Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Arlington Asset Investment Corp. | |
Entity Central Index Key | 1209028 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | AI | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,862,075 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 104,716 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $15,315 | $33,832 |
Receivables | ||
Interest | 11,269 | 10,701 |
Sold securities receivable | 78,915 | 0 |
Other | 528 | 1,138 |
Mortgage-backed securities, at fair value | ||
Available-for-sale | 241,045 | 267,477 |
Trading | 3,687,736 | 3,414,300 |
Other investments | 1,819 | 1,837 |
Derivative assets, at fair value | 1,508 | 1,267 |
Deferred tax assets, net | 113,276 | 122,365 |
Deposits | 213,037 | 160,427 |
Prepaid expenses and other assets | 2,169 | 1,145 |
Total assets | 4,366,617 | 4,014,489 |
Liabilities: | ||
Repurchase agreements | 3,371,690 | 3,179,775 |
Interest payable | 1,162 | 1,106 |
Accrued compensation and benefits | 1,562 | 6,067 |
Dividend payable | 21,574 | 20,195 |
Derivative liabilities, at fair value | 175,793 | 124,308 |
Purchased securities payable | 148,252 | 0 |
Accounts payable, accrued expenses and other liabilities | 751 | 1,006 |
Long-term debt | 75,300 | 40,000 |
Total liabilities | 3,796,084 | 3,372,457 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.01 par value, 25,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Additional paid-in capital | 1,897,138 | 1,897,027 |
Accumulated other comprehensive income, net of taxes of $8,623 and $11,666, respectively | 28,017 | 35,872 |
Accumulated deficit | -1,354,852 | -1,291,097 |
Total equity | 570,533 | 642,032 |
Total liabilities and equity | 4,366,617 | 4,014,489 |
Common Class A [Member] | ||
Equity: | ||
Common stock | 229 | 229 |
Common Class B [Member] | ||
Equity: | ||
Common stock | $1 | $1 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Accumulated other comprehensive income, taxes (in dollars) | $8,623 | $11,666 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 22,860,922 | 22,860,922 |
Common stock, shares outstanding (in shares) | 22,860,922 | 22,860,922 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 105,869 | 105,869 |
Common stock, shares outstanding (in shares) | 105,869 | 105,869 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest income | $36,964 | $23,867 |
Interest expense | ||
Interest on short-term debt | 3,080 | 1,734 |
Interest on long-term debt | 648 | 551 |
Total interest expense | 3,728 | 2,285 |
Net interest income | 33,236 | 21,582 |
Other loss, net | ||
Investment loss, net | -59,368 | -5,911 |
Other loss | -3 | -3 |
Total other loss, net | -59,371 | -5,914 |
Operating (loss) income before other expenses | -26,135 | 15,668 |
Other expenses | ||
Compensation and benefits | 2,412 | 2,961 |
Professional services | 130 | 516 |
Insurance | 105 | 105 |
Occupancy and equipment | 116 | 99 |
Board of director fees | 238 | 231 |
Other operating expenses | 307 | 243 |
Total other expenses | 3,308 | 4,155 |
(Loss) income before income taxes | -29,443 | 11,513 |
Income tax provision | 12,742 | 4,480 |
Net (loss) income | -42,185 | 7,033 |
Basic (loss) earnings per share (in dollars per share) | ($1.84) | $0.42 |
Diluted (loss) earnings per share (in dollars per share) | ($1.84) | $0.41 |
Weighted-average shares outstanding (in thousands) | ||
Basic (in shares) | 22,973 | 16,808 |
Diluted (in shares) | 22,973 | 17,081 |
Other comprehensive (loss) income, net of taxes | ||
Unrealized (losses) gains for the period on available-for-sale securities (net of taxes of $(2,663) and $621, respectively) | -4,493 | 974 |
Reclassification: | ||
Included in investment loss, net, in the statement of comprehensive income related to sales of available-for-sale securities (net of taxes of $(380) and $(1,379), respectively) | -3,362 | -3,078 |
Comprehensive (loss) income | ($50,040) | $4,929 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Unrealized (losses) gains for the period on available-for-sale securities, taxes | ($2,663) | $621 |
Included in investment loss, net, in the statement of comprehensive income related to sales of available-for-sale securities, taxes | ($380) | ($1,379) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | Common Class A [Member] | Common Class B [Member] | ||||
Balances at Dec. 31, 2013 | $551,828 | $160 | $6 | $1,727,398 | $46,269 | ($1,222,005) |
Balances (in shares) at Dec. 31, 2013 | 16,047,965 | 554,055 | ||||
Net income/Loss | 5,954 | 0 | 0 | 0 | 0 | 5,954 |
Conversion of Class B common stock to Class A common stock | 0 | 5 | -5 | 0 | 0 | 0 |
Conversion of Class B common stock to Class A common stock (in shares) | 448,186 | -448,186 | ||||
Issuance of Class A common stock | 166,883 | 64 | 0 | 166,819 | 0 | 0 |
Issuance of Class A common stock (in shares) | 6,419,247 | 0 | ||||
Forfeitures of Class A common stock | -1,478 | 0 | 0 | -1,478 | 0 | 0 |
Forfeitures of Class A common stock (in shares) | -54,476 | 0 | ||||
Amortization of Class A common stock issued as stock-based awards | 3,813 | 0 | 0 | 3,813 | 0 | 0 |
Income tax benefit from stock-based compensation | 475 | 0 | 0 | 475 | 0 | 0 |
Other comprehensive income | ||||||
Net change in unrealized gain on available-for-sale investment securities, (net of taxes) | -10,397 | 0 | 0 | 0 | -10,397 | 0 |
Dividends declared | -75,046 | 0 | 0 | 0 | 0 | -75,046 |
Balances at Dec. 31, 2014 | 642,032 | 229 | 1 | 1,897,027 | 35,872 | -1,291,097 |
Balances (in shares) at Dec. 31, 2014 | 22,860,922 | 105,869 | ||||
Net income/Loss | -42,185 | 0 | 0 | 0 | 0 | -42,185 |
Amortization of Class A common stock issued as stock-based awards | 111 | 0 | 0 | 111 | 0 | 0 |
Other comprehensive income | ||||||
Net change in unrealized gain on available-for-sale investment securities, (net of taxes) | -7,855 | 0 | 0 | 0 | -7,855 | 0 |
Dividends declared | -21,570 | 0 | 0 | 0 | 0 | -21,570 |
Balances at Mar. 31, 2015 | $570,533 | $229 | $1 | $1,897,138 | $28,017 | ($1,354,852) |
Balances (in shares) at Mar. 31, 2015 | 22,860,922 | 105,869 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Net change in unrealized gain on available-for-sale investment securities, taxes | ($3,043) | ($4,691) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net (loss) income | ($42,185) | $7,033 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ||
Net investment loss | 59,368 | 5,911 |
Net discount accretion on mortgage-backed securities | -2,696 | -3,317 |
Deferred tax provision | 12,132 | 4,125 |
Other | 111 | 630 |
Changes in operating assets | ||
Interest receivable | -568 | -701 |
Other receivables | 610 | 197 |
Prepaid expenses and other assets | 213 | -1,733 |
Changes in operating liabilities | ||
Accounts payable and other liabilities | -320 | 358 |
Accrued compensation and benefits | -4,505 | -4,355 |
Net cash provided by operating activities | 22,160 | 8,148 |
Cash flows from investing activities: | ||
Purchases of trading mortgage-backed securities | -331,514 | -254,986 |
Proceeds from sales of available-for-sale mortgage-backed securities | 20,859 | 8,626 |
Proceeds from sales of trading mortgage-backed securities | 51,751 | 0 |
Receipt of principal payments on available-for-sale mortgage-backed securities | 796 | 1,001 |
Receipt of principal payments on trading mortgage-backed securities | 88,969 | 33,808 |
Payments for derivatives and deposits, net | -77,485 | -23,980 |
Other | 39 | 16 |
Net cash used in investing activities | -246,585 | -235,515 |
Cash flows from financing activities: | ||
Proceeds from repurchase agreements, net | 191,915 | 223,892 |
Proceeds from stock issuance, net | 0 | 81,769 |
Proceeds from long-term debt issuance, net | 34,188 | 0 |
Dividends paid | -20,195 | -14,630 |
Net cash provided by financing activities | 205,908 | 291,031 |
Net (decrease) increase in cash and cash equivalents | -18,517 | 63,664 |
Cash and cash equivalents, beginning of period | 33,832 | 48,628 |
Cash and cash equivalents, end of period | 15,315 | 112,292 |
Supplemental cash flow information | ||
Cash payments for interest | 3,636 | 2,303 |
Cash payments for taxes | $0 | $399 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation: |
The consolidated financial statements of Arlington Asset Investment Corp. (“Arlington Asset”) and its consolidated subsidiaries (unless the context otherwise provides, collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Therefore, they do not include all information required by GAAP for complete financial statements. The interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2015 and 2014 are not necessarily indicative of the operating results for the entire year or any other subsequent interim period. The Company’s unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
The preparation of the Company’s financial statements in conformity with GAAP requires the Company to make estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although the Company based the estimates and assumptions on historical experience, when available, market information, and on various other factors that the Company believes to be reasonable under the circumstances, management exercises significant judgment in the final determination of the estimates. Actual results may differ from these estimates. | |
Certain amounts in the consolidated financial statements and notes for prior periods have been reclassified to conform to the current period presentation. These reclassifications had no effect on the results of operations of the Company. | |
Financial_Instruments
Financial Instruments | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||
Financial Instruments | Note 2. Financial Instruments: | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||
The accounting principles related to fair value measurements define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not adjusted for transaction costs. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3) as described below: | ||||||||||||||||||||||||||||||
Level 1 Inputs — | Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company; | |||||||||||||||||||||||||||||
Level 2 Inputs — | Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and | |||||||||||||||||||||||||||||
Level 3 Inputs — | Unobservable inputs for the asset or liability, including significant assumptions of the Company and other market participants. | |||||||||||||||||||||||||||||
The Company determines fair values for the following assets and liabilities: | ||||||||||||||||||||||||||||||
Mortgage-backed securities, at fair value — | ||||||||||||||||||||||||||||||
Agency-backed MBS — The Company’s mortgage-backed securities (“MBS”), the principal and interest payments on which are guaranteed by the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”) (collectively, “agency-backed MBS”), are generally classified within Level 2 of the fair value hierarchy as they are valued using inputs primarily from third-party pricing services as well as considering quoted market prices provided by a broker or dealer with reasonable levels of price transparency. In determining fair value, third party pricing sources use various valuation approaches including market and income approaches. The Company makes inquiries of the third party pricing sources to understand the significant inputs and assumptions they used to determine their prices. The Company reviews the various third party fair value estimates and performs procedures to validate their reasonableness, including comparison to recent trading activity for similar securities and management review for consistency with market conditions observed as of the measurement date. | ||||||||||||||||||||||||||||||
Private-label MBS — The Company classifies non-agency-backed, or private-label, MBS within Level 3 of the fair value hierarchy because they trade infrequently and, therefore, have little or no price transparency. In determining fair value, the Company primarily uses an income approach as well as market approaches. The Company utilizes present value techniques based on estimated cash flows of the instrument taking into consideration various assumptions derived by management based on their observations of assumptions used by market participants. These assumptions are corroborated by evidence such as historical data, risk characteristics, transactions in similar instruments, and completed or pending transactions, when available. The significant inputs in the Company’s valuation process include default rate, loss severity, prepayment rate and discount rate. In general, significant increases (decreases) in default rate, loss severity or discount rate, in isolation, would result in a significantly lower (higher) fair value measurement. However, significant increases (decreases) in prepayment rate may result in a significantly higher (lower) fair value measurement. It is difficult to generalize the interrelationships between these significant inputs as the actual results could differ considerably on an individual security basis. For example, an increase in the default rate may not increase the loss severity rate if actual losses are lower than the average. Also, changes in discount rates may be greatly influenced by market expectation at any given point based upon many variables not directly related to the MBS market. Therefore, each significant input is closely analyzed to ascertain the reasonableness for the Company’s valuation purposes. | ||||||||||||||||||||||||||||||
