Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 9-May-14 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'Five Oaks Investment Corp. | ' |
Entity Central Index Key | '0001547546 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Trading Symbol | 'OAKS | ' |
Entity Common Stock, Shares Outstanding | ' | 10,689,250 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
ASSETS | ' | ' | ||
Available-for-sale securities, at fair value (includes pledged securities of $476,097,778 and $444,984,955 for March 31, 2014 and December 31, 2013, respectively) | $482,544,222 | $444,984,955 | ||
Linked transactions, net, at fair value | 61,147,754 | 33,352,562 | ||
Cash and cash equivalents | 38,827,217 | 33,062,931 | ||
Restricted cash | 15,599,456 | 13,343,173 | ||
Accrued interest receivable | 1,129,583 | 1,045,191 | ||
Investment related receivable | 504,357 | 506,892 | ||
Derivative assets, at fair value | 1,006,390 | 1,839,154 | ||
Other assets | 109,650 | 66,547 | ||
Total assets | 600,868,629 | 528,201,405 | ||
LIABILITIES: | ' | ' | ||
Repurchase agreements | 435,297,286 | [1] | 412,172,000 | [2] |
Derivative liabilities, at fair value | 5,222,976 | 839,413 | ||
Payable for securities purchased | 1,014,045 | 0 | ||
Accrued interest payable | 195,309 | 274,615 | ||
Dividends payable | 22,361 | 42,501 | ||
Fees and expenses payable to Manager | 435,000 | 330,000 | ||
Other accounts payable and accrued expenses | 590,858 | 617,514 | ||
Total liabilities | 442,777,835 | 414,276,043 | ||
STOCKHOLDERS' EQUITY: | ' | ' | ||
Preferred Stock: par value $0.01 per share; 50,000,000 shares authorized, 8.75% Series A cumulative redeemable, $25 liquidation preference, 920,000 and 800,000 issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 20,839,099 | 18,060,898 | ||
Common Stock: par value $0.01 per share; 450,000,000 shares authorized, 10,689,250 and 7,389,250 shares issued and outstanding, at March 31, 2014 and December 31, 2013, respectively | 106,703 | 73,563 | ||
Additional paid-in capital | 145,283,129 | 110,129,489 | ||
Accumulated other comprehensive income (loss) | 1,310,813 | -11,094,954 | ||
Cumulative distributions to stockholders | -14,953,412 | -11,289,370 | ||
Accumulated earnings | 5,504,462 | 8,045,736 | ||
Total stockholders' equity | 158,090,794 | 113,925,362 | ||
Total liabilities and stockholders' equity | $600,868,629 | $528,201,405 | ||
[1] | At March 31, 2014, the Company had repurchase agreements of $85,585,000 and $61,917,714 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[2] | At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets [Parenthetical] (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Available-for-sale Securities Pledged as Collateral (in dollars) | $476,097,778 | $444,984,955 |
Preferred Stock, Par Value (in dollars per share) | $0.01 | $0.01 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Dividend Rate, Percentage | 8.75% | 8.75% |
Preferred Stock, Liquidation Preference, Value (in dollars) | $25 | $25 |
Preferred Stock, Shares Issued | 920,000 | 800,000 |
Preferred Stock, Shares Outstanding | 920,000 | 800,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 10,689,250 | 7,389,250 |
Common stock, shares outstanding | 10,689,250 | 7,389,250 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues: | ' | ' |
Interest income | $3,907,686 | $1,027,062 |
Interest expense | -560,222 | -126,748 |
Net interest income | 3,347,464 | 900,314 |
Other income: | ' | ' |
Realized loss on sale of investments, net | -4,208,016 | -105,244 |
Unrealized gain and net interest income from Linked Transactions | 5,892,193 | 1,753,842 |
Realized gain (loss) on derivative contracts, net | -842,767 | -71,293 |
Unrealized gain (loss) on derivative contracts, net | -5,132,327 | -521,019 |
Total other income (loss) | -4,290,917 | 1,056,286 |
Expenses: | ' | ' |
Management fee | 467,536 | 115,140 |
General and administrative expenses | 252,089 | 122,436 |
Operating expenses reimbursable to Manager | 668,653 | 180,864 |
Other operating expenses | 129,465 | 7,250 |
Compensation expense | 80,078 | 2,796 |
Total expenses | 1,597,821 | 428,486 |
Net income (loss) | -2,541,274 | 1,528,114 |
Dividends to preferred stockholders | -480,573 | -2,326 |
Net income (loss) attributable to common stockholders | -3,021,847 | 1,525,788 |
Earnings per share: | ' | ' |
Net income (loss) attributable to common stockholders (basic and diluted) | ($3,021,847) | $1,525,788 |
Weighted average number of shares of common stock outstanding (in shares) | 8,816,658 | 2,293,250 |
Basic and diluted income (loss) per share (in dollars per share) | ($0.34) | $0.67 |
Dividends declared per share of common stock (in dollars per share) | $0.38 | $0.19 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Net income (loss) | ($2,541,274) | $1,528,114 |
Other comprehensive income (loss): | ' | ' |
Increase (decrease) in net unrealized gain on available-for-sale securities, net | 6,841,785 | -696,697 |
Reclassification adjustment for net gain (loss) included in net income | 5,563,982 | 0 |
Total other comprehensive income (loss) | 12,405,767 | -696,697 |
Less: Dividends to preferred stockholders | -480,573 | -2,326 |
Comprehensive income attributable to common stockholders | $9,383,920 | $829,091 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Stockholders' Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Distributions to Stockholders [Member] | Accumulated Earnings (Deficit) [Member] |
Balance at Dec. 31, 2013 | $113,925,362 | $18,060,898 | $73,563 | $110,129,489 | ($11,094,954) | ($11,289,370) | $8,045,736 |
Balance (in shares) at Dec. 31, 2013 | ' | 800,000 | 7,389,250 | ' | ' | ' | ' |
Issuance of common stock, net | 35,241,880 | 0 | 33,140 | 35,208,740 | 0 | 0 | 0 |
Issuance of common stock, net (in shares) | ' | 0 | 3,314,000 | ' | ' | ' | ' |
Issuance of preferred stock, net | 2,778,201 | 2,778,201 | 0 | 0 | 0 | 0 | 0 |
Issuance of preferred stock, net (in shares) | ' | 120,000 | 0 | ' | ' | ' | ' |
Restricted stock compensation expense | -55,100 | 0 | 0 | -55,100 | 0 | 0 | 0 |
Restricted stock compensation expense (in shares) | ' | 0 | -14,000 | ' | ' | ' | ' |
Net income (loss) | -2,541,274 | 0 | 0 | 0 | 0 | 0 | -2,541,274 |
Other comprehensive income (loss) | 12,405,767 | 0 | 0 | 0 | 12,405,767 | 0 | 0 |
Common dividends declared | -3,183,469 | 0 | 0 | 0 | 0 | -3,183,469 | 0 |
Preferred dividends declared | -480,573 | 0 | 0 | 0 | 0 | -480,573 | 0 |
Balance at Mar. 31, 2014 | $158,090,794 | $20,839,099 | $106,703 | $145,283,129 | $1,310,813 | ($14,953,412) | $5,504,462 |
Balance (in shares) at Mar. 31, 2014 | ' | 920,000 | 10,689,250 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) $ | ($2,541,274) | $1,528,114 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Amortization/accretion of available-for-sale securities premiums and discounts, net | -1,114,284 | -195,370 |
Realized loss on sale of investments, net | 4,619,002 | 105,244 |
Unrealized (gain) on Linked Transactions, net | -3,906,530 | -1,375,161 |
Realized loss on derivative contracts | 842,767 | 16,000 |
Unrealized loss on derivative contracts | 5,132,327 | 521,019 |
Restricted stock compensation expense | -55,100 | 2,796 |
Net change in: | ' | ' |
Accrued interest receivable | -84,392 | -2,443,366 |
Receivable due from Manager | 0 | -1,127,647 |
Other assets | -43,103 | 0 |
Accrued interest payable | -79,306 | 25,696 |
Fees and expenses payable to Manager | 105,000 | 76,948 |
Other accounts payable and accrued expenses | -26,656 | 357,649 |
Net cash provided by (used in) operating activities | 2,848,451 | -2,508,078 |
Cash flows from investing activities: | ' | ' |
Purchase of available-for-sale securities | -120,163,603 | -891,234,058 |
Proceeds from sales of available-for-sale securities | 83,435,713 | 0 |
Payments for sales of derivative contracts and interest expense | -567,361 | 0 |
Proceeds from derivative contracts sold short | 24,902,344 | 0 |
Payments to cover derivative contracts sold short | -25,093,750 | 0 |
Principal payments from available-for-sale securities | 8,069,672 | 2,694,439 |
Investment related receivable | 2,535 | 0 |
Restricted cash | -2,256,283 | -10,341,672 |
Payable for securities purchased | 1,014,045 | 0 |
Net cash used in investing activities | -30,656,688 | -898,881,291 |
Cash flows from financing activities: | ' | ' |
Net proceeds from issuance of common stock | 35,241,880 | 84,000,000 |
Net proceeds from issuance of preferred stock | 2,778,201 | 11,307 |
Redemption of preferred stock | 0 | -110,000 |
Change in deferred offering costs | 0 | 915,512 |
Dividends paid on common stock | -3,183,469 | -660,733 |
Dividends paid on preferred stock | -500,713 | -2,326 |
Proceeds from repurchase agreements | 1,030,594,286 | 957,063,000 |
Principal repayments of repurchase agreements | -1,007,469,000 | -100,078,000 |
Net cash received (paid) on securities underlying Linked Transactions | -110,210,375 | 650,875 |
Net cash received from repurchase agreements underlying Linked Transactions | 86,321,713 | 158,000 |
Net cash provided by financing activities | 33,572,523 | 941,947,635 |
Net increase in cash and cash equivalents | 5,764,286 | 40,558,266 |
Cash and cash equivalents, beginning of period | 33,062,931 | 3,608,759 |
Cash and cash equivalents, end of period | 38,827,217 | 44,167,025 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for interest | 480,916 | 101,052 |
Non-cash investing and financing activities information | ' | ' |
Restricted stock compensation expense | -55,100 | 2,796 |
Dividends declared but not paid at end of period | 22,361 | 0 |
Net change in unrealized gain (loss) on available-for-sale securities | $12,405,767 | ($696,697) |
ORGANIZATION_AND_BUSINESS_OPER
ORGANIZATION AND BUSINESS OPERATIONS | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1 – ORGANIZATION AND BUSINESS OPERATIONS | |
Five Oaks Investment Corp. (the “Company”) is a Maryland corporation focused on investing primarily in residential mortgage-backed securities (“RMBS”), multi-family mortgage backed securities (“Multi-Family MBS”, and together with RMBS, “MBS”), residential mortgage loans, mortgage servicing rights and other mortgage-related investments. The Company is externally managed by Oak Circle Capital Partners LLC (the “Manager”), an asset management firm incorporated in Delaware. The Company’s common stock is listed on the NYSE under the symbol “OAKS.” | |
The Company was incorporated on March 28, 2012 and commenced operations on May 16, 2012. The Company began trading as a publicly traded company on March 22, 2013. | |
The Company has elected to be taxed as a real estate investment trust (“REIT”) and to comply with Sections 856 through 859 of the Internal Revenue Code of 1986, as amended, the ("Code"). Accordingly, the Company generally will not be subject to U.S. federal income tax to the extent of its distributions to stockholders and as long as certain asset, income and share ownership tests are met. The Company invests in Agency RMBS, which are RMBS for which the principal and interest payments are guaranteed by a U.S. Government agency such as the Government National Mortgage Association or a U.S. Government-sponsored entity such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. The Company also invests in non-Agency RMBS, which are RMBS that are not guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity. Additionally, the Company invests in Multi-Family MBS, which are MBS for which the principal and interest may be sponsored by a U.S. Government agency such as the Government National Mortgage Association or a U.S, Government-sponsored entity such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, or may not be sponsored by a U.S. Government agency or a U.S. Government-sponsored entity and may also invest in other mortgage-related investments. | |
On June 10, 2013, the Company established Five Oaks Acquisition Corp. (“FOAC”) as a wholly owned taxable REIT subsidiary (“TRS”), for the acquisition and disposition of residential mortgage loans. There has been limited activity within FOAC since its inception, primarily focused on licensing and related matters. The Company consolidates its subsidiary under generally accepted accounting principles in the United States of America (“U.S. GAAP”). | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The condensed consolidated balance sheet as of December 31, 2013 has been derived from audited financial statements. The condensed consolidated balance sheet as of March 31, 2014, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), the condensed consolidated statement of stockholders’ equity and the condensed consolidated statements of cash flows, for the three months ended March 31, 2014 and for the three months ended March 31, 2013, are unaudited. | |
The unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in the financial statements prepared under U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the Securities and Exchange Commission (“SEC”) on March 12, 2014. | |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to current period presentation. | |
Principles of Consolidation | |
The accompanying condensed consolidated financial statements of the Company include the accounts of the Company and its subsidiary. All intercompany transactions have been eliminated in consolidation. | |
Variable Interest Entities | |
An entity is referred to as a variable interest entity ("VIE") if it lacks one or more of the following characteristics: (1) sufficient equity at risk to finance its activities without additional subordinated financial support provided by any parties, including the equity holders; (2) as a group the holders of the equity investment at risk have (a) the power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impacts the entity's economic performance, (b) the obligation to absorb the expected losses of the legal entity and (c) the right to receive the expected residual returns of the legal entity; and (3) the voting rights of these investors are proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected returns of their equity, or both, and whether substantially all of the entity's activities involve or are conducted on behalf of an investor that has disproportionately fewer voting rights. An investment that lacks one or more of the above three characteristics is considered to be a VIE. The Company reassesses its initial evaluation of an entity as a VIE based upon changes in the facts and circumstances pertaining to the VIE. | |
VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses of the entity that could potentially be significant to, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. This determination may involve complex and subjective analyses. | |
The Company has evaluated its non-Agency RMBS and Multi-Family MBS investments to determine if each represents a variable interest in a VIE. The Company monitors these investments and analyzes them for potential consolidation. The Company's real estate securities investments represent variable interests in VIEs. At March 31, 2014 and December 31, 2013, no VIEs required consolidation as the Company was not the primary beneficiary of any of these VIEs. At March 31, 2014 and December 31, 2013, the maximum exposure of the Company to VIEs is limited to the fair value of its investments in real estate securities as disclosed in the condensed consolidated balance sheets. | |
Use of Estimates | |
The financial statements have been prepared on the accrual basis of accounting in accordance with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires the Company to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ from its estimates and the differences may be material. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash held in bank accounts on an overnight basis. The Company maintains its cash and cash equivalents in highly rated financial institutions, and at times these balances exceed insurable amounts. | |
Restricted Cash | |
Restricted cash represents the Company’s cash held by counterparties as collateral against the Company’s securities, derivatives and/or repurchase agreements, together with cash invested in FOAC to support a minimum capital requirement in connection with certain state licensing requirements. Cash held by counterparties as collateral is not available to the Company for general corporate purposes, but may be applied against amounts due to securities, derivatives or repurchase counterparties or returned to the Company when the collateral requirements are exceeded or, at the maturity of the derivative or repurchase agreement. | |
Deferred Offering Costs | |
In accordance with Accounting Standards Codification (“ASC”) Subtopic 505-10, the direct costs incurred to issue shares classified as equity, such as legal and accounting fees, should be deducted from the related proceeds and the net amount recorded as stockholders’ equity. Accordingly, payments made by the Company in respect of such costs related to the issuance of shares will be recorded as an asset in the accompanying condensed consolidated balance sheets in the line item “Deferred offering costs”, for subsequent deduction from the related proceeds upon closing of the offering. | |
To the extent that certain costs, in particular legal fees, are known to have been accrued but have not yet been invoiced and paid, they are included in “Other accounts payable and accrued expenses” on the accompanying condensed consolidated balance sheets. | |
Repurchase Agreements | |
The Company finances the acquisition of certain of its mortgage-backed securities through the use of repurchase agreements. The repurchase agreements are generally short-term debt, which expire within one year. Borrowings under repurchase agreements generally bear interest rates at a specified margin over LIBOR and are generally uncommitted. In accordance with ASC 860 “Transfers and Servicing” the Company accounts for the repurchase agreements, other than those treated as Linked Transactions (see Note 3 – Accounting for Derivative Financial Instruments – Non-Hedging Activity/Linked Transactions below), as collateralized financing transactions and they are carried at their contractual amounts, as specified in the respective agreements. The contractual amounts approximate fair value due to their short-term nature. | |
Residential Loan Warehouse Facilities | |
The Company will finance the acquisition of residential mortgage loans through the use of residential loan warehouse facilities. Currently, the Company has one residential loan warehouse facility in place with a financial institution counterparty. Under this warehouse facility the Company has an aggregate borrowing limit of $125 million, none of which has been drawn at March 31, 2014. | |
Revenue Recognition, Premium Amortization, and Discount Accretion | |
Interest income on the Company’s portfolio is accrued based on the actual coupon rate and the outstanding principal balance of such securities. The Company recognizes interest income using the effective interest method for all securities. As such, premiums and discounts are amortized or accreted into interest income over the lives of the securities in accordance with ASC 310-20, “Nonrefundable Fees and Other Costs”, ASC 320-10, “Investments – Debt and Equity Securities” or ASC 325-40, “Beneficial Interests in Securitized Financial Assets”, as applicable. Total interest income will flow though the “Interest Income” line item on the condensed consolidated statement of operations. | |
On at least a quarterly basis for securities accounted for under ASC 320-10 and ASC 310-20 (generally Agency RMBS), prepayments of the underlying collateral must be estimated, which directly affect the speed at which the Company amortizes such securities. If actual and anticipated cash flows differ from previous estimates; the Company recognizes a “catch-up” adjustment in the current period to the amortization of premiums for the impact of the cumulative change in the effective yield through the reporting date. | |
Similarly, the Company also reassesses the cash flows on at least a quarterly basis for securities accounted for under ASC 325-40 (generally non-Agency RMBS and Multi-Family MBS). In estimating these cash flows, there are a number of assumptions that will be subject to uncertainties and contingencies. These include the rate and timing of principal and interest receipts (including assumptions of prepayments, repurchases, defaults and liquidations), the pass-through or coupon rate and interest rate fluctuations. In addition, interest payment shortfalls due to delinquencies on the underlying mortgage loans have to be judgmentally estimated. Differences between previously estimated cash flows and current actual and anticipated cash flows are recognized prospectively through an adjustment of the yield over the remaining life of the security based on the current amortized cost of the investment as adjusted for credit impairment, if any. | |
