Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CAPSTEAD MORTGAGE CORP | |
Entity Central Index Key | 766701 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 95,812,050 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Residential mortgage investments ($13.59 and $13.48 billion pledged under repurchase arrangements at March 31, 2015 and December 31, 2014, respectively) | $14,150,084 | $13,908,104 |
Cash collateral receivable from interest rate swap counterparties | 61,669 | 53,139 |
Interest rate swap agreements at fair value | 285 | 1,657 |
Cash and cash equivalents | 205,615 | 307,526 |
Receivables and other assets | 114,229 | 118,643 |
Total Assets | 14,531,882 | 14,389,069 |
Liabilities | ||
Repurchase arrangements and similar borrowings | 12,938,508 | 12,806,843 |
Interest rate swap agreements at fair value | 37,791 | 27,034 |
Unsecured borrowings | 100,000 | 100,000 |
Common stock dividend payable | 30,701 | 34,054 |
Accounts payable and accrued expenses | 28,583 | 30,367 |
Total Liabilities | 13,135,583 | 12,998,298 |
Stockholders' equity | ||
Common stock - $0.01 par value; 250,000 shares authorized: 95,812 and 95,848 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 958 | 958 |
Paid-in capital | 1,325,633 | 1,325,340 |
Accumulated deficit | -346,465 | -346,885 |
Accumulated other comprehensive income | 221,586 | 227,422 |
Stockholders' equity | 1,396,299 | 1,390,771 |
Total Liabilities and Equity | 14,531,882 | 14,389,069 |
Redeemable Preferred Stock [Member] | Cumulative Redeemable Preferred Stock, Series E [Member] | ||
Stockholders' equity | ||
Cumulative Preferred Stock | $194,587 | $183,936 |
CONSOLIDATED_BALANCE_SHEETS_UN1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Residential mortgage investments | $13,590,000 | $13,480,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 250,000 | 250,000 |
Common stock, shares issued (in shares) | 95,812 | 95,848 |
Common stock, shares outstanding (in shares) | 95,812 | 95,848 |
Preferred stock, par value (in dollars per share) | $0.10 | $0.10 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Cumulative Redeemable Preferred Stock, Series E [Member] | ||
Preferred stock, dividend rate (in hundredths) | 7.50% | |
Redeemable Preferred Stock [Member] | Cumulative Redeemable Preferred Stock, Series E [Member] | ||
Preferred stock, dividend rate (in hundredths) | 7.50% | |
Preferred stock, shares issued (in shares) | 8,050 | 7,618 |
Preferred stock, shares outstanding (in shares) | 8,050 | 7,618 |
Preferred stock, aggregate liquidation preference | $201,247 | $190,454 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest income: | ||
Residential mortgage investments | $58,645 | $59,445 |
Other | 94 | 61 |
Interest income | 58,739 | 59,506 |
Interest expense: | ||
Repurchase arrangements and similar borrowings | -19,214 | -15,407 |
Unsecured borrowings | -2,123 | -2,122 |
Interest expense | -21,337 | -17,529 |
Net interest income (expense) | 37,402 | 41,977 |
Other revenue (expense): | ||
Salaries and benefits | -1,049 | -1,132 |
Short-term incentive compensation | -692 | -540 |
Long term incentive compensation | -608 | -626 |
Other general and administrative expense | -1,149 | -1,203 |
Miscellaneous other revenue (expense) | 53 | -85 |
Operating expenses | -3,445 | -3,586 |
Net income | 33,957 | 38,391 |
Net income available to common stockholders: | ||
Net income | 33,957 | 38,391 |
Less preferred stock dividends | -3,742 | -3,238 |
Net income (loss) available to common stockholders, basic, total | $30,215 | $35,153 |
Net income per common share: | ||
Basic and diluted (in dollars per share) | $0.32 | $0.37 |
Weighted average common shares outstanding: | ||
Basic (in dollars per share) | 95,469 | 95,349 |
Diluted (in dollars per share) | 95,674 | 95,538 |
Cash dividends declared per share: | ||
Common (in dollars per share) | $0.31 | $0.34 |
Series E Preferred [Member] | ||
Cash dividends declared per share: | ||
Series E Preferred (in dollars per share) | $0.47 | $0.47 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||
Net income | $33,957 | $38,391 |
Amounts related to available-for-sale securities: | ||
Change in net unrealized gains | 6,107 | 16,693 |
Amounts related to cash flow hedges: | ||
Change in net unrealized losses | -18,391 | -12,656 |
Reclassification adjustment for amounts included in net income | 6,448 | 4,722 |
Other comprehensive income (loss) | -5,836 | 8,759 |
Comprehensive income | $28,121 | $47,150 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income | $33,957 | $38,391 |
Noncash items: | ||
Amortization of investment premiums | 25,078 | 22,288 |
Amortization of equity-based awards | 724 | 718 |
Other depreciation and amortization | 33 | 37 |
Change in measurable hedge ineffectiveness related to interest rate swap agreements designated as cash flow hedges | 185 | 0 |
Net change in receivables, other assets, accounts payable and accrued expenses | -1,131 | -37 |
Net cash provided by operating activities | 58,846 | 61,397 |
Investing activities: | ||
Purchases of residential mortgage investments | -959,548 | -669,003 |
Interest receivable acquired with the purchase of residential mortgage investments | -1,534 | -1,121 |
Principal collections on residential mortgage investments, including changes in mortgage securities principal remittance receivable | 703,688 | 617,074 |
Net cash used in investing activities | -257,394 | -53,050 |
Financing activities: | ||
Proceeds from repurchase arrangements and similar borrowings | 29,887,321 | 31,981,126 |
Principal payments on repurchase arrangements and similar borrowings | -29,755,657 | -31,873,771 |
Increase in cash collateral receivable from interest rate swap Counterparties | -8,530 | -10,494 |
Proceeds from issuance of preferred shares | 10,651 | 1,336 |
Other capital stock transactions | -429 | -512 |
Dividends paid | -36,719 | -33,095 |
Net cash provided by financing activities | 96,637 | 64,590 |
Net change in cash and cash equivalents | -101,911 | 72,937 |
Cash and cash equivalents at beginning of period | 307,526 | 413,356 |
Cash and cash equivalents at end of period | $205,615 | $486,293 |
BUSINESS
BUSINESS | 3 Months Ended |
Mar. 31, 2015 | |
BUSINESS [Abstract] | |
BUSINESS | NOTE 1 ¾ BUSINESS |
Capstead Mortgage Corporation operates as a self-managed real estate investment trust for federal income tax purposes (a “REIT”) and is based in Dallas, Texas. Unless the context otherwise indicates, Capstead Mortgage Corporation, together with its subsidiaries, is referred to as “Capstead” or the “Company.” Capstead earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (“ARM”) securities issued and guaranteed by government-sponsored enterprises, either Fannie Mae or Freddie Mac (together, the “GSEs”), or by an agency of the federal government, Ginnie Mae. Residential mortgage pass-through securities guaranteed by the GSEs or Ginnie Mae are referred to as “Agency Securities” and are considered to have limited, if any, credit risk. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | NOTE 2 ¾ BASIS OF PRESENTATION |
Interim Financial Reporting and Reclassifications | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the quarter ended March 31, 2015 are not necessarily indicative of the results that may be expected for the calendar year ending December 31, 2015. For further information refer to the audited consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. | |
Recent Accounting Pronouncements | |
In June 2014 the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-11, Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures (“ASU 2014-11”). ASU 2014-11 requires repurchase-to-maturity transactions to be accounted for as financings and eliminates existing guidance regarding so-called “linked transactions” between a buyer of securities and a seller that also provides related repurchase financings. ASU 2014-11 also introduces new disclosure requirements and is effective for periods beginning after December 15, 2014. The Company adopted ASU 2014-11 in the current quarter. As the Company has not entered into any repurchase-to-maturity or linked transactions, the provisions of this ASU had no effect on the Company’s results of operations, financial condition, or cash flows. |
NET_INCOME_PER_COMMON_SHARE
NET INCOME PER COMMON SHARE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
NET INCOME PER COMMON SHARE [Abstract] | |||||||||
NET INCOME PER COMMON SHARE | NOTE 3 ¾ NET INCOME PER COMMON SHARE | ||||||||
Basic net income per common share is computed by dividing net income, after deducting dividends paid or accrued on preferred stock and allocating earnings to equity awards deemed to be participating securities pursuant to the two-class method, by the weighted average number of shares of common stock outstanding, calculated excluding unvested stock awards. Participating securities include any unvested equity awards that contain non-forfeitable rights to dividends prior to vesting. | |||||||||
Diluted net income per common share is computed by dividing the numerator used to compute basic net income per common share by the denominator used to compute basic net income per common share, further adjusted for the dilutive effect, if any, of equity awards and shares of preferred stock when and if convertible into shares of common stock. Shares of the Company’s 7.50% Series E Cumulative Redeemable Preferred Stock are contingently convertible into shares of common stock only upon the occurrence of a change in control and therefore are not considered dilutive securities absent such an occurrence. Any unvested equity awards that are deemed participating securities are included in the calculation of diluted net income per common share, if dilutive, under either the two-class method or the treasury stock method, depending upon which method produces the more dilutive result. | |||||||||
Components of the computation of basic and diluted net income per common share were as follows for the indicated periods (dollars in thousands, except per share amounts): | |||||||||
Quarter Ended March 31 | |||||||||
2015 | 2014 | ||||||||
Basic net income per common share | |||||||||
Numerator for basic net income per common share: | |||||||||
Net income | $ | 33,957 | $ | 38,391 | |||||
Preferred stock dividends | (3,742 | ) | (3,238 | ) | |||||
Earnings participation of unvested equity awards | (34 | ) | (24 | ) | |||||
$ | 30,181 | $ | 35,129 | ||||||
Denominator for basic net income per common share: | |||||||||
Weighted average common stock outstanding | 95,825 | 95,777 | |||||||
Average unvested stock awards outstanding | (356 | ) | (428 | ) | |||||
95,469 | 95,349 | ||||||||
$ | 0.32 | $ | 0.37 | ||||||
Diluted net income per common share | |||||||||
Numerator for diluted net income per common share: | |||||||||
Numerator for basic net income per common share | $ | 30,181 | $ | 35,129 | |||||
Denominator for diluted net income per common share: | |||||||||
Denominator for basic net income per common share | 95,469 | 95,349 | |||||||
Net effect of dilutive equity awards | 205 | 189 | |||||||
95,674 | 95,538 | ||||||||
$ | 0.32 | $ | 0.37 |
RESIDENTIAL_MORTGAGE_INVESTMEN
RESIDENTIAL MORTGAGE INVESTMENTS | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
RESIDENTIAL MORTGAGE INVESTMENTS [Abstract] | |||||||||||||||||||||||||
RESIDENTIAL MORTGAGE INVESTMENTS | NOTE 4 ¾ RESIDENTIAL MORTGAGE INVESTMENTS | ||||||||||||||||||||||||
Residential mortgage investments classified by collateral type and interest rate characteristics as of the indicated dates were as follows (dollars in thousands): | |||||||||||||||||||||||||
Unpaid | Investment Premiums | Amortized Cost Basis | Carrying | Net | Average | ||||||||||||||||||||
Principal | Amount (a) | WAC (b) | Yield(b) | ||||||||||||||||||||||
Balance | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Agency Securities: | |||||||||||||||||||||||||
Fannie Mae/Freddie Mac: | |||||||||||||||||||||||||
Fixed-rate | $ | 1,335 | $ | 4 | $ | 1,339 | $ | 1,340 | 6.64 | % | 6.02 | % | |||||||||||||
ARMs | 10,381,104 | 334,577 | 10,715,681 | 10,958,273 | 2.51 | 1.76 | |||||||||||||||||||
Ginnie Mae ARMs | 3,061,079 | 106,549 | 3,167,628 | 3,183,873 | 2.6 | 1.45 | |||||||||||||||||||
13,443,518 | 441,130 | 13,884,648 | 14,143,486 | 2.53 | 1.69 | ||||||||||||||||||||
Residential mortgage loans: | |||||||||||||||||||||||||
Fixed-rate | 1,701 | 1 | 1,702 | 1,702 | 6.92 | 5.67 | |||||||||||||||||||
ARMs | 2,891 | 12 | 2,903 | 2,903 | 3.73 | 3.22 | |||||||||||||||||||
4,592 | 13 | 4,605 | 4,605 | 4.91 | 4.12 | ||||||||||||||||||||
Collateral for structured financings | 1,961 | 32 | 1,993 | 1,993 | 8.11 | 7.75 | |||||||||||||||||||
$ | 13,450,071 | $ | 441,175 | $ | 13,891,246 | $ | 14,150,084 | 2.53 | 1.7 | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Agency Securities: | |||||||||||||||||||||||||
Fannie Mae/Freddie Mac: | |||||||||||||||||||||||||
Fixed-rate | $ | 1,660 | $ | 4 | $ | 1,664 | $ | 1,665 | 6.63 | % | 6.52 | % | |||||||||||||
ARMs | 10,230,419 | 328,781 | 10,559,200 | 10,800,332 | 2.51 | 1.68 | |||||||||||||||||||
Ginnie Mae ARMs | 2,983,659 | 103,911 | 3,087,570 | 3,099,168 | 2.63 | 1.58 | |||||||||||||||||||
13,215,738 | 432,696 | 13,648,434 | 13,901,165 | 2.54 | 1.66 | ||||||||||||||||||||
Residential mortgage loans: | |||||||||||||||||||||||||
Fixed-rate | 1,848 | 2 | 1,850 | 1,850 | 6.96 | 5.65 | |||||||||||||||||||
ARMs | 3,046 | 13 | 3,059 | 3,059 | 3.73 | 3.18 | |||||||||||||||||||
4,894 | 15 | 4,909 | 4,909 | 4.95 | 4.09 | ||||||||||||||||||||
Collateral for structured financings | 1,997 | 33 | 2,030 | 2,030 | 8.11 | 7.86 | |||||||||||||||||||
$ | 13,222,629 | $ | 432,744 | $ | 13,655,373 | $ | 13,908,104 | 2.54 | 1.66 | ||||||||||||||||
