinary Income | $0.15 | |
Return of Capital | ' | |
Long-Term Capital Gains | $0.00 | |
Carry-Over from 2012 | ' | [1] |
Carry-Over to 2014 | ' | |
Common Stock | Declaration Date 09/30/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 30-Sep-13 | |
Record Date | 10-Oct-13 | |
Payable Date | 29-Oct-13 | |
Total Distribution Per Share | $0.12 | |
Ordinary Income | $0.09 | |
Return of Capital | $0.01 | |
Long-Term Capital Gains | $0.01 | |
Carry-Over from 2012 | ' | [1] |
Carry-Over to 2014 | ' | |
Common Stock | Declaration Date 12/13/13 | ' | |
Dividends [Line Items] | ' | |
Declaration Date | 13-Dec-13 | |
Record Date | 23-Dec-13 | |
Payable Date | 29-Jan-14 | |
Total Distribution Per Share | $0.08 | |
Ordinary Income | ' | |
Return of Capital | ' | |
Long-Term Capital Gains | ' | |
Carry-Over from 2012 | ' | [1] |
Carry-Over to 2014 | $0.08 | |
[1] | The $0.04 that is a carry-over from 2012 is also treated as 2013 ordinary income. |
Series_B_Cumulative_Convertibl1
Series B Cumulative Convertible Preferred Stock - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Conversion Of Stock [Line Items] | ' | ' |
Series B Cumulative Convertible Preferred Stock, par value | 0.01 | 0.01 |
Series B Cumulative Convertible Preferred Stock, liquidating preference per share | 25 | 25 |
Series B Preferred Stock | ' | ' |
Conversion Of Stock [Line Items] | ' | ' |
Preferred Stock, dividend rate | 6.25% | ' |
Preferred Stock, conversion start date | 25-Jan-12 | ' |
Number of consecutive trading days used in conversion analysis | '30 days | ' |
Minimum number of quarters with failure to pay dividends, which triggers voting rights for preferred stock, quarters | 6 | ' |
Number of Board Of Directors that Preferred Stock owners are entitled to vote to elect when there is a failure to pay quarterly dividends for a set period | 2 | ' |
Minimum ratio of votes required to materially and adversely change the terms of preferred stock | 0.667 | ' |
Preferred stocks converted | 111,000 | ' |
Common stocks issued upon conversion of Preferred Stock | 425,907 | ' |
Conversion of preferred stocks to common stock, conversion rate | 3.837 | ' |
Number of Series B Preferred Stock issued | 54,566 | ' |
Issuance of Series B preferred stock price per share | 24.5 | ' |
Proceeds on Series B Preferred Stock issued | 1,340 | ' |
Series B Preferred Stock | Minimum | ' | ' |
Conversion Of Stock [Line Items] | ' | ' |
Percentage of common stock price to then-prevailing conversion price in order to exercise conversion option | 130.00% | ' |
Number of consecutive trading days used in conversion analysis | '20 days | ' |
Series A Preferred Stock | ' | ' |
Conversion Of Stock [Line Items] | ' | ' |
Preferred Stock, dividend rate | 8.63% | ' |
Number of Series B Preferred Stock issued | 42,000 | 1,000 |
Public_Offerings_and_Capital_S1
Public Offerings and Capital Stock - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Oct. 03, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2005 | Nov. 07, 2005 | Feb. 26, 2010 | Mar. 14, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 27-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 27-May-11 | Dec. 31, 2013 | 27-May-11 | |
Dividend Reinvestment and Stock Purchase 2012 Plan | Dividend Reinvestment and Stock Purchase 2012 Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Maximum | Maximum | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Common Stock | Common Stock | ||||
Previously Reported | Dividend Reinvestment and Stock Purchase 2012 Plan | Controlled Equity Offering Sales Agreement | Maximum | Controlled Equity Offering Sales Agreement | Maximum | Controlled Equity Offering Sales Agreement | Maximum | ||||||||||||||
Controlled Equity Offering Sales Agreement | Controlled Equity Offering Sales Agreement | Controlled Equity Offering Sales Agreement | |||||||||||||||||||
Capital Unit [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, authorized | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, issued | 138,717,000 | 142,013,000 | ' | ' | ' | 2,840,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, outstanding | 138,717,000 | 142,013,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, authorized | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,150,000 | ' | ' | ' | 3,150,000 | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, liquidation preference | $25 | $25 | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | $25 | ' | ' | ' | ' | ' | ' |