For investments purchased with evidence of deterioration of credit quality for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, the Company will apply the provisions of ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” ASC 310-30 addresses accounting for differences between contractual cash flows and cash flows expected to be collected from an investor’s initial investment in loans or debt securities (loans) acquired in a transfer if those differences are attributable, at least in part, to credit quality. ASC 310-30 limits the yield that may be accreted (accretable yield) to the excess of the investor’s estimate of undiscounted expected principal, interest and other cash flows (cash flows expected at acquisition to be collected) over the investor’s initial investment in the loan. ASC 310-30 requires that the excess of contractual cash flows over cash flows expected to be collected (nonaccretable difference) not be recognized as an adjustment of yield, loss accrual or valuation allowance. | |
Subsequent increases in cash flows expected to be collected are generally recognized prospectively through adjustment of the loan’s yield over its remaining life. Decreases in cash flows expected to be collected are recognized as impairment. | |
The Company’s accrual of interest, discount and premium for U.S. federal and other tax purposes is likely to differ from the financial accounting treatment of these items as described above. | |
Gains and losses from the sale of available-for-sale securities (“AFS”) are recorded as realized gains (losses) within realized gain (loss) on sale of investments, net in the Company's condensed consolidated statement of operations. Upon the sale of a security, the Company will determine the cost of the security and the amount of unrealized gains or losses to reclassify out of accumulated other comprehensive income (loss) into earnings based on the specific identification method. Unrealized gains and losses on the Company’s AFS securities are recorded as unrealized gain (loss) on available-for-sale securities, net in the Company's condensed consolidated statement of comprehensive income (loss). | |
Impairment | |
The Company evaluates its MBS, on a quarterly basis, to assess whether a decline in the fair value of an AFS security below the Company's amortized cost basis is an other-than-temporary impairment (“OTTI”). The presence of OTTI is based upon a fair value decline below a security's amortized cost basis and a corresponding adverse change in expected cash flows due to credit related factors as well as non-credit factors, such as changes in interest rates and market spreads. Impairment is considered other-than-temporary if an entity (i) intends to sell the security, (ii) will more likely than not be required to sell the security before it recovers in value or (iii) does not expect to recover the security's amortized cost basis, even if the entity does not intend to sell the security. Under these scenarios, the impairment is other-than-temporary and the full amount of impairment should be recognized currently in earnings and the cost basis of the investment security is adjusted. However, if an entity does not intend to sell the impaired debt security and it is more likely than not that it will not be required to sell before recovery, the OTTI should be separated into (i) the estimated amount relating to credit loss (“credit” component) and (ii) the amount relating to all other factors (“non-credit” component). Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss amount recognized in other comprehensive income. The difference between the new amortized cost basis and the cash flows expected to be collected is accreted as interest income in accordance with the effective interest method. | |
Income Taxes | |
The Company has elected to be taxed as a REIT under the Code for U.S. federal income tax purposes, commencing with the Company’s short taxable period ended December 31, 2012. So long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes at least 90% of its net taxable income to shareholders and maintains its qualification as a REIT. | |
In addition to the Company’s election to be taxed as a REIT, the Company complies with Sections 856 through 859 of the Code. Accordingly, the Company generally will not be subject to U.S. federal income tax to the extent of its distributions to stockholders and as long as certain asset, income and share ownership tests are met. To maintain its qualification as a REIT, the Company must distribute at least 90% of its REIT taxable income to its stockholders and meet certain other requirements. The Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on its undistributed taxable income. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. The Company believes it will meet all of the criteria to maintain the Company's REIT qualification for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. | |
The Company does not have any material uncertain tax positions at this time. The Company's accounting policy with respect to interest and penalties is to classify these amounts as interest expense. The Company has not recognized any such amounts related to uncertain tax positions as of the balance sheet date. | |
Certain activities of the Company are conducted through a TRS and therefore are subject to federal and various state and local income taxes. From its inception to date our TRS has had limited activity and did not generate any taxable income. | |
Earnings per Share | |
The Company calculates basic and diluted earnings per share by dividing net income attributable to common stockholders for the period by the weighted-average shares of the Company’s common stock outstanding for that period. Diluted earnings per share takes into account the effect of dilutive instruments, such as warrants, stock options, and unvested restricted stock, but use the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. See Note 11 for details of the computation of basic and diluted earnings per share. | |
Stock-Based Compensation | |
The Company is required to recognize compensation costs relating to stock-based payment transactions in the financial statements. The Company accounts for share-based compensation issued to its Manager and non-management directors using the fair value based methodology prescribed by ASC 718, Share-Based Payment (“ASC 718”). Compensation cost related to restricted common stock issued to the Manager is initially measured at estimated fair value at the grant date, and is remeasured on subsequent dates to the extent the awards are unvested. Additionally, compensation cost related to restricted common stock issued to the non-management directors is measured at its estimated fair value at the grant date and amortized and expensed over the vesting period. See Note 9 for details of stock-based awards issuable under the Manager Equity Plan. | |
Comprehensive Income (Loss) | |
Comprehensive income (loss) is comprised of net income, as presented in the condensed consolidated statement of comprehensive income (loss), adjusted for changes in unrealized gain or loss on AFS securities. | |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
NOTE 3 – FAIR VALUE MEASUREMENTS | |
The Company discloses the fair value of its financial instruments according to a fair value hierarchy (Levels 1, 2 and 3, as defined). In accordance with U.S. GAAP, the Company is required to provide enhanced disclosures regarding instruments in the Level 3 category (which require significant management judgment), including a separate reconciliation of the beginning and ending balances for each major category of assets and liabilities. | |
Additionally, U.S. GAAP permits entities to choose to measure many financial instruments and certain other items at fair value (the “fair value option”), and the election of such choice is irrevocable. Unrealized gains and losses on items for which the fair value option has been elected are irrevocably recognized in earnings at each subsequent reporting date. | |
Securities | |
The Company currently invests in Agency RMBS, non-Agency RMBS and Multi-Family MBS. | |
Designation | |
The Company classifies its MBS securities as AFS investments. Although the Company generally intends to hold most of its investment securities until maturity, it may, from time to time, sell any of its investment securities as part of the overall management of its portfolio. All assets classified as AFS are reported at estimated fair value, with unrealized gains and losses, excluding other than temporary impairments, included in accumulated other comprehensive income, a separate component of shareholders' equity. | |
Determination of MBS Fair Value | |
The Company determines the fair values for the Agency RMBS, non-Agency RMBS and Multi-Family MBS in its portfolio based on obtaining a valuation for each Agency RMBS, non-Agency RMBS and Multi-Family MBS from third-party pricing services, and may also obtain dealer quotes, as described below. The third-party pricing services use common market pricing methods that may include pricing models that may incorporate such factors as coupons, prepayment speeds, spread to the Treasury curves and interest rate swap curves, duration, periodic and life caps and credit enhancement, as applicable. The dealers incorporate common market pricing methods, including a spread measurement to the Treasury curve or interest rate swap curve as well as underlying characteristics of the particular security, including coupon, periodic and life caps, collateral type, rate reset period and seasoning or age of the security, as applicable. | |
The Company obtains pricing data from a primary third-party pricing service for each Agency RMBS, non-Agency RMBS and Multi-Family MBS. If other available market data indicates that the pricing data from the primary third-party service is materially inaccurate, or pricing data is unavailable from the primary third-party pricing service, the Company shall undertake a review of other available prices and shall take additional steps to determine fair value. In all cases, the Company validates its understanding of methodology and assumptions underlying the fair value used. The Company will determine that the pricing data from the primary third-party service is materially inaccurate if it is not materially representative of where a specific security can be traded in the normal course of business. In making such determination, the Company will follow a series of steps, including review of collateral marks from margin departments of repo counterparties, utilization of bid list, inventory list and extensive unofficial market color, review of other third-party pricing service data and a yield analysis of each non-Agency RMBS and Multi-Family MBS based on the pricing data from the primary third-party service data, and a yield analysis of each non-Agency RMBS and Multi-Family MBS based on the pricing data from the primary third-party service and the Company’s cashflow assumptions. | |
The Company reviews all pricing of Agency and non-Agency RMBS and Multi-Family MBS used to ensure that current market conditions are properly represented. This review includes, but is not limited to, comparisons of similar market transactions or alternative third-party pricing services, dealer quotes and comparisons to a pricing model. Values obtained from the third-party pricing service for similar instruments are classified as Level 2 securities if the pricing methods used are consistent with the Level 2 definition. If quoted prices for a security are not reasonably available from the pricing service, but dealer quotes are, the Company classifies the security as a Level 2 security. If neither is available, the Company determines the fair value based on characteristics of the security that are received from the issuer and based on available market information received from dealers and classifies it as a Level 3 security. | |
Accounting for Derivative Financial Instruments | |
In accordance with FASB guidance ASC 815 “Derivatives and Hedging”, all derivative financial instruments, whether designated for hedging relationships or not, are recorded at fair value on the condensed consolidated balance sheet as assets or liabilities. The Company obtains valuation information for each derivative financial instrument from the related derivative counterparty. If other available market data indicates that the valuation information from the counterparty is materially inaccurate, or pricing data is unavailable from the counterparty, the Company shall undertake a review of other available valuation information, including third party pricing services and/or dealers, and shall take additional steps to determine fair value. The Company reviews all valuations of derivative financial instruments used to ensure that current market conditions are properly represented. This review includes, but is not limited to, comparisons of similar market transactions or alternative third-party pricing services, dealer quotes and comparisons to a pricing model. Values obtained from the derivative counterparty, the third-party pricing service or dealers, as appropriate, for similar instruments are classified as Level 2 valuations if the pricing methods used are consistent with the Level 2 definition. If none of these sources is available, the Company determines the fair value based on characteristics of the instrument and based on available market information received from dealers and classifies it as a Level 3 valuation. | |
At the inception of a derivative contract, the Company determines whether or not the instrument will be part of a qualifying hedge accounting relationship. Due to the volatility of the credit markets and difficulty in effectively matching pricing or cash flows, the Company has elected to treat all current derivative contracts as trading instruments. The changes in fair value of derivatives accounted for as trading instruments are reported in the condensed consolidated statement of operations as unrealized gain (loss) on derivative contracts, net. | |
The Company enters into interest rate derivative contracts for a variety of reasons, including minimizing significant fluctuations in earnings or market values on certain assets or liabilities that may be caused by changes in interest rates. The Company may, at times, enter into various forward contracts, including short securities, Agency to-be-announced securities (“TBAs”), options, futures, swaps and caps. Due to the nature of these instruments, they may be in a receivable/asset position or a payable/liability position at the end of an accounting period. Amounts payable to, and receivable from, the same party under contracts may be offset as long as the following conditions are met: (a) each of the two parties owes the other determinable amounts; (b) the reporting party has the right to offset the amount owed with the amount owed by the other party; (c) the reporting party intends to offset; and (d) the right of offset is enforceable by law. If the aforementioned conditions are not met, amounts payable to and receivable from are presented by the Company on a gross basis in the condensed consolidated balance sheet. | |
AVAILABLEFORSALE_SECURITIES
AVAILABLE-FOR-SALE SECURITIES | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | |||||||||||||||||||
NOTE 4 – AVAILABLE-FOR-SALE SECURITIES | ||||||||||||||||||||
Non-Hedging Activity – Linked Transactions | ||||||||||||||||||||
It is presumed that the initial transfer of a financial asset (i.e. the purchase of an MBS by the Company) and contemporaneous repurchase financing of such MBS with the same counterparty are considered part of the same arrangement, or a “linked transaction”, unless certain criteria are met. The two components of a linked transaction (MBS purchase and repurchase financing) are accounted for on a net basis and recorded as a forward purchase (derivative) contract (each a Linked Transaction) at fair value on the Company’s condensed consolidated balance sheet in the line item “Linked Transactions, net, at fair value”. Changes in the fair value of the assets and liabilities underlying linked transactions and associated interest income and expense are reported as “Unrealized gain and net interest income from Linked Transactions”, on the Company’s condensed consolidated statement of operations. When or if a transaction is no longer considered to be linked, the MBS and repurchase financing will be reported on a gross basis. In this case, the fair value of the MBS at the time the transactions are no longer considered linked will become the cost basis of the MBS, and the income recognition yield for such MBS will be calculated prospectively using this new cost basis. (See Notes 7 and 8). | ||||||||||||||||||||
See Note 7 for specific disclosures regarding the location and amounts of derivative instruments in the financial statements and the accounting for derivative instruments and related hedged items. | ||||||||||||||||||||
Non-Agency RMBS and Multi-Family MBS that are accounted for as components of Linked Transactions are not reflected in the tables set forth in this Note, as they are accounted for as derivatives. (See Notes 7 and 8). | ||||||||||||||||||||
The following table presents the Company’s AFS investment securities by collateral type at fair value as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Agency | ||||||||||||||||||||
Federal National Mortgage Association | $ | 216,634,743 | $ | 237,143,864 | ||||||||||||||||
Federal Home Loan Mortgage Corporation | 191,798,783 | 145,156,756 | ||||||||||||||||||
Non-Agency | 64,537,378 | 62,684,335 | ||||||||||||||||||
Multi-Family | 9,573,318 | - | ||||||||||||||||||
Total mortgage-backed securities | $ | 482,544,222 | $ | 444,984,955 | ||||||||||||||||
The following tables present the amortized cost and fair value of the Company’s AFS investment securities by collateral type as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Agency | Non-Agency | Multi-Family | Total | |||||||||||||||||
Face Value | $ | 408,488,453 | $ | 94,896,042 | $ | 10,000,000 | $ | 513,384,495 | ||||||||||||
Unamortized premium | 8,021,210 | - | 11,493 | 8,032,703 | ||||||||||||||||
Unamortized discount | ||||||||||||||||||||
Designated credit reserve | - | -16,823,722 | - | -16,823,722 | ||||||||||||||||
Net, unamortized | -2,996,293 | -19,723,712 | -640,062 | -23,360,067 | ||||||||||||||||
Amortized Cost | 413,513,370 | 58,348,608 | 9,371,431 | 481,233,409 | ||||||||||||||||
Gross unrealized gain (loss) | -5,079,844 | 6,188,770 | 201,887 | 1,310,813 | ||||||||||||||||
Fair Value | $ | 408,433,526 | $ | 64,537,378 | $ | 9,573,318 | $ | 482,544,222 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Agency | Non-Agency | Total | ||||||||||||||||||
Face Value | $ | 386,672,123 | $ | 95,390,328 | $ | 482,062,451 | ||||||||||||||
Unamortized premium | 12,544,193 | - | 12,544,193 | |||||||||||||||||
Unamortized discount | ||||||||||||||||||||
Designated credit reserve | - | -16,126,355 | -16,126,355 | |||||||||||||||||
Net, unamortized | -1,489,132 | -20,911,248 | -22,400,380 | |||||||||||||||||
Amortized Cost | 397,727,184 | 58,352,725 | 456,079,909 | |||||||||||||||||
Gross unrealized gain (loss) | -15,426,564 | 4,331,610 | -11,094,954 | |||||||||||||||||
Fair Value | $ | 382,300,620 | $ | 62,684,335 | $ | 444,984,955 | ||||||||||||||
The following table presents a summary of the Company’s net realized gain (loss) from the sale of AFS securities for the three months ended March 31, 2014 and March 31, 2013. | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||||||||
AFS securities sold, at cost | $ | 94,748,794 | $ | - | ||||||||||||||||
Proceeds from AFS securities sold | 90,620,039 | - | ||||||||||||||||||
Net realized gain (loss) on sale of AFS securities | $ | -4,128,755 | $ | - | ||||||||||||||||
The following tables present the fair value of AFS investment securities by rate type as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Agency | Non-Agency | Multi-Family | Total | |||||||||||||||||
Adjustable rate | $ | 279,738,550 | $ | 64,537,378 | $ | - | $ | 344,275,928 | ||||||||||||
Fixed rate | 128,694,976 | - | 9,573,318 | 138,268,294 | ||||||||||||||||
Total | $ | 408,433,526 | $ | 64,537,378 | $ | 9,573,318 | $ | 482,544,222 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Agency | Non-Agency | Total | ||||||||||||||||||
Adjustable rate | $ | 170,587,649 | $ | 62,684,335 | $ | 233,271,984 | ||||||||||||||
Fixed rate | 211,712,971 | - | 211,712,971 | |||||||||||||||||
Total | $ | 382,300,620 | $ | 62,684,335 | $ | 444,984,955 | ||||||||||||||
As described in Note 3, when the Company purchases a credit-sensitive AFS security at a significant discount to its face value, the Company generally does not amortize into income a significant portion of this discount that the Company is entitled to earn because it does not expect to collect it due to the inherent credit risk of the security. The Company may also record an OTTI for a portion of its investment in the security to the extent the Company believes that the amortized cost will exceed the present value of expected future cash flows. The amount of principal that the Company does not amortize into income is designated as an off balance sheet credit reserve on the security, with unamortized net discounts or premiums amortized into income over time to the extent realizable. | ||||||||||||||||||||