(a) | Includes unrealized gains and losses for residential mortgage investments classified as available-for-sale (see NOTE 9). | ||||||||||||||||||||||||
(b) | Net WAC, or weighted average coupon, is the weighted average interest rate of the mortgage loans underlying the indicated investments net of servicing and other fees as of the indicated balance sheet date. Net WAC is expressed as a percentage calculated on an annualized basis on the unpaid principal balances of the mortgage loans underlying these investments. Average yield is presented for the quarter then ended, and is based on the cash component of interest income expressed as a percentage calculated on an annualized basis on average amortized cost basis (the “cash yield”) less the effects of amortizing investment premiums. Investment premium amortization is determined using the interest method and incorporates actual and anticipated future mortgage prepayments. | ||||||||||||||||||||||||
Because of federal government support for the GSEs, Agency Securities are considered to have limited, if any, credit risk. Residential mortgage loans held by Capstead were originated prior to 1995 when the Company operated a mortgage conduit and the related credit risk is borne by the Company. Collateral for structured financings consists of private residential mortgage securities that are backed by loans obtained through this mortgage conduit and are pledged to secure repayment of related structured financings. Credit risk for these securities is borne by the related bondholders. The maturity of Residential mortgage investments is directly affected by prepayments of principal on the underlying mortgage loans. Consequently, actual maturities will be significantly shorter than the portfolio’s weighted average contractual maturity of 290 months. | |||||||||||||||||||||||||
Fixed-rate investments consist of residential mortgage loans and Agency Securities backed by residential mortgage loans with fixed rates of interest. Adjustable-rate investments generally are ARM Agency Securities backed by residential mortgage loans that have coupon interest rates that adjust at least annually to more current interest rates or begin doing so after an initial fixed-rate period. After the initial fixed-rate period, if applicable, mortgage loans underlying ARM securities typically either (i) adjust annually based on specified margins over the one-year Constant Maturity U.S. Treasury Note Rate (“CMT”) or the one-year London interbank offered rate (“LIBOR”), (ii) adjust semiannually based on specified margins over six-month LIBOR, or (iii) adjust monthly based on specified margins over indices such as one-month LIBOR, the Eleventh District Federal Reserve Bank Cost of Funds Index, or over a rolling twelve month average of the one-year CMT index, usually subject to periodic and lifetime limits, or caps, on the amount of such adjustments during any single interest rate adjustment period and over the contractual term of the underlying loans. | |||||||||||||||||||||||||
Capstead classifies its ARM investments based on average number of months until coupon reset (“months to roll”). Months to roll is an indicator of asset duration which is a measure of market price sensitivity to interest rate movements. A shorter duration generally indicates less interest rate risk. Current-reset ARM investments have months to roll of less than 18 months while longer-to-reset ARM investments have months to roll of 18 months or greater. As of March 31, 2015, the average months to roll for the Company’s $7.85 billion (amortized cost basis) in current-reset ARM investments was 6.3 months while the average months to roll for the Company’s $6.03 billion (amortized cost basis) in longer-to-reset ARM investments was 40.0 months. |
REPURCHASE_ARRANGEMENTS_AND_SI
REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS [Abstract] | |||||||||||||||||
REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS | NOTE 5 ¾ REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS | ||||||||||||||||
Capstead pledges its Residential mortgage investments as collateral under repurchase arrangements with commercial banks and other financial institutions, referred to as counterparties, the terms and conditions of which are negotiated on a transaction-by-transaction basis when each such borrowing is initiated or renewed. Repurchase arrangements entered into by the Company involve the sale and a simultaneous agreement to repurchase the transferred assets at a future date and are accounted for as borrowings. The Company maintains the beneficial interest in the specific securities pledged during the term of each repurchase arrangement and receives the related principal and interest payments. The amount borrowed is generally equal to the fair value of the securities pledged, as determined by the lending counterparty, less an agreed-upon discount, referred to as a “haircut.” Interest rates on these borrowings are fixed based on prevailing rates corresponding to the terms of the borrowings, and interest is paid at the termination of the repurchase arrangement at which time the Company may enter into a new repurchase arrangement at prevailing haircuts and rates with the same counterparty or repay that counterparty and negotiate financing with a different counterparty. None of the Company’s counterparties are obligated to renew or otherwise enter into new repurchase arrangements at the conclusion of existing repurchase arrangements. In response to declines in fair value of pledged securities due to changes in market conditions or the publishing of monthly security paydown factors, lenders typically require the Company to post additional securities as collateral, pay down borrowings or fund cash margin accounts with the counterparties in order to re-establish the agreed-upon collateral requirements. These actions are referred to as margin calls. Conversely, in response to increases in fair value of pledged securities, the Company routinely margin calls its lending counterparties in order to have previously pledged collateral returned to the Company. | |||||||||||||||||
Repurchase arrangements and similar borrowings (and related pledged collateral, including accrued interest receivable), classified by collateral type and remaining maturities, and related weighted average borrowing rates as of the indicated dates were as follows (dollars in thousands): | |||||||||||||||||
Collateral Type | Collateral | Accrued | Borrowings | Average | |||||||||||||
Carrying | Interest | Outstanding | Borrowing | ||||||||||||||
Amount | Receivable | Rates | |||||||||||||||
31-Mar-15 | |||||||||||||||||
Borrowings with maturities of 30 days or less: | |||||||||||||||||
Agency Securities | $ | 9,272,091 | $ | 18,895 | $ | 8,841,149 | 0.34 | % | |||||||||
Borrowings with maturities greater than 30 days: | |||||||||||||||||
Agency Securities (31 to 90 days) | 1,812,699 | 3,583 | 1,720,366 | 0.35 | |||||||||||||
Agency Securities (greater than 90 days) | 2,506,501 | 6,071 | 2,375,000 | 0.61 | |||||||||||||
Similar borrowings: | |||||||||||||||||
Collateral for structured financings* | 1,993 | – | 1,993 | 8.11 | |||||||||||||
$ | 13,593,284 | $ | 28,549 | $ | 12,938,508 | 0.39 | |||||||||||
Quarter-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges (see NOTE 6) | 0.59 | ||||||||||||||||
31-Dec-14 | |||||||||||||||||
Borrowings with maturities of 30 days or less: | |||||||||||||||||
Agency Securities | $ | 10,401,080 | $ | 24,045 | $ | 9,878,889 | 0.35 | % | |||||||||
Borrowings with maturities greater than 30 days: | |||||||||||||||||
Agency Securities (31 to 90 days) | 1,205,570 | 2,248 | 1,150,924 | 0.35 | |||||||||||||
Agency Securities (greater than 90 days) | 1,874,892 | 4,640 | 1,775,000 | 0.56 | |||||||||||||
Similar borrowings: | |||||||||||||||||
Collateral for structured financings* | 2,030 | – | 2,030 | 8.11 | |||||||||||||
$ | 13,483,572 | $ | 30,933 | $ | 12,806,843 | 0.38 | |||||||||||
Year-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges | 0.58 | ||||||||||||||||
* | The maturity of structured financings is directly affected by prepayments on the related mortgage pass-through securities pledged as collateral. Additionally, these financings are subject to redemption by the residual bondholders. | ||||||||||||||||
Average borrowings outstanding differed from respective quarter-end balances during the indicated periods primarily due to changes in portfolio levels and differences in the timing of portfolio acquisitions relative to portfolio runoff as illustrated below (dollars in thousands): | |||||||||||||||||
Quarter Ended | |||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
Average | Average | Average | Average | ||||||||||||||
Borrowings | Rate | Borrowings | Rate | ||||||||||||||
Average borrowings and rates adjusted for the effects of related Derivatives held as cash flow hedges for the indicated quarters | $ | 12,988,083 | 0.59 | % | $ | 12,843,636 | 0.56 | % |
USE_OF_DERIVATIVE_FINANCIAL_IN
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract] | |||||||||||||||||||||||||
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT | NOTE 6 ¾ USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT | ||||||||||||||||||||||||
To help mitigate exposure to higher interest rates, Capstead typically uses currently-paying and forward-starting, one-month LIBOR-indexed, pay-fixed, receive-variable, interest rate swap agreements that require interest payments for two-year terms. These Derivatives are designated as cash flow hedges of the variability of the underlying benchmark interest rate of current and forecasted 30- to 90-day borrowings under repurchase arrangements. This hedge relationship establishes a relatively stable fixed rate on related borrowings because the variable-rate payments received on the swap agreements offset a significant portion of the interest accruing on the related borrowings, leaving the fixed-rate swap payments as the Company’s effective borrowing rate, subject to certain adjustments. These adjustments include differences between variable-rate payments received on the swap agreements and related unhedged borrowing rates as well as the effects of measured hedge ineffectiveness. Additionally, changes in fair value of these Derivatives tend to partially offset opposing changes in fair value of the Company’s residential mortgage investments that can occur in response to changes in market interest rates. | |||||||||||||||||||||||||
During the quarter ended March 31, 2015 Capstead entered into swap agreements with notional amounts of $700 million. These swap agreements require fixed-rate interest payments averaging 0.71% for two-year periods commencing on various dates between January 2015 and April 2015. Also during the current quarter, $1.10 billion notional amount of swaps requiring fixed-rate interest payments averaging 0.50% matured, while $500 million notional amount of forward-starting swaps requiring fixed-rate interest payments averaging 0.72% moved into current-pay status. | |||||||||||||||||||||||||
At March 31, 2015, the Company’s portfolio of financing-related swap positions had the following characteristics (dollars in thousands): | |||||||||||||||||||||||||
Period of | Notional | Average Fixed Rate | |||||||||||||||||||||||
Contract Expiration | Amount | Payment Requirement | |||||||||||||||||||||||
Currently-paying contracts: | |||||||||||||||||||||||||
Second quarter 2015 | $ | 200,000 | 0.43 | % | |||||||||||||||||||||
Third quarter 2015 | 400,000 | 0.47 | |||||||||||||||||||||||
Fourth quarter 2015 | 1,200,000 | 0.45 | |||||||||||||||||||||||
First quarter 2016 | 1,700,000 | 0.51 | |||||||||||||||||||||||
Second quarter 2016 | 1,100,000 | 0.47 | |||||||||||||||||||||||
Third quarter 2016 | 700,000 | 0.56 | |||||||||||||||||||||||
Fourth quarter 2016 | 800,000 | 0.66 | |||||||||||||||||||||||
First quarter 2017 | 1,000,000 | 0.72 | |||||||||||||||||||||||
(average expiration: 12 months) | 7,100,000 | 0.54 | |||||||||||||||||||||||
Forward-starting contracts: | |||||||||||||||||||||||||
Second quarter 2017 (average expiration: 24 months) | 200,000 | 0.72 | |||||||||||||||||||||||
(average expiration: 12 months) | $ | 7,300,000 | |||||||||||||||||||||||
In addition to portfolio financing-related swap positions, in 2010 the Company entered into three forward-starting, three-month LIBOR-indexed, pay-fixed, receive-variable, interest rate swap agreements with notional amounts totaling $100 million and average fixed rates of 4.09% with 20-year payment terms coinciding with the floating-rate terms of the Company’s Unsecured borrowings which begin between October 30, 2015 and September 15, 2016. These Derivatives are designated as cash flow hedges of the variability of the underlying benchmark interest rate associated with the floating-rate terms of these long-term borrowings (see NOTE 7). | |||||||||||||||||||||||||
Interest rate swap agreements are measured at fair value on a recurring basis primarily using Level Two Inputs in accordance with ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820). In determining fair value estimates for these Derivatives, Capstead utilizes the standard methodology of netting the discounted future fixed cash payments and the discounted future variable cash receipts which are based on expected future interest rates derived from observable market interest rate curves. Related net interest payable at the balance sheet date is recorded separately. The Company also incorporates both its own nonperformance risk and its counterparties’ nonperformance risk in determining the fair value of these Derivatives. In considering the effect of nonperformance risk, the Company considered the impact of netting and credit enhancements, such as collateral postings and guarantees, and has concluded that counterparty risk is not significant to the overall valuation of these agreements. | |||||||||||||||||||||||||