Establishing fair value is inherently subjective given the volatile and sometimes illiquid markets for these private-label MBS and requires management to make a number of assumptions, including assumptions about the future of interest rates, prepayment rates, discount rates, credit loss rates, and the timing of cash flows and credit losses. The assumptions the Company applies are specific to each security. Although the Company relies on its internal calculations to compute the fair value of these private-label MBS, the Company requests and considers indications of value from actual sales of private-label MBS to assist in the valuation process and calibrate the Company’s model. | ||||||||||||||||||||||||||||||
Other investments — The Company’s other investments, which are classified within Level 3 of the fair value hierarchy, consist of investments in equity securities, investment funds and other MBS-related securities, such as interest-only MBS. | ||||||||||||||||||||||||||||||
Derivative instruments — In the normal course of the Company’s operations, the Company is a party to various financial instruments that are accounted for as derivatives in accordance with ASC 815, Derivatives and Hedging (“ASC 815”). The derivative instruments that trade in active markets or exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Other derivative instruments are generally classified within Level 2 of the fair value hierarchy because they are valued using broker or dealer quotations, which are model-based calculations based on market-based inputs, including, but not limited to, contractual terms, market prices, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. | ||||||||||||||||||||||||||||||
Other — Cash and cash equivalents, interest receivable, deposits, other receivable, interest payable, accounts payable, accrued expenses and other liabilities are reflected in the consolidated balance sheets at their amortized cost (which approximates fair value because of the short term nature of these instruments) and classified within Level 1 of the fair value hierarchy, except for certain cash equivalents that are held in money market funds that are classified within Level 2 of the fair value hierarchy. | ||||||||||||||||||||||||||||||
Sold securities receivable, repurchase agreements and purchased securities payable are reflected in the consolidated balance sheets at the cost basis, which approximates fair value because of the short term nature of these instruments, and classified within Level 2 of the fair value hierarchy. | ||||||||||||||||||||||||||||||
Long-term debt represents remaining balances of trust preferred debt and senior debt issued by the Company. Trust preferred debt is classified within Level 3 of the fair value hierarchy as the fair value is determined after considering quoted market prices provided by a broker or dealer. The independent brokers or dealers providing market prices are those who make markets in or specialists with expertise in the valuation of these financial instruments. The Company’s senior debt, which is publicly traded on the New York Stock Exchange, is classified within Level 1 of the fair value hierarchy. | ||||||||||||||||||||||||||||||
The estimated fair values of the Company’s financial instruments are as follows: | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Carrying Amount | Estimated | Carrying Amount | Estimated | |||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 15,315 | $ | 15,315 | $ | 33,832 | $ | 33,832 | ||||||||||||||||||||||
Interest receivable | 11,269 | 11,269 | 10,701 | 10,701 | ||||||||||||||||||||||||||
Sold securities receivable | 78,915 | 78,915 | — | — | ||||||||||||||||||||||||||
Other receivables | 528 | 528 | 1,138 | 1,138 | ||||||||||||||||||||||||||
MBS: | ||||||||||||||||||||||||||||||
Agency-backed MBS | 3,687,764 | 3,687,764 | 3,414,340 | 3,414,340 | ||||||||||||||||||||||||||
Private-label MBS | 241,017 | 241,017 | 267,437 | 267,437 | ||||||||||||||||||||||||||
Derivative assets | 1,508 | 1,508 | 1,267 | 1,267 | ||||||||||||||||||||||||||
Other investments | 1,819 | 1,819 | 1,837 | 1,837 | ||||||||||||||||||||||||||
Deposits | 213,037 | 213,037 | 160,427 | 160,427 | ||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||
Repurchase agreements | 3,371,690 | 3,371,690 | 3,179,775 | 3,179,775 | ||||||||||||||||||||||||||
Interest payable | 1,162 | 1,162 | 1,106 | 1,106 | ||||||||||||||||||||||||||
Long-term debt | 75,300 | 75,000 | 40,000 | 39,200 | ||||||||||||||||||||||||||
Derivative liabilities | 175,793 | 175,793 | 124,308 | 124,308 | ||||||||||||||||||||||||||
Purchased securities payable | 148,252 | 148,252 | — | — | ||||||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 751 | 751 | 1,006 | 1,006 | ||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||
The following tables set forth financial instruments accounted for under ASC 820 by level within the fair value hierarchy as of March 31, 2015 and December 31, 2014. As required by ASC 820, assets and liabilities that are measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
MBS, at fair value | ||||||||||||||||||||||||||||||
Trading: | ||||||||||||||||||||||||||||||
Agency-backed MBS | $ | 3,687,736 | $ | — | $ | 3,687,736 | $ | — | ||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||
Agency-backed MBS | 28 | — | 28 | — | ||||||||||||||||||||||||||
Private-label MBS | 241,017 | — | — | 241,017 | ||||||||||||||||||||||||||
Total available-for-sale | 241,045 | — | 28 | 241,017 | ||||||||||||||||||||||||||
Total MBS | 3,928,781 | — | 3,687,764 | 241,017 | ||||||||||||||||||||||||||
Derivative assets, at fair value | 1,508 | — | 1,508 | — | ||||||||||||||||||||||||||
Derivative liabilities, at fair value | -175,793 | -175,106 | -687 | — | ||||||||||||||||||||||||||
Interest-only MBS, at fair value | 207 | — | — | 207 | ||||||||||||||||||||||||||
Total | $ | 3,754,703 | $ | -175,106 | $ | 3,688,585 | $ | 241,224 | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
MBS, at fair value | ||||||||||||||||||||||||||||||
Trading: | ||||||||||||||||||||||||||||||
Agency-backed MBS | $ | 3,414,300 | $ | — | $ | 3,414,300 | $ | — | ||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||
Agency-backed MBS | 40 | — | 40 | — | ||||||||||||||||||||||||||
Private-label MBS | 267,437 | — | — | 267,437 | ||||||||||||||||||||||||||
Total available-for-sale | 267,477 | — | 40 | 267,437 | ||||||||||||||||||||||||||
Total MBS | 3,681,777 | — | 3,414,340 | 267,437 | ||||||||||||||||||||||||||
Derivative assets, at fair value | 1,267 | 751 | 516 | — | ||||||||||||||||||||||||||
Derivative liabilities, at fair value | -124,308 | -124,308 | — | — | ||||||||||||||||||||||||||
Interest-only MBS, at fair value | 212 | — | — | 212 | ||||||||||||||||||||||||||
Total | $ | 3,558,948 | $ | -123,557 | $ | 3,414,856 | $ | 267,649 | ||||||||||||||||||||||
There were no transfers of securities in or out of Levels 1, 2 or 3 during the three months ended March 31, 2015 or the year ended December 31, 2014. | ||||||||||||||||||||||||||||||
Level 3 Financial Assets and Liabilities | ||||||||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||
The fair value of the Company’s Level 3, available-for-sale, private-label MBS was $241,017 and $267,437 as of March 31, 2015 and December 31, 2014, respectively. As of March 31, 2015 and December 31, 2014, the private-label MBS portfolio consists primarily of re-REMIC tranches in securitization trusts issued between 2005 and 2010. During 2014, the Company’s private-label MBS portfolio also included senior securities which represent interests in securitizations that have the first right to cash flows and absorb losses last. The re-REMIC securities represent interests in re-securitizations of senior MBS and pro-rata mezzanine securities. For re-REMIC securities, the cash flows from, and any credit losses absorbed by, the underlying MBS are allocated among the re-REMIC securities issued in the re-securitization transactions based on the re-REMIC structure. For example, prime and non-prime residential senior securities have been resecuritized to create a two-tranche structure with a re-REMIC senior security and a re-REMIC subordinated security. In these re-REMIC securities, all principal payments from the underlying securities are directed to the re-REMIC senior security until the face value is fully paid off. Thereafter, all principal payments are directed to the re-REMIC subordinated security. For pro-rata mezzanine securities, principal payments from the underlying MBS are typically allocated concurrently and proportionally to the mezzanine securities along with senior securities. The re-REMIC subordinated and mezzanine securities absorb credit losses, if any, first; however, these credit losses occur only when credit losses exceed the credit protection provided to the underlying securities. Re-REMIC and mezzanine securities receive interest while any face value is outstanding. | ||||||||||||||||||||||||||||||
The Company’s private-label MBS were collateralized by residential prime and Alt-A mortgage loans and had the following weighted average characteristics, based on face value, as of the dates indicated: | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Original loan-to-value | 67 | % | 68 | % | ||||||||||||||||||||||||||
Original FICO score | 721 | 722 | ||||||||||||||||||||||||||||
Three-month prepayment rate | 11 | % | 11 | % | ||||||||||||||||||||||||||
Three-month loss severities | 42 | % | 41 | % | ||||||||||||||||||||||||||
Weighted average coupon | 2.8 | % | 2.96 | % | ||||||||||||||||||||||||||
The significant unobservable inputs used to develop the estimated cash flows and discount rates in the valuation models for the Company’s private-label MBS include the following weighted-averages, based on face value, as of the dates indicated: | ||||||||||||||||||||||||||||||
Private-label MBS | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Discount rate | 5.47 | % | 5.55 | % | ||||||||||||||||||||||||||
Default rate | 3.05 | % | 3.09 | % | ||||||||||||||||||||||||||
Loss severity rate | 42.13 | % | 42.25 | % | ||||||||||||||||||||||||||
Prepayment rate | 10.99 | % | 11.23 | % | ||||||||||||||||||||||||||
The ranges of the significant unobservable inputs for the valuation model were as follows as of the dates indicated: | ||||||||||||||||||||||||||||||
Private-label MBS | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Discount rate | 5.15 – 10.00 | % | 5.15 – 10.00 | % | ||||||||||||||||||||||||||
Default rate | 1.00 – 8.25 | % | 1.00 – 8.80 | % | ||||||||||||||||||||||||||
Loss severity rate | 29.21 – 57.50 | % | 29.23 – 57.50 | % | ||||||||||||||||||||||||||
Prepayment rate | 7.40 – 17.70 | % | 7.40 – 17.70 | % | ||||||||||||||||||||||||||
The tables below set forth a summary of changes in the fair value and gains and losses of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||||
Senior | Re-REMIC | Total | ||||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2015 | $ | — | $ | 267,437 | $ | 267,437 | ||||||||||||||||||||||||
Total net gains (losses) | ||||||||||||||||||||||||||||||
Included in earnings | — | 3,432 | 3,432 | |||||||||||||||||||||||||||
Included in other comprehensive income | — | -10,905 | -10,905 | |||||||||||||||||||||||||||
Purchases | — | — | — | |||||||||||||||||||||||||||
Sales | — | -20,859 | -20,859 | |||||||||||||||||||||||||||
Payments, net | — | -3,131 | -3,131 | |||||||||||||||||||||||||||
Accretion of discount | — | 5,043 | 5,043 | |||||||||||||||||||||||||||
Ending balance, March 31, 2015 | $ | — | $ | 241,017 | $ | 241,017 | ||||||||||||||||||||||||
The amount of net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||
Senior | Re-REMIC | Total | ||||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2014 | $ | 7,066 | $ | 334,233 | $ | 341,299 | ||||||||||||||||||||||||
Total net gains (losses) | ||||||||||||||||||||||||||||||
Included in earnings | 1,684 | 3,083 | 4,767 | |||||||||||||||||||||||||||
Included in other comprehensive income | -1,654 | -1,191 | -2,845 | |||||||||||||||||||||||||||