Preferred Stock, dividend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.63% | ' | ' | ' | 6.25% | ' | ' | ' | ' | ' | ' |
Preferred stock redemption price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, issued | 1,919,000 | 1,877,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,919,378 | ' | ' | ' | 1,009,640 | ' | ' | ' | ' | ' | ' |
Preferred stock, outstanding | 1,919,000 | 1,877,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,919,378 | ' | ' | ' | 1,009,640 | ' | ' | ' | ' | ' | ' |
Number of shares to be issued based on sales agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | 1,000,000 | ' | 20,000,000 |
Number of Preferred Stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,978 | ' | ' | ' | 54,566 | ' | ' | ' | ' | ' | ' |
Issuance of preferred stock price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26.08 | ' | ' | ' | $24.50 | ' | ' | ' | ' | ' | ' |
Proceeds on Series B Preferred Stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,090,000 | $50,000 | ' | ' | $1,335,000 | $265,000 | $5,064,000 | ' | ' | ' | ' |
Common Stock, available for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,409,400 | ' |
Preferred stock, available for sale and issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 956,122 | ' | ' | ' | ' | 894,518 | ' | ' | ' |
Number of shares authorized to be repurchased | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional shares authorized to be repurchased | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased during period | 7,646,429 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchased, weighted average price per share | $4.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering number of common stocks | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | 3,924,551 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued, weighted average price per share | ' | ' | ' | $5.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | ' | ' | ' | 22,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining number of shares to be issued | ' | ' | ' | 16,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective discount rate on dividend | ' | ' | ' | 0.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, public offering | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock remaining for issuance under the registration statement | $544,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shelf registration statement expiration date | 'March 26, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum authorized shares of common stock under grant of stock options and other stock-based awards | ' | ' | ' | ' | ' | ' | 3,500,000 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unexercised stock options and restricted stock | ' | ' | ' | ' | ' | 273,469 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future_Minimum_Lease_Commitmen
Future Minimum Lease Commitment (Detail) (USD $) | Dec. 31, 2013 |
Leases Disclosure [Line Items] | ' |
2014 | $443,669 |
2015 | 456,987 |
2016 | 470,720 |
2017 | 484,852 |
2018 | 499,398 |
Thereafter | 1,866,754 |
Total Commitment | $4,222,380 |
Transactions_with_Affiliates_A
Transactions with Affiliates - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 24 Months Ended | ||
Jul. 02, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
sqft | sqft | sqft | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Description of management fee | ' | ' | ' | ' | 'The Manager is supervised and directed by our board of directors and is responsible for (i) the selection, purchase and sale of our investment portfolio; (ii) our financing and hedging activities; and (iii) providing us with management services. The Manager will also perform such other services and activities relating to our assets and operations as may be appropriate. In exchange for these services, the Manager receives a management fee paid monthly in arrears in an amount equal to one-twelfth of 1.20% of our Equity (as defined in the Management Agreement). |
Monthly management fee payment in arrears, one-twelfth of percentage of equity | ' | ' | ' | ' | 1.20% |