Actual maturities of AFS securities are affected by the contractual lives of the associated mortgage collateral, periodic payments of principal, and prepayments of principal. Therefore actual maturities of available-for-sale securities are generally shorter than stated contractual maturities. Stated contractual maturities are generally greater than ten years. | ||||||||||||||||||||
The following tables present the changes for the three months ended March 31, 2014 and year ended December 31, 2013 of the unamortized net discount and designated credit reserves on our MBS investments. | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Designated | Unamortized | |||||||||||||||||||
credit reserve | net discount | Total | ||||||||||||||||||
Acquisitions | $ | -20,024,874 | $ | -27,477,917 | $ | -47,502,791 | ||||||||||||||
Accretion of net discount | - | 4,048,712 | 4,048,712 | |||||||||||||||||
Realized gain on paydowns | - | 69,137 | 69,137 | |||||||||||||||||
Realized credit losses | 2,545,377 | - | 2,545,377 | |||||||||||||||||
Release of credit reserves | 655,775 | - | 655,775 | |||||||||||||||||
Ending balance at March 31, 2014 | $ | -16,823,722 | $ | -23,360,068 | $ | -40,183,790 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Designated | Unamortized | |||||||||||||||||||
credit reserve | net discount | Total | ||||||||||||||||||
Acquisitions | $ | -19,145,414 | $ | -25,261,882 | $ | -44,407,296 | ||||||||||||||
Accretion of net discount | - | 2,836,240 | 2,836,240 | |||||||||||||||||
Realized gain on paydowns | - | 25,262 | 25,262 | |||||||||||||||||
Realized credit losses | 2,363,284 | - | 2,363,284 | |||||||||||||||||
Release of credit reserves | 655,775 | - | 655,775 | |||||||||||||||||
Ending balance at December 31, 2013 | $ | -16,126,355 | $ | -22,400,380 | $ | -38,526,735 | ||||||||||||||
Gains and losses from the sale of AFS securities are recorded within realized gain (loss) on sale of investments, net in the Company's condensed consolidated statements of operations. | ||||||||||||||||||||
Unrealized gains and losses on the Company’s AFS securities are recorded as unrealized gain (loss) on available-for-sale securities, net in the Company's condensed consolidated statement of comprehensive income (loss). For the three months ended March 31, 2014, the Company had unrealized gains (losses) on AFS securities of $12,405,767. | ||||||||||||||||||||
The following tables present components of interest income on the Company’s AFS securities for the three months ended March 31, 2014 and March 31, 2013: | ||||||||||||||||||||
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | |||||||||||||||||||
Net (premium | Net (premium | |||||||||||||||||||
Coupon | amortization)/ | Interest | Coupon | amortization)/ | Interest | |||||||||||||||
interest | discount accretion | income | interest | discount accretion | income | |||||||||||||||
Agency | $ | 2,696,219 | $ | 60,385 | $ | 2,756,604 | $ | 795,964 | $ | -31,856 | $ | 764,108 | ||||||||
Non-Agency | 47,426 | 1,042,384 | 1,089,810 | 34,814 | 227,226 | 262,040 | ||||||||||||||
Multi-Family | 45,034 | 11,514 | 56,548 | - | - | - | ||||||||||||||
Total | $ | 2,788,679 | $ | 1,114,283 | $ | 3,902,962 | $ | 830,778 | $ | 195,370 | $ | 1,026,148 | ||||||||
RESTRICTED_CASH
RESTRICTED CASH | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||
Restricted Cash and Cash Equivalents Disclosure [Text Block] | ' | |||||||
NOTE 5 – RESTRICTED CASH | ||||||||
As of March 31, 2014, the Company is required to maintain certain cash balances with counterparties for broker activity and collateral for the Company's repurchase agreements in non-interest bearing accounts. | ||||||||
The following table presents the Company's restricted cash balances as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Restricted cash balance held by: | ||||||||
Broker counterparties for derivatives trading | $ | 10,567,102 | $ | 7,297,667 | ||||
Repurchase counterparties as restricted collateral | 4,944,174 | 6,015,490 | ||||||
FOAC as minimum required capital | 88,180 | 30,016 | ||||||
Total | $ | 15,599,456 | $ | 13,343,173 | ||||
REPURCHASE_AGREEMENTS
REPURCHASE AGREEMENTS | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Disclosure Of Repurchase Agreements [Abstract] | ' | ||||||||||||||
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | ' | ||||||||||||||
NOTE 6 – REPURCHASE AGREEMENTS | |||||||||||||||
The Company has entered into repurchase agreements to finance its portfolio of investments. The repurchase agreements bear interest at a contractually agreed rate. The repurchase obligations mature and typically reinvest every thirty days to one year and have a weighted average aggregate interest rate of 0.52% at March 31, 2014. Repurchase agreements are being accounted for as secured borrowings since the Company maintains effective control of the financed assets. The following table summarizes certain characteristics of the Company’s repurchase agreements at March 31, 2014 and December 31, 2013: | |||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||
Weighted | Weighted | ||||||||||||||
Amount | average | Amount | average | ||||||||||||
outstanding | interest rate | outstanding | interest rate | ||||||||||||
Agency | $ | 388,853,000 | 0.36 | % | $ | 370,901,000 | 0.4 | % | |||||||
Non-Agency(1) | 43,192,000 | 1.89 | % | 41,271,000 | 2.09 | % | |||||||||
Multi-Family(2) | 3,252,286 | 1.14 | % | - | 0 | % | |||||||||
Total | $ | 435,297,286 | 0.52 | % | $ | 412,172,000 | 0.57 | % | |||||||
-1 | At March 31, 2014 and December 31, 2013, the Company had repurchase agreements of $85,585,000 and $61,181,000, respectively, that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | ||||||||||||||
(2) | At March 31, 2014, the Company had repurchase agreements of $61,917,714 that were linked to Multi-Family MBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | ||||||||||||||
At March 31, 2014 and December 31, 2013, the repurchase agreements had the following remaining maturities: | |||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||
< 30 days | $ | 377,753,786 | $ | 373,422,000 | |||||||||||
31 to 60 days | 13,647,500 | 38,750,000 | |||||||||||||
61 to 90 days | 43,896,000 | - | |||||||||||||
Total | $ | 435,297,286 | $ | 412,172,000 | |||||||||||
Under the repurchase agreements, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral or fund margin calls. In addition, the repurchase agreements are subject to certain financial covenants. The Company is in compliance with these covenants as of March 31, 2014. | |||||||||||||||
The following tables summarize certain characteristics of the Company’s repurchase agreements at March 31, 2014 and December 31, 2013: | |||||||||||||||
March 31, 2014 | |||||||||||||||
Amount | Percent of total | Weighted average | Company RMBS | ||||||||||||
Repurchase Agreement Counterparties | Outstanding(1) | amount outstanding | days to maturity | held as collateral | |||||||||||
North America | $ | 291,309,000 | 66.92 | % | 24 | $ | 314,416,659 | ||||||||
Asia (2) | 87,082,000 | 20.01 | % | 18 | 97,246,553 | ||||||||||
Europe (2) | 56,906,286 | 13.07 | % | 22 | 64,434,566 | ||||||||||
Total | $ | 435,297,286 | 100 | % | 23 | $ | 476,097,778 | ||||||||
-1 | At March 31, 2014, the Company had repurchase agreements of $85,585,000 and $61,917,714 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | ||||||||||||||
-2 | Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. | ||||||||||||||
December 31, 2013 | |||||||||||||||
Amount | Percent of total | Weighted average | Company RMBS | ||||||||||||
Repurchase Agreement Counterparties | Outstanding(1) | amount outstanding | days to maturity | held as collateral | |||||||||||
North America | $ | 261,289,000 | 63.39 | % | 20 | $ | 277,808,885 | ||||||||
Asia (2) | 97,491,000 | 23.65 | % | 12 | 106,949,627 | ||||||||||
Europe (2) | 53,392,000 | 12.96 | % | 21 | 60,226,443 | ||||||||||
Total | $ | 412,172,000 | 100 | % | 18 | $ | 444,984,955 | ||||||||
-1 | At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | ||||||||||||||
(2) | Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. | ||||||||||||||
DERIVATIVE_INSTRUMENTS_HEDGING
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Derivative Instrument Detail [Abstract] | ' | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||||||||||||
NOTE 7 – DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES | ||||||||||||||||||||
The Company enters into a variety of derivative instruments in connection with its risk management activities. The Company's primary objective for executing these derivatives and non-derivative instruments is to mitigate the Company's economic exposure to future events that are outside its control. The Company's derivative financial instruments are utilized principally to manage market risk and cash flow volatility associated with interest rate risk (including associated prepayment risk) related to certain assets and liabilities. As part of its risk management activities, the Company may, at times, enter into various forward contracts, including short securities, Agency to-be-announced securities, or TBAs, options, futures, swaps and caps. In executing on the Company's current risk management strategy, the Company has entered into interest rate swap, swaption agreements, TBA’s and futures contracts. Amounts receivable and payable under interest rate swap agreements are accounted for as unrealized gain (loss) on derivative contracts, net in the condensed consolidated statement of operations. Premiums on swaptions are amortized on a straight line basis between trade date and expiration date and are recognized in the condensed consolidated statement of operations as a realized loss on derivative contracts. In addition, as set out in Note 3, the Company records Linked Transactions as a forward purchase (derivative) contract at fair value on the condensed consolidated balance sheet. Although Linked Transactions are accounted for as derivative instruments, they are not entered into as part of the Company’s risk management activities and are not designated as hedging instruments. | ||||||||||||||||||||
The following summarizes the Company's significant asset and liability derivatives, the risk exposure for these derivatives and the Company's risk management activities used to mitigate certain of these risks. While the Company uses derivative instruments to achieve the Company's risk management activities, it is possible that these instruments will not effectively mitigate all or a substantial portion of the Company's market rate risk. In addition, the Company might elect, at times, not to enter into certain hedging arrangements in order to maintain compliance with REIT requirements. | ||||||||||||||||||||
Balance Sheet Presentation | ||||||||||||||||||||
The following tables present the gross fair value and notional amounts of the Company’s derivative financial instruments as of March 31, 2014 and December 31, 2013. The Company’s Linked Transactions are evaluated on a combined basis. | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||
Fair value | Notional | Fair value | Notional | |||||||||||||||||
Interest rate swaps | $ | 7,843 | 23,000,000 | $ | -5,230,819 | 335,000,000 | ||||||||||||||
Swaptions | 1,006,390 | 25,000,000 | - | - | ||||||||||||||||
Linked transactions | 61,147,754 | - | - | - | ||||||||||||||||
Total | $ | 62,161,987 | 48,000,000 | $ | -5,230,819 | 335,000,000 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||
Fair value | Notional | Fair value | Notional | |||||||||||||||||
Interest rate swaps | $ | 237,989 | 57,000,000 | $ | -1,231,667 | 281,000,000 | ||||||||||||||
Swaptions | 1,770,795 | 25,000,000 | - | - | ||||||||||||||||
Futures | 154,265 | 10,000,000 | - | - | ||||||||||||||||
TBAs | 68,359 | 25,000,000 | - | - | ||||||||||||||||
Linked transactions | 33,352,562 | - | - | - | ||||||||||||||||
Total | $ | 35,583,970 | 117,000,000 | $ | -1,231,667 | 281,000,000 | ||||||||||||||
The following tables present the average fixed pay rate and average maturity for the Company’s interest rate swaps (excludes interest rate swaptions) as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Notional | Fair | Fixed Pay | Maturity | Forward | ||||||||||||||||
Current Maturity Date | Amount | Value | Rate | Years | Starting | |||||||||||||||
3 years or less | $ | 35,000,000 | $ | -149,247 | 0.66 | % | 1.9 | 0 | % | |||||||||||
Greater than 3 years and less than 5 years | 171,000,000 | -1,218,679 | 1.66 | % | 4.4 | 0 | % | |||||||||||||
Greater than 7 years and less than 10 years | 95,000,000 | -2,137,266 | 2.85 | % | 7.4 | 100 | % | |||||||||||||
Greater than 10 years | 57,000,000 | -1,717,784 | 3.29 | % | 10.4 | 100 | % | |||||||||||||
Total | $ | 358,000,000 | $ | -5,222,976 | 2.14 | % | 5.9 | 42.5 | % | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Notional | Fair | Fixed Pay | Maturity | Forward | ||||||||||||||||
Current Maturity Date | Amount | Value | Rate | Years | Starting | |||||||||||||||
3 years or less | $ | 35,000,000 | $ | -166,619 | 0.66 | % | 2.1 | 0 | % | |||||||||||
Greater than 3 years and less than 5 years | 151,000,000 | -764,807 | 1.66 | % | 4.6 | 0 | % | |||||||||||||
Greater than 7 years and less than 10 years | 95,000,000 | -300,242 | 2.85 | % | 7.6 | 100 | % | |||||||||||||
Greater than 10 years | 57,000,000 | 237,990 | 3.29 | % | 10.7 | 100 | % | |||||||||||||
Total | $ | 338,000,000 | $ | -993,678 | 2.17 | % | 6.2 | 45 | % | |||||||||||
Offsetting of Financial Assets and Liabilities | ||||||||||||||||||||
The Company’s repurchase agreements are governed by underlying agreements that provide for a right of setoff in the event of default of either counterparty to the agreement. The Company also has in place with its counterparties ISDA Master Agreements (“Master Agreements”) for its derivative contracts. In accordance with the Master Agreements to each counterparty, if on any date amounts would otherwise be payable in the same currency and in respect of the same transaction by each party to the other, then, on such date, each party’s obligation to make payment of any such amount will be automatically satisfied and discharged and, if the aggregate amount that would otherwise have been payable by one party exceeds the aggregate amount that would otherwise have been payable by the other party, replaced by an obligation upon the party by whom the larger aggregate amount would have been payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount. The Company has pledged financial collateral as restricted cash to its counterparties for its derivative contracts and repurchase agreements. See Note 2 for specific details on the terms of restricted cash with counterparties and Note 5 for the amounts of restricted cash outstanding. | ||||||||||||||||||||
Under GAAP, if the Company has a valid right of setoff, it may offset the related asset and liability and report the net amount. The Company presents repurchase agreements subject to Master Agreements or similar agreements on a gross basis, and derivative assets and liabilities subject to such arrangements on a net basis, based on derivative type and counterparty, in its condensed consolidated balance sheets. Separately, the company presents cash collateral subject to such arrangements on a net basis, based on counterparty, in its condensed consolidated balance sheets. However, the Company does not offset financial assets and liabilities with the associated cash collateral on its condensed consolidated balance sheets. | ||||||||||||||||||||
The below tables provide a reconciliation of these assets and liabilities that are subject to Master Agreements or similar agreements and can be potentially offset on the Company’s condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Gross amounts not offset | ||||||||||||||||||||
in the Balance Sheet (1) | ||||||||||||||||||||
Net amounts | ||||||||||||||||||||
Gross amounts | Gross amounts | of assets | Cash collateral | |||||||||||||||||
of recognized | offset in the | presented in the | Financial | (Received)/ | Net | |||||||||||||||
Description | assets | Balance Sheet | Balance Sheet | instruments | Pledged | amount | ||||||||||||||
Linked transactions(2) | $ | 208,924,455 | $ | -147,776,701 | $ | 61,147,754 | $ | -61,147,754 | $ | - | $ | - | ||||||||
Swaptions | 1,006,390 | - | 1,006,390 | - | - | 1,006,390 | ||||||||||||||
Interest rate swaps | 7,843 | -7,843 | - | - | - | - | ||||||||||||||
Total | $ | 209,938,688 | $ | -147,784,544 | $ | 62,154,144 | $ | -61,147,754 | $ | - | $ | 1,006,390 | ||||||||
March 31, 2014 | ||||||||||||||||||||
Gross amounts not offset | ||||||||||||||||||||
in the Balance Sheet (1) | ||||||||||||||||||||
Net amounts | ||||||||||||||||||||
Gross amounts | Gross amounts | of liabilities | Cash collateral | |||||||||||||||||
Description | of recognized | offset in the | presented in the | Financial | (Received)/ | Net | ||||||||||||||
liabilities | Balance Sheet | Balance Sheet | instruments | Pledged | amount | |||||||||||||||
Repurchase agreements | $ | -435,297,286 | $ | - | $ | -435,297,286 | $ | 435,297,286 | $ | - | $ | - | ||||||||
Linked transactions(2) | -147,776,701 | 147,776,701 | - | - | - | - | ||||||||||||||
Interest rate swaps | -5,230,819 | 7,843 | -5,222,976 | - | 5,222,976 | - | ||||||||||||||
Total | $ | -588,304,806 | $ | 147,784,544 | $ | -440,520,262 | $ | 435,297,286 | $ | 5,222,976 | $ | - | ||||||||
December 31, 2013 | ||||||||||||||||||||
Gross amounts not offset | ||||||||||||||||||||
in the Balance Sheet (1) | ||||||||||||||||||||
Net amounts | ||||||||||||||||||||
Gross amounts | Gross amounts | of assets | Cash collateral | |||||||||||||||||
of recognized | offset in the | presented in the | Financial | (Received)/ | Net | |||||||||||||||
Description | assets | Balance Sheet | Balance Sheet | instruments | Pledged | amount | ||||||||||||||
Linked transactions(2) | $ | 94,645,860 | $ | -61,293,298 | $ | 33,352,562 | $ | -33,352,562 | $ | - | $ | - | ||||||||
TBAs | 68,359 | - | 68,359 | - | - | 68,359 | ||||||||||||||
Swaptions | 1,770,795 | - | 1,770,795 | - | - | 1,770,795 | ||||||||||||||
Interest rate swaps | 237,989 | -237,989 | - | - | - | - | ||||||||||||||
Futures | 154,265 | -154,265 | - | - | - | - | ||||||||||||||
Total | $ | 96,877,268 | $ | -61,685,552 | $ | 35,191,716 | $ | -33,352,562 | $ | - | $ | 1,839,154 | ||||||||
December 31, 2013 | ||||||||||||||||||||
Gross amounts not offset | ||||||||||||||||||||
in the Balance Sheet (1) | ||||||||||||||||||||
Net amounts | ||||||||||||||||||||
Gross amounts | Gross amounts | of liabilities | Cash collateral | |||||||||||||||||
of recognized | offset in the | presented in the | Financial | (Received)/ | Net | |||||||||||||||
Description | liabilities | Balance Sheet | Balance Sheet | instruments | Pledged | amount | ||||||||||||||
Repurchase agreements | $ | -412,172,000 | $ | - | $ | -412,172,000 | $ | 412,172,000 | $ | - | $ | - | ||||||||
Linked transactions(2) | -61,293,298 | 61,293,298 | - | - | - | - | ||||||||||||||
Interest rate swaps | -1,231,667 | 237,989 | -993,678 | - | 993,678 | - | ||||||||||||||
Futures | - | 154,265 | 154,265 | - | -154,265 | - | ||||||||||||||
Total | $ | -474,696,965 | $ | 61,685,552 | $ | -413,011,413 | $ | 412,172,000 | $ | 839,413 | $ | - | ||||||||
(1) Amounts presented are limited in total to the net amount of assets or liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to Master Arrangements or similar agreements, or counterparties may have pledged excess cash collateral to the Company that exceed the corresponding financial assets. These excess amounts are excluded from the tables above. | ||||||||||||||||||||
(2) Non-Agency RMBS and Multi-Family MBS securities within a linked transaction serve as collateral for the linked transaction. See Note 3 “Non-Hedging Activity – Linked Transactions” for information on linked transaction arrangements. | ||||||||||||||||||||
Linked Transactions | ||||||||||||||||||||
The Company’s Linked Transactions are accounted for on a net basis and recorded as forward purchase (derivative) contracts at fair value on the Company’s condensed consolidated balance sheets. The fair value of Linked Transactions reflects the value of the underlying Non-Agency RMBS, Multi-Family MBS, the linked repurchase borrowings and accrued interest receivable/payable on such instruments. The Company’s Linked Transactions are not designated as hedging instruments and, as a result, the change in fair value and net interest income is reported as “Unrealized gain (loss) and net interest income from Linked Transactions” in other income on the Company’s condensed consolidated statement of operations. | ||||||||||||||||||||
The following tables present certain information concerning the Non-Agency RMBS, Multi-Family MBS and repurchase financings underlying the Company’s Linked Transactions as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Non-Agency | Multi-Family | Total | ||||||||||||||||||
Face Value | $ | 188,950,458 | $ | 79,016,602 | $ | 267,967,060 | ||||||||||||||
Unamortized premium | - | - | - | |||||||||||||||||
Unamortized discount | ||||||||||||||||||||
Designated credit reserve | -30,149,067 | - | -30,149,067 | |||||||||||||||||