Purchases | — | — | — | |||||||||||||||||||||||||||
Sales | -7,107 | -8,626 | -15,733 | |||||||||||||||||||||||||||
Payments, net | -215 | -4,577 | -4,792 | |||||||||||||||||||||||||||
Accretion of discount | 226 | 6,924 | 7,150 | |||||||||||||||||||||||||||
Ending balance, March 31, 2014 | $ | — | $ | 329,846 | $ | 329,846 | ||||||||||||||||||||||||
The amount of net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Gains and losses included in earnings for the three months ended March 31, 2015 and 2014 are reported in the following statement of comprehensive income line descriptions: | ||||||||||||||||||||||||||||||
Other Loss, Investment Loss, net | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Total gains (losses) included in earnings for the period | $ | 3,432 | $ | 4,767 | ||||||||||||||||||||||||||
Change in unrealized gains (losses) relating to Level 3 assets still held at reporting date | $ | — | $ | — | ||||||||||||||||||||||||||
Level 3 Financial Instruments Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||||||||||||||||
The Company also measures certain financial assets at fair value on a non-recurring basis. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets due to impairments. Due to the nature of these financial assets, enterprise values are primarily used to value these financial assets. In determining the enterprise value, the Company analyzes various financial, performance and market factors to estimate fair value, including where applicable, market trading activity. As a result, these financial assets are classified within Level 3 of the fair value hierarchy. As of March 31, 2015 and December 31, 2014, these financial assets are classified within the other investments category and represent the Company’s interest in non-public equity securities and investment funds and are valued at $1,612 and $1,625, respectively. For the three months ended March 31, 2015 and March 31, 2014, there were no changes to the carrying value of these financial assets. | ||||||||||||||||||||||||||||||
MBS, at Fair Value | ||||||||||||||||||||||||||||||
MBS, at fair value(1)(2), consisted of the following as of the dates indicated: | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Fair | Net | Percent of | Weighted | Weighted | Fair | Net | Percent of | Weighted | Weighted | |||||||||||||||||||||
Value | Unamortized | Total | Average | Average | Value | Unamortized | Total | Average | Average | |||||||||||||||||||||
Premium | Fair | Life | Rating (3) | Premium | Fair | Life | Rating (3) | |||||||||||||||||||||||
(Discount) | Value | (Discount) | Value | |||||||||||||||||||||||||||
Trading: | ||||||||||||||||||||||||||||||
Fannie Mae | $ | 2,214,210 | $ | — | 56.36 | % | 7.5 | AAA | $ | 2,064,465 | $ | — | 56.07 | % | 8.1 | AAA | ||||||||||||||
Freddie Mac | 1,473,526 | — | 37.51 | % | 7.5 | AAA | 1,349,835 | — | 36.66 | % | 8.2 | AAA | ||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||
Fannie Mae | 28 | — | — | 4.6 | AAA | 40 | — | — | 4.9 | AAA | ||||||||||||||||||||
Private-label | 241,017 | -116,839 | 6.13 | % | 10.2 | NR | 267,437 | -133,333 | 7.27 | % | 10.4 | NR | ||||||||||||||||||
$ | 3,928,781 | $ | -116,839 | 100 | % | $ | 3,681,777 | $ | -133,333 | 100 | % | |||||||||||||||||||
-1 | The Company’s MBS portfolio was primarily comprised of fixed-rate MBS at March 31, 2015 and December 31, 2014. The weighted-average interest rate of the MBS portfolio at March 31, 2015 and December 31, 2014 was 3.92% and 3.93%, respectively. | |||||||||||||||||||||||||||||
-2 | As of March 31, 2015 and December 31, 2014, the Company’s MBS investments with a fair value of $3,602,372 and $3,376,025, respectively, were pledged as collateral for repurchase agreements. | |||||||||||||||||||||||||||||
-3 | The securities issued by Fannie Mae and Freddie Mac are not rated by any rating agency; however, they are commonly thought of as having an implied rating of “AAA.” There is no assurance, particularly given the downgrade of the U.S. credit rating to “AA+” by Standard & Poor’s during the quarter ended September 30, 2011 and Fitch Ratings Inc.’s announcement on October 15, 2013 that it had placed the U.S. credit rating on negative watch, that these securities would receive such a rating if they were ever rated by a rating agency. The weighted-average rating of the Company’s private-label senior securities is calculated based on face value of the securities. | |||||||||||||||||||||||||||||
The Company has generally purchased private-label MBS at a discount to face value. The Company, at least on a quarterly basis, estimates the future expected cash flows based on the Company’s observation of current information and events and applies a number of assumptions related to prepayment rates, interest rates, default rates, loss severity rates, and the timing and amount of cash flows and credit losses. These assumptions are difficult to predict, as they are subject to uncertainties and contingencies related to future events that may impact the Company’s estimates and its interest income. | ||||||||||||||||||||||||||||||
Interest income on the private-label MBS that were purchased at a discount to face value is recognized based on each security’s expected effective interest rate. At acquisition, the accretable yield is calculated as the difference between the undiscounted expected cash flows and the purchase price which is expected to be accreted into interest income over the remaining life of the security on a level-yield basis. The difference between the contractually required payments and the undiscounted expected cash flows represents the non-accretable difference. Based on actual payment activities and changes in estimates of undiscounted expected future cash flows, the accretable yield and the non-accretable difference can change over time. Significant increases in the amount or timing of undiscounted expected future cash flows are recognized prospectively as an adjustment to the accretable yield. | ||||||||||||||||||||||||||||||
The following table presents the changes in the accretable yield on available-for-sale, private-label MBS for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Beginning balance | $ | 202,108 | $ | 326,330 | ||||||||||||||||||||||||||
Accretion of discount | -5,043 | -7,150 | ||||||||||||||||||||||||||||
Reclassifications, net | -9,182 | 4,645 | ||||||||||||||||||||||||||||
Sales | -12,585 | -12,892 | ||||||||||||||||||||||||||||
Ending balance | $ | 175,298 | $ | 310,933 | ||||||||||||||||||||||||||
The Company did not acquire any available-for-sale, private-label MBS during the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||||
The Company’s available-for-sale MBS are carried at fair value in accordance with ASC 320, Debt and Equity Securities (“ASC 320”), with resulting unrealized gains and losses reflected as other comprehensive income or loss. Gross unrealized gains and losses on these securities were the following as of the dates indicated: | ||||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
Amortized | Unrealized | |||||||||||||||||||||||||||||
Cost/Cost | ||||||||||||||||||||||||||||||
Basis (1) | ||||||||||||||||||||||||||||||
Gains | Losses | Fair Value | ||||||||||||||||||||||||||||
Agency-backed MBS | $ | 25 | $ | 3 | $ | — | $ | 28 | ||||||||||||||||||||||
Private-label MBS | 204,389 | 36,633 | -5 | 241,017 | ||||||||||||||||||||||||||
Total | $ | 204,414 | $ | 36,636 | $ | -5 | $ | 241,045 | ||||||||||||||||||||||
-1 | The amortized cost of MBS includes unamortized net discounts of $116,839 at March 31, 2015. | |||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Amortized | Unrealized | |||||||||||||||||||||||||||||
Cost/Cost | ||||||||||||||||||||||||||||||
Basis (1) | ||||||||||||||||||||||||||||||
Gains | Losses | Fair Value | ||||||||||||||||||||||||||||
Agency-backed MBS | $ | 36 | $ | 4 | $ | — | $ | 40 | ||||||||||||||||||||||
Private-label MBS | 219,904 | 47,533 | — | 267,437 | ||||||||||||||||||||||||||
Total | $ | 219,940 | $ | 47,537 | $ | — | $ | 267,477 | ||||||||||||||||||||||
-1 | The amortized cost of MBS includes unamortized net discounts of $133,333 at December 31, 2014. | |||||||||||||||||||||||||||||
The Company recorded no other-than-temporary impairment charges on available-for-sale MBS during the three months ended March 31, 2015 and 2014. The following table presents a summary of cumulative other-than-temporary impairment charges recognized on the available-for-sale MBS held as of the dates indicated: | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Cumulative other-than-temporary impairment, beginning balance | $ | 18,903 | $ | 23,663 | ||||||||||||||||||||||||||
Decreases related to other-than-temporary impairments on sold securities | — | -2,636 | ||||||||||||||||||||||||||||
Cumulative other-than-temporary impairment, ending balance | $ | 18,903 | $ | 21,027 | ||||||||||||||||||||||||||
The following table presents the results of sales of MBS for the periods indicated: | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Agency-Backed | Private-Label | Agency-Backed | Private-Label | |||||||||||||||||||||||||||
MBS | MBS | MBS | MBS | |||||||||||||||||||||||||||
Proceeds from sales | $ | 130,666 | $ | 20,859 | $ | — | $ | 15,733 | ||||||||||||||||||||||
Gross gains | 399 | 3,348 | — | 4,669 | ||||||||||||||||||||||||||
Gross losses | 8 | — | — | — | ||||||||||||||||||||||||||
Other Investments | ||||||||||||||||||||||||||||||
The Company’s other investments consisted of the following as of the dates indicated: | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Interest-only MBS | $ | 207 | $ | 212 | ||||||||||||||||||||||||||
Non-public equity securities | 975 | 975 | ||||||||||||||||||||||||||||
Investment funds | 637 | 650 | ||||||||||||||||||||||||||||
Total other investments | $ | 1,819 | $ | 1,837 | ||||||||||||||||||||||||||
Borrowings
Borrowings | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Borrowings | Note 3. Borrowings: | ||||||||||||||||||||
Repurchase Agreements | |||||||||||||||||||||
The Company has entered into repurchase agreements to fund its investments in MBS. Securities sold under agreements to repurchase, which are treated as financing transactions for financial reporting purposes, are collateralized by MBS and are carried at their contractual amounts, including accrued interest, as specified in the respective agreements. Under the repurchase agreements, the Company pledges its securities as collateral to secure the borrowing, which is equal in value to a specified percentage of the fair value of the pledged collateral, while the Company retains beneficial ownership of the pledged collateral. The counterparty to the repurchase agreements may require that the Company pledge additional securities or cash as additional collateral to secure borrowings when the value of the collateral declines. | |||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, the Company had no amount at risk with a single repurchase agreement counterparty or lender greater than 10% of equity. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Pledged with agency-backed MBS: | |||||||||||||||||||||
Repurchase agreements outstanding | $ | 3,308,802 | $ | 3,137,586 | |||||||||||||||||
Agency-backed MBS collateral, at fair value | 3,495,969 | 3,300,383 | |||||||||||||||||||
Net amount (1) | 187,167 | 162,797 | |||||||||||||||||||
Weighted-average rate | 0.36 | % | 0.38 | % | |||||||||||||||||
Weighted-average term to maturity | 14.0 days | 14.0 days | |||||||||||||||||||
Pledged with private-label MBS: | |||||||||||||||||||||
Repurchase agreements outstanding | $ | 62,888 | $ | 42,189 | |||||||||||||||||
Private-label MBS collateral, at fair value | 106,403 | 75,642 | |||||||||||||||||||
Net amount (1) | 43,515 | 33,453 | |||||||||||||||||||
Weighted-average rate | 2.03 | % | 1.98 | % | |||||||||||||||||
Weighted-average term to maturity | 21.4 days | 21.8 days | |||||||||||||||||||
Total MBS: | |||||||||||||||||||||
Repurchase agreements outstanding | $ | 3,371,690 | $ | 3,179,775 | |||||||||||||||||
MBS collateral, at fair value | 3,602,372 | 3,376,025 | |||||||||||||||||||
Net amount (1) | 230,682 | 196,250 | |||||||||||||||||||
Weighted-average rate | 0.39 | % | 0.4 | % | |||||||||||||||||
Weighted-average term to maturity | 14.1 days | 14.1 days | |||||||||||||||||||
-1 | Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance. | ||||||||||||||||||||
The following table provides information regarding the Company’s outstanding repurchase agreement borrowings during the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||||||
Weighted-average outstanding balance during the three months ended | $ | 3,219,172 | $ | 1,680,941 | |||||||||||||||||