The following tables include fair value and other related disclosures regarding all Derivatives held as of and for the indicated periods (in thousands): | |||||||||||||||||||||||||
Balance Sheet | 31-Mar | 31-Dec | |||||||||||||||||||||||
Location | 2015 | 2014 | |||||||||||||||||||||||
Balance sheet-related | |||||||||||||||||||||||||
Swap agreements in a gain position (an asset) related to: | |||||||||||||||||||||||||
Borrowings under repurchase arrangements | (a) | $ | 285 | $ | 1,657 | ||||||||||||||||||||
Swap agreements in a loss position (a liability) related to: | |||||||||||||||||||||||||
Borrowings under repurchase arrangements | (a) | (10,682 | ) | (6,332 | ) | ||||||||||||||||||||
Unsecured borrowings | (a) | (27,109 | ) | (20,702 | ) | ||||||||||||||||||||
Related net interest payable | (b) | (7,902 | ) | (9,516 | ) | ||||||||||||||||||||
$ | (45,408 | ) | $ | (34,893 | ) | ||||||||||||||||||||
(a) | The fair value of Derivatives with realized and unrealized gains are aggregated and recorded as an asset on the face of the Balance Sheets separately from the fair value of Derivatives with realized and unrealized losses that are recorded as a liability. The amount of unrealized losses scheduled to be recognized in the Statements of Income over the next twelve months primarily in the form of fixed-rate swap payments in excess of current market rates totaled $14.8 million at March 31, 2015. | ||||||||||||||||||||||||
(b) | Included in “Accounts payable and accrued expenses” on the face of the Balance Sheets. | ||||||||||||||||||||||||
Location of | Quarter Ended March 31 | ||||||||||||||||||||||||
Gain or (Loss)Recognized in | |||||||||||||||||||||||||
Net Income | 2015 | 2014 | |||||||||||||||||||||||
Income statement-related | |||||||||||||||||||||||||
Components of effect on interest expense: | |||||||||||||||||||||||||
Amount of loss reclassified from Accumulated other comprehensive income related to the effective portion of active positions | $ | (6,448 | ) | $ | (4,722 | ) | |||||||||||||||||||
Amount of loss recognized (ineffective portion) | (309 | ) | (58 | ) | |||||||||||||||||||||
Increase in interest expense and decrease in Net income as a result of the use of Derivatives | * | $ | (6,757 | ) | $ | (4,780 | ) | ||||||||||||||||||
Other comprehensive income-related | |||||||||||||||||||||||||
Amount of loss recognized in Other comprehensive income (effective portion) | $ | (18,391 | ) | $ | (12,656 | ) | |||||||||||||||||||
* | Included in “Interest expense: Repurchase arrangements and similar borrowings” on the face of the Statements of Income. | ||||||||||||||||||||||||
Capstead’s swap agreements and borrowings under repurchase arrangements are subject to master netting arrangements in the event of default on, or termination of, any one contract. See NOTE 5 for more information on the Company’s use of repurchase arrangements. The following tables provide disclosures concerning offsetting of financial liabilities and Derivatives as of the indicated dates (in thousands): | |||||||||||||||||||||||||
Offsetting of Derivative Assets | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Gross Amounts Not Offset | ||||||||||||||||||||||
Amounts | of Assets | in the Balance Sheet(a) | |||||||||||||||||||||||
Amounts of | Offset in | Presented in | Financial | Cash | Net | ||||||||||||||||||||
Recognized | the Balance | the Balance | Instruments | Collateral | Amount | ||||||||||||||||||||
Assets | Sheet | Sheet | Received | ||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Counterparty 4 | $ | 14 | $ | 271 | $ | 285 | $ | (285 | ) | $ | – | $ | – | ||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Counterparty 2 | $ | – | $ | 95 | $ | 95 | $ | (95 | ) | $ | – | $ | – | ||||||||||||
Counterparty 4 | 1,128 | 434 | 1,562 | (1,562 | ) | – | – | ||||||||||||||||||
$ | 1,128 | $ | 529 | $ | 1,657 | $ | (1,657 | ) | $ | – | $ | – | |||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Gross Amounts Not Offset | ||||||||||||||||||||||
Amounts | of Liabilities | in the Balance Sheet (c) | |||||||||||||||||||||||
Amounts of | Offset in | Presented in | Financial | Cash | Net | ||||||||||||||||||||
Recognized | the Balance | the Balance | Instruments | Collateral | Amount | ||||||||||||||||||||
Liabilities(b) | Sheet | Sheet (a) | Pledged | ||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Derivatives by counterparty: | |||||||||||||||||||||||||
Counterparty 1 | $ | 29,838 | $ | – | $ | 29,838 | $ | – | $ | (29,838 | ) | $ | – | ||||||||||||
Counterparty 2 | 4,346 | – | 4,346 | – | (4,250 | ) | 96 | ||||||||||||||||||
Counterparty 4 | 11,238 | 271 | 11,509 | (285 | ) | (11,224 | ) | – | |||||||||||||||||
45,422 | 271 | 45,693 | (285 | ) | (45,312 | ) | 96 | ||||||||||||||||||
Repurchase arrangements and similar borrowings | 12,945,117 | – | 12,945,117 | (12,945,117 | ) | – | – | ||||||||||||||||||
$ | 12,990,539 | $ | 271 | $ | 12,990,810 | $ | (12,945,402 | ) | $ | (45,312 | ) | $ | 96 | ||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Derivatives by counterparty: | |||||||||||||||||||||||||
Counterparty 1 | $ | 24,533 | $ | – | $ | 24,533 | $ | – | $ | (24,533 | ) | $ | – | ||||||||||||
Counterparty 2 | 4,042 | 95 | 4,137 | (95 | ) | (4,042 | ) | – | |||||||||||||||||
Counterparty 3 | 736 | – | 736 | – | (736 | ) | – | ||||||||||||||||||
Counterparty 4 | 6,710 | 434 | 7,144 | (1,562 | ) | (5,582 | ) | – | |||||||||||||||||
36,021 | 529 | 36,550 | (1,657 | ) | (34,893 | ) | – | ||||||||||||||||||
Repurchase arrangements and similar borrowings | 12,812,947 | – | 12,812,947 | (12,812,947 | ) | – | – | ||||||||||||||||||
$ | 12,848,968 | $ | 529 | $ | 12,849,497 | $ | (12,814,604 | ) | $ | (34,893 | ) | $ | – | ||||||||||||
(a) | Amounts presented are limited to recognized liabilities and cash collateral received associated with the indicated counterparty sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. | ||||||||||||||||||||||||
(b) | Amounts include accrued interest of $7.9 million and $9.5 million on interest rate swap agreements and $6.6 million and $6.1 million on repurchase arrangements and similar borrowings, included in “Accounts payable and accrued expenses” on the face of the Balance Sheets as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
(c) | Amounts presented are limited to recognized assets and collateral pledged associated with the indicated counterparty sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. | ||||||||||||||||||||||||
Changes in Accumulated other comprehensive income by component for the quarter ended March 31, 2015 were as follows (in thousands): | |||||||||||||||||||||||||
Gains and Losses | Unrealized Gains | Total | |||||||||||||||||||||||
on Cash Flow | and Losses on | ||||||||||||||||||||||||
Hedges | Available-for-Sale | ||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Balance at December 31, 2014 | $ | (25,309 | ) | $ | 252,731 | $ | 227,422 | ||||||||||||||||||
Activity for the quarter ended March 31, 2015: | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (18,391 | ) | 6,107 | (12,284 | ) | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 6,448 | – | 6,448 | ||||||||||||||||||||||
Other comprehensive income (loss) | (11,943 | ) | 6,107 | (5,836 | ) | ||||||||||||||||||||
Balance at March 31, 2015 | $ | (37,252 | ) | $ | 258,838 | $ | 221,586 |
UNSECURED_BORROWINGS
UNSECURED BORROWINGS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
UNSECURED BORROWINGS [Abstract] | |||||||||
UNSECURED BORROWINGS | NOTE 7 ¾ UNSECURED BORROWINGS | ||||||||
Unsecured borrowings consist of 30-year junior subordinated notes issued in 2005 and 2006 and maturing in 2035 and 2036. Included in Receivables and other assets are $2.1 million in remaining issue costs at March 31, 2015 associated with the original issuance of these notes. Note balances and related weighted average interest rates as of March 31, 2015 and December 31, 2014 (calculated including issue cost amortization) were as follows (dollars in thousands): | |||||||||
Borrowings | Average | ||||||||
Outstanding | Rate * | ||||||||
Junior subordinated notes maturing in: | |||||||||
Oct-35 | $ | 35,000 | 8.31 | % | |||||
Dec-35 | 40,000 | 8.46 | |||||||
Sep-36 | 25,000 | 8.78 | |||||||
$ | 100,000 | 8.49 | |||||||
* | The indicated weighted average rates have been in effect since issuance. After considering cash flow hedges that coincide with the floating rate terms of these borrowings that begin October 30, and December 15, 2015 for the notes maturing in October and December 2035 and September 15, 2016 for the notes maturing in September 2036, the effective borrowing rate will average 7.56% beginning September 15, 2016 through maturity, subject to certain adjustments for the effects of measured hedge ineffectiveness, if any. | ||||||||
The notes maturing in October 2035 are currently redeemable, in whole or in part, without penalty, at the Company’s option. The notes maturing in December 2035 are redeemable, in whole or in part, without penalty, at the Company’s option anytime on or after December 15, 2015. The notes maturing in September 2036 are redeemable, in whole or in part, without penalty, at the Company’s option anytime on or after September 15, 2016. |
CAPITAL_TRANSACTIONS
CAPITAL TRANSACTIONS | 3 Months Ended |
Mar. 31, 2015 | |
CAPITAL TRANSACTIONS [Abstract] | |
CAPITAL TRANSACTIONS | NOTE 8 ¾ CAPITAL TRANSACTIONS |
During the quarter ended March 31, 2015, Capstead issued an additional 432,000 shares of its 7.50% Series E Cumulative Redeemable Preferred Stock through an at-the-market continuous offering program at an average price of $24.67, net of underwriting fees and other costs, for net proceeds of $10.7 million. Amounts raised subsequent to quarter-end under this program have been minimal. |
DISCLOSURES_REGARDING_FAIR_VAL
DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||
DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS | NOTE 9 ¾ DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS | ||||||||||||||||
This note provides fair value-related disclosures as of the indicated balance sheet dates for Capstead’s financial assets and liabilities, most of which are influenced by changes in, and market expectations for changes in, interest rates and market liquidity conditions, as well as other factors beyond the control of management. All fair values were determined using Level 2 Inputs in accordance with ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820). | |||||||||||||||||
Residential mortgage investments, nearly all of which are mortgage securities classified as available-for-sale, are measured at fair value on a recurring basis. In determining fair value estimates for mortgage securities, the Company considers recent trading activity for similar investments and pricing levels indicated by lenders in connection with designating collateral for repurchase arrangements, provided such pricing levels are considered indicative of actual market clearing transactions. In determining fair value estimates for longer-term borrowings under repurchase arrangements, the Company considers pricing levels indicated by lenders for entering into new transactions using similar pledged collateral with terms equal to the remaining terms of the longer-term borrowings. In determining fair value estimates for unsecured borrowings, the Company considers current pricing for financial instruments with similar characteristics. Excluded from these disclosures are financial instruments for which the Company’s cost basis is deemed to approximate fair value due primarily to the short duration of these instruments, which are valued using primarily Level 1 measurements, including Cash and cash equivalents, cash collateral receivable from, or payable to, interest rate swap counterparties, receivables, payables and borrowings under repurchase arrangements with initial terms of 120 days or less. See NOTE 6 for information relative to the valuation of interest rate swap agreements. | |||||||||||||||||
Fair value-related disclosures for financial instruments other than debt securities were as follows as of the indicated dates (in thousands): | |||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets: | |||||||||||||||||
Residential mortgage loans | $ | 4,605 | $ | 4,700 | $ | 4,909 | $ | 5,000 | |||||||||
Interest rate swap agreements | 285 | 285 | 1,657 | 1,657 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Repurchase arrangements with initial terms of greater than 120 days | 2,375,000 | 2,376,100 | 2,128,517 | 2,128,400 | |||||||||||||
Unsecured borrowings | 100,000 | 100,300 | 100,000 | 100,500 | |||||||||||||
Interest rate swap agreements | 37,791 | 37,791 | 27,034 | 27,034 | |||||||||||||
Fair value-related disclosures for debt securities were as follows as of the indicated dates (in thousands): | |||||||||||||||||
Amortized | Gross Unrealized | ||||||||||||||||
Cost Basis | Gains | Losses | Fair Value | ||||||||||||||
31-Mar-15 | |||||||||||||||||
Agency Securities classified as available-for-sale: | |||||||||||||||||
Fannie Mae/Freddie Mac | $ | 10,715,709 | $ | 243,152 | $ | 559 | $ | 10,958,302 | |||||||||
Ginnie Mae | 3,167,628 | 20,148 | 3,903 | 3,183,873 | |||||||||||||
Residential mortgage securities classified as held-to-maturity | 3,304 | 98 | – | 3,402 | |||||||||||||
31-Dec-14 | |||||||||||||||||
Agency Securities classified as available-for-sale: | |||||||||||||||||
Fannie Mae/Freddie Mac | $ | 10,559,231 | $ | 243,351 | $ | 2,218 | $ | 10,800,364 | |||||||||
Ginnie Mae | 3,087,570 | 16,755 | 5,157 | 3,099,168 | |||||||||||||