Net, unamortized | -36,451,018 | -2,919,760 | -39,370,778 | |||||||||||||||||
Amortized Cost | 122,350,373 | 76,096,842 | 198,447,215 | |||||||||||||||||
Gross unrealized gain | 9,569,501 | 596,227 | 10,165,728 | |||||||||||||||||
Fair Value | $ | 131,919,874 | $ | 76,693,069 | $ | 208,612,943 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Non-Agency | Multi-Family | Total | ||||||||||||||||||
Face Value | $ | 148,864,823 | $ | - | $ | 148,864,823 | ||||||||||||||
Unamortized premium | - | - | - | |||||||||||||||||
Unamortized discount | ||||||||||||||||||||
Designated credit reserve | -29,857,597 | - | -29,857,597 | |||||||||||||||||
Net, unamortized | -30,770,386 | - | -30,770,386 | |||||||||||||||||
Amortized Cost | 88,236,840 | - | 88,236,840 | |||||||||||||||||
Gross unrealized gain | 6,385,953 | - | 6,385,953 | |||||||||||||||||
Fair Value | $ | 94,622,793 | $ | - | $ | 94,622,793 | ||||||||||||||
The following tables present the changes for the three months ended March 31, 2014 and year ended December 31, 2013 of the unamortized net discount and designated credit reserves on Non-Agency RMBS and Multi-Family MBS underlying Linked Transactions: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Designated | Unamortized | |||||||||||||||||||
credit reserve | net discount | Total | ||||||||||||||||||
Acquisitions | $ | -38,448,046 | $ | -41,139,333 | $ | -79,587,379 | ||||||||||||||
Accretion of net discount | - | 1,768,555 | 1,768,555 | |||||||||||||||||
Realized credit losses | 3,450,617 | - | 3,450,617 | |||||||||||||||||
Release of credit reserves | 4,848,362 | - | 4,848,362 | |||||||||||||||||
Ending balance at March 31, 2014 | $ | -30,149,067 | $ | -39,370,778 | $ | -69,519,845 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Designated | Unamortized | |||||||||||||||||||
credit reserve | net discount | Total | ||||||||||||||||||
Acquisitions | $ | -37,793,143 | $ | -34,418,301 | $ | -72,211,444 | ||||||||||||||
Accretion of net discount | - | 3,647,915 | 3,647,915 | |||||||||||||||||
Realized credit losses | 3,087,184 | - | 3,087,184 | |||||||||||||||||
Release of credit reserves | 4,848,362 | - | 4,848,362 | |||||||||||||||||
Ending balance at December 31, 2013 | $ | -29,857,597 | $ | -30,770,386 | $ | -60,627,983 | ||||||||||||||
Linked Repurchase Agreements | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Amount | Percent of total | Weighted average | Company RMBS | |||||||||||||||||
Repurchase Agreement Counterparties | Outstanding | amount outstanding | days to maturity | held as collateral | ||||||||||||||||
Citigroup Global Markets, Inc. | 65,384,000 | 44.32 | % | 50 | 92,038,733 | |||||||||||||||
Europe (1) | 49,546,714 | 33.59 | % | 32 | 63,898,225 | |||||||||||||||
North America | 23,918,000 | 16.22 | % | 14 | 38,800,436 | |||||||||||||||
Asia (1) | 8,654,000 | 5.87 | % | 9 | 13,875,549 | |||||||||||||||
Total | $ | 147,502,714 | 100 | % | 36 | $ | 208,612,943 | |||||||||||||
(1) Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Amount | Percent of total | Weighted average | Company RMBS | |||||||||||||||||
Repurchase Agreement Counterparties | Outstanding | amount outstanding | days to maturity | held as collateral | ||||||||||||||||
North America | 52,871,000 | 86.42 | % | 21 | 79,528,540 | |||||||||||||||
Asia (1) | 4,987,000 | 8.15 | % | 7 | 8,790,416 | |||||||||||||||
Europe (1) | 3,323,000 | 5.43 | % | 43 | 6,303,837 | |||||||||||||||
Total | $ | 61,181,000 | 100 | % | 21 | $ | 94,622,793 | |||||||||||||
(1) Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. | ||||||||||||||||||||
At March 31, 2014, Linked Transactions also included $311,512 of associated accrued interest receivable and $273,987 of accrued interest payable. | ||||||||||||||||||||
Income Statement Presentation | ||||||||||||||||||||
The Company has not applied hedge accounting to its current derivative portfolio held to mitigate the interest rate risk associated with its debt portfolio. As a result, the Company is subject to volatility in its earnings due to movement in the unrealized gains and losses associated with its interest rate swaps, swaptions and any other derivative instruments. | ||||||||||||||||||||
The following table summarizes the underlying hedged risks and the amount of gains and losses on derivative instruments reported net in the condensed consolidated statement of operations as realized gain (loss) on derivative contracts, net and unrealized gain (loss) on derivative contracts, net for the three months ended March 31, 2014 and March 31, 2013: | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Amount of realized | Amount of unrealized | |||||||||||||||||||
Primary underlying risk | gain (loss) | appreciation (depreciation) | Total | |||||||||||||||||
Interest rate: | ||||||||||||||||||||
Interest rate swaps | $ | -376,314 | $ | -4,229,298 | $ | -4,605,612 | ||||||||||||||
Swaptions | -84,000 | -680,405 | -764,405 | |||||||||||||||||
Futures | -191,047 | -154,265 | -345,312 | |||||||||||||||||
TBAs | -191,406 | -68,359 | -259,765 | |||||||||||||||||
Total | $ | -842,767 | $ | -5,132,327 | $ | -5,975,094 | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
Amount of realized | Amount of unrealized | |||||||||||||||||||
Primary underlying risk | gain (loss) | appreciation (depreciation) | Total | |||||||||||||||||
Interest rate: | ||||||||||||||||||||
Interest rate swaps | $ | -55,293 | $ | -527,555 | $ | -582,848 | ||||||||||||||
Swaptions | -16,000 | 6,536 | -9,464 | |||||||||||||||||
Total | $ | -71,293 | $ | -521,019 | $ | -592,312 | ||||||||||||||
The following table presents certain information about the components of the unrealized net gain (loss) and net interest income from Linked Transactions included in the Company’s condensed consolidated statement of operations for the three months ended March 31, 2014 and March 31, 2013: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||||||||
Interest income attributable to AFS underlying Linked Transactions | $ | 2,582,899 | $ | 451,853 | ||||||||||||||||
Interest expense attributable to linked repurchase agreement borrowings underlying Linked Transactions | -470,482 | -71,302 | ||||||||||||||||||
Change in fair value of Linked Transactions included in earnings | 3,779,776 | 1,373,291 | ||||||||||||||||||
Unrealized gain and net interest income from Linked Transactions | $ | 5,892,193 | $ | 1,753,842 | ||||||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 9 – RELATED PARTY TRANSACTIONS | |
Management Fee | |
The Company is externally managed and advised by Oak Circle Capital Partners LLC. Pursuant to the terms of the management agreement, the Company pays the Manager a management fee equal to 1.5% per annum, calculated and payable monthly in arrears. For purposes of calculating the management fee, the Company’s shareholders’ equity means the sum of the net proceeds from all issuances of the Company’s equity securities since inception (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such issuance), plus the Company’s retained earnings at the end of the most recently completed calendar quarter (without taking into account any non-cash equity compensation expense incurred in current or prior periods), less any amount that the Company pays for repurchases of the Company’s common stock since inception, and excluding any unrealized gains, losses or other items that do not affect realized net income (regardless of whether such items are included in other comprehensive income or loss, or in net income). This amount will be adjusted to exclude one-time events pursuant to changes in GAAP and certain non-cash items after discussions between the Manager and the Company’s independent directors and approval by a majority of the Company’s independent directors. To the extent asset impairment reduces the Company’s retained earnings at the end of any completed calendar quarter, it will reduce the management fee for such quarter. The Company’s shareholders’ equity for the purposes of calculating the management fee could be greater than the amount of shareholders’ equity shown on the financial statements. The initial term of the management agreement expires on May 16, 2014, with automatic, one-year renewals at the end of the initial term and each year thereafter. | |
For the three months ended March 31, 2014, the Company incurred management fees of $467,536 of which $175,000 was accrued but had not been paid. | |
Expense Reimbursement | |
Pursuant to the management agreement, the Company is required to reimburse the Manager for operating expenses related to the Company incurred by the Manager, including accounting services, auditing and tax services, technology and office facilities, operations, compliance, legal and filing fees, and miscellaneous general and administrative costs, including the cost of non-investment management personnel of the Manager who spend all or a portion of their time managing the Company’s affairs. | |
For the three months ended March 31, 2014, the Company incurred reimbursable expenses of $668,653. | |
Manager Equity Plan | |
The Company has adopted a Manager Equity Plan under which the Company may compensate the Manager and the Company’s independent directors, consultants or officers who it may employ in the future. In turn, the Manager, in its sole discretion, will grant such awards to its directors, officers, employees or consultants. The Company will be able to issue under the Manager Equity Plan up to 3.0% of the total number of issued and outstanding shares of common stock (on a fully diluted basis) at the time of each award. | |
Stock based compensation arrangements may include incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock awards and other awards based on the Company’s common stock. | |
Under the Manager Equity Plan, the Company’s independent directors, as part of their compensation for serving as independent directors, are eligible to receive 1,500 shares of restricted stock annually vesting in full on the anniversary of each grant date. As of the closing ofthe Company’s initial public offering (the “IPO”), the Company’s board of directors granted to each of the three independent directors 1,500 shares of restricted common stock (4,500 shares in total), each of which vested in full on the first anniversary of the grant date. The grant date fair value of these restricted shares was $65,250 based on the closing price of the Company’s common stock on March 27, 2013 of $14.50. On March 27, 2014, the 4,500 shares of restricted stock granted to the independent directors fully vested. | |
As of the closing of the IPO on March 27, 2013, the Company’s board of directors granted the Manager 28,500 shares of restricted common stock. One-third of these restricted common stock shares vest on each of the first, second and third anniversaries of the grant date. The fair value of these restricted shares was $211,850 based on the closing price of the Company’s common stock on March 31, 2014 of $11.15. The Company accounts for the restricted common stock shares based on their aggregate fair value at the measurement dates and as this value subsequently changes, a cumulative adjustment is made in the current period for prior compensation cost expenses recorded to date. On March 27, 2014, 9,500 shares of restricted stock granted to the Manager fully vested for net proceeds of $34,928. | |
For the three months ended March 31, 2014, the Company recognized compensation expense related to restricted common stock of $45,078. The Company has unrecognized compensation expense of $106,099 as of March 31, 2014 for unvested shares of restricted common stock. As of March 31, 2014, the weighted average period for which the unrecognized compensation expense will be recognized is 10.2 months. | |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||||||||||
NOTE 10 – STOCKHOLDERS’ EQUITY | ||||||||||||
Ownership and Warrants | ||||||||||||
As a result of the May 2012 and March 2013 private offerings of common stock to XL Investments Ltd, an indirectly wholly owned subsidiary of XL Group plc, owns a significant minority investment in the Company. Pursuant to the terms of the May 2012 private offering, the Company agreed to issue to XL Investments Ltd warrants to purchase the Company’s common stock. The warrants were subsequently issued, effective as of September 29, 2012, and entitle XL Investments Ltd, commencing on July 25, 2013 (120 days following the closing of our IPO) to purchase an aggregate of 3,125,000 shares of our common stock at a per share exercise price equal to 105% of the $15.00 IPO price, or $15.75. XL Global, Inc., a subsidiary of XL Group plc, holds a minority stake in the Manager. | ||||||||||||
Common Stock | ||||||||||||
The Company has 450,000,000 authorized shares of common stock, par value $0.01 per share, with 10,689,250 and 7,389,250 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||
On February 19, 2014, the Company issued 3,000,000 shares of common stock for $11.30 per share. Net proceeds to the Company were $31,927,377, net of issuance costs of $1,972,623. | ||||||||||||
The Company granted the underwriters the right to purchase up to an additional 450,000 shares of common stock from the Company at the offering price of $11.30 per share within 30 days after the issuance date of the common stock. The underwriters exercised their right and purchased 300,000 shares of common stock at the offering price of $11.30 per share on March 7, 2014, resulting in net proceeds of $3,214,325, after deducting underwriting costs of $175,675. | ||||||||||||
Preferred Stock | ||||||||||||
The Company has 50,000,000 authorized shares of preferred stock, par value $0.01 per share, with 920,000 and 800,000 shares of 8.75% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred Stock”), par value of $0.01 per share and liquidation preference of $25.00 per share issued and outstanding as of March 31, 2014 and December 31, 2013. The Series A Preferred Stock is entitled to receive a dividend rate of 8.75% per year on the $25 liquidation preference and is senior to the common stock with respect to distributions upon liquidation, dissolution or winding up. The company declares quarterly and pays monthly dividends on the shares of the Series A Preferred Stock, in arrears, on the 27th day of each month to holders of record at the close of business on the 15th day of each month. | ||||||||||||
The Company granted the underwriters the right to purchase up to an additional 120,000 shares of Series A Preferred Stock from the Company at the offering price of $25.00 per share within 30 days after the issuance date of Series A Preferred Stock. The underwriters fully exercised their right and purchased 120,000 shares of Series A Preferred Stock at $25.00 per share on January 24, 2014, resulting in net proceeds of $2,778,201, after deducting underwriting costs of $221,799. | ||||||||||||
Distributions to stockholders | ||||||||||||
For the 2014 taxable year, the Company has declared dividends to common stockholders totaling $3,183,469, or $0.36 per share. The following table presents cash dividends declared by the Company on its common stock for the three months ended March 31, 2014: | ||||||||||||
Declaration Date | Record Date | Payment Date | Dividend Amount | Cash Dividend Per Share | ||||||||
30-Dec-13 | 15-Jan-14 | 30-Jan-14 | $ | 923,656 | $ | 0.1041 | ||||||
30-Dec-13 | 14-Feb-14 | 27-Feb-14 | $ | 923,656 | $ | 0.1041 | ||||||
30-Dec-13 | 17-Mar-14 | 28-Mar-14 | $ | 1,336,156 | $ | 0.15059 | ||||||
The following table presents cash dividends declared by the Company on its Series A Preferred Stock for the three months ended March 31, 2014: | ||||||||||||
Declaration Date | Record Date | Payment Date | Dividend Amount | Cash Dividend Per Share | ||||||||
23-Dec-13 | 15-Jan-14 | 27-Jan-14 | $ | 165,280 | $ | 0.2066 | ||||||
23-Dec-13 | 14-Feb-14 | 27-Feb-14 | $ | 167,716 | $ | 0.1823 | ||||||
23-Dec-13 | 17-Mar-14 | 27-Mar-14 | $ | 167,716 | $ | 0.1823 | ||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
NOTE 11 – EARNINGS PER SHARE | ||||||||
In accordance with ASC 260, outstanding instruments that contain rights to nonforfeitable dividends are considered participating securities. The Company is required to apply the two-class method or the treasury stock method of computing basic and diluted earnings per share when there are participating securities outstanding. The Company has determined that outstanding unvested restricted shares issued under the Manager Equity Plan are participating securities, and they are therefore included in the computation of basic and diluted earnings per share. The following tables provide additional disclosure regarding the computation for the three months ended March 31, 2014 and March 31, 2013: | ||||||||
Three Months Ended | Three Months Ended | |||||||
$ and shares in thousands | March 31, 2014 | March 31, 2013 | ||||||
Numerator (Income): | ||||||||
Net income (loss) available to common shareholders | $ | -3,021,847 | $ | 1,525,788 | ||||
Dilutive net income (loss) attributable to common shareholders | $ | -3,021,847 | $ | 1,525,788 | ||||
Denominator (Weighted Average Shares): | ||||||||
Basic Earnings: | ||||||||
Shares available to common shareholders | 8,807,028 | 2,293,250 | ||||||
Effect of dilutive securities: | ||||||||
Restricted share awards | 9,631 | 28,369 | ||||||
Dilutive shares | 8,816,659 | 2,321,619 | ||||||
The following potential common shares were excluded from basic and diluted earnings per share for the three months ended March 31, 2014 as the Company had a net loss for the period: 22,958 for Restricted Stock Awards. | ||||||||
No adjustment was required for the calculation of diluted earnings per share for the warrants described in Note 9 because the warrants’ exercise price is greater than the average market price of the common shares for the period, and thereby anti-dilutive. | ||||||||
SEGMENT_REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2014 | |
Segment Reporting [Abstract] | ' |
Segment Reporting Disclosure [Text Block] | ' |
NOTE 12 – SEGMENT REPORTING | |
The Company invests in a portfolio comprised of mortgage-backed securities which operates as a single reporting segment. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The condensed consolidated balance sheet as of December 31, 2013 has been derived from audited financial statements. The condensed consolidated balance sheet as of March 31, 2014, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), the condensed consolidated statement of stockholders’ equity and the condensed consolidated statements of cash flows, for the three months ended March 31, 2014 and for the three months ended March 31, 2013, are unaudited. | |
The unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in the financial statements prepared under U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the Securities and Exchange Commission (“SEC”) on March 12, 2014. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to current period presentation. | |
Consolidation, Policy [Policy Text Block] | ' |
Principles of Consolidation | |
The accompanying condensed consolidated financial statements of the Company include the accounts of the Company and its subsidiary. All intercompany transactions have been eliminated in consolidation. | |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | ' |
Variable Interest Entities | |
An entity is referred to as a variable interest entity ("VIE") if it lacks one or more of the following characteristics: (1) sufficient equity at risk to finance its activities without additional subordinated financial support provided by any parties, including the equity holders; (2) as a group the holders of the equity investment at risk have (a) the power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impacts the entity's economic performance, (b) the obligation to absorb the expected losses of the legal entity and (c) the right to receive the expected residual returns of the legal entity; and (3) the voting rights of these investors are proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected returns of their equity, or both, and whether substantially all of the entity's activities involve or are conducted on behalf of an investor that has disproportionately fewer voting rights. An investment that lacks one or more of the above three characteristics is considered to be a VIE. The Company reassesses its initial evaluation of an entity as a VIE based upon changes in the facts and circumstances pertaining to the VIE. | |
VIEs are required to be consolidated by their primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses of the entity that could potentially be significant to, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. This determination may involve complex and subjective analyses. | |