Weighted-average rate during the three months ended | 0.38 | % | 0.41 | % | |||||||||||||||||
Long-Term Debt | |||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, the Company had $75,300 and $40,000, respectively, of outstanding long-term debentures. On March 18, 2015, the Company completed a public offering of $35,300 of its 6.75% Senior Notes due in 2025 and received net proceeds of $34,063 after payment of underwriting discounts and commissions and expenses. These Senior Notes will mature on March 15, 2025, and may be redeemed in whole or in part at any time and from time to time at the Company’s option on or after March 15, 2018, at a redemption price equal to the principal amount redeemed plus accrued and unpaid interest. The interest payments on these Senior Notes are payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on June 15, 2015. The indenture governing these Senior Notes contains certain covenants, including limitations on the Company’s ability to merge or consolidate with other entities or sell or otherwise dispose of all or substantially all of the Company’s assets. The Senior Notes due 2025 and the Senior Notes due 2023 are publicly traded on the New York Stock Exchange under the ticker symbol “AIC” and “AIW”, respectively. | |||||||||||||||||||||
The Company’s long-term debentures consisted of the following as of the dates indicated: | |||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Senior | Senior | Trust | Senior | Trust | |||||||||||||||||
Notes Due 2025 | Notes Due 2023 | Preferred Debt | Notes Due 2023 | Preferred Debt | |||||||||||||||||
Outstanding Principal | $35,300 | $ | 25,000 | $ | 15,000 | $ | 25,000 | $ | 15,000 | ||||||||||||
Annual Interest Rate | 6.75% | 6.63% | LIBOR + | 6.63% | LIBOR + | ||||||||||||||||
2.25 – 3.00% | 2.25 – 3.00% | ||||||||||||||||||||
Interest Payment Frequency | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | ||||||||||||||||
Weighted-Average Interest Rate | 6.75% | 6.63% | 3.00% | 6.63% | 2.98% | ||||||||||||||||
Maturity | 15-Mar-25 | 1-May-23 | 2033 – 2035 | 1-May-23 | 2033 – 2035 | ||||||||||||||||
Early Redemption Date | 15-Mar-18 | 1-May-16 | 2008 – 2010 | 1-May-16 | 2008 – 2010 | ||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments and Hedging Activities | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Derivative Financial Instruments and Hedging Activities | Note 4. Derivative Financial Instruments and Hedging Activities: | |||||||||||||
In the normal course of its operations, the Company is a party to financial instruments that are accounted for as derivative financial instruments in accordance with ASC 815. These instruments may include Eurodollar futures, interest rate swap futures, U.S. Treasury futures contracts, interest rate swaps, put options and certain commitments to purchase and sell MBS. The exchange traded derivatives such as Eurodollar futures and swap futures are cash settled on a daily basis. The Company may be required to pledge collateral for margin requirements with third-party custodians in connection with certain derivative transactions. These transactions are not under master netting agreements. In addition, certain features of the securitization structures of the Company’s private-label MBS are considered derivatives under ASC 815. The Company determined that these embedded derivatives have de minimis value, if any. | ||||||||||||||
During the three months ended March 31, 2015 and 2014, the Company entered into various financial contracts to hedge certain MBS and related borrowings and other long-term debt. These financial contracts are not designated as hedges under ASC 815. The changes in fair value on these derivatives are recorded to net investment gain or loss in the statement of comprehensive income. For the three months ended March 31, 2015 and 2014, the Company recorded net losses of $76,119 and $23,480, respectively, on these derivatives. The Company held the following derivative instruments as of the dates indicated: | ||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Notional | Fair Value | Notional | Fair Value | |||||||||||
Amount | Amount | |||||||||||||
Eurodollar futures: | ||||||||||||||
Derivative assets | $ | — | $ | — | $ | 2,445,000 | $ | 751 | ||||||
Derivative liabilities | 42,725,000 | -112,816 | 38,645,000 | -76,848 | ||||||||||
Total Eurodollar futures(1) | 42,725,000 | -112,816 | 41,090,000 | -76,097 | ||||||||||
10-year swap futures: | ||||||||||||||
Derivative assets | — | — | — | — | ||||||||||
Derivative liabilities | 845,000 | -62,079 | 1,145,000 | -47,460 | ||||||||||
Total 10-year swap futures(2) | 845,000 | -62,079 | 1,145,000 | -47,460 | ||||||||||
10-year U.S. Treasury note futures(3) | 50,000 | -211 | — | — | ||||||||||
Commitment to purchase MBS(4) | 217,544 | 1,508 | 200,000 | 516 | ||||||||||
Commitment to sell MBS(5) | 100,000 | -687 | — | — | ||||||||||
-1 | The $42,725,000 total notional amount of Eurodollar futures contracts as of March 31, 2015 represents the accumulation of Eurodollar futures contracts that mature on a quarterly basis between 2015 and 2019. The maximum notional outstanding for any future quarterly period did not exceed $2,525,000 as of March 31, 2015 and $2,325,000 as of December 31, 2014. As of March 31, 2015, the Company maintained $136,051 as a deposit and margin against the open Eurodollar futures contracts. | |||||||||||||
-2 | The $845,000 represents the total notional amount of 10-year swap futures as of March 31, 2015, of which $480,000 of notional amount matures in June 2015 and $365,000 in notional amount matures in March 2024. As of March 31, 2015, the Company maintained $76,100 as a deposit and margin against the open 10-year swap futures contracts. | |||||||||||||
-3 | The $50,000 total notional amount of 10-year Treasury note futures as of March 31, 2015 represents the accumulation of 10-year Treasury note futures that mature in June 2015. As of March 31, 2015, the Company maintained $886 as a deposit and margin against the open 10-year Treasury note futures. | |||||||||||||
-4 | The total notional amount of commitment to purchase MBS represents forward commitments to purchase fixed-rate MBS securities. | |||||||||||||
-5 | The total notional amount of commitment to sell MBS represents forward commitments to sell fixed-rate MBS securities. | |||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5. Income Taxes: |
Arlington Asset is subject to taxation as a corporation under Subchapter C of the Internal Revenue Code of 1986, as amended (the “Code”). The Company’s consolidated subsidiary, Rosslyn REIT Trust (“Rosslyn REIT”), operates to qualify as a real estate investment trust (“REIT”) under the Code. The investments of Rosslyn REIT primarily consist of a portion of the Company’s private-label MBS portfolio. Arlington Asset owns all of the common shares of Rosslyn REIT and all of the preferred shares are owned by outside investors. Rosslyn REIT periodically distributes all of its income to its shareholders. The Company’s agency-backed MBS and remaining private label MBS investment portfolios are primarily held by Arlington Asset. | |
The Company currently has net operating loss (“NOL”) and net capital loss (“NCL”) carry-forwards that can be applied against the Company’s current taxable ordinary income and net capital gains. | |
As of March 31, 2015 and December 31, 2014, the Company had a net deferred tax asset of $113,276 and $122,365, respectively, net of a valuation allowance on NCL carry-forwards of $51,406 and $26,027, respectively. The Company continues to provide a valuation allowance against the portion of NCL carry-forwards for which the Company believes is more likely than not that the benefits will not be realized prior to expiration. The Company’s NCL carry-forwards expire in 2019, and any net capital loss generated in the current year will expire in 2020. During the three months ended March 31, 2015, the Company recorded an increase to its valuation allowance of $25,379 primarily due to realized and unrealized net capital losses generated during the period from certain of its derivative hedge instruments. The Company will continue to assess the need for a valuation allowance at each reporting date. | |
As of March 31, 2015, the Company has assessed the need for recording a provision for any uncertain tax position and has made the determination that such provision is not necessary. | |
The Company is subject to examination by the U.S. Internal Revenue Service (“IRS”) and state and local taxing jurisdictions where the Company has significant business operations. As of March 31, 2015, there are no on-going examinations. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||
Earnings Per Share | Note 6. Earnings Per Share: | |||||||||||||
Basic earnings per share includes no dilution and is computed by dividing net income or loss applicable to common stock by the weighted-average number of common shares outstanding for the respective period. Diluted earnings per share includes the impact of dilutive securities such as unvested shares of restricted stock and performance share units. The following tables present the computations of basic and diluted earnings per share for the periods indicated: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
(Shares in thousands) | Basic | Diluted | Basic | Diluted | ||||||||||
Weighted-average shares outstanding | ||||||||||||||
Common stock | 22,973 | 22,973 | 16,808 | 16,808 | ||||||||||
Performance share units and unvested restricted stock | — | — | — | 273 | ||||||||||
Weighted-average common and common equivalent shares outstanding | 22,973 | 22,973 | 16,808 | 17,081 | ||||||||||
Net (loss) income applicable to common stock | $ | -42,185 | $ | -42,185 | $ | 7,033 | $ | 7,033 | ||||||
Net (loss) income per common share | $ | -1.84 | $ | -1.84 | $ | 0.42 | $ | 0.41 | ||||||
The diluted earnings per share for the three months ended March 31, 2015 did not include the antidilutive effect of 123,242 unvested shares of restricted stock and performance share units. | ||||||||||||||
Equity
Equity | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Equity | Note 7. Equity: | |||||||||||||
Dividends | ||||||||||||||
Pursuant to the Company’s variable dividend policy, the Board of Directors evaluates dividends on a quarterly basis and, in its sole discretion, approves the payment of dividends. The Company’s dividend payments, if any, may vary significantly from quarter to quarter. The Board of Directors has approved and the Company has declared the following dividends to date in 2015: | ||||||||||||||
Quarter Ended | Dividend | Declaration Date | Record Date | Pay Date | ||||||||||
Amount | ||||||||||||||
31-Mar | $ | 0.875 | 10-Mar | 31-Mar | 30-Apr | |||||||||
The Board of Directors approved and the Company declared and paid the following dividends for 2014: | ||||||||||||||
Quarter Ended | Dividend | Declaration Date | Record Date | Pay Date | ||||||||||
Amount | ||||||||||||||
31-Dec | $ | 0.875 | 18-Dec | 31-Dec | 30-Jan-15 | |||||||||
30-Sep | 0.875 | 17-Sep | 29-Sep | 31-Oct | ||||||||||
30-Jun | 0.875 | 11-Jun | 30-Jun | 31-Jul | ||||||||||
31-Mar | 0.875 | 13-Mar | 31-Mar | 30-Apr | ||||||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Note 8. Recent Accounting Pronouncements: |
On April 7, 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct reduction from the associated debt liability. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. The Company is currently evaluating the impact of ASU 2015-03. | |
On February 18, 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis (“ASU 2015-02”), which makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying variable interest entity guidance. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2015-02. | |
On January 9, 2015, the FASB issued ASU No. 2015-01, Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”), which eliminates from U.S. GAAP the concept of extraordinary items. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not believe the adoption of ASU 2015-01 will have a material impact on its consolidated financial statements. | |
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company on January 1, 2017. Early application is not permitted. The Company is currently evaluating the impact of ASU 2014-09. | |
On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements — Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which is intended to define management’s responsibility to evaluate whether there is substantial doubt about the Company’s ability to continue as a going concern and to provide related footnote disclosures. This standard will be effective for the Company for the year ending on December 31, 2016. Early application is permitted. The Company is currently evaluating the impact of ASU 2014-15. | |