Compensation, incentive compensation and benefits | ' | ' | ' | $10,979,000 | ' |
Maximum percentage of investment in U.S. agency residential MBS of other advising REITs under Management Agreement | ' | 75.00% | ' | ' | ' |
Number of days prior notice of non-renewal of the Management Agreement | ' | '180 days | ' | ' | ' |
Termination fees description | ' | 'We are required to provide 180-days prior notice of non-renewal of the Management Agreement and must pay a termination fee on the last day of the initial term or any automatic renewal term, equal to three times the average annual management fee earned by the Manager during the prior 24-month period immediately preceding the most recently completed month prior to the effective date of termination. | ' | ' | ' |
Change in Control and Arbitration Agreements, description | ' | 'Under the amended agreements, in the event that a change in control occurs, each of these officers will receive a lump sum payment equal to (i) 12 months annual base salary in effect on December 31, 2011, plus (ii) the average annual incentive compensation received for the two complete fiscal years prior December 31, 2011, plus (iii) the average annual bonus received for the two complete fiscal years prior to December 31, 2011, as well as other benefits. | ' | ' | ' |
Sublease agreement, sq. ft. leased | 7,300 | 5,500 | ' | ' | 5,500 |
Rent paid for leased office space per square foot | 59.87 | 57.46 | ' | ' | 57.46 |
Sublease with PIA, expiration date | 30-Jun-22 | 30-Jun-12 | ' | ' | ' |
Rent | ' | 489,000 | 396,000 | 326,000 | ' |
New sublease agreement, base monthly rent | 36,426.47 | ' | ' | ' | ' |
Sublease agreement, base monthly rent percentage increase starting July 1, 2013 | 3.00% | ' | ' | ' | ' |
Fees paid for administrative services | ' | 'On July 25, 2008, we entered into an administrative services agreement with PIA, which was amended and restated on August 20, 2010. Under this agreement, PIA provides administrative services and equipment to us including human resources, operational support and information technology, and we pay an annual fee of 5 basis points on the first $225 million of stockholdersb equity and 1.25 basis points thereafter (paid quarterly in arrears) for those services. The administrative services agreement had an initial term of one year and renews for successive one-year terms thereafter unless either party gives notice of termination no less than 30 days before the expiration of the then-current annual term. | ' | ' | ' |
Basis points on equity for the annual fee | ' | '5 basis points on the first $225 million of stockholdersb equity and 1.25 basis points thereafter (paid quarterly in arrears) for those services. | ' | ' | ' |
Stockholders equity amount used to calculate administrative service fees | ' | 225,000,000 | ' | ' | 225,000,000 |
Prior written notice to terminate administrative agreement | ' | '30 days | ' | ' | '30 days |
Administrative service fees | ' | 211,000 | 207,000 | 199,000 | ' |
First $225 million of Stockholders' Equity | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Basis points on equity for the annual fee | ' | 0.05% | ' | ' | ' |
Above $225 million of Stockholders' Equity | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Basis points on equity for the annual fee | ' | 0.01% | ' | ' | ' |
Messrs. Lloyd McAdams and Joseph E. McAdams | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Compensation, incentive compensation and benefits | ' | ' | ' | 6,850,000 | ' |
Mr. Lloyd McAdams | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Outstanding membership interests | ' | 50.00% | ' | ' | ' |
Mr. Joseph E. McAdams | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Outstanding membership interests | ' | 45.00% | ' | ' | ' |
Mr. Thad M. Brown | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Outstanding membership interests | ' | 5.00% | ' | ' | ' |
Lease Termination | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Rent | ' | ' | 169,000 | 326,000 | ' |
Sublease | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Rent | ' | $489,000 | $227,000 | ' | ' |
Equity_Compensation_Plan_Addit
Equity Compensation Plan - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 58 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Oct. 31, 2006 | Oct. 31, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2005 | Nov. 07, 2005 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Oct. 31, 2006 | Dec. 31, 2013 | 24-May-07 |
Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan | Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan | Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan | Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan | Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan | Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan | Minimum | Minimum | Maximum | ||||
Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum authorized shares of common stock under grant of stock options and other stock-based awards | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price for option granted of the fair market value of the shares of common stock at granted, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Shares remained available for future issuance | ' | ' | ' | ' | ' | 660,414 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant of restricted stock | ' | ' | 0 | 197,362 | 200,780 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock price on grant date | ' | ' | ' | $9.12 | $7.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of restricted stock vests per year | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Age at which grantee has to reach for stock to vest immediately | ' | ' | ' | ' | '65 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terms of stock vesting | ' | ' | ' | ' | 'The restricted stock vests 10% per year on each anniversary date for a ten-year period and shall also vest immediately upon the death of the grantee or upon the grantee reaching age 65. Each grantee shall have the right to sell 40% of the restricted stock any time after such shares have vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of restricted stock that each grantee have right to sell anytime after such shares have vested | ' | ' | ' | 40.00% | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of restricted stock that may not be sold until after termination of employment | ' | ' | ' | 60.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting range of restricted stock | ' | ' | ' | ' | 'We amortize the restricted stock over the vesting period, which is the lesser of ten years or the remaining number of years to age 65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective date for grant of restricted stock | ' | ' | ' | 18-Oct-06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of restricted stock | ' | ' | ' | '3 years | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annually compounded rate of return on common stock, including dividends, effective date of the grant to each of the next three anniversary dates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' |
Compensation expense related to restricted stock grants | ' | ' | ' | ' | ' | $202 | $202 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining term of grants | ' | ' | ' | ' | ' | '2 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend equivalent right issued, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '10 years |
Dividend equivalent right issued | 150,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 582,000 | ' | ' | ' |
Paid or accrued compensation related to dividend equivalent right issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $291 | $402 | $547 | ' | ' | ' | ' |
Dividend Equivalent Rights expired | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Stock_Option_Transa
Summary of Stock Option Transactions (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options Outstanding | ' | ' | ' |
Outstanding, beginning of year | 320,700 | 592,480 | 621,100 |
Granted | 0 | ' | ' |
Exercised | 0 | ' | -260 |
Expired | -315,700 | -271,780 | -28,360 |
Outstanding, end of year | 5,000 | 320,700 | 592,480 |
Options exercisable at year-end | 5,000 | 320,700 | 592,480 |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding, beginning of year | $13.74 | $12.54 | $12.48 |
Granted | $0 | ' | ' |
Exercised | $0 | ' | $6.70 |
Expired | $13.80 | $10.57 | $11.40 |
Outstanding, end of year | $9.72 | $13.74 | $12.54 |
Weighted average fair value of options expired during the year | $13.80 | $10.57 | $11.40 |
Summary_of_Information_about_S