The Company has evaluated its non-Agency RMBS and Multi-Family MBS investments to determine if each represents a variable interest in a VIE. The Company monitors these investments and analyzes them for potential consolidation. The Company's real estate securities investments represent variable interests in VIEs. At March 31, 2014 and December 31, 2013, no VIEs required consolidation as the Company was not the primary beneficiary of any of these VIEs. At March 31, 2014 and December 31, 2013, the maximum exposure of the Company to VIEs is limited to the fair value of its investments in real estate securities as disclosed in the condensed consolidated balance sheets. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The financial statements have been prepared on the accrual basis of accounting in accordance with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires the Company to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ from its estimates and the differences may be material. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash held in bank accounts on an overnight basis. The Company maintains its cash and cash equivalents in highly rated financial institutions, and at times these balances exceed insurable amounts. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Restricted Cash | |
Restricted cash represents the Company’s cash held by counterparties as collateral against the Company’s securities, derivatives and/or repurchase agreements, together with cash invested in FOAC to support a minimum capital requirement in connection with certain state licensing requirements. Cash held by counterparties as collateral is not available to the Company for general corporate purposes, but may be applied against amounts due to securities, derivatives or repurchase counterparties or returned to the Company when the collateral requirements are exceeded or, at the maturity of the derivative or repurchase agreement. | |
Deferred Offering Costs, Policy [Policy Text Block] | ' |
Deferred Offering Costs | |
In accordance with Accounting Standards Codification (“ASC”) Subtopic 505-10, the direct costs incurred to issue shares classified as equity, such as legal and accounting fees, should be deducted from the related proceeds and the net amount recorded as stockholders’ equity. Accordingly, payments made by the Company in respect of such costs related to the issuance of shares will be recorded as an asset in the accompanying condensed consolidated balance sheets in the line item “Deferred offering costs”, for subsequent deduction from the related proceeds upon closing of the offering. | |
To the extent that certain costs, in particular legal fees, are known to have been accrued but have not yet been invoiced and paid, they are included in “Other accounts payable and accrued expenses” on the accompanying condensed consolidated balance sheets. | |
Repurchase and Resale Agreements Policy [Policy Text Block] | ' |
Repurchase Agreements | |
The Company finances the acquisition of certain of its mortgage-backed securities through the use of repurchase agreements. The repurchase agreements are generally short-term debt, which expire within one year. Borrowings under repurchase agreements generally bear interest rates at a specified margin over LIBOR and are generally uncommitted. In accordance with ASC 860 “Transfers and Servicing” the Company accounts for the repurchase agreements, other than those treated as Linked Transactions (see Note 3 – Accounting for Derivative Financial Instruments – Non-Hedging Activity/Linked Transactions below), as collateralized financing transactions and they are carried at their contractual amounts, as specified in the respective agreements. The contractual amounts approximate fair value due to their short-term nature. | |
Residential Loan Warehouse Facilities | |
The Company will finance the acquisition of residential mortgage loans through the use of residential loan warehouse facilities. Currently, the Company has one residential loan warehouse facility in place with a financial institution counterparty. Under this warehouse facility the Company has an aggregate borrowing limit of $125 million, none of which has been drawn at March 31, 2014. | |
Residential Loan Warehouse Facilities, Policy [Policy Text Block] | ' |
Residential Loan Warehouse Facilities | |
The Company will finance the acquisition of residential mortgage loans through the use of residential loan warehouse facilities. Currently, the Company has one residential loan warehouse facility in place with a financial institution counterparty. Under this warehouse facility the Company has an aggregate borrowing limit of $125 million, none of which has been drawn at March 31, 2014. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition, Premium Amortization, and Discount Accretion | |
Interest income on the Company’s portfolio is accrued based on the actual coupon rate and the outstanding principal balance of such securities. The Company recognizes interest income using the effective interest method for all securities. As such, premiums and discounts are amortized or accreted into interest income over the lives of the securities in accordance with ASC 310-20, “Nonrefundable Fees and Other Costs”, ASC 320-10, “Investments – Debt and Equity Securities” or ASC 325-40, “Beneficial Interests in Securitized Financial Assets”, as applicable. Total interest income will flow though the “Interest Income” line item on the condensed consolidated statement of operations. | |
On at least a quarterly basis for securities accounted for under ASC 320-10 and ASC 310-20 (generally Agency RMBS), prepayments of the underlying collateral must be estimated, which directly affect the speed at which the Company amortizes such securities. If actual and anticipated cash flows differ from previous estimates; the Company recognizes a “catch-up” adjustment in the current period to the amortization of premiums for the impact of the cumulative change in the effective yield through the reporting date. | |
Similarly, the Company also reassesses the cash flows on at least a quarterly basis for securities accounted for under ASC 325-40 (generally non-Agency RMBS and Multi-Family MBS). In estimating these cash flows, there are a number of assumptions that will be subject to uncertainties and contingencies. These include the rate and timing of principal and interest receipts (including assumptions of prepayments, repurchases, defaults and liquidations), the pass-through or coupon rate and interest rate fluctuations. In addition, interest payment shortfalls due to delinquencies on the underlying mortgage loans have to be judgmentally estimated. Differences between previously estimated cash flows and current actual and anticipated cash flows are recognized prospectively through an adjustment of the yield over the remaining life of the security based on the current amortized cost of the investment as adjusted for credit impairment, if any. | |
For investments purchased with evidence of deterioration of credit quality for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, the Company will apply the provisions of ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” ASC 310-30 addresses accounting for differences between contractual cash flows and cash flows expected to be collected from an investor’s initial investment in loans or debt securities (loans) acquired in a transfer if those differences are attributable, at least in part, to credit quality. ASC 310-30 limits the yield that may be accreted (accretable yield) to the excess of the investor’s estimate of undiscounted expected principal, interest and other cash flows (cash flows expected at acquisition to be collected) over the investor’s initial investment in the loan. ASC 310-30 requires that the excess of contractual cash flows over cash flows expected to be collected (nonaccretable difference) not be recognized as an adjustment of yield, loss accrual or valuation allowance. | |
Subsequent increases in cash flows expected to be collected are generally recognized prospectively through adjustment of the loan’s yield over its remaining life. Decreases in cash flows expected to be collected are recognized as impairment. | |
The Company’s accrual of interest, discount and premium for U.S. federal and other tax purposes is likely to differ from the financial accounting treatment of these items as described above. | |
Gains and losses from the sale of available-for-sale securities (“AFS”) are recorded as realized gains (losses) within realized gain (loss) on sale of investments, net in the Company's condensed consolidated statement of operations. Upon the sale of a security, the Company will determine the cost of the security and the amount of unrealized gains or losses to reclassify out of accumulated other comprehensive income (loss) into earnings based on the specific identification method. Unrealized gains and losses on the Company’s AFS securities are recorded as unrealized gain (loss) on available-for-sale securities, net in the Company's condensed consolidated statement of comprehensive income (loss). | |
Property, Plant and Equipment, Impairment [Policy Text Block] | ' |
Impairment | |
The Company evaluates its MBS, on a quarterly basis, to assess whether a decline in the fair value of an AFS security below the Company's amortized cost basis is an other-than-temporary impairment (“OTTI”). The presence of OTTI is based upon a fair value decline below a security's amortized cost basis and a corresponding adverse change in expected cash flows due to credit related factors as well as non-credit factors, such as changes in interest rates and market spreads. Impairment is considered other-than-temporary if an entity (i) intends to sell the security, (ii) will more likely than not be required to sell the security before it recovers in value or (iii) does not expect to recover the security's amortized cost basis, even if the entity does not intend to sell the security. Under these scenarios, the impairment is other-than-temporary and the full amount of impairment should be recognized currently in earnings and the cost basis of the investment security is adjusted. However, if an entity does not intend to sell the impaired debt security and it is more likely than not that it will not be required to sell before recovery, the OTTI should be separated into (i) the estimated amount relating to credit loss (“credit” component) and (ii) the amount relating to all other factors (“non-credit” component). Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss amount recognized in other comprehensive income. The difference between the new amortized cost basis and the cash flows expected to be collected is accreted as interest income in accordance with the effective interest method. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes | |
The Company has elected to be taxed as a REIT under the Code for U.S. federal income tax purposes, commencing with the Company’s short taxable period ended December 31, 2012. So long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes at least 90% of its net taxable income to shareholders and maintains its qualification as a REIT. | |
In addition to the Company’s election to be taxed as a REIT, the Company complies with Sections 856 through 859 of the Code. Accordingly, the Company generally will not be subject to U.S. federal income tax to the extent of its distributions to stockholders and as long as certain asset, income and share ownership tests are met. To maintain its qualification as a REIT, the Company must distribute at least 90% of its REIT taxable income to its stockholders and meet certain other requirements. The Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on its undistributed taxable income. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. The Company believes it will meet all of the criteria to maintain the Company's REIT qualification for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. | |
The Company does not have any material uncertain tax positions at this time. The Company's accounting policy with respect to interest and penalties is to classify these amounts as interest expense. The Company has not recognized any such amounts related to uncertain tax positions as of the balance sheet date. | |
Certain activities of the Company are conducted through a TRS and therefore are subject to federal and various state and local income taxes. From its inception to date our TRS has had limited activity and did not generate any taxable income. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings per Share | |
The Company calculates basic and diluted earnings per share by dividing net income attributable to common stockholders for the period by the weighted-average shares of the Company’s common stock outstanding for that period. Diluted earnings per share takes into account the effect of dilutive instruments, such as warrants, stock options, and unvested restricted stock, but use the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. See Note 11 for details of the computation of basic and diluted earnings per share. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock-Based Compensation | |
The Company is required to recognize compensation costs relating to stock-based payment transactions in the financial statements. The Company accounts for share-based compensation issued to its Manager and non-management directors using the fair value based methodology prescribed by ASC 718, Share-Based Payment (“ASC 718”). Compensation cost related to restricted common stock issued to the Manager is initially measured at estimated fair value at the grant date, and is remeasured on subsequent dates to the extent the awards are unvested. Additionally, compensation cost related to restricted common stock issued to the non-management directors is measured at its estimated fair value at the grant date and amortized and expensed over the vesting period. See Note 9 for details of stock-based awards issuable under the Manager Equity Plan. | |
Comprehensive Income, Policy [Policy Text Block] | ' |
Comprehensive Income (Loss) | |
Comprehensive income (loss) is comprised of net income, as presented in the condensed consolidated statement of comprehensive income (loss), adjusted for changes in unrealized gain or loss on AFS securities. | |
AVAILABLEFORSALE_SECURITIES_Ta
AVAILABLE-FOR-SALE SECURITIES (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | |||||||||||||||||||
The following table presents the Company’s AFS investment securities by collateral type at fair value as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Agency | ||||||||||||||||||||
Federal National Mortgage Association | $ | 216,634,743 | $ | 237,143,864 | ||||||||||||||||
Federal Home Loan Mortgage Corporation | 191,798,783 | 145,156,756 | ||||||||||||||||||
Non-Agency | 64,537,378 | 62,684,335 | ||||||||||||||||||
Multi-Family | 9,573,318 | - | ||||||||||||||||||
Total mortgage-backed securities | $ | 482,544,222 | $ | 444,984,955 | ||||||||||||||||
Schedule Of Available-For-Sale Securities Reconciliation [Table Text Block] | ' | |||||||||||||||||||
The following tables present the amortized cost and fair value of the Company’s AFS investment securities by collateral type as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Agency | Non-Agency | Multi-Family | Total | |||||||||||||||||
Face Value | $ | 408,488,453 | $ | 94,896,042 | $ | 10,000,000 | $ | 513,384,495 | ||||||||||||
Unamortized premium | 8,021,210 | - | 11,493 | 8,032,703 | ||||||||||||||||
Unamortized discount | ||||||||||||||||||||
Designated credit reserve | - | -16,823,722 | - | -16,823,722 | ||||||||||||||||
Net, unamortized | -2,996,293 | -19,723,712 | -640,062 | -23,360,067 | ||||||||||||||||
Amortized Cost | 413,513,370 | 58,348,608 | 9,371,431 | 481,233,409 | ||||||||||||||||
Gross unrealized gain (loss) | -5,079,844 | 6,188,770 | 201,887 | 1,310,813 | ||||||||||||||||
Fair Value | $ | 408,433,526 | $ | 64,537,378 | $ | 9,573,318 | $ | 482,544,222 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Agency | Non-Agency | Total | ||||||||||||||||||
Face Value | $ | 386,672,123 | $ | 95,390,328 | $ | 482,062,451 | ||||||||||||||
Unamortized premium | 12,544,193 | - | 12,544,193 | |||||||||||||||||
Unamortized discount | ||||||||||||||||||||
Designated credit reserve | - | -16,126,355 | -16,126,355 | |||||||||||||||||
Net, unamortized | -1,489,132 | -20,911,248 | -22,400,380 | |||||||||||||||||
Amortized Cost | 397,727,184 | 58,352,725 | 456,079,909 | |||||||||||||||||
Gross unrealized gain (loss) | -15,426,564 | 4,331,610 | -11,094,954 | |||||||||||||||||
Fair Value | $ | 382,300,620 | $ | 62,684,335 | $ | 444,984,955 | ||||||||||||||
Schedule of Realized Gain (Loss) [Table Text Block] | ' | |||||||||||||||||||
The following table presents a summary of the Company’s net realized gain (loss) from the sale of AFS securities for the three months ended March 31, 2014 and March 31, 2013. | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||||||||
AFS securities sold, at cost | $ | 94,748,794 | $ | - | ||||||||||||||||
Proceeds from AFS securities sold | 90,620,039 | - | ||||||||||||||||||
Net realized gain (loss) on sale of AFS securities | $ | -4,128,755 | $ | - | ||||||||||||||||
Schedule Of Available For Sale Securities By Rate Type [Table Text Block] | ' | |||||||||||||||||||
The following tables present the fair value of AFS investment securities by rate type as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Agency | Non-Agency | Multi-Family | Total | |||||||||||||||||
Adjustable rate | $ | 279,738,550 | $ | 64,537,378 | $ | - | $ | 344,275,928 | ||||||||||||
Fixed rate | 128,694,976 | - | 9,573,318 | 138,268,294 | ||||||||||||||||
Total | $ | 408,433,526 | $ | 64,537,378 | $ | 9,573,318 | $ | 482,544,222 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||
Agency | Non-Agency | Total | ||||||||||||||||||
Adjustable rate | $ | 170,587,649 | $ | 62,684,335 | $ | 233,271,984 | ||||||||||||||
Fixed rate | 211,712,971 | - | 211,712,971 | |||||||||||||||||
Total | $ | 382,300,620 | $ | 62,684,335 | $ | 444,984,955 | ||||||||||||||
Schedule Of Investments In Debt and Marketable Equity Securities and Certain Trading Assets Disclosure [Table Text Block] | ' | |||||||||||||||||||
The following tables present the changes for the three months ended March 31, 2014 and year ended December 31, 2013 of the unamortized net discount and designated credit reserves on our MBS investments. | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Designated | Unamortized | |||||||||||||||||||
credit reserve | net discount | Total | ||||||||||||||||||
Acquisitions | $ | -20,024,874 | $ | -27,477,917 | $ | -47,502,791 | ||||||||||||||
Accretion of net discount | - | 4,048,712 | 4,048,712 | |||||||||||||||||
Realized gain on paydowns | - | 69,137 | 69,137 | |||||||||||||||||
Realized credit losses | 2,545,377 | - | 2,545,377 | |||||||||||||||||
Release of credit reserves | 655,775 | - | 655,775 | |||||||||||||||||
Ending balance at March 31, 2014 | $ | -16,823,722 | $ | -23,360,068 | $ | -40,183,790 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Designated | Unamortized | |||||||||||||||||||
credit reserve | net discount | Total | ||||||||||||||||||
Acquisitions | $ | -19,145,414 | $ | -25,261,882 | $ | -44,407,296 | ||||||||||||||
Accretion of net discount | - | 2,836,240 | 2,836,240 | |||||||||||||||||
Realized gain on paydowns | - | 25,262 | 25,262 | |||||||||||||||||
Realized credit losses | 2,363,284 | - | 2,363,284 | |||||||||||||||||
Release of credit reserves | 655,775 | - | 655,775 | |||||||||||||||||
Ending balance at December 31, 2013 | $ | -16,126,355 | $ | -22,400,380 | $ | -38,526,735 | ||||||||||||||
Investment Income [Table Text Block] | ' | |||||||||||||||||||
The following tables present components of interest income on the Company’s AFS securities for the three months ended March 31, 2014 and March 31, 2013: | ||||||||||||||||||||
Three Months Ended March 31, 2014 | Three Months Ended March 31, 2013 | |||||||||||||||||||
Net (premium | Net (premium | |||||||||||||||||||
Coupon | amortization)/ | Interest | Coupon | amortization)/ | Interest | |||||||||||||||
interest | discount accretion | income | interest | discount accretion | income | |||||||||||||||
Agency | $ | 2,696,219 | $ | 60,385 | $ | 2,756,604 | $ | 795,964 | $ | -31,856 | $ | 764,108 | ||||||||
Non-Agency | 47,426 | 1,042,384 | 1,089,810 | 34,814 | 227,226 | 262,040 | ||||||||||||||
Multi-Family | 45,034 | 11,514 | 56,548 | - | - | - | ||||||||||||||
Total | $ | 2,788,679 | $ | 1,114,283 | $ | 3,902,962 | $ | 830,778 | $ | 195,370 | $ | 1,026,148 | ||||||||
RESTRICTED_CASH_Tables
RESTRICTED CASH (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||
Schedule of Restricted Cash and Cash Equivalents [Table Text Block] | ' | |||||||
The following table presents the Company's restricted cash balances as of March 31, 2014 and December 31, 2013: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Restricted cash balance held by: | ||||||||
Broker counterparties for derivatives trading | $ | 10,567,102 | $ | 7,297,667 | ||||
Repurchase counterparties as restricted collateral | 4,944,174 | 6,015,490 | ||||||
FOAC as minimum required capital | 88,180 | 30,016 | ||||||
Total | $ | 15,599,456 | $ | 13,343,173 | ||||
REPURCHASE_AGREEMENTS_Tables
REPURCHASE AGREEMENTS (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Disclosure Of Repurchase Agreements [Abstract] | ' | ||||||||||||||
Schedule of Repurchase Agreements [Table Text Block] | ' | ||||||||||||||