Revisions_to_Previously_Report
Revisions to Previously Reported Financial Statements | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||
Revisions to Previously Reported Financial Statements | Note 9. Revisions to Previously Reported Financial Statements: | ||||||||||
The Company concluded that the previously reported tax effect of the components of other comprehensive income (loss) was incorrect for the three months ended March 31, 2014. Although the error did not have an impact on the previously reported total other comprehensive income (loss), it did have an impact on the previously reported components of other comprehensive income (loss). Although the impact of this change was not material to the consolidated financial statements for the three months ended March 31, 2014, the Company has revised its previously reported consolidated financial statements for the three months ended March 31, 2014. The following table sets forth the affected line items within the Company’s previously reported consolidated financial statements for the three months ended March 31, 2014. | |||||||||||
Three Months Ended March 31, 2014 | |||||||||||
As Previously Reported | Revision | As Revised | |||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Unrealized gains for the period on available-for-sale securities | $ | 2,215 | $ | -1,241 | $ | 974 | |||||
Reclassification: | |||||||||||
Included in investment loss, net, in the statement of comprehensive income related to sales of available-for-sale securities | -4,319 | 1,241 | -3,078 | ||||||||
Total other comprehensive loss | $ | -2,104 | $ | — | $ | -2,104 | |||||
During the preparation of the consolidated financial statements as of March 31, 2015, the Company concluded that the previously reported income tax provision (benefit) and the related income tax effect on other comprehensive income (loss) was incorrect for the fiscal years ended December 31, 2012 and 2013 with no impact on previously reported total comprehensive income. As a result of these errors, the Company also concluded that the previously reported accumulated other comprehensive income and accumulated deficit was incorrect as of the three fiscal years ended December 31, 2014 for the cumulative impact of the errors, however, with no impact on previously reported total equity. Although the impact of these changes were not material to the consolidated financial statements for the three fiscal years ended December 31, 2014, the Company has revised its previously reported accumulated other comprehensive income and accumulated deficit as of December 31, 2014 and 2013 to reflect the cumulative impact of the errors. The following tables set forth the affected line items within the Company’s previously reported consolidated balance sheets as of December 31, 2014 and 2013. | |||||||||||
As of December 31, 2014 | |||||||||||
As Previously Reported | Revision | As Revised | |||||||||
Accumulated other comprehensive income, net of taxes | $ | 42,793 | $ | -6,921 | $ | 35,872 | |||||
Accumulated deficit | $ | -1,298,018 | $ | 6,921 | $ | -1,291,097 | |||||
As of December 31, 2013 | |||||||||||
As Previously Reported | Revision | As Revised | |||||||||
Accumulated other comprehensive income, net of taxes | $ | 53,190 | $ | -6,921 | $ | 46,269 | |||||
Accumulated deficit | $ | -1,228,926 | $ | 6,921 | $ | -1,222,005 | |||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The estimated fair values of the Company’s financial instruments are as follows: | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Carrying Amount | Estimated | Carrying Amount | Estimated | |||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 15,315 | $ | 15,315 | $ | 33,832 | $ | 33,832 | ||||||||||||||||||||||
Interest receivable | 11,269 | 11,269 | 10,701 | 10,701 | ||||||||||||||||||||||||||
Sold securities receivable | 78,915 | 78,915 | — | — | ||||||||||||||||||||||||||
Other receivables | 528 | 528 | 1,138 | 1,138 | ||||||||||||||||||||||||||
MBS: | ||||||||||||||||||||||||||||||
Agency-backed MBS | 3,687,764 | 3,687,764 | 3,414,340 | 3,414,340 | ||||||||||||||||||||||||||
Private-label MBS | 241,017 | 241,017 | 267,437 | 267,437 | ||||||||||||||||||||||||||
Derivative assets | 1,508 | 1,508 | 1,267 | 1,267 | ||||||||||||||||||||||||||
Other investments | 1,819 | 1,819 | 1,837 | 1,837 | ||||||||||||||||||||||||||
Deposits | 213,037 | 213,037 | 160,427 | 160,427 | ||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||
Repurchase agreements | 3,371,690 | 3,371,690 | 3,179,775 | 3,179,775 | ||||||||||||||||||||||||||
Interest payable | 1,162 | 1,162 | 1,106 | 1,106 | ||||||||||||||||||||||||||
Long-term debt | 75,300 | 75,000 | 40,000 | 39,200 | ||||||||||||||||||||||||||
Derivative liabilities | 175,793 | 175,793 | 124,308 | 124,308 | ||||||||||||||||||||||||||
Purchased securities payable | 148,252 | 148,252 | — | — | ||||||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 751 | 751 | 1,006 | 1,006 | ||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Financial Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
MBS, at fair value | ||||||||||||||||||||||||||||||
Trading: | ||||||||||||||||||||||||||||||
Agency-backed MBS | $ | 3,687,736 | $ | — | $ | 3,687,736 | $ | — | ||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||
Agency-backed MBS | 28 | — | 28 | — | ||||||||||||||||||||||||||
Private-label MBS | 241,017 | — | — | 241,017 | ||||||||||||||||||||||||||
Total available-for-sale | 241,045 | — | 28 | 241,017 | ||||||||||||||||||||||||||
Total MBS | 3,928,781 | — | 3,687,764 | 241,017 | ||||||||||||||||||||||||||
Derivative assets, at fair value | 1,508 | — | 1,508 | — | ||||||||||||||||||||||||||
Derivative liabilities, at fair value | -175,793 | -175,106 | -687 | — | ||||||||||||||||||||||||||
Interest-only MBS, at fair value | 207 | — | — | 207 | ||||||||||||||||||||||||||
Total | $ | 3,754,703 | $ | -175,106 | $ | 3,688,585 | $ | 241,224 | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
MBS, at fair value | ||||||||||||||||||||||||||||||
Trading: | ||||||||||||||||||||||||||||||
Agency-backed MBS | $ | 3,414,300 | $ | — | $ | 3,414,300 | $ | — | ||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||
Agency-backed MBS | 40 | — | 40 | — | ||||||||||||||||||||||||||
Private-label MBS | 267,437 | — | — | 267,437 | ||||||||||||||||||||||||||
Total available-for-sale | 267,477 | — | 40 | 267,437 | ||||||||||||||||||||||||||
Total MBS | 3,681,777 | — | 3,414,340 | 267,437 | ||||||||||||||||||||||||||
Derivative assets, at fair value | 1,267 | 751 | 516 | — | ||||||||||||||||||||||||||
Derivative liabilities, at fair value | -124,308 | -124,308 | — | — | ||||||||||||||||||||||||||
Interest-only MBS, at fair value | 212 | — | — | 212 | ||||||||||||||||||||||||||
Total | $ | 3,558,948 | $ | -123,557 | $ | 3,414,856 | $ | 267,649 | ||||||||||||||||||||||
Weighted Average Underlying Loan Characteristics Private Label MBS [Table Text Block] | The Company’s private-label MBS were collateralized by residential prime and Alt-A mortgage loans and had the following weighted average characteristics, based on face value, as of the dates indicated: | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Original loan-to-value | 67 | % | 68 | % | ||||||||||||||||||||||||||
Original FICO score | 721 | 722 | ||||||||||||||||||||||||||||
Three-month prepayment rate | 11 | % | 11 | % | ||||||||||||||||||||||||||
Three-month loss severities | 42 | % | 41 | % | ||||||||||||||||||||||||||
Weighted average coupon | 2.8 | % | 2.96 | % | ||||||||||||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | The significant unobservable inputs used to develop the estimated cash flows and discount rates in the valuation models for the Company’s private-label MBS include the following weighted-averages, based on face value, as of the dates indicated: | |||||||||||||||||||||||||||||
Private-label MBS | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Discount rate | 5.47 | % | 5.55 | % | ||||||||||||||||||||||||||
Default rate | 3.05 | % | 3.09 | % | ||||||||||||||||||||||||||
Loss severity rate | 42.13 | % | 42.25 | % | ||||||||||||||||||||||||||
Prepayment rate | 10.99 | % | 11.23 | % | ||||||||||||||||||||||||||
The ranges of the significant unobservable inputs for the valuation model were as follows as of the dates indicated: | ||||||||||||||||||||||||||||||
Private-label MBS | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Discount rate | 5.15 – 10.00 | % | 5.15 – 10.00 | % | ||||||||||||||||||||||||||
Default rate | 1.00 – 8.25 | % | 1.00 – 8.80 | % | ||||||||||||||||||||||||||
Loss severity rate | 29.21 – 57.50 | % | 29.23 – 57.50 | % | ||||||||||||||||||||||||||
Prepayment rate | 7.40 – 17.70 | % | 7.40 – 17.70 | % | ||||||||||||||||||||||||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Table Text Block] | The tables below set forth a summary of changes in the fair value and gains and losses of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||||
Senior | Re-REMIC | Total | ||||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2015 | $ | — | $ | 267,437 | $ | 267,437 | ||||||||||||||||||||||||
Total net gains (losses) | ||||||||||||||||||||||||||||||
Included in earnings | — | 3,432 | 3,432 | |||||||||||||||||||||||||||
Included in other comprehensive income | — | -10,905 | -10,905 | |||||||||||||||||||||||||||
Purchases | — | — | — | |||||||||||||||||||||||||||
Sales | — | -20,859 | -20,859 | |||||||||||||||||||||||||||
Payments, net | — | -3,131 | -3,131 | |||||||||||||||||||||||||||
Accretion of discount | — | 5,043 | 5,043 | |||||||||||||||||||||||||||
Ending balance, March 31, 2015 | $ | — | $ | 241,017 | $ | 241,017 | ||||||||||||||||||||||||
The amount of net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||
Senior | Re-REMIC | Total | ||||||||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||||||||
Beginning balance, January 1, 2014 | $ | 7,066 | $ | 334,233 | $ | 341,299 | ||||||||||||||||||||||||
Total net gains (losses) | ||||||||||||||||||||||||||||||
Included in earnings | 1,684 | 3,083 | 4,767 | |||||||||||||||||||||||||||
Included in other comprehensive income | -1,654 | -1,191 | -2,845 | |||||||||||||||||||||||||||
Purchases | — | — | — | |||||||||||||||||||||||||||
Sales | -7,107 | -8,626 | -15,733 | |||||||||||||||||||||||||||
Payments, net | -215 | -4,577 | -4,792 | |||||||||||||||||||||||||||
Accretion of discount | 226 | 6,924 | 7,150 | |||||||||||||||||||||||||||
Ending balance, March 31, 2014 | $ | — | $ | 329,846 | $ | 329,846 | ||||||||||||||||||||||||
The amount of net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis, Gain (Loss) Included in Other Comprehensive Income (Loss) [Table Text Block] | Gains and losses included in earnings for the three months ended March 31, 2015 and 2014 are reported in the following statement of comprehensive income line descriptions: | |||||||||||||||||||||||||||||
Other Loss, Investment Loss, net | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Total gains (losses) included in earnings for the period | $ | 3,432 | $ | 4,767 | ||||||||||||||||||||||||||
Change in unrealized gains (losses) relating to Level 3 assets still held at reporting date | $ | — | $ | — | ||||||||||||||||||||||||||
Mortgage Backed Securities Fair Value [Table Text Block] | MBS, at fair value(1)(2), consisted of the following as of the dates indicated: | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Fair | Net | Percent of | Weighted | Weighted | Fair | Net | Percent of | Weighted | Weighted | |||||||||||||||||||||
Value | Unamortized | Total | Average | Average | Value | Unamortized | Total | Average | Average | |||||||||||||||||||||
Premium | Fair | Life | Rating (3) | Premium | Fair | Life | Rating (3) | |||||||||||||||||||||||
(Discount) | Value | (Discount) | Value | |||||||||||||||||||||||||||
Trading: | ||||||||||||||||||||||||||||||
Fannie Mae | $ | 2,214,210 | $ | — | 56.36 | % | 7.5 | AAA | $ | 2,064,465 | $ | — | 56.07 | % | 8.1 | AAA | ||||||||||||||
Freddie Mac | 1,473,526 | — | 37.51 | % | 7.5 | AAA | 1,349,835 | — | 36.66 | % | 8.2 | AAA | ||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||
Fannie Mae | 28 | — | — | 4.6 | AAA | 40 | — | — | 4.9 | AAA | ||||||||||||||||||||
Private-label | 241,017 | -116,839 | 6.13 | % | 10.2 | NR | 267,437 | -133,333 | 7.27 | % | 10.4 | NR | ||||||||||||||||||
$ | 3,928,781 | $ | -116,839 | 100 | % | $ | 3,681,777 | $ | -133,333 | 100 | % | |||||||||||||||||||
-1 | The Company’s MBS portfolio was primarily comprised of fixed-rate MBS at March 31, 2015 and December 31, 2014. The weighted-average interest rate of the MBS portfolio at March 31, 2015 and December 31, 2014 was 3.92% and 3.93%, respectively. | |||||||||||||||||||||||||||||