Residential mortgage securities classified as held-to-maturity | 3,663 | 124 | – | 3,787 | |||||||||||||
31-Mar-15 | December 31, 2014 | ||||||||||||||||
Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Loss | Value | Loss | ||||||||||||||
Securities in an unrealized loss position: | |||||||||||||||||
One year or greater | $ | 530,711 | $ | 3,405 | $ | 706,839 | $ | 5,320 | |||||||||
Less than one year | 407,266 | 1,057 | 1,095,724 | 2,055 | |||||||||||||
$ | 937,977 | $ | 4,462 | $ | 1,802,563 | $ | 7,375 | ||||||||||
Capstead’s investment strategy involves managing a leveraged portfolio of relatively short-duration ARM Agency Securities and management expects these securities will be held until payoff absent a major shift in strategy or a severe contraction in the Company’s ability to obtain financing to support its portfolio. Declines in fair value caused by increases in interest rates are typically modest for investments in short-duration ARM Agency Securities compared to investments in longer-duration ARM or fixed-rate assets. These declines are generally recoverable in a relatively short period of time as coupon interest rates on the underlying mortgage loans reset to rates more reflective of the then current interest rate environment. | |||||||||||||||||
From a credit risk perspective, federal government support for the GSEs helps ensure that fluctuations in value due to credit risk associated with these securities will be limited. Given that (a) any existing unrealized losses on mortgage securities held by the Company are not attributable to credit risk and declines in fair value of ARM securities due to changes in interest rates are generally recoverable in a relatively short period of time, (b) the Company typically holds its investments to maturity, and (c) it is more likely than not that the Company will not be required to sell any of its investments given the resiliency of the financing market for Agency Securities, none of these investments are considered other-than-temporarily impaired at March 31, 2015. |
COMPENSATION_PROGRAMS
COMPENSATION PROGRAMS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
COMPENSATION PROGRAMS [Abstract] | |||||||||
COMPENSATION PROGRAMS | NOTE 10 ¾ COMPENSATION PROGRAMS | ||||||||
The compensation committee of Capstead’s board of directors (the “Committee”) is responsible for establishing, implementing, and monitoring the Company’s compensation program and practices. In 2013 the Committee replaced an absolute return-based, discretionary bonus program and an absolute return-based stock award program with largely nondiscretionary and formulaic, target-based annual and long-term incentive compensation programs for key executives with multiple, pre-established performance goals and defined threshold, target and maximum awards as a percentage of base salary. | |||||||||
Equity-based awards as well as other incentive awards that recognize the creation of value for stockholders and promote the Company’s long-term growth and success are made pursuant to the Company’s Amended and Restated 2014 Flexible Incentive Plan, approved by stockholders in May 2014. At March 31, 2015, this plan had 4,432,739 shares of common stock remaining available for future issuances. | |||||||||
Short-term Incentive Compensation Programs | |||||||||
As more fully described in the Company’s proxy statement, the Committee periodically reviews Capstead’s annual incentive compensation program, establishing and implementing desired changes in performance metrics, composition of the mortgage REIT industry peer group used for measurement purposes and each participating officer’s targeted award opportunity. Under the provisions of the program in effect for 2015 and 2014, awards are made based on (a) economic return (change in book value plus dividends) measured on a relative basis, and, to a lesser extent, on an absolute return basis, (b) relative operating cost efficiency (operating expenses divided by Unsecured borrowings and Stockholders’ equity), and (c) each participating officer’s attainment of stated goals and objectives. Each participating officer has a targeted award opportunity equal to 125% of his base salary. Under the terms of the program, each performance metric is assigned a weighting and the Company’s performance relative to each metric is calculated separately. No awards can be earned for performance below the defined threshold returns and awards are capped for performance above the defined maximum return levels. Included in Accounts payable and accrued expenses at March 31, 2015 are annual incentive compensation accruals for all employees totaling $489,000. Recognized in Short-term incentive compensation are $489,000 and $318,000 related to annual incentive compensation for all employees for the quarters ended March 31, 2015 and 2014, respectively. | |||||||||
The Committee administers an additional performance-based short-term incentive compensation program for key executives that provides for quarterly cash payments equal to per share dividends declared on Capstead’s common stock multiplied by a notional amount of non-vesting shares of common stock (“Dividend Equivalent Rights” or “DERs”). DERs only represent the right to receive the same cash distributions that the Company’s common stockholders are entitled to receive during the term of the grants, subject to certain conditions, including continuous service. In December 2014 the Committee extended the term of the 654,000 outstanding DERs to December 31, 2015. Included in Accounts payable and accrued expenses are first quarter 2015 DERs distribution amounts totaling $203,000 that were paid in April 2015. Recognized in Short-term incentive compensation are $203,000 and $222,000 related to the DERs program for the quarters ended March 31, 2015 and 2014, respectively. | |||||||||
Long-term Equity-based Awards – Performance-based RSUs | |||||||||
The Committee adopted a new performance-based long-term incentive compensation program for key executives in December 2013. The program provides for the grant of performance-based RSUs that are convertible into common shares following three-year performance periods, contingent upon whether, and to what extent, defined performance levels established for certain relative and absolute return performance metrics are met or exceeded. The relative return metrics measure the Company’s performance against its peers in the mortgage REIT industry on the basis of relative economic return and relative total stockholder return (change in stock price plus reinvested dividends). The absolute economic return metric measures performance against defined return levels. For conversion purposes, each performance metric is assigned a weighting and the Company’s performance relative to each metric is calculated separately. The actual number of shares of common stock the units can convert into for each of the metrics, if any, can range from one-half of a share per unit if that metric’s minimum threshold of performance is met, to two shares per unit if the related maximum performance threshold is met or exceeded, adjusted for the weighting assigned to the metric. If a metric’s minimum performance threshold is not met, no shares are issuable under that metric. Dividends accrue from the date of grant and will be paid in cash when the units convert into shares of common stock based on the number of shares ultimately issued, if any. | |||||||||
Pursuant to this program, in January 2015 and December 2013 the Committee granted 247,512 and 242,505 RSUs with three-year performance periods ending December 31, 2017 and 2016, respectively. Initial grant date fair values of $8.83 and $12.45 were assigned to each unit of the January 2015 and December 2013 grants, respectively. In the fourth quarter of 2014 the three-year compensation cost estimate for the December 2013 grant was reduced to $7.21 per unit. Recognized in Long-term incentive compensation are $328,000 and $251,000 related to the RSUs for the quarters ended March 31, 2015 and 2014, respectively. | |||||||||
Long-term Equity-based Awards – Stock Awards | |||||||||
Under an absolute return performance-based stock award program terminated in 2013, the Committee granted common stock awards to all employees with staggered three-year vesting periods. These awards vest if annualized returns in excess of established return levels are generated during three-year measurement periods. Vesting can be deferred and a new three-year measurement period established to include the subsequent year, up to and including the seventh calendar year after the year of grant. Any remaining unvested awards issued under this program will expire if the required returns are not generated for the final three-year measurement period. Grants made under this program totaling 125,221 shares with an average grant date fair value of $12.58 vested in February 2015 pertaining to initial measurement periods ending December 31, 2014. Remaining grants under this program totaling 133,571 and 69,849 shares with average grant date fair values of $12.17 and $11.67 are scheduled to vest in February 2016 and 2017, respectively, assuming performance criteria and service conditions are met. | |||||||||
In December 2014 and 2013 respectively, the Committee granted service-based stock awards for 37,237 and 35,703 shares of common stock with grant date fair values of $12.47 and $12.34 to employees not awarded RSUs. These awards vest January 2, 2018 and January 2, 2017, respectively, assuming service conditions are met. In January 2014 the remaining 22,164 shares associated with 2007 service-based stock awards issued to all employees vested. As a component of the Company’s director compensation program, directors are granted stock awards annually upon election or re-election to the board of directors that vest approximately one year from issuance. In July 2014, director stock awards for 35,000 shares with a grant date fair value of $13.16 were granted that vest in July 2015, assuming service conditions are met. In April 2014, director grants awarded in 2013 for 28,000 shares with a grant date fair value of $13.02 vested. | |||||||||
Performance-based and service-based stock award activity for quarter ended March 31, 2015 is summarized below: | |||||||||
Number of | Weighted Average | ||||||||
Shares | Grant Date | ||||||||
Fair Value | |||||||||
Unvested stock awards outstanding at December 31, 2014 | 436,581 | 12.29 | |||||||
Vestings | (125,221 | ) | 12.58 | ||||||
Unvested stock awards outstanding at March 31, 2015 | 311,360 | 12.18 | |||||||
During the quarters ended March 31, 2015 and 2014, the Company recognized in Long-term incentive compensation $280,000 and $375,000, respectively, related to amortization of the grant date fair value of employee performance-based and service-based stock awards. The amounts amortized for these periods assumed that performance metrics, if applicable, would continue to be met for related initial measurement periods. In addition, the Company recognized in Other general and administrative expense $115,000 and $92,000 related to amortization of the grant date fair value of service-based director stock awards during the quarters ended March 31, 2015 and 2014, respectively. | |||||||||
All service-based stock awards receive dividends on a current basis without risk of forfeiture if the related awards do not vest. Outstanding performance-based stock awards defer the payment of dividends accruing between the grant dates and the end of related performance periods. If these awards do not vest, the related accrued dividends will be forfeited. | |||||||||
Long-term Equity-based Awards – Option Awards | |||||||||
Option awards currently outstanding have ten-year contractual terms from the grant date and were issued with strike prices equal to the quoted market prices of Capstead’s common shares on the dates of grant, all of which were prior to 2010. No option award activity occurred during the quarter ended March 31, 2015. All outstanding option awards are exercisable at March 31, 2015. These awards totaled 40,000 shares with a weighted average remaining contractual term of 3.2 years and an aggregate intrinsic value of $13,000. The fair value of these awards was estimated on the dates of grant using a Black-Scholes option pricing model and was expensed over the related vesting periods. | |||||||||
Other Benefit Programs | |||||||||
Capstead sponsors a qualified defined contribution retirement plan for all employees and a nonqualified deferred compensation plan for certain of its executives. In general the Company matches up to 50% of a participant’s voluntary contribution up to a maximum of 6% of a participant’s base salary and annual incentive compensation payments and makes discretionary contributions of up to another 3% of such compensation regardless of participation in the plans. Company contributions are subject to certain vesting requirements that have been met by nearly all of Capstead’s current employees. During the quarters ended March 31, 2015 and 2014, the Company recognized in Salaries and benefits $75,000 and $64,000 related to contributions to these plans, respectively. |
NET_INCOME_PER_COMMON_SHARE_Ta
NET INCOME PER COMMON SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
NET INCOME PER COMMON SHARE [Abstract] | |||||||||
Components of Computation of Basic and Diluted Net Income Per Common Share | Components of the computation of basic and diluted net income per common share were as follows for the indicated periods (dollars in thousands, except per share amounts): | ||||||||
Quarter Ended March 31 | |||||||||
2015 | 2014 | ||||||||
Basic net income per common share | |||||||||
Numerator for basic net income per common share: | |||||||||