The following table summarizes certain characteristics of the Company’s repurchase agreements at March 31, 2014 and December 31, 2013: | |||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||
Weighted | Weighted | ||||||||||||||
Amount | average | Amount | average | ||||||||||||
outstanding | interest rate | outstanding | interest rate | ||||||||||||
Agency | $ | 388,853,000 | 0.36 | % | $ | 370,901,000 | 0.4 | % | |||||||
Non-Agency(1) | 43,192,000 | 1.89 | % | 41,271,000 | 2.09 | % | |||||||||
Multi-Family(2) | 3,252,286 | 1.14 | % | - | 0 | % | |||||||||
Total | $ | 435,297,286 | 0.52 | % | $ | 412,172,000 | 0.57 | % | |||||||
-1 | At March 31, 2014 and December 31, 2013, the Company had repurchase agreements of $85,585,000 and $61,181,000, respectively, that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | ||||||||||||||
(2) At March 31, 2014, the Company had repurchase agreements of $61,917,714 that were linked to Multi-Family MBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||||||||||||||
Schedule Of Remaining Maturities Under Repurchase Agreement [Table Text Block] | ' | ||||||||||||||
At March 31, 2014 and December 31, 2013, the repurchase agreements had the following remaining maturities: | |||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||
< 30 days | $ | 377,753,786 | $ | 373,422,000 | |||||||||||
31 to 60 days | 13,647,500 | 38,750,000 | |||||||||||||
61 to 90 days | 43,896,000 | - | |||||||||||||
Total | $ | 435,297,286 | $ | 412,172,000 | |||||||||||
Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity [Table Text Block] | ' | ||||||||||||||
The following tables summarize certain characteristics of the Company’s repurchase agreements at March 31, 2014 and December 31, 2013: | |||||||||||||||
March 31, 2014 | |||||||||||||||
Amount | Percent of total | Weighted average | Company RMBS | ||||||||||||
Repurchase Agreement Counterparties | Outstanding(1) | amount outstanding | days to maturity | held as collateral | |||||||||||
North America | $ | 291,309,000 | 66.92 | % | 24 | $ | 314,416,659 | ||||||||
Asia (2) | 87,082,000 | 20.01 | % | 18 | 97,246,553 | ||||||||||
Europe (2) | 56,906,286 | 13.07 | % | 22 | 64,434,566 | ||||||||||
Total | $ | 435,297,286 | 100 | % | 23 | $ | 476,097,778 | ||||||||
-1 | At March 31, 2014, the Company had repurchase agreements of $85,585,000 and $61,917,714 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | ||||||||||||||
-2 | Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. | ||||||||||||||
December 31, 2013 | |||||||||||||||
Amount | Percent of total | Weighted average | Company RMBS | ||||||||||||
Repurchase Agreement Counterparties | Outstanding(1) | amount outstanding | days to maturity | held as collateral | |||||||||||
North America | $ | 261,289,000 | 63.39 | % | 20 | $ | 277,808,885 | ||||||||
Asia (2) | 97,491,000 | 23.65 | % | 12 | 106,949,627 | ||||||||||
Europe (2) | 53,392,000 | 12.96 | % | 21 | 60,226,443 | ||||||||||
Total | $ | 412,172,000 | 100 | % | 18 | $ | 444,984,955 | ||||||||
-1 | At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | ||||||||||||||
(2) | Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. | ||||||||||||||
DERIVATIVE_INSTRUMENTS_HEDGING1
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Derivative Instrument Detail [Abstract] | ' | |||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||||||||||
The following tables present the gross fair value and notional amounts of the Company’s derivative financial instruments as of March 31, 2014 and December 31, 2013. The Company’s Linked Transactions are evaluated on a combined basis. | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||
Fair value | Notional | Fair value | Notional | |||||||||||||||||
Interest rate swaps | $ | 7,843 | 23,000,000 | $ | -5,230,819 | 335,000,000 | ||||||||||||||
Swaptions | 1,006,390 | 25,000,000 | - | - | ||||||||||||||||
Linked transactions | 61,147,754 | - | - | - | ||||||||||||||||
Total | $ | 62,161,987 | 48,000,000 | $ | -5,230,819 | 335,000,000 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||
Fair value | Notional | Fair value | Notional | |||||||||||||||||
Interest rate swaps | $ | 237,989 | 57,000,000 | $ | -1,231,667 | 281,000,000 | ||||||||||||||
Swaptions | 1,770,795 | 25,000,000 | - | - | ||||||||||||||||
Futures | 154,265 | 10,000,000 | - | - | ||||||||||||||||
TBAs | 68,359 | 25,000,000 | - | - | ||||||||||||||||
Linked transactions | 33,352,562 | - | - | - | ||||||||||||||||
Total | $ | 35,583,970 | 117,000,000 | $ | -1,231,667 | 281,000,000 | ||||||||||||||
Derivatives Instruments Average Fixed Pay Rate And Average Maturity [Table Text Block] | ' | |||||||||||||||||||
The following tables present the average fixed pay rate and average maturity for the Company’s interest rate swaps (excludes interest rate swaptions) as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Notional | Fair | Fixed Pay | Maturity | Forward | ||||||||||||||||
Current Maturity Date | Amount | Value | Rate | Years | Starting | |||||||||||||||
3 years or less | $ | 35,000,000 | $ | -149,247 | 0.66 | % | 1.9 | 0 | % | |||||||||||
Greater than 3 years and less than 5 years | 171,000,000 | -1,218,679 | 1.66 | % | 4.4 | 0 | % | |||||||||||||
Greater than 7 years and less than 10 years | 95,000,000 | -2,137,266 | 2.85 | % | 7.4 | 100 | % | |||||||||||||
Greater than 10 years | 57,000,000 | -1,717,784 | 3.29 | % | 10.4 | 100 | % | |||||||||||||
Total | $ | 358,000,000 | $ | -5,222,976 | 2.14 | % | 5.9 | 42.5 | % | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Notional | Fair | Fixed Pay | Maturity | Forward | ||||||||||||||||
Current Maturity Date | Amount | Value | Rate | Years | Starting | |||||||||||||||
3 years or less | $ | 35,000,000 | $ | -166,619 | 0.66 | % | 2.1 | 0 | % | |||||||||||
Greater than 3 years and less than 5 years | 151,000,000 | -764,807 | 1.66 | % | 4.6 | 0 | % | |||||||||||||
Greater than 7 years and less than 10 years | 95,000,000 | -300,242 | 2.85 | % | 7.6 | 100 | % | |||||||||||||
Greater than 10 years | 57,000,000 | 237,990 | 3.29 | % | 10.7 | 100 | % | |||||||||||||
Total | $ | 338,000,000 | $ | -993,678 | 2.17 | % | 6.2 | 45 | % | |||||||||||
Schedule of Derivative Instruments [Table Text Block] | ' | |||||||||||||||||||
The below tables provide a reconciliation of these assets and liabilities that are subject to Master Agreements or similar agreements and can be potentially offset on the Company’s condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Gross amounts not offset | ||||||||||||||||||||
in the Balance Sheet (1) | ||||||||||||||||||||
Net amounts | ||||||||||||||||||||
Gross amounts | Gross amounts | of assets | Cash collateral | |||||||||||||||||
of recognized | offset in the | presented in the | Financial | (Received)/ | Net | |||||||||||||||
Description | assets | Balance Sheet | Balance Sheet | instruments | Pledged | amount | ||||||||||||||
Linked transactions(2) | $ | 208,924,455 | $ | -147,776,701 | $ | 61,147,754 | $ | -61,147,754 | $ | - | $ | - | ||||||||
Swaptions | 1,006,390 | - | 1,006,390 | - | - | 1,006,390 | ||||||||||||||
Interest rate swaps | 7,843 | -7,843 | - | - | - | - | ||||||||||||||
Total | $ | 209,938,688 | $ | -147,784,544 | $ | 62,154,144 | $ | -61,147,754 | $ | - | $ | 1,006,390 | ||||||||
March 31, 2014 | ||||||||||||||||||||
Gross amounts not offset | ||||||||||||||||||||
in the Balance Sheet (1) | ||||||||||||||||||||
Net amounts | ||||||||||||||||||||
Gross amounts | Gross amounts | of liabilities | Cash collateral | |||||||||||||||||
Description | of recognized | offset in the | presented in the | Financial | (Received)/ | Net | ||||||||||||||
liabilities | Balance Sheet | Balance Sheet | instruments | Pledged | amount | |||||||||||||||
Repurchase agreements | $ | -435,297,286 | $ | - | $ | -435,297,286 | $ | 435,297,286 | $ | - | $ | - | ||||||||
Linked transactions(2) | -147,776,701 | 147,776,701 | - | - | - | - | ||||||||||||||
Interest rate swaps | -5,230,819 | 7,843 | -5,222,976 | - | 5,222,976 | - | ||||||||||||||
Total | $ | -588,304,806 | $ | 147,784,544 | $ | -440,520,262 | $ | 435,297,286 | $ | 5,222,976 | $ | - | ||||||||
December 31, 2013 | ||||||||||||||||||||
Gross amounts not offset | ||||||||||||||||||||
in the Balance Sheet (1) | ||||||||||||||||||||
Net amounts | ||||||||||||||||||||
Gross amounts | Gross amounts | of assets | Cash collateral | |||||||||||||||||
of recognized | offset in the | presented in the | Financial | (Received)/ | Net | |||||||||||||||
Description | assets | Balance Sheet | Balance Sheet | instruments | Pledged | amount | ||||||||||||||
Linked transactions(2) | $ | 94,645,860 | $ | -61,293,298 | $ | 33,352,562 | $ | -33,352,562 | $ | - | $ | - | ||||||||
TBAs | 68,359 | - | 68,359 | - | - | 68,359 | ||||||||||||||
Swaptions | 1,770,795 | - | 1,770,795 | - | - | 1,770,795 | ||||||||||||||
Interest rate swaps | 237,989 | -237,989 | - | - | - | - | ||||||||||||||
Futures | 154,265 | -154,265 | - | - | - | - | ||||||||||||||
Total | $ | 96,877,268 | $ | -61,685,552 | $ | 35,191,716 | $ | -33,352,562 | $ | - | $ | 1,839,154 | ||||||||
December 31, 2013 | ||||||||||||||||||||
Gross amounts not offset | ||||||||||||||||||||
in the Balance Sheet (1) | ||||||||||||||||||||
Net amounts | ||||||||||||||||||||
Gross amounts | Gross amounts | of liabilities | Cash collateral | |||||||||||||||||
of recognized | offset in the | presented in the | Financial | (Received)/ | Net | |||||||||||||||
Description | liabilities | Balance Sheet | Balance Sheet | instruments | Pledged | amount | ||||||||||||||
Repurchase agreements | $ | -412,172,000 | $ | - | $ | -412,172,000 | $ | 412,172,000 | $ | - | $ | - | ||||||||
Linked transactions(2) | -61,293,298 | 61,293,298 | - | - | - | - | ||||||||||||||
Interest rate swaps | -1,231,667 | 237,989 | -993,678 | - | 993,678 | - | ||||||||||||||
Futures | - | 154,265 | 154,265 | - | -154,265 | - | ||||||||||||||
Total | $ | -474,696,965 | $ | 61,685,552 | $ | -413,011,413 | $ | 412,172,000 | $ | 839,413 | $ | - | ||||||||
(1) Amounts presented are limited in total to the net amount of assets or liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to Master Arrangements or similar agreements, or counterparties may have pledged excess cash collateral to the Company that exceed the corresponding financial assets. These excess amounts are excluded from the tables above. | ||||||||||||||||||||
(2) Non-Agency RMBS and Multi-Family MBS securities within a linked transaction serve as collateral for the linked transaction. See Note 3 “Non-Hedging Activity – Linked Transactions” for information on linked transaction arrangements. | ||||||||||||||||||||
Schedule Of Derivative Non-Agency Rmbs and Repurchase Financings Underlying [Table Text Block] | ' | |||||||||||||||||||
The following tables present certain information concerning the Non-Agency RMBS, Multi-Family MBS and repurchase financings underlying the Company’s Linked Transactions as of March 31, 2014 and December 31, 2013: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Non-Agency | Multi-Family | Total | ||||||||||||||||||
Face Value | $ | 188,950,458 | $ | 79,016,602 | $ | 267,967,060 | ||||||||||||||
Unamortized premium | - | - | - | |||||||||||||||||
Unamortized discount | ||||||||||||||||||||
Designated credit reserve | -30,149,067 | - | -30,149,067 | |||||||||||||||||
Net, unamortized | -36,451,018 | -2,919,760 | -39,370,778 | |||||||||||||||||
Amortized Cost | 122,350,373 | 76,096,842 | 198,447,215 | |||||||||||||||||
Gross unrealized gain | 9,569,501 | 596,227 | 10,165,728 | |||||||||||||||||
Fair Value | $ | 131,919,874 | $ | 76,693,069 | $ | 208,612,943 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Non-Agency | Multi-Family | Total | ||||||||||||||||||
Face Value | $ | 148,864,823 | $ | - | $ | 148,864,823 | ||||||||||||||
Unamortized premium | - | - | - | |||||||||||||||||
Unamortized discount | ||||||||||||||||||||
Designated credit reserve | -29,857,597 | - | -29,857,597 | |||||||||||||||||
Net, unamortized | -30,770,386 | - | -30,770,386 | |||||||||||||||||
Amortized Cost | 88,236,840 | - | 88,236,840 | |||||||||||||||||
Gross unrealized gain | 6,385,953 | - | 6,385,953 | |||||||||||||||||
Fair Value | $ | 94,622,793 | $ | - | $ | 94,622,793 | ||||||||||||||
Schedule Of Unamortized Net Discount And Designated Credit Reserves On Non Agency Rmbs Underlying Linked Transactions [Table Text Block] | ' | |||||||||||||||||||
The following tables present the changes for the three months ended March 31, 2014 and year ended December 31, 2013 of the unamortized net discount and designated credit reserves on Non-Agency RMBS and Multi-Family MBS underlying Linked Transactions: | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Designated | Unamortized | |||||||||||||||||||
credit reserve | net discount | Total | ||||||||||||||||||
Acquisitions | $ | -38,448,046 | $ | -41,139,333 | $ | -79,587,379 | ||||||||||||||
Accretion of net discount | - | 1,768,555 | 1,768,555 | |||||||||||||||||
Realized credit losses | 3,450,617 | - | 3,450,617 | |||||||||||||||||
Release of credit reserves | 4,848,362 | - | 4,848,362 | |||||||||||||||||
Ending balance at March 31, 2014 | $ | -30,149,067 | $ | -39,370,778 | $ | -69,519,845 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Designated | Unamortized | |||||||||||||||||||
credit reserve | net discount | Total | ||||||||||||||||||
Acquisitions | $ | -37,793,143 | $ | -34,418,301 | $ | -72,211,444 | ||||||||||||||
Accretion of net discount | - | 3,647,915 | 3,647,915 | |||||||||||||||||
Realized credit losses | 3,087,184 | - | 3,087,184 | |||||||||||||||||
Release of credit reserves | 4,848,362 | - | 4,848,362 | |||||||||||||||||
Ending balance at December 31, 2013 | $ | -29,857,597 | $ | -30,770,386 | $ | -60,627,983 | ||||||||||||||
Schedule Of Linked Repurchase Agreement Counterparties With Whom Repurchase Agreements Exceed 10 Percent Of Stockholders Equity [Table Text Block] | ' | |||||||||||||||||||
Linked Repurchase Agreements | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
Amount | Percent of total | Weighted average | Company RMBS | |||||||||||||||||
Repurchase Agreement Counterparties | Outstanding | amount outstanding | days to maturity | held as collateral | ||||||||||||||||
Citigroup Global Markets, Inc. | 65,384,000 | 44.32 | % | 50 | 92,038,733 | |||||||||||||||
Europe (1) | 49,546,714 | 33.59 | % | 32 | 63,898,225 | |||||||||||||||
North America | 23,918,000 | 16.22 | % | 14 | 38,800,436 | |||||||||||||||
Asia (1) | 8,654,000 | 5.87 | % | 9 | 13,875,549 | |||||||||||||||
Total | $ | 147,502,714 | 100 | % | 36 | $ | 208,612,943 | |||||||||||||
(1) Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Amount | Percent of total | Weighted average | Company RMBS | |||||||||||||||||
Repurchase Agreement Counterparties | Outstanding | amount outstanding | days to maturity | held as collateral | ||||||||||||||||
North America | 52,871,000 | 86.42 | % | 21 | 79,528,540 | |||||||||||||||
Asia (1) | 4,987,000 | 8.15 | % | 7 | 8,790,416 | |||||||||||||||
Europe (1) | 3,323,000 | 5.43 | % | 43 | 6,303,837 | |||||||||||||||
Total | $ | 61,181,000 | 100 | % | 21 | $ | 94,622,793 | |||||||||||||
(1) Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. | ||||||||||||||||||||
Schedule of Price Risk Derivatives [Table Text Block] | ' | |||||||||||||||||||
The following table summarizes the underlying hedged risks and the amount of gains and losses on derivative instruments reported net in the condensed consolidated statement of operations as realized gain (loss) on derivative contracts, net and unrealized gain (loss) on derivative contracts, net for the three months ended March 31, 2014 and March 31, 2013: | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Amount of realized | Amount of unrealized | |||||||||||||||||||
Primary underlying risk | gain (loss) | appreciation (depreciation) | Total | |||||||||||||||||
Interest rate: | ||||||||||||||||||||
Interest rate swaps | $ | -376,314 | $ | -4,229,298 | $ | -4,605,612 | ||||||||||||||
Swaptions | -84,000 | -680,405 | -764,405 | |||||||||||||||||
Futures | -191,047 | -154,265 | -345,312 | |||||||||||||||||
TBAs | -191,406 | -68,359 | -259,765 | |||||||||||||||||
Total | $ | -842,767 | $ | -5,132,327 | $ | -5,975,094 | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
Amount of realized | Amount of unrealized | |||||||||||||||||||
Primary underlying risk | gain (loss) | appreciation (depreciation) | Total | |||||||||||||||||
Interest rate: | ||||||||||||||||||||
Interest rate swaps | $ | -55,293 | $ | -527,555 | $ | -582,848 | ||||||||||||||
Swaptions | -16,000 | 6,536 | -9,464 | |||||||||||||||||
Total | $ | -71,293 | $ | -521,019 | $ | -592,312 | ||||||||||||||
Schedule Of Unrealized Gain and Net Interest Income From Derivatives [Table Text Block] | ' | |||||||||||||||||||
The following table presents certain information about the components of the unrealized net gain (loss) and net interest income from Linked Transactions included in the Company’s condensed consolidated statement of operations for the three months ended March 31, 2014 and March 31, 2013: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, 2014 | March 31, 2013 | |||||||||||||||||||
Interest income attributable to AFS underlying Linked Transactions | $ | 2,582,899 | $ | 451,853 | ||||||||||||||||
Interest expense attributable to linked repurchase agreement borrowings underlying Linked Transactions | -470,482 | -71,302 | ||||||||||||||||||
Change in fair value of Linked Transactions included in earnings | 3,779,776 | 1,373,291 | ||||||||||||||||||
Unrealized gain and net interest income from Linked Transactions | $ | 5,892,193 | $ | 1,753,842 | ||||||||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | ' | |||||||||||||
The following tables summarize the valuation of the Company’s assets and liabilities at fair value within the fair value hierarchy levels as of March 31, 2014 and December 31, 2013: | ||||||||||||||
Quoted prices in | Significant | |||||||||||||
active markets | other observable | Unobservable | ||||||||||||
for identical assets | inputs | inputs | Balance as of | |||||||||||
Level 1 | Level 2 | Level 3 | March 31, 2014 | |||||||||||
Assets: | ||||||||||||||
Residential mortgage-backed securities (a) | $ | - | $ | 472,970,904 | $ | - | $ | 472,970,904 | ||||||
Multi-Family securities (a) | - | 9,573,318 | - | 9,573,318 | ||||||||||
Linked transactions (b) | - | 61,147,754 | - | 61,147,754 | ||||||||||
Interest rate swaps | - | 7,843 | - | 7,843 | ||||||||||
Swaptions | - | 1,006,390 | - | 1,006,390 | ||||||||||
Total | $ | - | $ | 544,706,209 | $ | - | $ | 544,706,209 | ||||||
Liabilities: | ||||||||||||||
Interest rate swaps | $ | - | $ | -5,230,819 | $ | - | $ | -5,230,819 | ||||||
Total | $ | - | $ | -5,230,819 | $ | - | $ | -5,230,819 | ||||||
Quoted prices in | Significant | |||||||||||||
active markets | other observable | Unobservable | ||||||||||||
for identical assets | inputs | inputs | Balance as of | |||||||||||
Level 1 | Level 2 | Level 3 | December 31, 2013 | |||||||||||
Assets: | ||||||||||||||
Residential mortgage-backed securities (a) | $ | - | $ | 444,984,955 | $ | - | $ | 444,984,955 | ||||||
Linked transactions (b) | - | 33,352,562 | - | 33,352,562 | ||||||||||
TBAs | - | 68,359 | - | 68,359 | ||||||||||
Interest rate swaps | - | 237,989 | - | 237,989 | ||||||||||
Swaptions | - | 1,770,795 | - | 1,770,795 | ||||||||||
Futures | 154,265 | - | - | 154,265 | ||||||||||
Total | $ | 154,265 | $ | 480,414,660 | $ | - | $ | 480,568,925 | ||||||
Liabilities: | ||||||||||||||
Interest rate swaps | $ | - | $ | -1,231,667 | $ | - | $ | -1,231,667 | ||||||
Total | $ | - | $ | -1,231,667 | $ | - | $ | -1,231,667 | ||||||
(a) | For more detail about the fair value of the Company’s MBS and type of securities, see Note 3 and Note 4. | |||||||||||||
(b) | For more detail about the fair value of the Company’s Linked Transactions, see Note 3 and Note 7. | |||||||||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Common Stock [Member] | ' | |||||||||||
Schedule of Dividends Payable [Table Text Block] | ' | |||||||||||
The following table presents cash dividends declared by the Company on its common stock for the three months ended March 31, 2014: | ||||||||||||
Declaration Date | Record Date | Payment Date | Dividend Amount | Cash Dividend Per Share | ||||||||
30-Dec-13 | 15-Jan-14 | 30-Jan-14 | $ | 923,656 | $ | 0.1041 | ||||||
30-Dec-13 | 14-Feb-14 | 27-Feb-14 | $ | 923,656 | $ | 0.1041 | ||||||
30-Dec-13 | 17-Mar-14 | 28-Mar-14 | $ | 1,336,156 | $ | 0.15059 | ||||||
Series A Preferred Stock [Member] | ' | |||||||||||
Schedule of Dividends Payable [Table Text Block] | ' | |||||||||||
The following table presents cash dividends declared by the Company on its Series A Preferred Stock for the three months ended March 31, 2014: | ||||||||||||
Declaration Date | Record Date | Payment Date | Dividend Amount | Cash Dividend Per Share | ||||||||
23-Dec-13 | 15-Jan-14 | 27-Jan-14 | $ | 165,280 | $ | 0.2066 | ||||||
23-Dec-13 | 14-Feb-14 | 27-Feb-14 | $ | 167,716 | $ | 0.1823 | ||||||
23-Dec-13 | 17-Mar-14 | 27-Mar-14 | $ | 167,716 | $ | 0.1823 | ||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | ' | |||||||
The following tables provide additional disclosure regarding the computation for the three months ended March 31, 2014 and March 31, 2013: | ||||||||