-2 | As of March 31, 2015 and December 31, 2014, the Company’s MBS investments with a fair value of $3,602,372 and $3,376,025, respectively, were pledged as collateral for repurchase agreements. | |||||||||||||||||||||||||||||
-3 | The securities issued by Fannie Mae and Freddie Mac are not rated by any rating agency; however, they are commonly thought of as having an implied rating of “AAA.” There is no assurance, particularly given the downgrade of the U.S. credit rating to “AA+” by Standard & Poor’s during the quarter ended September 30, 2011 and Fitch Ratings Inc.’s announcement on October 15, 2013 that it had placed the U.S. credit rating on negative watch, that these securities would receive such a rating if they were ever rated by a rating agency. The weighted-average rating of the Company’s private-label senior securities is calculated based on face value of the securities. | |||||||||||||||||||||||||||||
Private Label MBS Available-for-sale Accretable Yield [Table Text Block] | The following table presents the changes in the accretable yield on available-for-sale, private-label MBS for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Beginning balance | $ | 202,108 | $ | 326,330 | ||||||||||||||||||||||||||
Accretion of discount | -5,043 | -7,150 | ||||||||||||||||||||||||||||
Reclassifications, net | -9,182 | 4,645 | ||||||||||||||||||||||||||||
Sales | -12,585 | -12,892 | ||||||||||||||||||||||||||||
Ending balance | $ | 175,298 | $ | 310,933 | ||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments [Table Text Block] | The Company’s available-for-sale MBS are carried at fair value in accordance with ASC 320, Debt and Equity Securities (“ASC 320”), with resulting unrealized gains and losses reflected as other comprehensive income or loss. Gross unrealized gains and losses on these securities were the following as of the dates indicated: | |||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
Amortized | Unrealized | |||||||||||||||||||||||||||||
Cost/Cost | ||||||||||||||||||||||||||||||
Basis (1) | ||||||||||||||||||||||||||||||
Gains | Losses | Fair Value | ||||||||||||||||||||||||||||
Agency-backed MBS | $ | 25 | $ | 3 | $ | — | $ | 28 | ||||||||||||||||||||||
Private-label MBS | 204,389 | 36,633 | -5 | 241,017 | ||||||||||||||||||||||||||
Total | $ | 204,414 | $ | 36,636 | $ | -5 | $ | 241,045 | ||||||||||||||||||||||
-1 | The amortized cost of MBS includes unamortized net discounts of $116,839 at March 31, 2015. | |||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Amortized | Unrealized | |||||||||||||||||||||||||||||
Cost/Cost | ||||||||||||||||||||||||||||||
Basis (1) | ||||||||||||||||||||||||||||||
Gains | Losses | Fair Value | ||||||||||||||||||||||||||||
Agency-backed MBS | $ | 36 | $ | 4 | $ | — | $ | 40 | ||||||||||||||||||||||
Private-label MBS | 219,904 | 47,533 | — | 267,437 | ||||||||||||||||||||||||||
Total | $ | 219,940 | $ | 47,537 | $ | — | $ | 267,477 | ||||||||||||||||||||||
-1 | The amortized cost of MBS includes unamortized net discounts of $133,333 at December 31, 2014. | |||||||||||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | The following table presents a summary of cumulative other-than-temporary impairment charges recognized on the available-for-sale MBS held as of the dates indicated: | |||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Cumulative other-than-temporary impairment, beginning balance | $ | 18,903 | $ | 23,663 | ||||||||||||||||||||||||||
Decreases related to other-than-temporary impairments on sold securities | — | -2,636 | ||||||||||||||||||||||||||||
Cumulative other-than-temporary impairment, ending balance | $ | 18,903 | $ | 21,027 | ||||||||||||||||||||||||||
Realized Gain (Loss) on Investments [Table Text Block] | The following table presents the results of sales of MBS for the periods indicated: | |||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Agency-Backed | Private-Label | Agency-Backed | Private-Label | |||||||||||||||||||||||||||
MBS | MBS | MBS | MBS | |||||||||||||||||||||||||||
Proceeds from sales | $ | 130,666 | $ | 20,859 | $ | — | $ | 15,733 | ||||||||||||||||||||||
Gross gains | 399 | 3,348 | — | 4,669 | ||||||||||||||||||||||||||
Gross losses | 8 | — | — | — | ||||||||||||||||||||||||||
Investment [Table Text Block] | The Company’s other investments consisted of the following as of the dates indicated: | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Interest-only MBS | $ | 207 | $ | 212 | ||||||||||||||||||||||||||
Non-public equity securities | 975 | 975 | ||||||||||||||||||||||||||||
Investment funds | 637 | 650 | ||||||||||||||||||||||||||||
Total other investments | $ | 1,819 | $ | 1,837 | ||||||||||||||||||||||||||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Repurchase Agreements [Table Text Block] | The following table provides information regarding the Company’s outstanding repurchase agreement borrowings as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Pledged with agency-backed MBS: | |||||||||||||||||||||
Repurchase agreements outstanding | $ | 3,308,802 | $ | 3,137,586 | |||||||||||||||||
Agency-backed MBS collateral, at fair value | 3,495,969 | 3,300,383 | |||||||||||||||||||
Net amount (1) | 187,167 | 162,797 | |||||||||||||||||||
Weighted-average rate | 0.36 | % | 0.38 | % | |||||||||||||||||
Weighted-average term to maturity | 14.0 days | 14.0 days | |||||||||||||||||||
Pledged with private-label MBS: | |||||||||||||||||||||
Repurchase agreements outstanding | $ | 62,888 | $ | 42,189 | |||||||||||||||||
Private-label MBS collateral, at fair value | 106,403 | 75,642 | |||||||||||||||||||
Net amount (1) | 43,515 | 33,453 | |||||||||||||||||||
Weighted-average rate | 2.03 | % | 1.98 | % | |||||||||||||||||
Weighted-average term to maturity | 21.4 days | 21.8 days | |||||||||||||||||||
Total MBS: | |||||||||||||||||||||
Repurchase agreements outstanding | $ | 3,371,690 | $ | 3,179,775 | |||||||||||||||||
MBS collateral, at fair value | 3,602,372 | 3,376,025 | |||||||||||||||||||
Net amount (1) | 230,682 | 196,250 | |||||||||||||||||||
Weighted-average rate | 0.39 | % | 0.4 | % | |||||||||||||||||
Weighted-average term to maturity | 14.1 days | 14.1 days | |||||||||||||||||||
-1 | Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance. | ||||||||||||||||||||
The following table provides information regarding the Company’s outstanding repurchase agreement borrowings during the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||
March 31, 2015 | March 31, 2014 | ||||||||||||||||||||
Weighted-average outstanding balance during the three months ended | $ | 3,219,172 | $ | 1,680,941 | |||||||||||||||||
Weighted-average rate during the three months ended | 0.38 | % | 0.41 | % | |||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s long-term debentures consisted of the following as of the dates indicated: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Senior | Senior | Trust | Senior | Trust | |||||||||||||||||
Notes Due 2025 | Notes Due 2023 | Preferred Debt | Notes Due 2023 | Preferred Debt | |||||||||||||||||
Outstanding Principal | $35,300 | $ | 25,000 | $ | 15,000 | $ | 25,000 | $ | 15,000 | ||||||||||||
Annual Interest Rate | 6.75% | 6.63% | LIBOR + | 6.63% | LIBOR + | ||||||||||||||||
2.25 – 3.00% | 2.25 – 3.00% | ||||||||||||||||||||
Interest Payment Frequency | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | ||||||||||||||||
Weighted-Average Interest Rate | 6.75% | 6.63% | 3.00% | 6.63% | 2.98% | ||||||||||||||||
Maturity | 15-Mar-25 | 1-May-23 | 2033 – 2035 | 1-May-23 | 2033 – 2035 | ||||||||||||||||
Early Redemption Date | 15-Mar-18 | 1-May-16 | 2008 – 2010 | 1-May-16 | 2008 – 2010 | ||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | The Company held the following derivative instruments as of the dates indicated: | |||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Notional | Fair Value | Notional | Fair Value | |||||||||||
Amount | Amount | |||||||||||||
Eurodollar futures: | ||||||||||||||
Derivative assets | $ | — | $ | — | $ | 2,445,000 | $ | 751 | ||||||
Derivative liabilities | 42,725,000 | -112,816 | 38,645,000 | -76,848 | ||||||||||
Total Eurodollar futures(1) | 42,725,000 | -112,816 | 41,090,000 | -76,097 | ||||||||||
10-year swap futures: | ||||||||||||||
Derivative assets | — | — | — | — | ||||||||||
Derivative liabilities | 845,000 | -62,079 | 1,145,000 | -47,460 | ||||||||||
Total 10-year swap futures(2) | 845,000 | -62,079 | 1,145,000 | -47,460 | ||||||||||
10-year U.S. Treasury note futures(3) | 50,000 | -211 | — | — | ||||||||||
Commitment to purchase MBS(4) | 217,544 | 1,508 | 200,000 | 516 | ||||||||||
Commitment to sell MBS(5) | 100,000 | -687 | — | — | ||||||||||
-1 | The $42,725,000 total notional amount of Eurodollar futures contracts as of March 31, 2015 represents the accumulation of Eurodollar futures contracts that mature on a quarterly basis between 2015 and 2019. The maximum notional outstanding for any future quarterly period did not exceed $2,525,000 as of March 31, 2015 and $2,325,000 as of December 31, 2014. As of March 31, 2015, the Company maintained $136,051 as a deposit and margin against the open Eurodollar futures contracts. | |||||||||||||
-2 | The $845,000 represents the total notional amount of 10-year swap futures as of March 31, 2015, of which $480,000 of notional amount matures in June 2015 and $365,000 in notional amount matures in March 2024. As of March 31, 2015, the Company maintained $76,100 as a deposit and margin against the open 10-year swap futures contracts. | |||||||||||||
-3 | The $50,000 total notional amount of 10-year Treasury note futures as of March 31, 2015 represents the accumulation of 10-year Treasury note futures that mature in June 2015. As of March 31, 2015, the Company maintained $886 as a deposit and margin against the open 10-year Treasury note futures. | |||||||||||||
-4 | The total notional amount of commitment to purchase MBS represents forward commitments to purchase fixed-rate MBS securities. | |||||||||||||
-5 | The total notional amount of commitment to sell MBS represents forward commitments to sell fixed-rate MBS securities. | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following tables present the computations of basic and diluted earnings per share for the periods indicated: | |||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
(Shares in thousands) | Basic | Diluted | Basic | Diluted | ||||||||||
Weighted-average shares outstanding | ||||||||||||||
Common stock | 22,973 | 22,973 | 16,808 | 16,808 | ||||||||||
Performance share units and unvested restricted stock | — | — | — | 273 | ||||||||||
Weighted-average common and common equivalent shares outstanding | 22,973 | 22,973 | 16,808 | 17,081 | ||||||||||
Net (loss) income applicable to common stock | $ | -42,185 | $ | -42,185 | $ | 7,033 | $ | 7,033 | ||||||
Net (loss) income per common share | $ | -1.84 | $ | -1.84 | $ | 0.42 | $ | 0.41 | ||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Schedule of Dividends Payable [Table Text Block] | The Board of Directors has approved and the Company has declared the following dividends to date in 2015: | |||||||||||||
Quarter Ended | Dividend | Declaration Date | Record Date | Pay Date | ||||||||||
Amount | ||||||||||||||
31-Mar | $ | 0.875 | 10-Mar | 31-Mar | 30-Apr | |||||||||
The Board of Directors approved and the Company declared and paid the following dividends for 2014: | ||||||||||||||
Quarter Ended | Dividend | Declaration Date | Record Date | Pay Date | ||||||||||
Amount | ||||||||||||||
31-Dec | $ | 0.875 | 18-Dec | 31-Dec | 30-Jan-15 | |||||||||
30-Sep | 0.875 | 17-Sep | 29-Sep | 31-Oct | ||||||||||
30-Jun | 0.875 | 11-Jun | 30-Jun | 31-Jul | ||||||||||
31-Mar | 0.875 | 13-Mar | 31-Mar | 30-Apr | ||||||||||
Revisions_to_Previously_Report1
Revisions to Previously Reported Financial Statements (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following table sets forth the affected line items within the Company’s previously reported consolidated financial statements for the three months ended March 31, 2014. | ||||||||||
Three Months Ended March 31, 2014 | |||||||||||
As Previously Reported | Revision | As Revised | |||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||
Unrealized gains for the period on available-for-sale securities | $ | 2,215 | $ | -1,241 | $ | 974 | |||||
Reclassification: | |||||||||||
Included in investment loss, net, in the statement of comprehensive income related to sales of available-for-sale securities | -4,319 | 1,241 | -3,078 | ||||||||
Total other comprehensive loss | $ | -2,104 | $ | — | $ | -2,104 | |||||
The following tables set forth the affected line items within the Company’s previously reported consolidated balance sheets as of December 31, 2014 and 2013. | |||||||||||
As of December 31, 2014 | |||||||||||