Summary of Information about Stock Options Outstanding (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 |
$9.72 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Exercise Price | $9.72 | $13.74 | $12.54 | $12.48 | $9.72 |
Options Outstanding and Exercisable | ' | ' | ' | ' | 5,000 |
Remaining Contractual Life | ' | ' | ' | ' | '1 year 7 months 6 days |
Summary_of_Information_about_R
Summary of Information about Restricted Stock Transactions (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Unvested Shares at beginning of year | 244,011 |
Restricted Shares Granted | 0 |
Shares Vested in 2013 | 15,542 |
Shares Forfeited | 0 |
Unvested Shares at end of year | 228,469 |
Weighted Average Remaining Contractual Life | '2 years 8 months 12 days |
$4.24 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Grant Date Fair Value | 4.24 |
Unvested Shares at beginning of year | 46,649 |
Restricted Shares Granted | 0 |
Shares Vested in 2013 | 15,542 |
Shares Forfeited | 0 |
Unvested Shares at end of year | 31,107 |
Weighted Average Remaining Contractual Life | '1 year 9 months 18 days |
$5.93 | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Grant Date Fair Value | 5.93 |
Unvested Shares at beginning of year | 197,362 |
Restricted Shares Granted | 0 |
Shares Vested in 2013 | 0 |
Shares Forfeited | 0 |
Unvested Shares at end of year | 197,362 |
Weighted Average Remaining Contractual Life | '2 years 9 months 18 days |
WeightedAverage_Assumptions_fo
Weighted-Average Assumptions for Fair Value of Stock-Based Awards Estimated using Black-Scholes Model (Detail) | 12 Months Ended | |
Dec. 31, 2006 | Dec. 31, 2005 | |
Assumptions: | ' | ' |
Dividend yield | 4.00% | 6.00% |
Expected volatility | 28.00% | 29.00% |
Risk-free interest rate | 4.80% | 4.29% |
Expected lives | '10 years | '10 years |
Hedging_Instruments_Additional
Hedging Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Y | |||
Derivative | |||
Derivative [Line Items] | ' | ' | ' |
Interest rate swap agreements, weighted average maturity (in years) | 3.9 | ' | ' |
Notional balance of matured interest rate swap agreements | $375,000,000 | ' | ' |
Number of interest swaps matured | 6 | ' | ' |
Number of new swap agreements | 38 | ' | ' |
Notional amount of swap agreements entered during period | 2,590,000,000 | ' | ' |
Swap agreements, maximum maturity term | '10 years | ' | ' |
Fixed interest rate during term of swap agreements, lower range | 0.58% | ' | ' |
Fixed interest rate during term of swap agreements, higher range | 3.06% | ' | ' |
Increase/Decrease in unrealized losses of swap agreements included in other comprehensive income | 62,700,000 | ' | ' |
Unrealized losses of swap agreements included in other comprehensive income | 33,300,000 | 96,000,000 | ' |
Unrealized gains on cash flow hedges | 3,411,000 | -52,691,000 | -103,164,000 |
Reclassification adjustment for interest expense included in net income | 59,250,000 | 53,693,000 | 68,345,000 |
Derivative instruments at fair value | 22,551,000 | 111,000 | ' |
Derivative instruments at fair value | 55,914,000 | 96,144,000 | ' |
Maximum length of swap agreements | '10 years | ' | ' |
Interest rate swap agreements | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Interest rate swap agreements, aggregate notional amount | $5,375,000,000 | $3,160,000,000 | ' |
Notional_Amounts_of_Swap_Agree
Notional Amounts of Swap Agreement, Weighted Average Interest Rates and Remaining Term (Detail) (Interest rate swap agreements, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ' | ' |
Notional Amount | $5,375,000 | $3,160,000 |
Weighted Average Interest Rate | 1.81% | 1.98% |
Remaining Term in Months | '47 months | '34 months |
Less than 12 Months | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Amount | 410,000 | 375,000 |
Weighted Average Interest Rate | 2.07% | 3.32% |
Remaining Term in Months | '4 months | '2 months |
1 Year to 2 Years | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Amount | 680,000 | 410,000 |
Weighted Average Interest Rate | 2.07% | 2.07% |
Remaining Term in Months | '18 months | '16 months |
2 Years to 3 Years | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Amount | 1,145,000 | 680,000 |
Weighted Average Interest Rate | 1.82% | 2.07% |
Remaining Term in Months | '29 months | '30 months |