Three Months Ended | Three Months Ended | |||||||
$ and shares in thousands | March 31, 2014 | March 31, 2013 | ||||||
Numerator (Income): | ||||||||
Net income (loss) available to common shareholders | $ | -3,021,847 | $ | 1,525,788 | ||||
Dilutive net income (loss) attributable to common shareholders | $ | -3,021,847 | $ | 1,525,788 | ||||
Denominator (Weighted Average Shares): | ||||||||
Basic Earnings: | ||||||||
Shares available to common shareholders | 8,807,028 | 2,293,250 | ||||||
Effect of dilutive securities: | ||||||||
Restricted share awards | 9,631 | 28,369 | ||||||
Dilutive shares | 8,816,659 | 2,321,619 | ||||||
ORGANIZATION_AND_BUSINESS_OPER1
ORGANIZATION AND BUSINESS OPERATIONS (Details Textual) | 3 Months Ended |
Mar. 31, 2014 | |
Organization And Business Operations [Line Items] | ' |
Operations Commenced Date | 16-May-12 |
Entity Incorporation, State Country Name | 'Maryland |
Entity Incorporation, Date of Incorporation | 28-Mar-12 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (Residential Loan Warehouse Facilities [Member], USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Residential Loan Warehouse Facilities [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $125 |
AVAILABLEFORSALE_SECURITIES_De
AVAILABLE-FOR-SALE SECURITIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Mortgage-backed securities: | $482,544,222 | $444,984,955 |
Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Mortgage-backed securities: | 408,433,526 | 382,300,620 |
Agency [Member] | Federal National Mortgage Association [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Mortgage-backed securities: | 216,634,743 | 237,143,864 |
Agency [Member] | Federal Home Loan Mortgage Corporation [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Mortgage-backed securities: | 191,798,783 | 145,156,756 |
Non Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Mortgage-backed securities: | 64,537,378 | 62,684,335 |
Multi-Family [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Mortgage-backed securities: | $9,573,318 | $0 |
AVAILABLEFORSALE_SECURITIES_De1
AVAILABLE-FOR-SALE SECURITIES (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Face Value | $513,384,495 | $482,062,451 |
Unamortized premium | 8,032,703 | 12,544,193 |
Unamortized discount | ' | ' |
Designated credit reserve | -16,823,722 | -16,126,355 |
Net, unamortized | -23,360,067 | -22,400,380 |
Amortized Cost | 481,233,409 | 456,079,909 |
Gross unrealized gain (loss) | 1,310,813 | -11,094,954 |
Fair Value | 482,544,222 | 444,984,955 |
Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Face Value | 408,488,453 | 386,672,123 |
Unamortized premium | 8,021,210 | 12,544,193 |
Unamortized discount | ' | ' |
Designated credit reserve | 0 | 0 |
Net, unamortized | -2,996,293 | -1,489,132 |
Amortized Cost | 413,513,370 | 397,727,184 |
Gross unrealized gain (loss) | -5,079,844 | -15,426,564 |
Fair Value | 408,433,526 | 382,300,620 |
Non Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Face Value | 94,896,042 | 95,390,328 |
Unamortized premium | 0 | 0 |
Unamortized discount | ' | ' |
Designated credit reserve | -16,823,722 | -16,126,355 |
Net, unamortized | -19,723,712 | -20,911,248 |
Amortized Cost | 58,348,608 | 58,352,725 |
Gross unrealized gain (loss) | 6,188,770 | 4,331,610 |
Fair Value | 64,537,378 | 62,684,335 |
Multi-Family [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Face Value | 10,000,000 | ' |
Unamortized premium | 11,493 | ' |
Unamortized discount | ' | ' |
Designated credit reserve | 0 | ' |
Net, unamortized | -640,062 | ' |
Amortized Cost | 9,371,431 | ' |
Gross unrealized gain (loss) | 201,887 | ' |
Fair Value | $9,573,318 | $0 |
AVAILABLEFORSALE_SECURITIES_De2
AVAILABLE-FOR-SALE SECURITIES (Details 2) (AFS securities [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
AFS securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
AFS securities sold, at cost | $94,748,794 | $0 |
Proceeds from AFS securities sold | 90,620,039 | 0 |
Net realized gain (loss) on sale of AFS securities | ($4,128,755) | $0 |
AVAILABLEFORSALE_SECURITIES_De3
AVAILABLE-FOR-SALE SECURITIES (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | $482,544,222 | $444,984,955 |
Adjustable Rate [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 344,275,928 | 233,271,984 |
Fixed Rate [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 138,268,294 | 211,712,971 |
Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 408,433,526 | 382,300,620 |
Agency [Member] | Adjustable Rate [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 279,738,550 | 170,587,649 |
Agency [Member] | Fixed Rate [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 128,694,976 | 211,712,971 |
Non Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 64,537,378 | 62,684,335 |
Non Agency [Member] | Adjustable Rate [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 64,537,378 | 62,684,335 |
Non Agency [Member] | Fixed Rate [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 0 | 0 |
Multi-Family [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 9,573,318 | 0 |
Multi-Family [Member] | Adjustable Rate [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | 0 | ' |
Multi-Family [Member] | Fixed Rate [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Total | $9,573,318 | ' |
AVAILABLEFORSALE_SECURITIES_De4
AVAILABLE-FOR-SALE SECURITIES (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Designated credit reserve, Acquisitions | ($20,024,874) | ($19,145,414) |
Designated credit reserve, Accretion of net discount | 0 | 0 |
Designated credit reserve, Realized gain on paydowns | 0 | 0 |
Designated credit reserve, Realized credit losses | 2,545,377 | 2,363,284 |
Designated credit reserve, Release of credit reserves | 655,775 | 655,775 |
Designated credit reserve, Ending balance | -16,823,722 | -16,126,355 |
Unamortized net discount, Acquisitions | -27,477,917 | -25,261,882 |
Unamortized net discount, Accretion of net discount | 4,048,712 | 2,836,240 |
Unamortized net discount, Realized gain on paydowns | 69,137 | 25,262 |
Unamortized net discount, Realized credit losses | 0 | 0 |
Unamortized net discount, Release of credit reserves | 0 | 0 |
Unamortized net discount, Ending balance | -23,360,067 | -22,400,380 |
Acquisitions, Total | -47,502,791 | -44,407,296 |
Accretion of net discount, Total | 4,048,712 | 2,836,240 |
Realized gain on paydowns, Total | 69,137 | 25,262 |
Realized credit losses, Total | 2,545,377 | 2,363,284 |
Release of credit reserves, Total | 655,775 | 655,775 |
Ending balance, Total | ($40,183,790) | ($38,526,735) |
AVAILABLEFORSALE_SECURITIES_De5
AVAILABLE-FOR-SALE SECURITIES (Details 5) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Coupon interest | $2,788,679 | $830,778 |
Net (premium amortization)/ discount accretion | 1,114,284 | 195,370 |
Interest income | 3,902,962 | 1,026,148 |
Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Coupon interest | 2,696,219 | 795,964 |
Net (premium amortization)/ discount accretion | 60,385 | -31,856 |
Interest income | 2,756,604 | 764,108 |
Non Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Coupon interest | 47,426 | 34,814 |
Net (premium amortization)/ discount accretion | 1,042,384 | 227,226 |
Interest income | 1,089,810 | 262,040 |
Multi-Family [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Coupon interest | 45,034 | 0 |
Net (premium amortization)/ discount accretion | 11,514 | 0 |
Interest income | $56,548 | $0 |
AVAILABLEFORSALE_SECURITIES_De6
AVAILABLE-FOR-SALE SECURITIES (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Change In Net Unrealized Holding Gain Loss Non Cash Item | $12,405,767 | ($696,697) |
AFS securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available For Sale Securities Change In Net Unrealized Holding Gain Loss Non Cash Item | $12,405,767 | ' |
RESTRICTED_CASH_Details
RESTRICTED CASH (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $15,599,456 | $13,343,173 |
Broker Counterparties For Derivatives Trading [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 10,567,102 | 7,297,667 |
Repurchase Counterparties As Restricted Collateral [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 4,944,174 | 6,015,490 |
FOAC As Minimum Required Capital [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $88,180 | $30,016 |
REPURCHASE_AGREEMENTS_Details
REPURCHASE AGREEMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | $435,297,286 | [1] | $412,172,000 | [2] |
Repurchase Agreements weighted average interest rate | 0.52% | 0.57% | ||
Agency [Member] | ' | ' | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | 388,853,000 | 370,901,000 | ||
Repurchase Agreements weighted average interest rate | 0.36% | 0.40% | ||
Non Agency [Member] | ' | ' | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | 43,192,000 | [3] | 41,271,000 | [3] |
Repurchase Agreements weighted average interest rate | 1.89% | [3] | 2.09% | [3] |
Multi-Family [Member] | ' | ' | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | $3,252,286 | [4] | $0 | [4] |
Repurchase Agreements weighted average interest rate | 1.14% | [4] | 0.00% | [4] |
[1] | At March 31, 2014, the Company had repurchase agreements of $85,585,000 and $61,917,714 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[2] | At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[3] | At March 31, 2014 and December 31, 2013, the Company had repurchase agreements of $85,585,000 and $61,181,000, respectively, that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[4] | At March 31, 2014, the Company had repurchase agreements of $61,917,714 that were linked to Multi-Family MBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). |
REPURCHASE_AGREEMENTS_Details_
REPURCHASE AGREEMENTS (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | $435,297,286 | [1] | $412,172,000 | [2] |
Maturity up to 30 days [Member] | ' | ' | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | 377,753,786 | 373,422,000 | ||
Maturity 31 To 60 Days [Member] | ' | ' | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | 13,647,500 | 38,750,000 | ||
Maturity 61 To 90 Days [Member] | ' | ' | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | $43,896,000 | $0 | ||
[1] | At March 31, 2014, the Company had repurchase agreements of $85,585,000 and $61,917,714 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[2] | At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). |
REPURCHASE_AGREEMENTS_Details_1
REPURCHASE AGREEMENTS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | |||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Repurchase Agreement Counterparties, Amount Outstanding | $435,297,286 | [1] | $412,172,000 | [2] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 100.00% | 100.00% | ||
Repurchase Agreement Counterparties, weighted average days to maturity | '23 days | '18 days | ||
Repurchase Agreement Counterparties, Company RMBS held as collateral | 476,097,778 | 444,984,955 | ||
North America [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Repurchase Agreement Counterparties, Amount Outstanding | 291,309,000 | [1] | 261,289,000 | [2] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 66.92% | 63.39% | ||
Repurchase Agreement Counterparties, weighted average days to maturity | '24 days | '20 days | ||
Repurchase Agreement Counterparties, Company RMBS held as collateral | 314,416,659 | 277,808,885 | ||
Asia [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Repurchase Agreement Counterparties, Amount Outstanding | 87,082,000 | [1],[3] | 97,491,000 | [2],[3] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 20.01% | [3] | 23.65% | [3] |
Repurchase Agreement Counterparties, weighted average days to maturity | '18 days | [3] | '12 days | [3] |
Repurchase Agreement Counterparties, Company RMBS held as collateral | 97,246,553 | [3] | 106,949,627 | [3] |
Europe [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Repurchase Agreement Counterparties, Amount Outstanding | 56,906,286 | [1],[3] | 53,392,000 | [2],[3] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 13.07% | [3] | 12.96% | [3] |
Repurchase Agreement Counterparties, weighted average days to maturity | '22 days | [3] | '21 days | [3] |
Repurchase Agreement Counterparties, Company RMBS held as collateral | $64,434,566 | [3] | $60,226,443 | [3] |
[1] | At March 31, 2014, the Company had repurchase agreements of $85,585,000 and $61,917,714 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[2] | At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[3] | Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. |
REPURCHASE_AGREEMENTS_Details_2
REPURCHASE AGREEMENTS (Details Textual) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | $435,297,286 | [1] | $412,172,000 | [2] |
Repurchase Agreements Weighted Average Interest Rate | 0.52% | 0.57% | ||
Multi Family MBS [Member] | ' | ' | ||
Repurchase Agreements [Line Items] | ' | ' | ||
Repurchase agreements | $61,917,714 | ' | ||
[1] | At March 31, 2014, the Company had repurchase agreements of $85,585,000 and $61,917,714 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[2] | At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). |
DERIVATIVE_INSTRUMENTS_HEDGING2
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Derivative Financial Instruments, Fair value | $62,161,987 | $35,583,970 |
Derivative Asset, Notional Amount | 48,000,000 | 117,000,000 |
Derivative Financial Instruments, Fair value | -5,230,819 | -1,231,667 |
Derivative Liability, Notional Amount | 335,000,000 | 281,000,000 |
Interest Rate Swap [Member] | ' | ' |
Derivative Financial Instruments, Fair value | 7,843 | 237,989 |
Derivative Asset, Notional Amount | 23,000,000 | 57,000,000 |
Derivative Financial Instruments, Fair value | -5,230,819 | -1,231,667 |
Derivative Liability, Notional Amount | 335,000,000 | 281,000,000 |
Swaption [Member] | ' | ' |
Derivative Financial Instruments, Fair value | 1,006,390 | 1,770,795 |
Derivative Asset, Notional Amount | 25,000,000 | 25,000,000 |
Derivative Financial Instruments, Fair value | 0 | 0 |
Derivative Liability, Notional Amount | 0 | 0 |
Linked Tansactions [Member] | ' | ' |
Derivative Financial Instruments, Fair value | 61,147,754 | 33,352,562 |
Derivative Asset, Notional Amount | 0 | 0 |
Derivative Financial Instruments, Fair value | 0 | 0 |
Derivative Liability, Notional Amount | 0 | 0 |
Futures [Member] | ' | ' |
Derivative Financial Instruments, Fair value | ' | 154,265 |
Derivative Asset, Notional Amount | ' | 10,000,000 |
Derivative Financial Instruments, Fair value | ' | 0 |
Derivative Liability, Notional Amount | ' | 0 |
TBAs [Member] | ' | ' |
Derivative Financial Instruments, Fair value | ' | 68,359 |
Derivative Asset, Notional Amount | ' | 25,000,000 |
Derivative Financial Instruments, Fair value | ' | 0 |
Derivative Liability, Notional Amount | ' | $0 |
DERIVATIVE_INSTRUMENTS_HEDGING3
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details 1) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Financial Instruments, Notional Amount | $335,000,000 | $281,000,000 |
Derivative Financial Instruments, Fair value | -5,230,819 | -1,231,667 |
Interest Rate Swap [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Financial Instruments, Notional Amount | 335,000,000 | 281,000,000 |
Derivative Financial Instruments, Fair value | -5,230,819 | -1,231,667 |
Derivative Financial Instruments, Fixed Pay Rate | 2.14% | 2.17% |
Derivative Financial Instruments, Maturity Years | '5 years 10 months 24 days | '6 years 2 months 12 days |
Derivative Financial Instruments, Forward Starting | 42.50% | 45.00% |
Interest Rate Swap [Member] | Less than 3 years [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Financial Instruments, Notional Amount | 35,000,000 | 35,000,000 |
Derivative Financial Instruments, Fair value | -149,247 | -166,619 |
Derivative Financial Instruments, Fixed Pay Rate | 0.66% | 0.66% |
Derivative Financial Instruments, Maturity Years | '1 year 10 months 24 days | '2 years 1 month 6 days |
Derivative Financial Instruments, Forward Starting | 0.00% | 0.00% |
Interest Rate Swap [Member] | Greater than 3 years and less than 5 years [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Financial Instruments, Notional Amount | 171,000,000 | 151,000,000 |
Derivative Financial Instruments, Fair value | -1,218,679 | -764,807 |
Derivative Financial Instruments, Fixed Pay Rate | 1.66% | 1.66% |
Derivative Financial Instruments, Maturity Years | '4 years 4 months 24 days | '4 years 7 months 6 days |
Derivative Financial Instruments, Forward Starting | 0.00% | 0.00% |
Interest Rate Swap [Member] | Greater than 7 years and less than 10 years [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Financial Instruments, Notional Amount | 95,000,000 | 95,000,000 |
Derivative Financial Instruments, Fair value | -2,137,266 | -300,242 |
Derivative Financial Instruments, Fixed Pay Rate | 2.85% | 2.85% |
Derivative Financial Instruments, Maturity Years | '7 years 4 months 24 days | '7 years 7 months 6 days |
Derivative Financial Instruments, Forward Starting | 100.00% | 100.00% |
Interest Rate Swap [Member] | Greater than 10 years [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Financial Instruments, Notional Amount | 57,000,000 | 57,000,000 |
Derivative Financial Instruments, Fair value | ($1,717,784) | $237,990 |
Derivative Financial Instruments, Fixed Pay Rate | 3.29% | 3.29% |
Derivative Financial Instruments, Maturity Years | '10 years 4 months 24 days | '10 years 8 months 12 days |
Derivative Financial Instruments, Forward Starting | 100.00% | 100.00% |
DERIVATIVE_INSTRUMENTS_HEDGING4
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Derivative [Line Items] | ' | ' | ||
Gross amounts of recognized assets | $209,938,688 | $96,877,268 | ||
Gross amounts offset in the Balance Sheet | -147,784,544 | -61,685,552 | ||
Net amounts of assets presented in the Balance Sheet | 62,154,144 | 35,191,716 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | -61,147,754 | [1] | -33,352,562 | [1] |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | 0 | [1] | 0 | [1] |
Net amounts of assets, Net amount | 1,006,390 | 1,839,154 | ||
Gross amounts of recognized liabilities | -588,304,806 | -474,696,965 | ||
Gross amounts offset in the Balance Sheet | 147,784,544 | 61,685,552 | ||
Net amounts of liabilities presented in the Balance Sheet | -440,520,262 | -413,011,413 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | 435,297,286 | [1] | 412,172,000 | [1] |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | 5,222,976 | [1] | 839,413 | [1] |
Net amounts of liabilities, Net amount | 0 | 0 | ||
Repurchase Agreements [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross amounts of recognized liabilities | -435,297,286 | -412,172,000 | ||
Gross amounts offset in the Balance Sheet | 0 | 0 | ||
Net amounts of liabilities presented in the Balance Sheet | -435,297,286 | -412,172,000 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | 435,297,286 | [1] | 412,172,000 | [1] |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | 0 | [1] | 0 | [1] |
Net amounts of liabilities, Net amount | 0 | 0 | ||
Linked Tansactions [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross amounts of recognized assets | 208,924,455 | [2] | 94,645,860 | [2] |
Gross amounts offset in the Balance Sheet | -147,776,701 | [2] | -61,293,298 | [2] |
Net amounts of assets presented in the Balance Sheet | 61,147,754 | [2] | 33,352,562 | [2] |
Gross amounts not offset in the Balance Sheet, Financial instruments | -61,147,754 | [1],[2] | -33,352,562 | [1],[2] |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | 0 | [1],[2] | 0 | [1],[2] |
Net amounts of assets, Net amount | 0 | [2] | 0 | [2] |
Gross amounts of recognized liabilities | -147,776,701 | [2] | -61,293,298 | [2] |
Gross amounts offset in the Balance Sheet | 147,776,701 | [2] | 61,293,298 | [2] |
Net amounts of liabilities presented in the Balance Sheet | 0 | [2] | 0 | [2] |
Gross amounts not offset in the Balance Sheet, Financial instruments | 0 | [1],[2] | 0 | [1],[2] |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | 0 | [1],[2] | 0 | [1],[2] |
Net amounts of liabilities, Net amount | 0 | [2] | 0 | [2] |
Interest Rate Swap [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross amounts of recognized assets | 7,843 | 237,989 | ||
Gross amounts offset in the Balance Sheet | -7,843 | -237,989 | ||
Net amounts of assets presented in the Balance Sheet | 0 | 0 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | 0 | [1] | 0 | [1] |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | 0 | [1] | 0 | [1] |
Net amounts of assets, Net amount | 0 | 0 | ||
Gross amounts of recognized liabilities | -5,230,819 | -1,231,667 | ||
Gross amounts offset in the Balance Sheet | 7,843 | 237,989 | ||
Net amounts of liabilities presented in the Balance Sheet | -5,222,976 | -993,678 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | 0 | [1] | 0 | [1] |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | 5,222,976 | [1] | 993,678 | [1] |
Net amounts of liabilities, Net amount | 0 | 0 | ||
Swaption [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross amounts of recognized assets | 1,006,390 | 1,770,795 | ||