As Previously Reported | Revision | As Revised | |||||||||
Accumulated other comprehensive income, net of taxes | $ | 42,793 | $ | -6,921 | $ | 35,872 | |||||
Accumulated deficit | $ | -1,298,018 | $ | 6,921 | $ | -1,291,097 | |||||
As of December 31, 2013 | |||||||||||
As Previously Reported | Revision | As Revised | |||||||||
Accumulated other comprehensive income, net of taxes | $ | 53,190 | $ | -6,921 | $ | 46,269 | |||||
Accumulated deficit | $ | -1,228,926 | $ | 6,921 | $ | -1,222,005 | |||||
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial assets, Carrying Amount | ||
Cash and cash equivalents, Carrying Amount | $15,315 | $33,832 |
Interest receivable, Carrying Amount | 11,269 | 10,701 |
Sold securities receivable, Carrying Amount | 78,915 | 0 |
Other receivables, Carrying Amount | 528 | 1,138 |
MBS, Carrying Amount | ||
Agency-backed MBS, Carrying Amount | 3,687,764 | 3,414,340 |
Private-label MBS, Carrying Amount | 241,017 | 267,437 |
Derivative assets, Carrying Amount | 1,508 | 1,267 |
Other Investments, Carrying Amount | 1,819 | 1,837 |
Deposits, Carrying Amount | 213,037 | 160,427 |
Financial liabilities, Carrying Amount | ||
Repurchase agreements, Carrying Amount | 3,371,690 | 3,179,775 |
Interest payable, Carrying Amount | 1,162 | 1,106 |
Long-term debt, Carrying Amount | 75,300 | 40,000 |
Derivative liabilities, Carrying Amount | 175,793 | 124,308 |
Purchased securities payable, Carrying Amount | 148,252 | 0 |
Accounts payable, accrued expenses and other liabilities, Carrying Amount | 751 | 1,006 |
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents, Estimated Fair Value | 15,315 | 33,832 |
Interest receivable, Estimated Fair Value | 11,269 | 10,701 |
Sold securities receivable, Estimated Fair Value | 78,915 | 0 |
Other receivables, Estimated Fair Value | 528 | 1,138 |
MBS, Estimated Fair Value | ||
Agency-backed MBS, Estimated Fair Value | 3,687,764 | 3,414,340 |
Private-label MBS, Estimated Fair Value | 241,017 | 267,437 |
Derivative assets, Estimated Fair Value | 1,508 | 1,267 |
Other investments, Estimated Fair Value | 1,819 | 1,837 |
Deposits, Estimated Fair Value | 213,037 | 160,427 |
Financial liabilities, Estimated Fair Value | ||
Repurchase agreements, Estimated Fair Value | 3,371,690 | 3,179,775 |
Interest payable, Estimated Fair Value | 1,162 | 1,106 |
Long-term debt, Estimated Fair Value | 75,000 | 39,200 |
Derivative liabilities, Estimated Fair Value | 175,793 | 124,308 |
Purchased securities payable, Estimated Fair Value | 148,252 | 0 |
Accounts payable, accrued expenses and other liabilities, Estimated Fair Value | $751 | $1,006 |
Financial_Instruments_Details_
Financial Instruments (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
MBS, at fair value | ||
Trading, Agency-backed MBS | $3,687,736 | $3,414,300 |
Available-for-sale | ||
Agency-backed MBS | 28 | 40 |
Private-label MBS | 241,017 | 267,437 |
Total available-for-sale | 241,045 | 267,477 |
Total MBS | 3,928,781 | 3,681,777 |
Derivative assets, at fair value | 1,508 | 1,267 |
Derivative liabilities, at fair value | -175,793 | -124,308 |
Interest-only MBS, at fair value | 207 | 212 |
Total | 3,754,703 | 3,558,948 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
MBS, at fair value | ||
Trading, Agency-backed MBS | 0 | 0 |
Available-for-sale | ||
Agency-backed MBS | 0 | 0 |
Private-label MBS | 0 | 0 |
Total available-for-sale | 0 | 0 |
Total MBS | 0 | 0 |
Derivative assets, at fair value | 0 | 751 |
Derivative liabilities, at fair value | -175,106 | -124,308 |
Interest-only MBS, at fair value | 0 | 0 |
Total | -175,106 | -123,557 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
MBS, at fair value | ||
Trading, Agency-backed MBS | 3,687,736 | 3,414,300 |
Available-for-sale | ||
Agency-backed MBS | 28 | 40 |
Private-label MBS | 0 | 0 |
Total available-for-sale | 28 | 40 |
Total MBS | 3,687,764 | 3,414,340 |
Derivative assets, at fair value | 1,508 | 516 |
Derivative liabilities, at fair value | -687 | 0 |
Interest-only MBS, at fair value | 0 | 0 |
Total | 3,688,585 | 3,414,856 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
MBS, at fair value | ||
Trading, Agency-backed MBS | 0 | 0 |
Available-for-sale | ||
Agency-backed MBS | 0 | 0 |
Private-label MBS | 241,017 | 267,437 |
Total available-for-sale | 241,017 | 267,437 |
Total MBS | 241,017 | 267,437 |
Derivative assets, at fair value | 0 | 0 |
Derivative liabilities, at fair value | 0 | 0 |
Interest-only MBS, at fair value | 207 | 212 |
Total | $241,224 | $267,649 |
Financial_Instruments_Details_1
Financial Instruments (Details 2) | Mar. 31, 2015 | Dec. 31, 2014 |
Scores | Scores | |
Underlying Collateral Quantitative Disclosures [Line Items] | ||
Original loan-to-value | 67.00% | 68.00% |
Original FICO score | 721 | 722 |
Three-month prepayment rate | 11.00% | 11.00% |
Three-month loss severities | 42.00% | 41.00% |
Weighted average coupon | 2.80% | 2.96% |
Financial_Instruments_Details_2
Financial Instruments (Details 3) (Private label MBS [Member]) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 5.47% | 5.55% |
Default rate | 3.05% | 3.09% |
Loss severity rate | 42.13% | 42.25% |
Prepayment rate | 10.99% | 11.23% |
Maximum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 10.00% | 10.00% |
Default rate | 8.25% | 8.80% |
Loss severity rate | 57.50% | 57.50% |
Prepayment rate | 17.70% | 17.70% |
Minimum [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 5.15% | 5.15% |
Default rate | 1.00% | 1.00% |
Loss severity rate | 29.21% | 29.23% |
Prepayment rate | 7.40% | 7.40% |
Financial_Instruments_Details_3
Financial Instruments (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $267,437 | $341,299 |
Total net gains (losses) | ||
Included in earnings | 3,432 | 4,767 |
Included in other comprehensive income | -10,905 | -2,845 |
Purchases | 0 | 0 |
Sales | -20,859 | -15,733 |
Payments, net | -3,131 | -4,792 |
Accretion of discount | 5,043 | 7,150 |
Ending balance | 241,017 | 329,846 |
The amount of net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date | 0 | 0 |
Senior Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 0 | 7,066 |
Total net gains (losses) | ||
Included in earnings | 0 | 1,684 |
Included in other comprehensive income | 0 | -1,654 |
Purchases | 0 | 0 |
Sales | 0 | -7,107 |
Payments, net | 0 | -215 |
Accretion of discount | 0 | 226 |
Ending balance | 0 | 0 |
The amount of net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date | 0 | 0 |
Re-REMIC Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 267,437 | 334,233 |
Total net gains (losses) | ||
Included in earnings | 3,432 | 3,083 |
Included in other comprehensive income | -10,905 | -1,191 |
Purchases | 0 | 0 |
Sales | -20,859 | -8,626 |
Payments, net | -3,131 | -4,577 |
Accretion of discount | 5,043 | 6,924 |
Ending balance | 241,017 | 329,846 |
The amount of net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date | $0 | $0 |
Financial_Instruments_Details_4
Financial Instruments (Details 5) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Loss, Investment Loss, net | ||
Total gains (losses) included in earnings for the period | $3,432 | $4,767 |
The amount of net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting date | $0 | $0 |
Financial_Instruments_Details_5
Financial Instruments (Details 6) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||||
Fair Value | $3,928,781 | [1],[2] | $3,681,777 | [1],[2] |
Net Unamortized Premium (Discount) | -116,839 | -133,333 | ||
Percentage of Total Fair Value | 100.00% | 100.00% | ||
Available-for-sale, Private Label Mortgage Backed Securities [Member] | ||||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||||
Fair Value | 241,017 | [1],[2] | 267,437 | [1],[2] |
Net Unamortized Premium (Discount) | -116,839 | -133,333 | ||
Percentage of Total Fair Value | 6.13% | 7.27% | ||
Weighted Average Life | 10 years 2 months 12 days | 10 years 4 months 24 days | ||
Weighted Average Rating | NR | [3] | NR | [3] |
Trading, Fannie Mae [Member] | ||||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||||
Fair Value | 2,214,210 | [1],[2] | 2,064,465 | [1],[2] |
Net Unamortized Premium (Discount) | 0 | 0 | ||
Percentage of Total Fair Value | 56.36% | 56.07% | ||
Weighted Average Life | 7 years 6 months | 8 years 1 month 6 days | ||
Weighted Average Rating | AAA | [3] | AAA | [3] |
Trading, Freddie Mac [Member] | ||||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||||
Fair Value | 1,473,526 | [1],[2] | 1,349,835 | [1],[2] |
Net Unamortized Premium (Discount) | 0 | 0 | ||
Percentage of Total Fair Value | 37.51% | 36.66% | ||
Weighted Average Life | 7 years 6 months | 8 years 2 months 12 days | ||
Weighted Average Rating | AAA | [3] | AAA | [3] |
Available-for-sale, Agency-backed, Fannie Mae [Member] | ||||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||||
Fair Value | 28 | [1],[2] | 40 | [1],[2] |
Net Unamortized Premium (Discount) | $0 | $0 | ||
Percentage of Total Fair Value | 0.00% | 0.00% | ||
Weighted Average Life | 4 years 7 months 6 days | 4 years 10 months 24 days | ||
Weighted Average Rating | AAA | [3] | AAA | [3] |
[1] | The Companybs MBS portfolio was primarily comprised of fixed-rate MBS at March 31, 2015 and December 31, 2014. The weighted-average interest rate of the MBS portfolio at March 31, 2015 and December 31, 2014 was 3.92% and 3.93%, respectively. | |||
[2] | As of March 31, 2015 and December 31, 2014, the Companybs MBS investments with a fair value of $3,602,372 and $3,376,025, respectively, were pledged as collateral for repurchase agreements. | |||
[3] | The securities issued by Fannie Mae and Freddie Mac are not rated by any rating agency; however, they are commonly thought of as having an implied rating of bAAA.b There is no assurance, particularly given the downgrade of the U.S. credit rating to bAA+b by Standard & Poorbs during the quarter ended September 30, 2011 and Fitch Ratings Inc.bs announcement on October 15, 2013 that it had placed the U.S. credit rating on negative watch, that these securities would receive such a rating if they were ever rated by a rating agency. The weighted-average rating of the Companybs private-label senior securities is calculated based on face value of the securities. |
Financial_Instruments_Details_6
Financial Instruments (Details 7) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $202,108 | $326,330 |
Accretion of discount | -5,043 | -7,150 |
Reclassifications, net | -9,182 | 4,645 |
Sales | -12,585 | -12,892 |
Ending balance | $175,298 | $310,933 |
Financial_Instruments_Details_7
Financial Instruments (Details 8) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost/Cost Basis | $204,414 | [1] | $219,940 | [2] |
Unrealized Gains | 36,636 | 47,537 | ||
Unrealized Losses | -5 | 0 | ||
Fair Value | 241,045 | 267,477 | ||
Agency Backed MBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost/Cost Basis | 25 | [1] | 36 | [2] |
Unrealized Gains | 3 | 4 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 28 | 40 | ||
Private Label Mortgage Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost/Cost Basis | 204,389 | [1] | 219,904 | [2] |
Unrealized Gains | 36,633 | 47,533 | ||
Unrealized Losses | -5 | 0 | ||
Fair Value | $241,017 | $267,437 | ||
[1] | The amortized cost of MBS includes unamortized net discounts of $116,839 at March 31, 2015. | |||
[2] | The amortized cost of MBS includes unamortized net discounts of $133,333 at December 31, 2014. |
Financial_Instruments_Details_8
Financial Instruments (Details 9) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cumulative other-than-temporary impairment, beginning balance | $18,903 | $23,663 |
Decreases related to other-than-temporary impairments on sold securities | 0 | -2,636 |
Cumulative other-than-temporary impairment, ending balance | $18,903 | $21,027 |
Financial_Instruments_Details_9
Financial Instruments (Details 10) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Agency Backed MBS [Member] | ||
Proceeds from Sales of Mortgage Backed Securities [Line Items] | ||
Proceeds from sales | $130,666 | $0 |
Gross gains | 399 | 0 |
Gross losses | 8 | 0 |
Private label MBS [Member] | ||
Proceeds from Sales of Mortgage Backed Securities [Line Items] | ||
Proceeds from sales | 20,859 | 15,733 |
Gross gains | 3,348 | 4,669 |
Gross losses | $0 | $0 |
Recovered_Sheet1
Financial Instruments (Details 11) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Interest-only MBS | $207 | $212 |
Non-public equity securities | 975 | 975 |
Investment funds | 637 | 650 |
Total other investments | $1,819 | $1,837 |
Recovered_Sheet2
Financial Instruments (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Company's Interest in Non Public Equity Securities and Investment Funds | $1,612 | $1,625 |
Weighted Average Coupon Rate for MBS Portfolio | 3.92% | 3.93% |