3 Years to 5 Years | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Amount | 1,715,000 | 1,595,000 |
Weighted Average Interest Rate | 1.18% | 1.64% |
Remaining Term in Months | '48 months | '45 months |
5 Years to 7 Years | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Amount | 925,000 | 100,000 |
Weighted Average Interest Rate | 2.11% | 1.18% |
Remaining Term in Months | '76 months | '72 months |
7 Years to 10 Years | ' | ' |
Derivative [Line Items] | ' | ' |
Notional Amount | $500,000 | ' |
Weighted Average Interest Rate | 2.84% | ' |
Remaining Term in Months | '107 months | ' |
Swap_Agreements_by_Counterpart
Swap Agreements by Counterparty (Detail) (Interest rate swap agreements, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Derivative [Line Items] | ' | ' | |
Notional Amount | $5,375,000 | $3,160,000 | |
JPMorgan Securities | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 1,175,000 | 800,000 | |
Deutsche Bank Securities | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 1,165,000 | 800,000 | |
RBS Greenwich Capital | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 800,000 | 485,000 | |
Nomura Securities International | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 650,000 | 450,000 | |
ING Financial Markets LLC | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 650,000 | 150,000 | |
Bank Of New York | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 260,000 | 100,000 | |
Chicago Mercantile Exchange | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 400,000 | [1] | ' |
Morgan Stanley | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 150,000 | 150,000 | |
Credit Suisse | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | 75,000 | 175,000 | |
LBBW Securities, LLC | ' | ' | |
Derivative [Line Items] | ' | ' | |
Notional Amount | $50,000 | $50,000 | |
[1] | For all swap agreements entered into after SeptemberB 9, 2013, the counterparty will be the Chicago Mercantile Exchange regardless of who the trading party is. See the section entitled bDerivative Financial Instruments b Interest Rate Risk Managementb in Note 1 for additional details. |
Other_Expenses_Detail
Other Expenses (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Legal and accounting fees | ' | ' | ' | ' | ' | ' | ' | ' | $503 | $520 | $608 | ||
Printing and stockholder communications | ' | ' | ' | ' | ' | ' | ' | ' | 211 | 205 | 219 | ||
Directors and Officers insurance | ' | ' | ' | ' | ' | ' | ' | ' | 469 | 436 | 431 | ||
DERs expense | ' | ' | ' | ' | ' | ' | ' | ' | 291 | [1] | 402 | [1] | ' |
Amortization of restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | 202 | [2] | 202 | [2] | ' |
Software implementation and maintenance | ' | ' | ' | ' | ' | ' | ' | ' | 295 | 287 | 258 | ||
Administrative service fees | ' | ' | ' | ' | ' | ' | ' | ' | 211 | 207 | 199 | ||
Rent | ' | ' | ' | ' | ' | ' | ' | ' | 489 | 396 | 326 | ||
Stock exchange and filing fees | ' | ' | ' | ' | ' | ' | ' | ' | 215 | 238 | 192 | ||
Custodian fees | ' | ' | ' | ' | ' | ' | ' | ' | 136 | 136 | 131 | ||
Sarbanes-Oxley consulting fees | ' | ' | ' | ' | ' | ' | ' | ' | 107 | 119 | 113 | ||
Board of directors fees and expenses | ' | ' | ' | ' | ' | ' | ' | ' | 324 | 327 | 334 | ||
Securities data services | ' | ' | ' | ' | ' | ' | ' | ' | 131 | 124 | 110 | ||
Other | 3,814 | 3,935 | 4,059 | 3,920 | 3,913 | 3,792 | 3,872 | 3,845 | 183 | 238 | 364 | ||
Total of other expenses: | ' | ' | ' | ' | ' | ' | ' | ' | $3,767 | $3,837 | $3,285 | ||
[1] | (1)For the year ended DecemberB 31, 2011, bDERs expenseb of $547 thousand was included in bCompensation expense.b | ||||||||||||
[2] | (2)For the year ended DecemberB 31, 2011, bAmortization of restricted stockb of $202 thousand was included in bCompensation expense.b |
Other_Expenses_Parenthetical_D
Other Expenses (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Anworth Mortgage Asset Corporation 2007 Dividend Equivalent Rights Plan | ' |
Component Of Other Expense Income Nonoperating [Line Items] | ' |
Dividend equivalent rights expense included in compensation expense | $547 |
Anworth Mortgage Asset Corporation 2004 Equity Compensation Plan | ' |
Component Of Other Expense Income Nonoperating [Line Items] | ' |
Amortization of restricted stock | $202 |
Summarized_Quarterly_Results_D