Net income | $ | 33,957 | $ | 38,391 | |||||
Preferred stock dividends | (3,742 | ) | (3,238 | ) | |||||
Earnings participation of unvested equity awards | (34 | ) | (24 | ) | |||||
$ | 30,181 | $ | 35,129 | ||||||
Denominator for basic net income per common share: | |||||||||
Weighted average common stock outstanding | 95,825 | 95,777 | |||||||
Average unvested stock awards outstanding | (356 | ) | (428 | ) | |||||
95,469 | 95,349 | ||||||||
$ | 0.32 | $ | 0.37 | ||||||
Diluted net income per common share | |||||||||
Numerator for diluted net income per common share: | |||||||||
Numerator for basic net income per common share | $ | 30,181 | $ | 35,129 | |||||
Denominator for diluted net income per common share: | |||||||||
Denominator for basic net income per common share | 95,469 | 95,349 | |||||||
Net effect of dilutive equity awards | 205 | 189 | |||||||
95,674 | 95,538 | ||||||||
$ | 0.32 | $ | 0.37 |
RESIDENTIAL_MORTGAGE_INVESTMEN1
RESIDENTIAL MORTGAGE INVESTMENTS (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
RESIDENTIAL MORTGAGE INVESTMENTS [Abstract] | |||||||||||||||||||||||||
Schedule of Residential Mortgage Investments | Residential mortgage investments classified by collateral type and interest rate characteristics as of the indicated dates were as follows (dollars in thousands): | ||||||||||||||||||||||||
Unpaid | Investment Premiums | Amortized Cost Basis | Carrying | Net | Average | ||||||||||||||||||||
Principal | Amount (a) | WAC (b) | Yield(b) | ||||||||||||||||||||||
Balance | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Agency Securities: | |||||||||||||||||||||||||
Fannie Mae/Freddie Mac: | |||||||||||||||||||||||||
Fixed-rate | $ | 1,335 | $ | 4 | $ | 1,339 | $ | 1,340 | 6.64 | % | 6.02 | % | |||||||||||||
ARMs | 10,381,104 | 334,577 | 10,715,681 | 10,958,273 | 2.51 | 1.76 | |||||||||||||||||||
Ginnie Mae ARMs | 3,061,079 | 106,549 | 3,167,628 | 3,183,873 | 2.6 | 1.45 | |||||||||||||||||||
13,443,518 | 441,130 | 13,884,648 | 14,143,486 | 2.53 | 1.69 | ||||||||||||||||||||
Residential mortgage loans: | |||||||||||||||||||||||||
Fixed-rate | 1,701 | 1 | 1,702 | 1,702 | 6.92 | 5.67 | |||||||||||||||||||
ARMs | 2,891 | 12 | 2,903 | 2,903 | 3.73 | 3.22 | |||||||||||||||||||
4,592 | 13 | 4,605 | 4,605 | 4.91 | 4.12 | ||||||||||||||||||||
Collateral for structured financings | 1,961 | 32 | 1,993 | 1,993 | 8.11 | 7.75 | |||||||||||||||||||
$ | 13,450,071 | $ | 441,175 | $ | 13,891,246 | $ | 14,150,084 | 2.53 | 1.7 | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Agency Securities: | |||||||||||||||||||||||||
Fannie Mae/Freddie Mac: | |||||||||||||||||||||||||
Fixed-rate | $ | 1,660 | $ | 4 | $ | 1,664 | $ | 1,665 | 6.63 | % | 6.52 | % | |||||||||||||
ARMs | 10,230,419 | 328,781 | 10,559,200 | 10,800,332 | 2.51 | 1.68 | |||||||||||||||||||
Ginnie Mae ARMs | 2,983,659 | 103,911 | 3,087,570 | 3,099,168 | 2.63 | 1.58 | |||||||||||||||||||
13,215,738 | 432,696 | 13,648,434 | 13,901,165 | 2.54 | 1.66 | ||||||||||||||||||||
Residential mortgage loans: | |||||||||||||||||||||||||
Fixed-rate | 1,848 | 2 | 1,850 | 1,850 | 6.96 | 5.65 | |||||||||||||||||||
ARMs | 3,046 | 13 | 3,059 | 3,059 | 3.73 | 3.18 | |||||||||||||||||||
4,894 | 15 | 4,909 | 4,909 | 4.95 | 4.09 | ||||||||||||||||||||
Collateral for structured financings | 1,997 | 33 | 2,030 | 2,030 | 8.11 | 7.86 | |||||||||||||||||||
$ | 13,222,629 | $ | 432,744 | $ | 13,655,373 | $ | 13,908,104 | 2.54 | 1.66 | ||||||||||||||||
(a) | Includes unrealized gains and losses for residential mortgage investments classified as available-for-sale (see NOTE 9). | ||||||||||||||||||||||||
(b) | Net WAC, or weighted average coupon, is the weighted average interest rate of the mortgage loans underlying the indicated investments net of servicing and other fees as of the indicated balance sheet date. Net WAC is expressed as a percentage calculated on an annualized basis on the unpaid principal balances of the mortgage loans underlying these investments. Average yield is presented for the quarter then ended, and is based on the cash component of interest income expressed as a percentage calculated on an annualized basis on average amortized cost basis (the “cash yield”) less the effects of amortizing investment premiums. Investment premium amortization is determined using the interest method and incorporates actual and anticipated future mortgage prepayments. |
REPURCHASE_ARRANGEMENTS_AND_SI1
REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS [Abstract] | |||||||||||||||||
Schedule of Repurchase Arrangements and Similar Borrowings | Repurchase arrangements and similar borrowings (and related pledged collateral, including accrued interest receivable), classified by collateral type and remaining maturities, and related weighted average borrowing rates as of the indicated dates were as follows (dollars in thousands): | ||||||||||||||||
Collateral Type | Collateral | Accrued | Borrowings | Average | |||||||||||||
Carrying | Interest | Outstanding | Borrowing | ||||||||||||||
Amount | Receivable | Rates | |||||||||||||||
31-Mar-15 | |||||||||||||||||
Borrowings with maturities of 30 days or less: | |||||||||||||||||
Agency Securities | $ | 9,272,091 | $ | 18,895 | $ | 8,841,149 | 0.34 | % | |||||||||
Borrowings with maturities greater than 30 days: | |||||||||||||||||
Agency Securities (31 to 90 days) | 1,812,699 | 3,583 | 1,720,366 | 0.35 | |||||||||||||
Agency Securities (greater than 90 days) | 2,506,501 | 6,071 | 2,375,000 | 0.61 | |||||||||||||
Similar borrowings: | |||||||||||||||||
Collateral for structured financings* | 1,993 | – | 1,993 | 8.11 | |||||||||||||
$ | 13,593,284 | $ | 28,549 | $ | 12,938,508 | 0.39 | |||||||||||
Quarter-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges (see NOTE 6) | 0.59 | ||||||||||||||||
31-Dec-14 | |||||||||||||||||
Borrowings with maturities of 30 days or less: | |||||||||||||||||
Agency Securities | $ | 10,401,080 | $ | 24,045 | $ | 9,878,889 | 0.35 | % | |||||||||
Borrowings with maturities greater than 30 days: | |||||||||||||||||
Agency Securities (31 to 90 days) | 1,205,570 | 2,248 | 1,150,924 | 0.35 | |||||||||||||
Agency Securities (greater than 90 days) | 1,874,892 | 4,640 | 1,775,000 | 0.56 | |||||||||||||
Similar borrowings: | |||||||||||||||||
Collateral for structured financings* | 2,030 | – | 2,030 | 8.11 | |||||||||||||
$ | 13,483,572 | $ | 30,933 | $ | 12,806,843 | 0.38 | |||||||||||
Year-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges | 0.58 | ||||||||||||||||
* | The maturity of structured financings is directly affected by prepayments on the related mortgage pass-through securities pledged as collateral. Additionally, these financings are subject to redemption by the residual bondholders. | ||||||||||||||||
Schedule of Average Borrowings Outstanding | Average borrowings outstanding differed from respective quarter-end balances during the indicated periods primarily due to changes in portfolio levels and differences in the timing of portfolio acquisitions relative to portfolio runoff as illustrated below (dollars in thousands): | ||||||||||||||||
Quarter Ended | |||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
Average | Average | Average | Average | ||||||||||||||
Borrowings | Rate | Borrowings | Rate | ||||||||||||||
Average borrowings and rates adjusted for the effects of related Derivatives held as cash flow hedges for the indicated quarters | $ | 12,988,083 | 0.59 | % | $ | 12,843,636 | 0.56 | % |
USE_OF_DERIVATIVE_FINANCIAL_IN1
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT [Abstract] | |||||||||||||||||||||||||
Schedule of Swap Agreements Expiration Period and Characteristics | At March 31, 2015, the Company’s portfolio of financing-related swap positions had the following characteristics (dollars in thousands): | ||||||||||||||||||||||||
Period of | Notional | Average Fixed Rate | |||||||||||||||||||||||
Contract Expiration | Amount | Payment Requirement | |||||||||||||||||||||||
Currently-paying contracts: | |||||||||||||||||||||||||
Second quarter 2015 | $ | 200,000 | 0.43 | % | |||||||||||||||||||||
Third quarter 2015 | 400,000 | 0.47 | |||||||||||||||||||||||
Fourth quarter 2015 | 1,200,000 | 0.45 | |||||||||||||||||||||||
First quarter 2016 | 1,700,000 | 0.51 | |||||||||||||||||||||||
Second quarter 2016 | 1,100,000 | 0.47 | |||||||||||||||||||||||
Third quarter 2016 | 700,000 | 0.56 | |||||||||||||||||||||||
Fourth quarter 2016 | 800,000 | 0.66 | |||||||||||||||||||||||
First quarter 2017 | 1,000,000 | 0.72 | |||||||||||||||||||||||
(average expiration: 12 months) | 7,100,000 | 0.54 | |||||||||||||||||||||||
Forward-starting contracts: | |||||||||||||||||||||||||
Second quarter 2017 (average expiration: 24 months) | 200,000 | 0.72 | |||||||||||||||||||||||
(average expiration: 12 months) | $ | 7,300,000 | |||||||||||||||||||||||
Impact of Derivative Instruments on Statements of Financial Performance and Financial Position | The following tables include fair value and other related disclosures regarding all Derivatives held as of and for the indicated periods (in thousands): | ||||||||||||||||||||||||
Balance Sheet | 31-Mar | 31-Dec | |||||||||||||||||||||||
Location | 2015 | 2014 | |||||||||||||||||||||||
Balance sheet-related | |||||||||||||||||||||||||
Swap agreements in a gain position (an asset) related to: | |||||||||||||||||||||||||
Borrowings under repurchase arrangements | (a) | $ | 285 | $ | 1,657 | ||||||||||||||||||||
Swap agreements in a loss position (a liability) related to: | |||||||||||||||||||||||||
Borrowings under repurchase arrangements | (a) | (10,682 | ) | (6,332 | ) | ||||||||||||||||||||
Unsecured borrowings | (a) | (27,109 | ) | (20,702 | ) | ||||||||||||||||||||
Related net interest payable | (b) | (7,902 | ) | (9,516 | ) | ||||||||||||||||||||
$ | (45,408 | ) | $ | (34,893 | ) | ||||||||||||||||||||
(a) | The fair value of Derivatives with realized and unrealized gains are aggregated and recorded as an asset on the face of the Balance Sheets separately from the fair value of Derivatives with realized and unrealized losses that are recorded as a liability. The amount of unrealized losses scheduled to be recognized in the Statements of Income over the next twelve months primarily in the form of fixed-rate swap payments in excess of current market rates totaled $14.8 million at March 31, 2015. | ||||||||||||||||||||||||
(b) | Included in “Accounts payable and accrued expenses” on the face of the Balance Sheets. | ||||||||||||||||||||||||
Location of | Quarter Ended March 31 | ||||||||||||||||||||||||
Gain or (Loss)Recognized in | |||||||||||||||||||||||||
Net Income | 2015 | 2014 | |||||||||||||||||||||||
Income statement-related | |||||||||||||||||||||||||
Components of effect on interest expense: | |||||||||||||||||||||||||
Amount of loss reclassified from Accumulated other comprehensive income related to the effective portion of active positions | $ | (6,448 | ) | $ | (4,722 | ) | |||||||||||||||||||
Amount of loss recognized (ineffective portion) | (309 | ) | (58 | ) | |||||||||||||||||||||
Increase in interest expense and decrease in Net income as a result of the use of Derivatives | * | $ | (6,757 | ) | $ | (4,780 | ) | ||||||||||||||||||
Other comprehensive income-related | |||||||||||||||||||||||||
Amount of loss recognized in Other comprehensive income (effective portion) | $ | (18,391 | ) | $ | (12,656 | ) | |||||||||||||||||||
* | Included in “Interest expense: Repurchase arrangements and similar borrowings” on the face of the Statements of Income. | ||||||||||||||||||||||||
Schedule of Offsetting Disclosures for Asset Derivatives Held and Repurchase Arrangements and Similar Borrowings Outstanding | The following tables provide disclosures concerning offsetting of financial liabilities and Derivatives as of the indicated dates (in thousands): | ||||||||||||||||||||||||
Offsetting of Derivative Assets | |||||||||||||||||||||||||
Gross | Gross | Net Amounts | Gross Amounts Not Offset | ||||||||||||||||||||||
Amounts | of Assets | in the Balance Sheet(a) | |||||||||||||||||||||||
Amounts of | Offset in | Presented in | Financial | Cash | Net | ||||||||||||||||||||
Recognized | the Balance | the Balance | Instruments | Collateral | Amount | ||||||||||||||||||||
Assets | Sheet | Sheet | Received | ||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Counterparty 4 | $ | 14 | $ | 271 | $ | 285 | $ | (285 | ) | $ | – | $ | – | ||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Counterparty 2 | $ | – | $ | 95 | $ | 95 | $ | (95 | ) | $ | – | $ | – | ||||||||||||
Counterparty 4 | 1,128 | 434 | 1,562 | (1,562 | ) | – | – | ||||||||||||||||||
$ | 1,128 | $ | 529 | $ | 1,657 | $ | (1,657 | ) | $ | – | $ | – | |||||||||||||
Schedule of Offsetting Disclosures for Liability Derivatives Held and Repurchase Arrangements and Similar Borrowings Outstanding | Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||||||||||||||
Gross | Gross | Net Amounts | Gross Amounts Not Offset | ||||||||||||||||||||||
Amounts | of Liabilities | in the Balance Sheet (c) | |||||||||||||||||||||||
Amounts of | Offset in | Presented in | Financial | Cash | Net | ||||||||||||||||||||
Recognized | the Balance | the Balance | Instruments | Collateral | Amount | ||||||||||||||||||||
Liabilities(b) | Sheet | Sheet (a) | Pledged | ||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Derivatives by counterparty: | |||||||||||||||||||||||||
Counterparty 1 | $ | 29,838 | $ | – | $ | 29,838 | $ | – | $ | (29,838 | ) | $ | – | ||||||||||||
Counterparty 2 | 4,346 | – | 4,346 | – | (4,250 | ) | 96 | ||||||||||||||||||
Counterparty 4 | 11,238 | 271 | 11,509 | (285 | ) | (11,224 | ) | – | |||||||||||||||||
45,422 | 271 | 45,693 | (285 | ) | (45,312 | ) | 96 | ||||||||||||||||||