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value | 3,602,372 | 3,376,025 |
Financial Instrument Unamortized Discount Premium Net | $116,839 | $133,333 |
Borrowings_Details
Borrowings (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Repurchase Agreement Counterparty [Line Items] | |||||
Repurchase agreements outstanding | $3,371,690 | $3,179,775 | |||
MBS collateral, at fair value | 3,602,372 | 3,376,025 | |||
Net amount | 230,682 | [1] | 196,250 | [1] | |
Weighted-average rate | 0.39% | 0.40% | |||
Weighted-average term to maturity (in days) | 14.1 days | 14.1 days | |||
Weighted-average outstanding balance | 3,219,172 | 1,680,941 | |||
Weighted-average rate | 0.38% | 0.41% | |||
Pledged with agency-backed MBS [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Repurchase agreements outstanding | 3,308,802 | 3,137,586 | |||
MBS collateral, at fair value | 3,495,969 | 3,300,383 | |||
Net amount | 187,167 | [1] | 162,797 | [1] | |
Weighted-average rate | 0.36% | 0.38% | |||
Weighted-average term to maturity (in days) | 14.0 days | 14.0 days | |||
Pledged with private-label MBS [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Repurchase agreements outstanding | 62,888 | 42,189 | |||
MBS collateral, at fair value | 106,403 | 75,642 | |||
Net amount | $43,515 | [1] | $33,453 | [1] | |
Weighted-average rate | 2.03% | 1.98% | |||
Weighted-average term to maturity (in days) | 21.4 days | 21.8 days | |||
[1] | Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance. |
Borrowings_Details_1
Borrowings (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Trust Preferred Debt [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $15,000 | $15,000 |
Annual Interest Rate | LIBOR + 2.25 – 3.00% | LIBOR + 2.25 – 3.00% |
Interest Payment Frequency | Quarterly | Quarterly |
Weighted-Average Interest Rate | 3.00% | 2.98% |
Maturity | 2033 – 2035 | 2033 – 2035 |
Early Redemption Date | 2008 – 2010 | 2008 – 2010 |
Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | 35,300 | |
Annual Interest Rate | 6.75% | |
Interest Payment Frequency | Quarterly | |
Weighted-Average Interest Rate | 6.75% | |
Maturity | 15-Mar-25 | |
Early Redemption Date | 15-Mar-18 | |
Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $25,000 | $25,000 |
Annual Interest Rate | 6.63% | 6.63% |
Interest Payment Frequency | Quarterly | Quarterly |
Weighted-Average Interest Rate | 6.63% | 6.63% |
Maturity | 1-May-23 | 1-May-23 |
Early Redemption Date | 1-May-16 | 1-May-16 |
Borrowings_Details_Textual
Borrowings (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 18, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $75,300 | $40,000 | ||
Proceeds from Issuance of Long-term Debt | 34,188 | 0 | ||
Senior Notes Due In 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 35,300 | |||
Proceeds from Issuance of Long-term Debt | $34,063 | |||
Debt Instrument, Frequency of Periodic Payment | payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on June 15, 2015. | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||
Debt Instrument, Maturity Date | 15-Mar-25 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Hedging Activities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Derivative assets, Fair Value | $1,508 | $1,267 | ||
Derivative liabilities, Fair Value | -175,793 | -124,308 | ||
No Hedge Designation [Member] | Eurodollar Futures Asset [Member] | ||||
Derivative [Line Items] | ||||
Derivative asset, Notional Amount | 0 | 2,445,000 | ||
Derivative assets, Fair Value | 0 | 751 | ||
No Hedge Designation [Member] | Eurodollar Futures Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative liabilities, Notional Amount | 42,725,000 | 38,645,000 | ||
Derivative liabilities, Fair Value | -112,816 | -76,848 | ||
No Hedge Designation [Member] | Eurodollar Futures [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | 42,725,000 | [1] | 41,090,000 | [1] |
Fair Value | -112,816 | [1] | -76,097 | [1] |
No Hedge Designation [Member] | 10-Year Swap Futures Asset [Member] | ||||
Derivative [Line Items] | ||||
Derivative asset, Notional Amount | 0 | 0 | ||
Derivative assets, Fair Value | 0 | 0 | ||
No Hedge Designation [Member] | 10-Year Swap Futures Liablities [Member] | ||||
Derivative [Line Items] | ||||
Derivative liabilities, Notional Amount | 845,000 | 1,145,000 | ||
Derivative liabilities, Fair Value | -62,079 | -47,460 | ||
No Hedge Designation [Member] | 10-Year Swap Futures [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | 845,000 | [2] | 1,145,000 | [2] |
Fair Value | -62,079 | [2] | -47,460 | [2] |
No Hedge Designation [Member] | Commitment to Purchase MBS [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | 217,544 | [3] | 200,000 | [3] |
Fair Value | 1,508 | [3] | 516 | [3] |
No Hedge Designation [Member] | Commitment to Sell MBS [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | 100,000 | [4] | 0 | [4] |
Fair Value | -687 | [4] | 0 | [4] |
No Hedge Designation [Member] | 10-year U.S. Treasury note futures [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | 50,000 | [5] | 0 | [5] |
Fair Value | ($211) | [5] | $0 | [5] |
[1] | The $42,725,000 total notional amount of Eurodollar futures contracts as of March 31, 2015 represents the accumulation of Eurodollar futures contracts that mature on a quarterly basis between 2015 and 2019. The maximum notional outstanding for any future quarterly period did not exceed $2,525,000 as of March 31, 2015 and $2,325,000 as of December 31, 2014. As of March 31, 2015, the Company maintained $136,051 as a deposit and margin against the open Eurodollar futures contracts. | |||
[2] | The $845,000 represents the total notional amount of 10-year swap futures as of March 31, 2015, of which $480,000 of notional amount matures in June 2015 and $365,000 in notional amount matures in March 2024. As of March 31, 2015, the Company maintained $76,100 as a deposit and margin against the open 10-year swap futures contracts. | |||
[3] | The total notional amount of commitment to purchase MBS represents forward commitments to purchase fixed-rate MBS securities. | |||
[4] | The total notional amount of commitment to sell MBS represents forward commitments to sell fixed-rate MBS securities. | |||
[5] | The $50,000 total notional amount of 10-year Treasury note futures as of March 31, 2015 represents the accumulation of 10-year Treasury note futures that mature in June 2015. As of March 31, 2015, the Company maintained $886 as a deposit and margin against the open 10-year Treasury note futures. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments and Hedging Activities (Details Textual) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Derivative [Line Items] | |||||
Loss on Derivative Instruments, Pretax | $76,119 | $23,480 | |||
Deposit Assets | 213,037 | 160,427 | |||
Eurodollar Futures [Member] | No Hedge Designation [Member] | |||||
Derivative [Line Items] | |||||
Deposit Assets | 136,051 | ||||
Notional Amount | 42,725,000 | [1] | 41,090,000 | [1] | |
Eurodollar Futures [Member] | No Hedge Designation [Member] | Maximum [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | 2,525,000 | 2,325,000 | |||
10-Year Swap Futures [Member] | No Hedge Designation [Member] | |||||
Derivative [Line Items] | |||||
Deposit Assets | 76,100 | ||||
Notional Amount | 845,000 | [2] | 1,145,000 | [2] | |
10-Year Swap Futures [Member] | No Hedge Designation [Member] | Matures In March 2024 [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | 365,000 | ||||
10-Year Swap Futures [Member] | No Hedge Designation [Member] | Matures In June 2015 [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | 480,000 | ||||
10-year U.S. Treasury note futures [Member] | No Hedge Designation [Member] | |||||
Derivative [Line Items] | |||||
Deposit Assets | 886 | ||||
Notional Amount | $50,000 | [3] | $0 | [3] | |
[1] | The $42,725,000 total notional amount of Eurodollar futures contracts as of March 31, 2015 represents the accumulation of Eurodollar futures contracts that mature on a quarterly basis between 2015 and 2019. The maximum notional outstanding for any future quarterly period did not exceed $2,525,000 as of March 31, 2015 and $2,325,000 as of December 31, 2014. As of March 31, 2015, the Company maintained $136,051 as a deposit and margin against the open Eurodollar futures contracts. | ||||
[2] | The $845,000 represents the total notional amount of 10-year swap futures as of March 31, 2015, of which $480,000 of notional amount matures in June 2015 and $365,000 in notional amount matures in March 2024. As of March 31, 2015, the Company maintained $76,100 as a deposit and margin against the open 10-year swap futures contracts. | ||||
[3] | The $50,000 total notional amount of 10-year Treasury note futures as of March 31, 2015 represents the accumulation of 10-year Treasury note futures that mature in June 2015. As of March 31, 2015, the Company maintained $886 as a deposit and margin against the open 10-year Treasury note futures. |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Line Items] | ||
Deferred Tax Assets, Net | $113,276 | $122,365 |
Capital Loss Carry forward Expiration Date | 2019 | |
Other Capital Loss Carry forward Expiration Date | 2020 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 25,379 | |
NCL [Member] | ||
Income Tax Disclosure [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $51,406 | $26,027 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Basic | ||
Weighted-average shares outstanding common stock (in shares) | 22,973 | 16,808 |
Performance share units and unvested restricted stock (in shares) | 0 | 0 |
Weighted-average common and common equivalent shares outstanding (in shares) | 22,973 | 16,808 |
Net (loss) income applicable to common stock | ($42,185) | $7,033 |
Net (loss) income per common share (in dollars per share) | ($1.84) | $0.42 |
Diluted | ||
Weighted-average shares outstanding common stock (in shares) | 22,973 | 16,808 |
Performance share units and unvested restricted stock (in shares) | 0 | 273 |
Weighted-average common and common equivalent shares outstanding (in shares) | 22,973 | 17,081 |
Net (loss) income applicable to common stock | ($42,185) | $7,033 |
Net (loss) income per common share (in dollars per share) | ($1.84) | $0.41 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended |
Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 123,242 |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Dividends Payable [Line Items] | |||||
Dividend Amount (in dollars per share) | $0.88 | $0.88 | $0.88 | $0.88 | $0.88 |
Declaration Date | 10-Mar-15 | 18-Dec-14 | 17-Sep-14 | 11-Jun-14 | 13-Mar-14 |
Record Date | 31-Mar-15 | 31-Dec-14 | 29-Sep-14 | 30-Jun-14 | 31-Mar-14 |
Pay Date | 30-Apr-15 | 30-Jan-15 | 31-Oct-14 | 31-Jul-14 | 30-Apr-14 |
Revisions_to_Previously_Report2
Revisions to Previously Reported Financial Statements (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Other comprehensive income (loss), net of taxes: | ||||
Unrealized gains for the period on available-for-sale securities | ($4,493) | $974 | ||
Reclassification: | ||||
Included in investment loss, net, in the statement of comprehensive income related to sales of available-for-sale securities (net of taxes of $(380) and $(1,379), respectively) | -3,362 | -3,078 | ||
Total other comprehensive loss | -2,104 | |||
Consolidated Statements Of Changes In Equity [Abstract] | ||||
Accumulated other comprehensive income, net of taxes | 28,017 | 35,872 | 46,269 | |
Accumulated deficit | -1,354,852 | -1,291,097 | -1,222,005 | |
Scenario, Previously Reported [Member] | ||||
Other comprehensive income (loss), net of taxes: | ||||
Unrealized gains for the period on available-for-sale securities | 2,215 | |||
Reclassification: | ||||
Included in investment loss, net, in the statement of comprehensive income related to sales of available-for-sale securities (net of taxes of $(380) and $(1,379), respectively) | -4,319 | |||
Total other comprehensive loss | -2,104 | |||
Consolidated Statements Of Changes In Equity [Abstract] | ||||
Accumulated other comprehensive income, net of taxes | 42,793 | 53,190 | ||
Accumulated deficit | -1,298,018 | -1,228,926 | ||
Scenario, Adjustment [Member] | ||||
Other comprehensive income (loss), net of taxes: | ||||
Unrealized gains for the period on available-for-sale securities | -1,241 | |||
Reclassification: | ||||
Included in investment loss, net, in the statement of comprehensive income related to sales of available-for-sale securities (net of taxes of $(380) and $(1,379), respectively) | 1,241 | |||
Total other comprehensive loss | 0 | |||
Consolidated Statements Of Changes In Equity [Abstract] | ||||
Accumulated other comprehensive income, net of taxes | -6,921 | -6,921 | ||
Accumulated deficit | $6,921 | $6,921 |