Gross amounts offset in the Balance Sheet | 0 | 0 | ||
Net amounts of assets presented in the Balance Sheet | 1,006,390 | 1,770,795 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | 0 | [1] | 0 | [1] |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | 0 | [1] | 0 | [1] |
Net amounts of assets, Net amount | 1,006,390 | 1,770,795 | ||
Futures [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross amounts of recognized assets | ' | 154,265 | ||
Gross amounts offset in the Balance Sheet | ' | -154,265 | ||
Net amounts of assets presented in the Balance Sheet | ' | 0 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | ' | 0 | [1] | |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | ' | 0 | [1] | |
Net amounts of assets, Net amount | ' | 0 | ||
Gross amounts of recognized liabilities | ' | 0 | ||
Gross amounts offset in the Balance Sheet | ' | 154,265 | ||
Net amounts of liabilities presented in the Balance Sheet | ' | 154,265 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | ' | 0 | [1] | |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | ' | -154,265 | [1] | |
Net amounts of liabilities, Net amount | ' | 0 | ||
TBAs [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Gross amounts of recognized assets | ' | 68,359 | ||
Gross amounts offset in the Balance Sheet | ' | 0 | ||
Net amounts of assets presented in the Balance Sheet | ' | 68,359 | ||
Gross amounts not offset in the Balance Sheet, Financial instruments | ' | 0 | [1] | |
Gross amounts not offset in the Balance Sheet, Cash collateral (Received) / Pledged | ' | 0 | [1] | |
Net amounts of assets, Net amount | ' | $68,359 | ||
[1] | Amounts presented are limited in total to the net amount of assets or liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to Master Arrangements or similar agreements, or counterparties may have pledged excess cash collateral to the Company that exceed the corresponding financial assets. These excess amounts are excluded from the tables above. | |||
[2] | Non-Agency RMBS and Multi-Family MBS securities within a linked transaction serve as collateral for the linked transaction. See Note 3 bNon-Hedging Activity B Linked Transactionsb for information on linked transaction arrangements. |
DERIVATIVE_INSTRUMENTS_HEDGING5
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ' | ' |
Face Value | $267,967,060 | $148,864,823 |
Unamortized premium | 0 | 0 |
Unamortized discount | ' | ' |
Designated credit reserve | -30,149,067 | -29,857,597 |
Net, unamortized | -39,370,778 | -30,770,386 |
Amortized Cost | 198,447,215 | 88,236,840 |
Gross unrealized gains | 10,165,728 | 6,385,953 |
Fair Value | 208,612,943 | 94,622,793 |
Non Agency [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Face Value | 188,950,458 | 148,864,823 |
Unamortized premium | 0 | 0 |
Unamortized discount | ' | ' |
Designated credit reserve | -30,149,067 | -29,857,597 |
Net, unamortized | -36,451,018 | -30,770,386 |
Amortized Cost | 122,350,373 | 88,236,840 |
Gross unrealized gains | 9,569,501 | 6,385,953 |
Fair Value | 131,919,874 | 94,622,793 |
Multi-Family [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Face Value | 79,016,602 | 0 |
Unamortized premium | 0 | 0 |
Unamortized discount | ' | ' |
Designated credit reserve | 0 | 0 |
Net, unamortized | -2,919,760 | 0 |
Amortized Cost | 76,096,842 | 0 |
Gross unrealized gains | 596,227 | 0 |
Fair Value | $76,693,069 | $0 |
DERIVATIVE_INSTRUMENTS_HEDGING6
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ' | ' |
Designated credit reserve, Acquisitions | ($38,448,046) | ($37,793,143) |
Designated credit reserve, Accretion of net discount | 0 | 0 |
Designated credit reserve, Realized credit losses | 3,450,617 | 3,087,184 |
Designated credit reserve, Release of credit reserves | 4,848,362 | 4,848,362 |
Designated credit reserve, Ending balance | -30,149,067 | -29,857,597 |
Unamortized net discount, Acquisitions | -41,139,333 | -34,418,301 |
Unamortized net discount, Accretion of net discount | 1,768,555 | 3,647,915 |
Unamortized net discount, Realized credit losses | 0 | 0 |
Unamortized net discount, Release of credit reserves | 0 | 0 |
Unamortized net discount, Ending balance | -39,370,778 | -30,770,386 |
Acquisitions, Total | -79,587,379 | -72,211,444 |
Accretion of net discount, Total | 1,768,555 | 3,647,915 |
Realized credit losses, Total | 3,450,617 | 3,087,184 |
Release of credit reserves, Total | 4,848,362 | 4,848,362 |
Ending balance, Total | ($69,519,845) | ($60,627,983) |
DERIVATIVE_INSTRUMENTS_HEDGING7
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | |||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | $435,297,286 | [1] | $412,172,000 | [2] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 100.00% | 100.00% | ||
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '23 days | '18 days | ||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 476,097,778 | 444,984,955 | ||
Linked Repurchase Agreements [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | 147,502,714 | 61,181,000 | ||
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 100.00% | 100.00% | ||
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '36 days | '21 days | ||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 208,612,943 | 94,622,793 | ||
Linked Repurchase Agreements [Member] | Citigroup Global Markets Inc [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | 65,384,000 | ' | ||
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 44.32% | ' | ||
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '50 days | ' | ||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 92,038,733 | ' | ||
North America [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | 291,309,000 | [1] | 261,289,000 | [2] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 66.92% | 63.39% | ||
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '24 days | '20 days | ||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 314,416,659 | 277,808,885 | ||
North America [Member] | Linked Repurchase Agreements [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | 23,918,000 | 52,871,000 | ||
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 16.22% | 86.42% | ||
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '14 days | '21 days | ||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 38,800,436 | 79,528,540 | ||
Asia [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | 87,082,000 | [1],[3] | 97,491,000 | [2],[3] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 20.01% | [3] | 23.65% | [3] |
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '18 days | [3] | '12 days | [3] |
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 97,246,553 | [3] | 106,949,627 | [3] |
Asia [Member] | Linked Repurchase Agreements [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | 8,654,000 | [3] | 4,987,000 | [3] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 5.87% | [3] | 8.15% | [3] |
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '9 days | [3] | '7 days | [3] |
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 13,875,549 | [3] | 8,790,416 | [3] |
Europe [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | 56,906,286 | [1],[3] | 53,392,000 | [2],[3] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 13.07% | [3] | 12.96% | [3] |
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '22 days | [3] | '21 days | [3] |
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 64,434,566 | [3] | 60,226,443 | [3] |
Europe [Member] | Linked Repurchase Agreements [Member] | ' | ' | ||
Repurchase Agreement Counterparty [Line Items] | ' | ' | ||
Secured Debt, Repurchase Agreements | 49,546,714 | [3] | 3,323,000 | [3] |
Repurchase Agreement Counterparties, Percentage of total amount outstanding | 33.59% | [3] | 5.43% | [3] |
Repurchase Agreement Counterparties, Weighted Average Maturity Of Agreements | '32 days | [3] | '43 days | [3] |
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | $63,898,225 | [3] | $6,303,837 | [3] |
[1] | At March 31, 2014, the Company had repurchase agreements of $85,585,000 and $61,917,714 that were linked to Non-Agency RMBS and Multi-Family MBS purchases, respectively, and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[2] | At December 31, 2013, the Company had repurchase agreements of $61,181,000 that were linked to Non-Agency RMBS purchases and were accounted for as Linked Transactions, and as such, the linked repurchase agreements are not included in the above table. (See Note 3). | |||
[3] | Counterparties domiciled in Europe and Asia, or their U.S. subsidiaries. |
DERIVATIVE_INSTRUMENTS_HEDGING8
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details 6) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Interest rate: | ' | ' |
Amount of realized gain (loss) | ($842,767) | ($71,293) |
Amount of unrealized appreciation (depreciation) | -5,132,327 | -521,019 |
Total | -5,975,094 | -592,312 |
Interest Rate Swap [Member] | ' | ' |
Interest rate: | ' | ' |
Amount of realized gain (loss) | -376,314 | -55,293 |
Amount of unrealized appreciation (depreciation) | -4,229,298 | -527,555 |
Total | -4,605,612 | -582,848 |
Swaptions [Member] | ' | ' |
Interest rate: | ' | ' |
Amount of realized gain (loss) | -84,000 | -16,000 |
Amount of unrealized appreciation (depreciation) | -680,405 | 6,536 |
Total | -764,405 | -9,464 |
Futures [Member] | ' | ' |
Interest rate: | ' | ' |
Amount of realized gain (loss) | -191,047 | ' |
Amount of unrealized appreciation (depreciation) | -154,265 | ' |
Total | -345,312 | ' |
TBAs [Member] | ' | ' |
Interest rate: | ' | ' |
Amount of realized gain (loss) | -191,406 | ' |
Amount of unrealized appreciation (depreciation) | -68,359 | ' |
Total | ($259,765) | ' |
DERIVATIVE_INSTRUMENTS_HEDGING9
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details 7) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Derivative [Line Items] | ' | ' |
Change in fair value of Linked Transactions included in earnings | ($842,767) | ($71,293) |
Unrealized gain and net interest income from Linked Transactions | 5,892,193 | 1,753,842 |
Linked Tansactions [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Interest income attributable to AFS underlying Linked Transactions | 2,582,899 | 451,853 |
Interest expense attributable to linked repurchase agreement borrowings underlying Linked Transactions | -470,482 | -71,302 |
Change in fair value of Linked Transactions included in earnings | 3,779,776 | 1,373,291 |
Unrealized gain and net interest income from Linked Transactions | $5,892,193 | $1,753,842 |
Recovered_Sheet1
DERIVATIVE INSTRUMENTS HEDGING AND NON-HEDGING ACTIVITIES (Details Textual) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ' | ' |
Accrued interest receivable | $1,129,583 | $1,045,191 |
Accrued interest payable | 195,309 | 274,615 |
Linked Tansactions [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Accrued interest receivable | 311,512 | ' |
Accrued interest payable | $273,987 | ' |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | $544,706,209 | $480,568,925 | ||
Liabilities: | ' | ' | ||
Liabilities, Fair Value Disclosure | -5,230,819 | -1,231,667 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | 154,265 | ||
Liabilities: | ' | ' | ||
Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 544,706,209 | 480,414,660 | ||
Liabilities: | ' | ' | ||
Liabilities, Fair Value Disclosure | -5,230,819 | -1,231,667 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | 0 | ||
Liabilities: | ' | ' | ||
Liabilities, Fair Value Disclosure | 0 | 0 | ||
Residential Mortgage Backed Securities [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 472,970,904 | [1] | 444,984,955 | [1] |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [1] | 0 | [1] |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 472,970,904 | [1] | 444,984,955 | [1] |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [1] | 0 | [1] |
Commodity Index Linked Notes [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 61,147,754 | [2] | 33,352,562 | [2] |
Commodity Index Linked Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [2] | 0 | [2] |
Commodity Index Linked Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 61,147,754 | [2] | 33,352,562 | [2] |
Commodity Index Linked Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [2] | 0 | [2] |
TBAs [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | ' | 68,359 | ||
TBAs [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | ' | 0 | ||
TBAs [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | ' | 68,359 | ||
TBAs [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | ' | 0 | ||
Interest Rate Swap [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 7,843 | 237,989 | ||
Liabilities: | ' | ' | ||
Liabilities, Fair Value Disclosure | -5,230,819 | -1,231,667 | ||
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | 0 | ||
Liabilities: | ' | ' | ||
Liabilities, Fair Value Disclosure | 0 | 0 | ||
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 7,843 | 237,989 | ||
Liabilities: | ' | ' | ||
Liabilities, Fair Value Disclosure | -5,230,819 | -1,231,667 | ||
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | 0 | ||
Liabilities: | ' | ' | ||
Liabilities, Fair Value Disclosure | 0 | 0 | ||
Swaption [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 1,006,390 | 1,770,795 | ||
Swaption [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | 0 | ||
Swaption [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 1,006,390 | 1,770,795 | ||
Swaption [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | 0 | ||
Futures [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | ' | 154,265 | ||
Futures [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | ' | 154,265 | ||
Futures [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | ' | 0 | ||
Futures [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | ' | 0 | ||
Multi-Family securities [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 9,573,318 | [1] | ' | |
Multi-Family securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 0 | [1] | ' | |
Multi-Family securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | 9,573,318 | [1] | ' | |
Multi-Family securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Assets: | ' | ' | ||
Assets, Fair Value Disclosure | $0 | [1] | ' | |
[1] | For more detail about the fair value of the Companybs MBS and type of securities, see Note 3 and Note 4. | |||
[2] | For more detail about the fair value of the Companybs Linked Transactions, see Note 3 and Note 7. |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Related Party Transaction [Line Items] | ' | ' |
Management Fee Percentage | 1.50% | ' |
Management fee | $467,536 | $115,140 |
Management Fee Payable | 175,000 | ' |
Operating expenses reimbursable to Manager | 668,653 | 180,864 |
Restricted stock compensation expense | -55,100 | 2,796 |
Manager Equity Plan [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Percentage Of Shares Issued | 3.00% | ' |
Restricted stock compensation expense | 45,078 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 9,500 | ' |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Excluding Stock Options | 34,928 | ' |
Manager Equity Plan [Member] | Restricted Stock Units (Rsus) [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $106,099 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '10 years 2 months 12 days | ' |
Manager Equity Plan [Member] | Independent Director One [Member] | Restricted Stock Units (Rsus) [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,500 | ' |
Manager Equity Plan [Member] | Independent Director Two [Member] | Restricted Stock Units (Rsus) [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,500 | ' |
Manager Equity Plan [Member] | Independent Director Three [Member] | Restricted Stock Units (Rsus) [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,500 | ' |
Manager Equity Plan [Member] | Independent Director [Member] | Restricted Stock Units (Rsus) [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,500 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'the Companys independent directors, as part of their compensation for serving as independent directors, are eligible to receive 1,500 shares of restricted stock annually vesting in full on the anniversary of each grant date. | ' |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $65,250 | ' |
Common Stock Purchase Price | $14.50 | ' |
Manager Equity Plan [Member] | Manager [Member] | Restricted Stock Units (Rsus) [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 28,500 | ' |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $211,850 | ' |
Common Stock Purchase Price | $11.15 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 'One-third of these restricted common stock shares vest on each of the first, second and third anniversaries of the grant date. | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Distribution One [Member] | Distribution One [Member] | Distribution Two [Member] | Distribution Two [Member] | Distribution Three [Member] | Distribution Three [Member] | ||||
Series A Preferred Stock [Member] | Common Stock [Member] | Series A Preferred Stock [Member] | Common Stock [Member] | Series A Preferred Stock [Member] | Common Stock [Member] | ||||
Dividends [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Declaration Date | ' | ' | ' | 23-Dec-13 | 30-Dec-13 | 23-Dec-13 | 30-Dec-13 | 23-Dec-13 | 30-Dec-13 |
Record Date | ' | ' | ' | 15-Jan-14 | 15-Jan-14 | 14-Feb-14 | 14-Feb-14 | 17-Mar-14 | 17-Mar-14 |
Payment Date | ' | ' | ' | 27-Jan-14 | 30-Jan-14 | 27-Feb-14 | 27-Feb-14 | 27-Mar-14 | 28-Mar-14 |
Dividend Amount | $22,361 | $42,501 | $0 | $165,280 | $923,656 | $167,716 | $923,656 | $167,716 | $1,336,156 |
Cash Dividend Per Share (in dollars per share) | ' | ' | ' | $0.21 | $0.10 | $0.18 | $0.10 | $0.18 | $0.15 |
STOCKHOLDERS_EQUITY_Details_Te
STOCKHOLDERS' EQUITY (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 25, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | 8.75% | ' | 8.75% |
Proceeds from Issuance of Preferred Stock and Preference Stock | ' | $2,778,201 | $11,307 | ' |
Dividends Payable | ' | 22,361 | 0 | 42,501 |
Common Stock Exercise Price Description | 'at a per share exercise price equal to 105% of the $15.00 IPO price, or $15.75 | ' | ' | ' |
Common Stock, Par or Stated Value Per Share | ' | $0.01 | ' | $0.01 |
Common Stock, Shares Authorized | ' | 450,000,000 | ' | 450,000,000 |
Common Stock, Shares, Issued | ' | 10,689,250 | ' | 7,389,250 |
Common Stock, Shares, Outstanding | ' | 10,689,250 | ' | 7,389,250 |
Preferred Stock, Par or Stated Value Per Share | ' | $0.01 | ' | $0.01 |
Preferred Stock, Liquidation Preference, Value | ' | 25 | ' | 25 |
Preferred Stock, Shares Authorized | ' | 50,000,000 | ' | 50,000,000 |
Preferred Stock, Shares Issued | ' | 920,000 | ' | 800,000 |
Preferred Stock, Shares Outstanding | ' | 920,000 | ' | 800,000 |
Series A Preferred Stock [Member] | ' | ' | ' | ' |
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' |
Proceeds from Issuance of Preferred Stock and Preference Stock | ' | 2,778,201 | ' | ' |
Preferred Stock, Liquidation Preference Per Share | ' | $25 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 120,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | 120,000 | ' | ' |
Expense Related to Distribution or Servicing and Underwriting Fees | ' | 221,799 | ' | ' |
Common Stock [Member] | ' | ' | ' | ' |
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | 3,000,000 | ' | ' |
Stock Issued During Period Offer Price New Issues | ' | $11.30 | ' | ' |
Proceeds from Issuance of Private Placement | ' | 31,927,377 | ' | ' |
Payments of Stock Issuance Costs | ' | 1,972,623 | ' | ' |
Preferred Stock, Liquidation Preference Per Share | ' | $11.30 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 450,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | 300,000 | ' | ' |
Expense Related to Distribution or Servicing and Underwriting Fees | ' | 175,675 | ' | ' |
Proceeds from Stock Options Exercised | ' | 3,214,325 | ' | ' |
Common Stock [Member] | IPO [Member] | ' | ' | ' | ' |
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' |
Warrants To Purchase Common Stock | ' | 3,125,000 | ' | ' |
Preferred Stock [Member] | ' | ' | ' | ' |
Stockholders' Equity Note [Line Items] | ' | ' | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | 8.75% | ' | ' |
Dividends Payable | ' | $3,183,469 | ' | ' |
Dividends Payable, Amount Per Share | ' | $0.36 | ' | ' |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Numerator (Income): | ' | ' |
Net income (loss) available to common shareholders | ($3,021,847) | $1,525,788 |
Dilutive net income (loss) attributable to common shareholders | ($3,021,847) | $1,525,788 |
Denominator (Weighted Average Shares): | ' | ' |
Shares available to common shareholders | 8,807,028 | 2,293,250 |
Effect of dilutive securities: | ' | ' |
Restricted share awards | 9,631 | 28,369 |
Dilutive shares | 8,816,659 | 2,321,619 |
EARNINGS_PER_SHARE_Details_Tex
EARNINGS PER SHARE (Details Textual) (Restricted Stock Awards [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock Awards [Member] | ' |
Schedule of Earnings Per Share, Basic And Diluted, by Common Class, Including Two Class Method [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 22,958 |