Repurchase arrangements and similar borrowings | 12,945,117 | – | 12,945,117 | (12,945,117 | ) | – | – | ||||||||||||||||||
$ | 12,990,539 | $ | 271 | $ | 12,990,810 | $ | (12,945,402 | ) | $ | (45,312 | ) | $ | 96 | ||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Derivatives by counterparty: | |||||||||||||||||||||||||
Counterparty 1 | $ | 24,533 | $ | – | $ | 24,533 | $ | – | $ | (24,533 | ) | $ | – | ||||||||||||
Counterparty 2 | 4,042 | 95 | 4,137 | (95 | ) | (4,042 | ) | – | |||||||||||||||||
Counterparty 3 | 736 | – | 736 | – | (736 | ) | – | ||||||||||||||||||
Counterparty 4 | 6,710 | 434 | 7,144 | (1,562 | ) | (5,582 | ) | – | |||||||||||||||||
36,021 | 529 | 36,550 | (1,657 | ) | (34,893 | ) | – | ||||||||||||||||||
Repurchase arrangements and similar borrowings | 12,812,947 | – | 12,812,947 | (12,812,947 | ) | – | – | ||||||||||||||||||
$ | 12,848,968 | $ | 529 | $ | 12,849,497 | $ | (12,814,604 | ) | $ | (34,893 | ) | $ | – | ||||||||||||
(a) | Amounts presented are limited to recognized liabilities and cash collateral received associated with the indicated counterparty sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. | ||||||||||||||||||||||||
(b) | Amounts include accrued interest of $7.9 million and $9.5 million on interest rate swap agreements and $6.6 million and $6.1 million on repurchase arrangements and similar borrowings, included in “Accounts payable and accrued expenses” on the face of the Balance Sheets as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
(c) | Amounts presented are limited to recognized assets and collateral pledged associated with the indicated counterparty sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. | ||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income | Changes in Accumulated other comprehensive income by component for the quarter ended March 31, 2015 were as follows (in thousands): | ||||||||||||||||||||||||
Gains and Losses | Unrealized Gains | Total | |||||||||||||||||||||||
on Cash Flow | and Losses on | ||||||||||||||||||||||||
Hedges | Available-for-Sale | ||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Balance at December 31, 2014 | $ | (25,309 | ) | $ | 252,731 | $ | 227,422 | ||||||||||||||||||
Activity for the quarter ended March 31, 2015: | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (18,391 | ) | 6,107 | (12,284 | ) | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 6,448 | – | 6,448 | ||||||||||||||||||||||
Other comprehensive income (loss) | (11,943 | ) | 6,107 | (5,836 | ) | ||||||||||||||||||||
Balance at March 31, 2015 | $ | (37,252 | ) | $ | 258,838 | $ | 221,586 |
UNSECURED_BORROWINGS_Tables
UNSECURED BORROWINGS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
UNSECURED BORROWINGS [Abstract] | |||||||||
Schedule of Subordinated Note Balances and Related Weighted Average Interest Rates | Note balances and related weighted average interest rates as of March 31, 2015 and December 31, 2014 (calculated including issue cost amortization) were as follows (dollars in thousands): | ||||||||
Borrowings | Average | ||||||||
Outstanding | Rate * | ||||||||
Junior subordinated notes maturing in: | |||||||||
Oct-35 | $ | 35,000 | 8.31 | % | |||||
Dec-35 | 40,000 | 8.46 | |||||||
Sep-36 | 25,000 | 8.78 | |||||||
$ | 100,000 | 8.49 | |||||||
* | The indicated weighted average rates have been in effect since issuance. After considering cash flow hedges that coincide with the floating rate terms of these borrowings that begin October 30, and December 15, 2015 for the notes maturing in October and December 2035 and September 15, 2016 for the notes maturing in September 2036, the effective borrowing rate will average 7.56% beginning September 15, 2016 through maturity, subject to certain adjustments for the effects of measured hedge ineffectiveness, if any. |
DISCLOSURES_REGARDING_FAIR_VAL1
DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||
Financial Instruments Other than Debt Securities | Fair value-related disclosures for financial instruments other than debt securities were as follows as of the indicated dates (in thousands): | ||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets: | |||||||||||||||||
Residential mortgage loans | $ | 4,605 | $ | 4,700 | $ | 4,909 | $ | 5,000 | |||||||||
Interest rate swap agreements | 285 | 285 | 1,657 | 1,657 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Repurchase arrangements with initial terms of greater than 120 days | 2,375,000 | 2,376,100 | 2,128,517 | 2,128,400 | |||||||||||||
Unsecured borrowings | 100,000 | 100,300 | 100,000 | 100,500 | |||||||||||||
Interest rate swap agreements | 37,791 | 37,791 | 27,034 | 27,034 | |||||||||||||
Fair Value and Related Disclosures for Debt Securities | Amortized | Gross Unrealized | |||||||||||||||
Cost Basis | Gains | Losses | Fair Value | ||||||||||||||
31-Mar-15 | |||||||||||||||||
Agency Securities classified as available-for-sale: | |||||||||||||||||
Fannie Mae/Freddie Mac | $ | 10,715,709 | $ | 243,152 | $ | 559 | $ | 10,958,302 | |||||||||
Ginnie Mae | 3,167,628 | 20,148 | 3,903 | 3,183,873 | |||||||||||||
Residential mortgage securities classified as held-to-maturity | 3,304 | 98 | – | 3,402 | |||||||||||||
31-Dec-14 | |||||||||||||||||
Agency Securities classified as available-for-sale: | |||||||||||||||||
Fannie Mae/Freddie Mac | $ | 10,559,231 | $ | 243,351 | $ | 2,218 | $ | 10,800,364 | |||||||||
Ginnie Mae | 3,087,570 | 16,755 | 5,157 | 3,099,168 | |||||||||||||
Residential mortgage securities classified as held-to-maturity | 3,663 | 124 | – | 3,787 | |||||||||||||
Securities in Unrealized Loss Position | 31-Mar-15 | December 31, 2014 | |||||||||||||||
Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Loss | Value | Loss | ||||||||||||||
Securities in an unrealized loss position: | |||||||||||||||||
One year or greater | $ | 530,711 | $ | 3,405 | $ | 706,839 | $ | 5,320 | |||||||||
Less than one year | 407,266 | 1,057 | 1,095,724 | 2,055 | |||||||||||||
$ | 937,977 | $ | 4,462 | $ | 1,802,563 | $ | 7,375 |
COMPENSATION_PROGRAMS_Tables
COMPENSATION PROGRAMS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
COMPENSATION PROGRAMS [Abstract] | |||||||||
Schedule of Performance and Service-Based Stock Award Activity | Performance-based and service-based stock award activity for quarter ended March 31, 2015 is summarized below: | ||||||||
Number of | Weighted Average | ||||||||
Shares | Grant Date | ||||||||
Fair Value | |||||||||
Unvested stock awards outstanding at December 31, 2014 | 436,581 | 12.29 | |||||||
Vestings | (125,221 | ) | 12.58 | ||||||
Unvested stock awards outstanding at March 31, 2015 | 311,360 | 12.18 |
NET_INCOME_PER_COMMON_SHARE_Co
NET INCOME PER COMMON SHARE - Components of Computation of Basic and Diluted Net Income Per Common Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator for basic net income per common share [Abstract] | ||
Net income | $33,957 | $38,391 |
Preferred stock dividends | -3,742 | -3,238 |
Earnings participation of unvested equity awards | -34 | -24 |
Numerator for basic net income per common share | 30,181 | 35,129 |
Denominator for basic net income per common share [Abstract] | ||
Weighted average common stock outstanding (in shares) | 95,825 | 95,777 |
Average unvested stock awards outstanding (in shares) | -356 | -428 |
Denominator for basic net income per common share (in shares) | 95,469 | 95,349 |
Basic net income per common share (in dollars per share) | $0.32 | $0.37 |
Numerator for diluted net income per common share [Abstract] | ||
Numerator for basic net income per common share | $30,181 | $35,129 |
Denominator for diluted net income per common share [Abstract] | ||
Denominator for basic net income per common share | 95,469 | 95,349 |
Net effect of dilutive equity awards | 205 | 189 |
Denominator for diluted net income per common share (in shares) | 95,674 | 95,538 |
Diluted net income per common share (in dollars per share) | $0.32 | $0.37 |
NET_INCOME_PER_COMMON_SHARE_Po
NET INCOME PER COMMON SHARE - Potentially Dilutive Securities Excluded from Computation of Net Income Per Common Share (Details) (7.50% Cumulative Redeemable Preferred Stock, Series E [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Schedule of Earning Per Share, Basic, by Common Class [Line Items] | |
Preferred stock dividend rate (in hundredths) | 7.50% |
Redeemable Preferred Stock [Member] | |
Schedule of Earning Per Share, Basic, by Common Class [Line Items] | |
Preferred stock dividend rate (in hundredths) | 7.50% |
RESIDENTIAL_MORTGAGE_INVESTMEN2
RESIDENTIAL MORTGAGE INVESTMENTS - Schedule of Residential Mortgage Investments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | $13,450,071 | $13,222,629 | ||
Investment Premiums | 441,175 | 432,744 | ||
Amortized Cost Basis | 13,891,246 | 13,655,373 | ||
Carrying Amount | 14,150,084 | [1] | 13,908,104 | [1] |
Net WAC (in hundredths) | 2.53% | [2] | 2.54% | [2] |
Average Yield (in hundredths) | 1.70% | [2] | 1.66% | [2] |
Agency Securities [Member] | ||||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | 13,443,518 | 13,215,738 | ||
Investment Premiums | 441,130 | 432,696 | ||
Amortized Cost Basis | 13,884,648 | 13,648,434 | ||
Carrying Amount | 14,143,486 | [1] | 13,901,165 | [1] |
Net WAC (in hundredths) | 2.53% | [2] | 2.54% | [2] |
Average Yield (in hundredths) | 1.69% | [2] | 1.66% | [2] |
Agency Securities [Member] | Fixed-Rate [Member] | ||||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | 1,335 | 1,660 | ||
Investment Premiums | 4 | 4 | ||
Amortized Cost Basis | 1,339 | 1,664 | ||
Carrying Amount | 1,340 | [1] | 1,665 | [1] |
Net WAC (in hundredths) | 6.64% | [2] | 6.63% | [2] |
Average Yield (in hundredths) | 6.02% | [2] | 6.52% | [2] |
Agency Securities [Member] | ARMs [Member] | ||||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | 10,381,104 | 10,230,419 | ||
Investment Premiums | 334,577 | 328,781 | ||
Amortized Cost Basis | 10,715,681 | 10,559,200 | ||
Carrying Amount | 10,958,273 | [1] | 10,800,332 | [1] |
Net WAC (in hundredths) | 2.51% | [2] | 2.51% | [2] |
Average Yield (in hundredths) | 1.76% | [2] | 1.68% | [2] |
Agency Securities [Member] | Ginnie Mae ARMs [Member] | ||||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | 3,061,079 | 2,983,659 | ||
Investment Premiums | 106,549 | 103,911 | ||
Amortized Cost Basis | 3,167,628 | 3,087,570 | ||
Carrying Amount | 3,183,873 | [1] | 3,099,168 | [1] |
Net WAC (in hundredths) | 2.60% | [2] | 2.63% | [2] |
Average Yield (in hundredths) | 1.45% | [2] | 1.58% | [2] |
Residential Mortgage Loans [Member] | ||||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | 4,592 | 4,894 | ||
Investment Premiums | 13 | 15 | ||
Amortized Cost Basis | 4,605 | 4,909 | ||
Carrying Amount | 4,605 | [1] | 4,909 | [1] |
Net WAC (in hundredths) | 4.91% | [2] | 4.95% | [2] |
Average Yield (in hundredths) | 4.12% | [2] | 4.09% | [2] |
Residential Mortgage Loans [Member] | Fixed-Rate [Member] | ||||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | 1,701 | 1,848 | ||
Investment Premiums | 1 | 2 | ||
Amortized Cost Basis | 1,702 | 1,850 | ||
Carrying Amount | 1,702 | [1] | 1,850 | [1] |
Net WAC (in hundredths) | 6.92% | [2] | 6.96% | [2] |
Average Yield (in hundredths) | 5.67% | [2] | 5.65% | [2] |
Residential Mortgage Loans [Member] | ARMs [Member] | ||||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | 2,891 | 3,046 | ||
Investment Premiums | 12 | 13 | ||
Amortized Cost Basis | 2,903 | 3,059 | ||
Carrying Amount | 2,903 | [1] | 3,059 | [1] |
Net WAC (in hundredths) | 3.73% | [2] | 3.73% | [2] |
Average Yield (in hundredths) | 3.22% | [2] | 3.18% | [2] |
Collateral For Structured Financings [Member] | ||||
Schedule of Residential Mortgage Investments [Line Items] | ||||
Unpaid Principal Balance | 1,961 | 1,997 | ||
Investment Premiums | 32 | 33 | ||
Amortized Cost Basis | 1,993 | 2,030 | ||
Carrying Amount | $1,993 | [1] | $2,030 | [1] |
Net WAC (in hundredths) | 8.11% | [2] | 8.11% | [2] |
Average Yield (in hundredths) | 7.75% | [2] | 7.86% | [2] |
[1] | Includes unrealized gains and losses for residential mortgage investments classified as available-for-sale (see NOTE 9). | |||
[2] | Net WAC, or weighted average coupon, is the weighted average interest rate of the mortgage loans underlying the indicated investments net of servicing and other fees as of the indicated balance sheet date. Net WAC is expressed as a percentage calculated on an annualized basis on the unpaid principal balances of the mortgage loans underlying these investments. Average yield is presented for the quarter then ended, and is based on the cash component of interest income expressed as a percentage calculated on an annualized basis on average amortized cost basis (the "cash yield") less the effects of amortizing investment premiums. Investment premium amortization is determined using the interest method and incorporates actual and anticipated future mortgage prepayments. |
RESIDENTIAL_MORTGAGE_INVESTMEN3
RESIDENTIAL MORTGAGE INVESTMENTS - Additional Information (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Schedule of Residential Mortgage Investments [Line Items] | |
Mortgage securities weighted average contractual maturity, months | 290 months |
Current-Reset ARMs [Member] | |
Schedule of Residential Mortgage Investments [Line Items] | |
Available for sale ARM securities | 7,850,000 |
Agency securities average months to roll, months | 6 months 9 days |
Current-Reset ARMs [Member] | Maximum [Member] | |
Schedule of Residential Mortgage Investments [Line Items] | |
Agency securities months to roll | 18 months |
Longer-To-Reset ARMs [Member] | |
Schedule of Residential Mortgage Investments [Line Items] | |
Available for sale ARM securities | 6,030,000 |
Agency securities average months to roll, months | 40 months |