Summarized Quarterly Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income net of amortization of premium and discount: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on Agency MBS | $43,403 | $42,646 | $45,231 | $43,450 | $45,010 | $47,177 | $50,327 | $53,249 | ' | ' | ' |
Other income | 13 | 11 | 13 | 17 | 46 | 14 | 16 | 14 | 56 | 90 | 50 |
Interest and Dividend Income, Operating | 43,416 | 42,657 | 45,244 | 43,467 | 45,056 | 47,191 | 50,343 | 53,263 | 174,784 | 195,853 | 224,180 |
Interest expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense on repurchase agreements | 28,258 | 22,484 | 20,046 | 20,902 | 22,069 | 21,408 | 20,669 | 20,574 | 91,690 | 84,720 | 87,975 |
Interest expense on junior subordinated notes | 318 | 321 | 320 | 320 | 329 | 339 | 340 | 345 | 1,280 | 1,353 | 1,290 |
Interest Expense | 28,576 | 22,805 | 20,366 | 21,222 | 22,398 | 21,747 | 21,009 | 20,919 | 92,970 | 86,073 | 89,265 |
Net interest income | 14,840 | 19,852 | 24,878 | 22,245 | 22,658 | 25,444 | 29,334 | 32,344 | 81,814 | 109,780 | 134,915 |
Gain on sale of Agency MBS | ' | 1,991 | 2,076 | 5,170 | 4,434 | ' | ' | ' | 9,237 | 4,434 | ' |
Recovery on Non-Agency MBS | 64 | 100 | 103 | 129 | 154 | 299 | 350 | 623 | 397 | 1,426 | 2,225 |
Expenses | -3,814 | -3,935 | -4,059 | -3,920 | -3,913 | -3,792 | -3,872 | -3,845 | -183 | -238 | -364 |
Net income | 11,090 | 18,008 | 22,998 | 23,624 | 23,333 | 21,951 | 25,812 | 29,122 | 75,720 | 100,218 | 122,876 |
Dividend on Series A Cumulative Preferred Stock | -1,035 | -1,035 | -1,035 | -1,034 | -1,012 | -1,011 | -1,011 | -1,011 | -4,142 | -4,045 | -4,044 |
Dividend on Series B Cumulative Convertible Preferred Stock | -394 | -394 | -394 | -412 | -416 | -412 | -449 | -450 | -1,594 | -1,728 | -1,841 |
Net income to common stockholders | $9,661 | $16,579 | $21,569 | $22,178 | $21,905 | $20,528 | $24,352 | $27,661 | $69,984 | $94,445 | $116,991 |
Basic earnings per common share | $0.07 | $0.12 | $0.15 | $0.16 | $0.15 | $0.15 | $0.18 | $0.20 | $0.49 | $0.68 | $0.91 |
Diluted earnings per common share | $0.07 | $0.12 | $0.15 | $0.15 | $0.15 | $0.15 | $0.18 | $0.20 | $0.49 | $0.67 | $0.90 |
Basic weighted average number of shares outstanding | 140,314 | 142,380 | 144,252 | 142,903 | 142,140 | 139,209 | 137,064 | 135,064 | 142,455 | 138,382 | 128,601 |
Diluted weighted average number of shares outstanding | 144,272 | 146,287 | 148,126 | 146,945 | 146,159 | 143,148 | 141,292 | 139,292 | 146,400 | 142,485 | 132,759 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 2 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 21, 2014 | Feb. 21, 2014 | Feb. 21, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 27, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 27, 2014 | |
Derivative | Common Stock | Common Stock | Common Stock | Dividend Reinvestment and Stock Purchase 2012 Plan | Subsequent Event | Interest Rate Swap | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | |
Common Stock | Derivative | Dividend Declared | Dividend Declared | ||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share declared | ' | ' | ' | ' | ' | ' | ' | $2.16 | $2.16 | $2.16 | $0.54 | $1.56 | $1.56 | $1.56 | $0.39 |
Preferred stock dividend payment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Apr-14 | ' | ' | ' | 15-Apr-14 |
Preferred stock dividend record date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Mar-14 | ' | ' | ' | 31-Mar-14 |
Stock issued during period | ' | 4,350,000 | 8,632,000 | 14,048,000 | 49,230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued, weighted average price per share | ' | ' | ' | ' | $4.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | ' | ' | ' | ' | $224,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock repurchased | 7,646,429 | ' | ' | ' | ' | 2,223,414 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased, weighted average price | $4.95 | ' | ' | ' | ' | $4.76 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new swap agreements | 38 | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of swap agreements | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Swap agreements, maturity | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' |
Two swap agreements, matured amount | ' | ' | ' | ' | ' | ' | $150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |