Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash Flows From Operating Activities      
Net income (loss) $ 434,110 $ 304,519 $ 621,662
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations):      
Depreciation and amortization 7,451   262
Accretion of discount and other amortization (45,582)   (18,982)
Interest income in CDOs redirected for reinvestment or CDO bond paydown (5,484)   (25,975)
Interest income on investments accrued to principal balance (22,835)   (12,535)
Interest expense on debt accrued to principal balance 437   2,964
Non-cash directors' compensation 280   75
Reversal of valuation allowance on loans (24,587)   (339,887)
Other-than-temporary impairment on securities 18,923   99,029
Impairment of long-lived assets      260
Change in fair value of investments in excess mortgage servicing rights (9,023)     
Gain on settlement of investments (net) and real estate held-for-sale (232,897)   (52,307)
Gain on deconsolidation        
Unrealized loss on non-hedge derivatives and hedge ineffectiveness (2,547)   36,564
Gain on extinguishment of debt (24,085)   (265,656)
Change in:      
Restricted cash 2,223   151
Receivables and other assets (1,702)   4,577
Due to affiliates 1,961   (78)
Accrued expenses and other liabilities 1,259   (1,278)
Payment of deferred interest (568)     
Deferred interest received      44
Net cash provided by (used in) operating activities 97,334   48,890
Cash Flows From Investing Activities      
Principal repayments from repurchased CDO debt 42,835   1,211
Principal repayments from CDO securities 2,014     
Principal repayments from non-Agency RMBS 20,729   148
Return of investments in excess mortgage servicing rights 29,167     
Principal repayments from loans and non-CDO securities (excluding non-Agency RMBS) 126,125   64,533
Purchase of real estate securities (989,709)   (4,059)
Purchase of real estate loans (27,226)   (6,024)
Proceeds from sale of investments 127,000   26,022
Acquisition of investments in excess mortgage servicing rights (221,832)     
Acquisition of investments in real estate (185,686)     
Additions to investments in real estate (296)     
Proceeds from sale of real estate held for sale      840
Acquisition of servicing rights      (100)
Deposit paid on investments (25,857)     
Return of deposit paid on investments 25,582     
Margin received on derivative instruments      5,073
Payments on settlement of derivative instruments      (11,394)
Distributions of capital from equity method investees      193
Net cash provided by (used in) investing activities (1,077,154)   76,443
Cash Flows From Financing Activities      
Repurchases of CDO bonds payable (35,748)   (72,718)
Issuance of other bonds payable      97,650
Repayments of other bonds payable (42,443)   (143,678)
Borrowings under repurchase agreements 782,749   18,914
Repayments of repurchase agreements (93,054)   (71,491)
Margin deposits under repurchase agreements (87,895)   (17,370)
Return of margin deposits under repurchase agreements 87,895   17,370
Borrowings under mortgage notes payable 120,525     
Issuance of common stock 435,821     
Costs related to issuance of common stock (1,083)     
Cash consideration paid in exchange for junior subordinated notes      (9,715)
Cash consideration paid to redeem preferred stock      (16,001)
Common stock dividends paid (104,196)     
Preferred stock dividends paid (5,580)   (19,484)
Payment of deferred financing costs (2,385)   (1,677)
Purchase of derivative instruments (244)     
Restricted cash returned from refinancing activities      58,091
Net cash provided by (used in) financing activities 1,054,362   (160,109)
Net Increase (Decrease) in Cash and Cash Equivalents 74,542   (34,776)
Cash and Cash Equivalents, Beginning of Period 157,356 33,524 68,300
Cash and Cash Equivalents, End of Period 231,898 157,356 33,524
Supplemental Disclosure of Cash Flow Information      
Cash paid during the period for interest expense 71,395   125,582
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Preferred stock dividends declared but not paid 930     
Common stock dividends declared but not paid 37,954     
Re-issuance of other bonds and notes payable to third parties upon deconsolidation of CDO 29,959     
Common stock issued to redeem preferred stock      28,457
Face amount of CDO bonds issued in exchange for previously issued junior subordinated notes of $52,094      37,625
Loans reclassified as other investments      24,907
Purchase price payable on investments in excess mortgage servicing rights 59     
Restated
      
Cash Flows From Operating Activities      
Net income (loss)   304,519  
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations):      
Depreciation and amortization   312  
Accretion of discount and other amortization   (44,786)  
Interest income in CDOs redirected for reinvestment or CDO bond paydown   (10,279)  
Interest income on investments accrued to principal balance   (19,507)  
Interest expense on debt accrued to principal balance   728  
Non-cash directors' compensation   149  
Reversal of valuation allowance on loans   (15,163)  
Other-than-temporary impairment on securities   15,840  
Impairment of long-lived assets   433  
Change in fair value of investments in excess mortgage servicing rights   (367)  
Gain on settlement of investments (net) and real estate held-for-sale   (77,310)  
Gain on deconsolidation   (45,072)  
Unrealized loss on non-hedge derivatives and hedge ineffectiveness   11,572  
Gain on extinguishment of debt   (66,110)  
Change in:      
Restricted cash   1,161  
Receivables and other assets   (1,342)  
Due to affiliates   240  
Accrued expenses and other liabilities   986  
Payment of deferred interest       
Deferred interest received   1,027  
Net cash provided by (used in) operating activities   57,031  
Cash Flows From Investing Activities      
Principal repayments from repurchased CDO debt   65,912  
Principal repayments from CDO securities   10,728  
Principal repayments from non-Agency RMBS   118  
Return of investments in excess mortgage servicing rights   760  
Principal repayments from loans and non-CDO securities (excluding non-Agency RMBS)   82,789  
Purchase of real estate securities   (333,895)  
Purchase of real estate loans       
Proceeds from sale of investments   3,885  
Acquisition of investments in excess mortgage servicing rights   (40,492)  
Acquisition of investments in real estate       
Additions to investments in real estate       
Proceeds from sale of real estate held for sale   650  
Acquisition of servicing rights   (2,268)  
Deposit paid on investments       
Return of deposit paid on investments       
Margin received on derivative instruments       
Payments on settlement of derivative instruments   (14,322)  
Distributions of capital from equity method investees       
Net cash provided by (used in) investing activities   (226,135)  
Cash Flows From Financing Activities      
Repurchases of CDO bonds payable   (101,954)  
Issuance of other bonds payable   142,736  
Repayments of other bonds payable   (204,151)  
Borrowings under repurchase agreements   321,020  
Repayments of repurchase agreements   (100,012)  
Margin deposits under repurchase agreements   (15,754)  
Return of margin deposits under repurchase agreements   15,754  
Borrowings under mortgage notes payable       
Issuance of common stock   211,567  
Costs related to issuance of common stock   (905)  
Cash consideration paid in exchange for junior subordinated notes       
Cash consideration paid to redeem preferred stock       
Common stock dividends paid   (23,706)  
Preferred stock dividends paid   (8,371)  
Payment of deferred financing costs   (1,581)  
Purchase of derivative instruments       
Restricted cash returned from refinancing activities   58,293  
Net cash provided by (used in) financing activities   292,936  
Net Increase (Decrease) in Cash and Cash Equivalents   123,832  
Supplemental Disclosure of Cash Flow Information      
Cash paid during the period for interest expense   99,096  
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Preferred stock dividends declared but not paid   930  
Common stock dividends declared but not paid   15,777  
Re-issuance of other bonds and notes payable to third parties upon deconsolidation of CDO   5,751  
Common stock issued to redeem preferred stock       
Face amount of CDO bonds issued in exchange for previously issued junior subordinated notes of $52,094       
Loans reclassified as other investments       
Purchase price payable on investments in excess mortgage servicing rights   $ 3,250