Longer-To-Reset ARMs [Member] | Minimum [Member] | |
Schedule of Residential Mortgage Investments [Line Items] | |
Agency securities months to roll | 18 months |
REPURCHASE_ARRANGEMENTS_AND_SI2
REPURCHASE ARRANGEMENTS AND SIMILAR BORROWINGS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Repurchase Arrangements And Similar Borrowings, Including Interest Rate Hedging Activity [Line Items] | ||||
Collateral Carrying Amount | $13,590,000 | $13,480,000 | ||
Borrowings Outstanding | 12,938,508 | 12,806,843 | ||
Average borrowings adjusted amount | 12,988,083 | 12,843,636 | ||
Average borrowings rates adjusted for effects related cash flow derivatives (in hundredths) | 0.59% | 0.56% | ||
Quarter-End Borrowing Rates Adjusted For Effects Of Related Derivatives Held As Cash Flow Hedges [Member] | ||||
Repurchase Arrangements And Similar Borrowings, Including Interest Rate Hedging Activity [Line Items] | ||||
Average Borrowing Rates (in hundredths) | 0.59% | |||
Year-end borrowing rates adjusted for effects of related Derivatives held as cash flow hedges [Member] | ||||
Repurchase Arrangements And Similar Borrowings, Including Interest Rate Hedging Activity [Line Items] | ||||
Average Borrowing Rates (in hundredths) | 0.58% | |||
Agency Securities [Member] | ||||
Repurchase Arrangements And Similar Borrowings, Including Interest Rate Hedging Activity [Line Items] | ||||
Collateral Carrying Amount | 13,593,284 | 13,483,572 | ||
Accrued Interest Receivable | 28,549 | 30,933 | ||
Borrowings Outstanding | 12,938,508 | 12,806,843 | ||
Average Borrowing Rates (in hundredths) | 0.39% | 0.38% | ||
Agency Securities [Member] | Borrowings With Maturities Of 30 Days Or Less [Member] | ||||
Repurchase Arrangements And Similar Borrowings, Including Interest Rate Hedging Activity [Line Items] | ||||
Collateral Carrying Amount | 9,272,091 | 10,401,080 | ||
Accrued Interest Receivable | 18,895 | 24,045 | ||
Borrowings Outstanding | 8,841,149 | 9,878,889 | ||
Average Borrowing Rates (in hundredths) | 0.34% | 0.35% | ||
Agency Securities [Member] | Borrowings With Maturities of 31 to 90 Days [Member] | ||||
Repurchase Arrangements And Similar Borrowings, Including Interest Rate Hedging Activity [Line Items] | ||||
Collateral Carrying Amount | 1,812,699 | 1,205,570 | ||
Accrued Interest Receivable | 3,583 | 2,248 | ||
Borrowings Outstanding | 1,720,366 | 1,150,924 | ||
Average Borrowing Rates (in hundredths) | 0.35% | 0.35% | ||
Agency Securities [Member] | Borrowings With Maturities Greater Than 90 Days [Member] | ||||
Repurchase Arrangements And Similar Borrowings, Including Interest Rate Hedging Activity [Line Items] | ||||
Collateral Carrying Amount | 2,506,501 | 1,874,892 | ||
Accrued Interest Receivable | 6,071 | 4,640 | ||
Borrowings Outstanding | 2,375,000 | 1,775,000 | ||
Average Borrowing Rates (in hundredths) | 0.61% | 0.56% | ||
Agency Securities [Member] | Similar Borrowings [Member] | ||||
Repurchase Arrangements And Similar Borrowings, Including Interest Rate Hedging Activity [Line Items] | ||||
Collateral Carrying Amount | 1,993 | [1] | 2,030 | [1] |
Accrued Interest Receivable | 0 | [1] | 0 | [1] |
Borrowings Outstanding | $1,993 | [1] | $2,030 | [1] |
Average Borrowing Rates (in hundredths) | 8.11% | [1] | 8.11% | [1] |
[1] | The maturity of structured financings is directly affected by prepayments on the related mortgage pass-through securities pledged as collateral. Additionally, these financings are subject to redemption by the residual bondholders. |
USE_OF_DERIVATIVE_FINANCIAL_IN2
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT - Schedule of Swap Agreements (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2010 | Dec. 31, 2014 | |
Notional Disclosures [Abstract] | |||
Derivative instruments unrealized losses to be recognized | $14,800,000 | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 7,100,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.54% | ||
Derivative, average remaining maturity | 12 months | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | Second Quarter 2015 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 200,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.43% | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | Third Quarter 2015 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 400,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.47% | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | Fourth Quarter 2015 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 1,200,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.45% | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | First Quarter 2016 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 1,700,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.51% | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | Second quarter 2016 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 1,100,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.47% | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | Third Quarter 2016 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 700,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.56% | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | Fourth Quarter 2016 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 800,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.66% | ||
Interest Rate SWAP Currently-Paying Contracts [Member] | First Quarter 2017 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 1,000,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.72% | ||
Interest Rate SWAP Forward-Starting Contracts [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 7,300,000,000 | ||
Derivative, average remaining maturity | 12 months | ||
Interest Rate SWAP Forward-Starting Contracts [Member] | Second Quarter 2017 [Member] | |||
Notional Disclosures [Abstract] | |||
Notional Amount | 200,000,000 | ||
Average Fixed Rate Payment Requirement (in hundredths) | 0.72% | ||
Derivative, average remaining maturity | 24 months | ||
Interest Rate Swap Agreements [Member] | |||
Derivative Instruments And Hedging Activities [Line Items] | |||
SWAP agreement notional amount during period | 700,000,000 | 100,000,000 | |
SWAP agreement average interest rate during period (in hundredths) | 0.71% | 4.09% | |
Swap agreement notional amount expiring during period | 1,100,000,000 | ||
SWAP agreements notional amount beginning during the period | 500,000,000 | ||
SWAP agreement average interest rate expiring during period (in hundredths) | 0.50% | ||
SWAP agreements average interest rate beginning during period (in hundredths) | 0.72% | ||
Notional Disclosures [Abstract] | |||
Payment term of LIBOR interest rate agreement | 2 years | 20 years | |
Accrued Interest | 7,900,000 | 9,500,000 | |
Interest Rate Swap Expired One [Member] | |||
Notional Disclosures [Abstract] | |||
Payment term of LIBOR interest rate agreement | 2 years | ||
Repurchase Arrangements And Similar Borrowings [Member] | |||
Notional Disclosures [Abstract] | |||
Accrued Interest | $6,600,000 | $6,100,000 |
USE_OF_DERIVATIVE_FINANCIAL_IN3
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT - Balance Sheet and Income Statement Location (Details) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
Balance sheet-related [Abstract] | ||||||
Interest rate swap agreements at fair value, net assets (liability) | ($45,408) | ($34,893) | ||||
Income statement-related [Abstract] | ||||||
Amount of loss reclassified from Accumulated other comprehensive income related to the effective portion of active positions | 6,448 | 4,722 | ||||
Other Comprehensive Income (Loss) [Member] | ||||||
Other comprehensive income related [Abstract] | ||||||
Amount of loss recognized in Other comprehensive income (effective portion) | -18,391 | -12,656 | ||||
Interest Expense [Member] | ||||||
Income statement-related [Abstract] | ||||||
Amount of loss reclassified from Accumulated other comprehensive income related to the effective portion of active positions | -6,448 | -4,722 | ||||
Amount of loss recognized (ineffective portion) | -309 | -58 | ||||
Increase in interest expense and decrease in Net income as a result of the use of Derivatives | -6,757 | [1] | -4,780 | [1] | ||
Other Liabilities [Member] | ||||||
Balance sheet-related [Abstract] | ||||||
Related net interest payable | -7,902 | [2] | -9,516 | [2] | ||
Borrowings Under Repurchase Arrangements [Member] | Other Assets [Member] | ||||||
Balance sheet-related [Abstract] | ||||||
Swap agreements in a gain position (an asset) related to borrowings | 285 | [3] | 1,657 | [3] | ||
Borrowings Under Repurchase Arrangements [Member] | Other Liabilities [Member] | ||||||
Balance sheet-related [Abstract] | ||||||
Swap agreements in a loss position (a liability) related to borrowings | -10,682 | [3] | -6,332 | [3] | ||
Unsecured Borrowings [Member] | Other Liabilities [Member] | ||||||
Balance sheet-related [Abstract] | ||||||
Swap agreements in a loss position (a liability) related to borrowings | ($27,109) | [3] | ($20,702) | [3] | ||
[1] | Included in "Interest expense: Repurchase arrangements and similar borrowings" on the face of the Statements of Income. | |||||
[2] | Included in "Accounts payable and accrued expenses" on the face of the Balance Sheets. | |||||
[3] | The fair value of Derivatives with realized and unrealized gains are aggregated and recorded as an asset on the face of the Balance Sheets separately from the fair value of Derivatives with realized and unrealized losses that are recorded as a liability. The amount of unrealized losses scheduled to be recognized in the Statements of Income over the next twelve months primarily in the form of fixed-rate swap payments in excess of current market rates totaled $14.8 million at March 31, 2015. |
USE_OF_DERIVATIVE_FINANCIAL_IN4
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT - Offsetting Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Offsetting of derivative assets [Abstract] | ||||
Gross Amounts of Recognized Assets | $285 | $1,657 | ||
Net Amounts of Assets Presented in the Balance Sheet | 45,408 | 34,893 | ||
Cash Collateral Received | 61,669 | 53,139 | ||
Offsetting Derivatives Assets [Member] | Counterparty 2 [Member] | ||||
Offsetting of derivative assets [Abstract] | ||||
Gross Amounts of Recognized Assets | 0 | |||
Gross Amounts Offset in the Balance Sheet | 95 | |||
Net Amounts of Assets Presented in the Balance Sheet | 95 | |||
Financial Instruments | -95 | [1] | ||
Cash Collateral Received | 0 | [1] | ||
Net Amount | 0 | |||
Offsetting Derivatives Assets [Member] | Counter party 4 [Member] | ||||
Offsetting of derivative assets [Abstract] | ||||
Gross Amounts of Recognized Assets | 14 | 1,128 | ||
Gross Amounts Offset in the Balance Sheet | 271 | 434 | ||
Net Amounts of Assets Presented in the Balance Sheet | 285 | 1,562 | ||
Financial Instruments | -285 | [1] | -1,562 | [1] |
Cash Collateral Received | 0 | [1] | 0 | [1] |
Net Amount | 0 | 0 | ||
Offsetting Derivatives Assets [Member] | Derivative Counterparties [Member] | ||||
Offsetting of derivative assets [Abstract] | ||||
Gross Amounts of Recognized Assets | 14 | 1,128 | ||
Gross Amounts Offset in the Balance Sheet | 271 | 529 | ||
Net Amounts of Assets Presented in the Balance Sheet | 285 | 1,657 | ||
Financial Instruments | -285 | [1] | -1,657 | [1] |
Cash Collateral Received | 0 | [1] | 0 | [1] |
Net Amount | $0 | $0 | ||
[1] | Amounts presented are limited to recognized liabilities and cash collateral received associated with the indicated counterparty sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. |
USE_OF_DERIVATIVE_FINANCIAL_IN5
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT - Offsetting Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Offsetting of financial liabilities and derivative liabilities [Abstract] | ||||
Gross Amounts of Recognized Liabilities | $37,791 | $27,034 | ||
Offsetting Financial Liabilities and Derivative Liabilities [Member] | ||||
Offsetting of financial liabilities and derivative liabilities [Abstract] | ||||
Gross Amounts of Recognized Liabilities | 12,990,539 | [1] | 12,848,968 | [1] |
Gross Amounts Offset in the Balance Sheet | 271 | 529 | ||
Net Amounts of Liabilities Presented in the Balance Sheet | 12,990,810 | [2] | 12,849,497 | [2] |
Financial Instruments | -12,945,402 | [3] | -12,814,604 | [3] |
Cash Collateral Pledged | -45,312 | [3] | -34,893 | [3] |
Net Amount | 96 | 0 | ||
Offsetting Financial Liabilities and Derivative Liabilities [Member] | Counterparty 1 [Member] | ||||
Offsetting of financial liabilities and derivative liabilities [Abstract] | ||||
Gross Amounts of Recognized Liabilities | 29,838 | [1] | 24,533 | [1] |
Gross Amounts Offset in the Balance Sheet | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Balance Sheet | 29,838 | [2] | 24,533 | [2] |
Financial Instruments | 0 | [3] | 0 | [3] |
Cash Collateral Pledged | -29,838 | [3] | -24,533 | [3] |
Net Amount | 0 | 0 | ||
Offsetting Financial Liabilities and Derivative Liabilities [Member] | Counterparty 2 [Member] | ||||
Offsetting of financial liabilities and derivative liabilities [Abstract] | ||||
Gross Amounts of Recognized Liabilities | 4,346 | [1] | 4,042 | [1] |
Gross Amounts Offset in the Balance Sheet | 0 | 95 | ||
Net Amounts of Liabilities Presented in the Balance Sheet | 4,346 | [2] | 4,137 | [2] |
Financial Instruments | 0 | [3] | -95 | [3] |
Cash Collateral Pledged | -4,250 | [3] | -4,042 | [3] |
Net Amount | 96 | 0 | ||
Offsetting Financial Liabilities and Derivative Liabilities [Member] | Counterparty 3 [Member] | ||||
Offsetting of financial liabilities and derivative liabilities [Abstract] | ||||
Gross Amounts of Recognized Liabilities | 736 | [1] | ||
Gross Amounts Offset in the Balance Sheet | 0 | |||
Net Amounts of Liabilities Presented in the Balance Sheet | 736 | [2] | ||
Financial Instruments | 0 | [3] | ||
Cash Collateral Pledged | -736 | [3] | ||
Net Amount | 0 | |||
Offsetting Financial Liabilities and Derivative Liabilities [Member] | Counter party 4 [Member] | ||||
Offsetting of financial liabilities and derivative liabilities [Abstract] | ||||
Gross Amounts of Recognized Liabilities | 11,238 | [1] | 6,710 | [1] |
Gross Amounts Offset in the Balance Sheet | 271 | 434 | ||
Net Amounts of Liabilities Presented in the Balance Sheet | 11,509 | [2] | 7,144 | [2] |
Financial Instruments | -285 | [3] | -1,562 | [3] |
Cash Collateral Pledged | -11,224 | [3] | -5,582 | [3] |
Net Amount | 0 | 0 | ||
Offsetting Financial Liabilities and Derivative Liabilities [Member] | Derivative Counterparties [Member] | ||||
Offsetting of financial liabilities and derivative liabilities [Abstract] | ||||
Gross Amounts of Recognized Liabilities | 45,422 | [1] | 36,021 | [1] |
Gross Amounts Offset in the Balance Sheet | 271 | 529 | ||
Net Amounts of Liabilities Presented in the Balance Sheet | 45,693 | [2] | 36,550 | [2] |
Financial Instruments | -285 | [3] | -1,657 | [3] |
Cash Collateral Pledged | -45,312 | [3] | -34,893 | [3] |
Net Amount | 96 | 0 | ||
Repurchase Arrangements and Similar Borrowings [Member] | Offsetting Financial Liabilities and Derivative Liabilities [Member] | ||||
Offsetting of financial liabilities and derivative liabilities [Abstract] | ||||
Gross Amounts of Recognized Liabilities | 12,945,117 | [1] | 12,812,947 | [1] |
Gross Amounts Offset in the Balance Sheet | 0 | 0 | ||
Net Amounts of Liabilities Presented in the Balance Sheet | 12,945,117 | [2] | 12,812,947 | [2] |
Financial Instruments | -12,945,117 | [3] | -12,812,947 | [3] |
Cash Collateral Pledged | 0 | [3] | 0 | [3] |
Net Amount | $0 | $0 | ||
[1] | Amounts include accrued interest of $7.9 million and $9.5 million on interest rate swap agreements and $6.6 million and $6.1 million on repurchase arrangements and similar borrowings, included in "Accounts payable and accrued expenses" on the face of the Balance Sheets as of March 31, 2015 and December 31, 2014, respectively. | |||
[2] | Amounts presented are limited to recognized liabilities and cash collateral received associated with the indicated counterparty sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. | |||
[3] | Amounts presented are limited to recognized assets and collateral pledged associated with the indicated counterparty sufficient to reduce the related Net Amount to zero in accordance with ASU No. 2011-11, as amended by ASU No. 2013-01. |
USE_OF_DERIVATIVE_FINANCIAL_IN6
USE OF DERIVATIVE FINANCIAL INSTRUMENTS, OFFSETTING DISCLOSURES AND CHANGES IN OTHER COMPREHENSIVE INCOME BY COMPONENT - Changes in AOCI (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated other comprehensive income (loss) [Line Items] | ||
Beginning Balance | $227,422 | |
Other comprehensive income (loss) before reclassifications | -12,284 | |
Amounts reclassified from accumulated other comprehensive income | 6,448 | |
Other comprehensive income (loss) | -5,836 | 8,759 |
Ending Balance | 221,586 | |
Gains and Losses on Cash Flow Hedges [Member] | ||
Accumulated other comprehensive income (loss) [Line Items] | ||
Beginning Balance | -25,309 | |
Other comprehensive income (loss) before reclassifications | -18,391 | |
Amounts reclassified from accumulated other comprehensive income | 6,448 | |
Other comprehensive income (loss) | -11,943 | |
Ending Balance | -37,252 | |
Unrealized Gains and Losses on Available-for-sale Securities [Member] | ||
Accumulated other comprehensive income (loss) [Line Items] | ||
Beginning Balance | 252,731 | |
Other comprehensive income (loss) before reclassifications | 6,107 | |
Amounts reclassified from accumulated other comprehensive income | 0 | |
Other comprehensive income (loss) | 6,107 | |
Ending Balance | $258,838 |
UNSECURED_BORROWINGS_Details
UNSECURED BORROWINGS (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Junior subordinated notes maturity term | 30 years | ||
Remaining issue costs | $2,100,000 | ||
Junior subordinated notes borrowings outstanding | 100,000,000 | 100,000,000 | |
Average rate (in hundredths) | 8.49% | [1] | |
Effective borrowing rate considering cash flow hedges | 7.56% | ||
October 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Junior subordinated notes borrowings outstanding | 35,000,000 | ||
Average rate (in hundredths) | 8.31% | [1] | |
Junior subordinated notes, maturity period | 31-Oct-35 | ||
Junior subordinated notes, earliest redemption option exercise date | 30-Oct-15 | ||
December 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Junior subordinated notes borrowings outstanding | 40,000,000 | ||
Average rate (in hundredths) | 8.46% | [1] | |
Junior subordinated notes, maturity period | 31-Dec-35 | ||
Junior subordinated notes, earliest redemption option exercise date | 15-Dec-15 | ||
September 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Junior subordinated notes borrowings outstanding | $25,000,000 | ||
Average rate (in hundredths) | 8.78% | [1] | |
Junior subordinated notes, maturity period | 30-Sep-36 | ||
Junior subordinated notes, earliest redemption option exercise date | 15-Sep-16 | ||
[1] | The indicated weighted average rates have been in effect since issuance. After considering cash flow hedges that coincide with the floating rate terms of these borrowings that begin October 30, and December 15, 2015 for the notes maturing in October and December 2035 and September 15, 2016 for the notes maturing in September 2036, the effective borrowing rate will average 7.56% beginning September 15, 2016 through maturity, subject to certain adjustments for the effects of measured hedge ineffectiveness, if any. |
CAPITAL_TRANSACTIONS_Details
CAPITAL TRANSACTIONS (Details) (Cumulative Redeemable Preferred Stock, Series E [Member], USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Cumulative Redeemable Preferred Stock, Series E [Member] | |
Class of Stock [Line Items] | |
Additional shares issued (in shares) | 432,000 |
Preferred stock, dividend rate (in hundredths) | 7.50% |
Average cost per share (in dollars per share) | $24.67 |
Proceeds from Issuance of Redeemable Preferred Stock | $10.70 |
DISCLOSURES_REGARDING_FAIR_VAL2
DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS - Balance Sheet Location (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Financial assets [Abstract] | ||
Residential mortgage loans | 14,150,084 | $13,908,104 |
Interest rate swap agreements at fair value | 285 | 1,657 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Residential mortgage loans | 4,605 | 4,909 |
Interest rate swap agreements at fair value | 285 | 1,657 |
Financial liabilities [Abstract] | ||
Repurchase arrangements with initial terms of greater than 120 days | 2,375,000 | 2,128,517 |
Unsecured borrowings | 100,000 | 100,000 |
Interest rate swap agreements | 37,791 | 27,034 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Residential mortgage loans | 4,700 | 5,000 |
Interest rate swap agreements at fair value | 285 | 1,657 |
Financial liabilities [Abstract] | ||
Repurchase arrangements with initial terms of greater than 120 days | 2,376,100 | 2,128,400 |
Unsecured borrowings | 100,300 | 100,500 |
Interest rate swap agreements | 37,791 | $27,034 |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment Repurchase Agreement Initial Term | 120 days |
DISCLOSURES_REGARDING_FAIR_VAL3
DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value and Related Disclosures for Debt Securities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Residential Mortgage Securities Classified as held-to-Maturity [Member] | ||
Held-to-maturity securities disclosure [Abstract] | ||
Held-to-maturities, Amortized Cost Basis | $3,304 | $3,663 |
Held-to-maturities, Gross Unrealized Gains | 98 | 124 |
Held-to-maturities, Gross Unrealized Losses | 0 | 0 |
Held-to-maturities, Fair Value | 3,402 | 3,787 |
Agency Securities Classified as Available-for-sale [Member] | Fannie Mae/Freddie Mac [Member] | ||
Available-for-sale securities disclosure Items [Abstract] | ||
Available-for-sale securities, Amortized Cost Basis | 10,715,709 | 10,559,231 |
Available-for-sale securities, Gross Unrealized Gains | 243,152 | 243,351 |
Available-for-sale securities, Gross Unrealized Losses | 559 | 2,218 |
Available-for-sale securities, Fair Value | 10,958,302 | 10,800,364 |
Agency Securities Classified as Available-for-sale [Member] | Ginnie Mae [Member] | ||
Available-for-sale securities disclosure Items [Abstract] | ||
Available-for-sale securities, Amortized Cost Basis | 3,167,628 | 3,087,570 |
Available-for-sale securities, Gross Unrealized Gains | 20,148 | 16,755 |
Available-for-sale securities, Gross Unrealized Losses | 3,903 | 5,157 |
Available-for-sale securities, Fair Value | $3,183,873 | $3,099,168 |
DISCLOSURES_REGARDING_FAIR_VAL4
DISCLOSURES REGARDING FAIR VALUES OF FINANCIAL INSTRUMENTS - Securities in Unrealized Loss Position (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Securities in an unrealized loss position, fair value [Abstract] | ||
One year or greater | $530,711 | $706,839 |
Less than one year | 407,266 | 1,095,724 |
Fair Value, Total | 937,977 | 1,802,563 |
Securities in an unrealized loss position, aggregate loss [Abstract] | ||
One year or greater | 3,405 | 5,320 |
Less than one year | 1,057 | 2,055 |
Unrealized Losses, Total | $4,462 | $7,375 |
COMPENSATION_PROGRAMS_Other_Co
COMPENSATION PROGRAMS - Other Compensation Programs (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share Based Compensation Programs [Line Items] | ||
Short-term incentive compensation program accruals | $489,000 | |
Annual incentive compensation expense | 489,000 | 318,000 |
DER issued and outstanding (in shares) | 654,000 | |
Dividend Equivalent Rights Payable | 203,000 | |
DER expense for the period | $203,000 | $222,000 |
Targeted award opportunity on base salary | 125.00% | |
Long-Term Equity-Based Awards [Member] | ||
Share Based Compensation Programs [Line Items] | ||
Common shares available for future issuances | 4,432,739 | |
Share awards vesting period | 3 years |
COMPENSATION_PROGRAMS_Schedule
COMPENSATION PROGRAMS - Schedule of Restricted Stock Awards (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | |
Equity instruments other than options, nonvested, number of shares [Roll Forward] | |||||||||
Unvested stock awards outstanding at beginning of period (in shares) | 436,581 | 436,581 | |||||||
Vestings (in shares) | -125,221 | ||||||||
Unvested stock awards outstanding at end of period (in shares) | 311,360 | ||||||||
Equity instruments other than options, nonvested, weighted average grant date fair value [Abstract] | |||||||||
Unvested stock awards outstanding at beginning of period (in dollars per share) | $12.29 | $12.29 | |||||||
Vestings (in dollars per share) | $12.58 | ||||||||
Unvested stock awards outstanding at end of period (in dollars per share) | $12.18 | ||||||||
February 2017 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value per share (in dollars per share) | $11.67 | ||||||||
Total original grants (in shares) | 69,849 | ||||||||
Long-term Equity Based Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value per share (in dollars per share) | $8.83 | $7.21 | $12.45 | ||||||
Total original grants (in shares) | 247,512 | 242,505 | |||||||
Equity instruments other than options, nonvested, weighted average grant date fair value [Abstract] | |||||||||
Long term incentive compensation expense | $328,000 | $251,000 | |||||||
Long-term Equity Based Awards [Member] | February 2015 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value per share (in dollars per share) | $12.58 | ||||||||
Total original grants (in shares) | 125,221 | ||||||||
Long-term Equity Based Awards [Member] | February 2016 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value per share (in dollars per share) | $12.17 | ||||||||
Total original grants (in shares) | 133,571 | ||||||||
Service-Based Stock Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value per share (in dollars per share) | $12.34 | $12.47 | |||||||
Total original grants (in shares) | 35,703 | 22,164 | 37,237 | ||||||
Service-Based Stock Awards [Member] | Director Stock Award [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value per share (in dollars per share) | $13.16 | $13.02 | |||||||
Total original grants (in shares) | 35,000 | 28,000 | |||||||
Stock Awards Activity [Member] | |||||||||
Equity instruments other than options, nonvested, weighted average grant date fair value [Abstract] | |||||||||
Long term incentive compensation expense | 280,000 | 375,000 | |||||||
Other general and administrative expense | $115,000 | $92,000 |
COMPENSATION_PROGRAMS_Schedule1
COMPENSATION PROGRAMS - Schedule of Stock Option Award Activity (Details) (Employee Stock Option [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercisable option awards outstanding(in shares) | 40,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted average remaining contractual term (in years) | 3 years 2 months 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, intrinsic value | $13,000 |
Share awards contractual term | 10 years |
COMPENSATION_PROGRAMS_Defined_
COMPENSATION PROGRAMS - Defined Contribution Plans (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Contribution Plan Disclosure [Abstract] | ||
Defined contribution plan voluntary contribution based on compensation (in hundredths) | 50.00% | |
Defined contribution plan, maximum annual contributions per employee (in hundredths) | 6.00% | |
Defined contribution plan, employer matching contribution (in hundredths) | 3.00% | |
Defined contribution plan, cost recognized | $75,000 | $64,000 |