Note 3 - Investment Securities Available for Sale
12 Months Ended
Dec. 31, 2013
Table Text Block [Abstract]  
Available-for-sale Securities [Table Text Block]

3.                 Investment Securities Available For Sale


Investment securities available for sale consist of the following as of December 31, 2013 and December 31, 2012 (dollar amounts in thousands):


   

December 31, 2013

   

December 31, 2012

 
   

Amortized

   

Unrealized

   

Fair

   

Amortized

   

Unrealized

   

Fair

 
    Cost    

Gains

   

Losses

    Value     Cost    

Gains

   

Losses

    Value  

Agency RMBS:

                                                               

Agency ARMs

                                                               

Freddie Mac

  $ 67,121     $ 37     $ (2,101

)

  $ 65,057     $ 80,106     $ 341     $ (83

)

  $ 80,364  

Fannie Mae

    130,487       58       (3,128

)

    127,417       169,020       659       (118

)

    169,561  

Ginnie Mae

    17,049             (201

)

    16,848       24,127             (129

)

    23,998  

Total Agency ARMs

    214,657       95       (5,430

)

    209,322       273,253       1,000       (330

)

    273,923  
                                                                 

Agency Fixed Rate

                                                               

Freddie Mac

    43,920             (1,714

)

    42,206       49,899       24       (162

)

    49,761  

Fannie Mae

    518,598             (24,861

)

    493,737       578,300       1,166       (1,283

)

    578,183  

Total Agency Fixed Rate

    562,518             (26,575

)

    535,943       628,199       1,190       (1,445

)

    627,944  
                                                                 

Agency IOs (1)

                                                               

Freddie Mac

    43,468       252       (5,187

)

    38,533       38,025       92       (3,217

)

    34,900  

Fannie Mae

    60,813       1,300       (5,007

)

    57,106       40,858       656       (5.266

)

    36,248  

Ginnie Mae

    37,660       706       (2,396

)

    35,970       30,530       738       (3,044

)

    28,224  

Total Agency IOs

    141,941       2,258       (12,590

)

    131,609       109,413       1,486       (11,527

)

    99,372  
                                                                 

Total Agency RMBS

    919,116       2,353       (44,595

)

    876,874       1,010,865       3,676       (13,302

)

    1,001,239  

Non-Agency RMBS

    2,413       136       (188

)

    2,361       3,291             (604

)

    2,687  

CLOs

    18,478       14,730             33,208       13,495       17,290             30,785  

Total investment securities available for sale

  $ 940,007     $ 17,219     $ (44,783

)

  $ 912,443     $ 1,027,651     $ 20,966     $ (13,906

)

  $ 1,034,711  
                                                                 

CMBS

  $ 74,314     $ 18,264     $     $ 92,578     $ 68,426     $ 3,006     $ (273

)

  $ 71,159  

Total investment securities available for sale held in securitization trusts

  $ 74,314     $ 18,264     $     $ 92,578     $ 68,426     $ 3,006     $ (273

)

  $ 71,159  

(1) Included in investment securities available for sale as of December 31, 2013 and 2012 are Agency IOs. Agency IOs are measured at fair value through earnings.


During the year ended December 31, 2013, the Company received total proceeds of approximately $1.3 million, realizing approximately $0.1 million of net gains from the sale of investment securities available for sale. During the year ended December 31, 2012, the Company received total proceeds of approximately $50.6 million, realizing approximately $0.5 million of net gains from the sale of investment securities available for sale. During the year ended December 31, 2011, the Company received total proceeds of approximately $20.8 million, realizing approximately $5.0 million of net gains from the sale of investment securities available for sale.


Actual maturities of our available for sale securities are generally shorter than stated contractual maturities (which range up to 30 years), as they are affected by the contractual lives of the underlying mortgages, periodic payments and prepayments of principal. As of December 31, 2013 and 2012, based on management’s estimates, the weighted average life of the Company’s available for sale securities portfolio was approximately 7.03 years and 4.83 years, respectively.


The following tables set forth the stated reset periods of our investment securities available for sale and investment securities available for sale held in securitization trusts at December 31, 2013 and December 31, 2012 at carrying value (dollar amounts in thousands):


   

December 31, 2013

   

December 31, 2012

 
   

Less than 6 months

   

6 to 24 months

   

More than 24 months

   

Total

   

Less than 6 months

   

6 to 24 months

   

More than 24 months

   

Total

 

Agency RMBS

  $ 97,385     $ 14,823     $ 764,666     $ 876,874     $ 91,633     $ 15,559     $ 894,047     $ 1,001,239  

Non-Agency RMBS

    2,361                   2,361       2,687                   2,687  

CLOs

    33,208                   33,208       30,785                   30,785  

Total investment securities available for sale

  $ 132,954     $ 14,823     $ 764,666     $ 912,443     $ 125,105     $ 15,559     $ 894,047     $ 1,034,711  
                                                                 

CMBS

  $ 28,232     $     $ 64,346     $ 92,578     $ 22,215     $     $ 48,944     $ 71,159  

Total investment securities available for sale held in securitization trusts

  $ 28,232     $     $ 64,346     $ 92,578     $ 22,215     $     $ 48,944     $ 71,159  

The following tables present the Company's investment securities available for sale and investment securities available for sale held in securitization trusts in an unrealized loss position reported through OCI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2013 (dollar amounts in thousands):


December 31, 2013

 

Less than 12 Months

   

Greater than 12 months

   

Total

 
   

Carrying

Value

   

Gross Unrealized Losses

   

Carrying

Value

   

Gross Unrealized Losses

   

Carrying

Value

   

Gross Unrealized Losses

 

Agency RMBS

  $ 332,519     $ (11,423 )   $ 398,325     $ (20,582 )   $ 730,844     $ (32,005 )

Non-Agency RMBS

                1,104       (188 )     1,104       (188 )

Total investment securities available for sale

  $ 332,519     $ (11,423 )   $ 399,429     $ (20,770 )   $ 731,948     $ (32,193 )
                                                 

CMBS

  $     $     $     $     $     $  

Total investment securities available for sale held in securitization trusts

  $     $     $     $     $     $  

The following tables present the Company's investment securities available for sale and investment securities available for sale held in securitization trusts in an unrealized loss position reported through OCI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2012 (dollar amounts in thousands):


December 31, 2012

 

Less than 12 Months

   

Greater than 12 months

   

Total

 
   

Carrying

Value

   

Gross Unrealized Losses

   

Carrying

Value

   

Gross Unrealized Losses

   

Carrying

Value

   

Gross Unrealized Losses

 

Agency RMBS

  $ 513,731     $ (1,749 )   $ 6,158     $ (26 )   $ 519,889     $ (1,775 )

Non-Agency RMBS

                2,687       (604 )     2,687       (604 )

Total investment securities available for sale

  $ 513,731     $ (1,749 )   $ 8,845     $ (630 )   $ 522,576     $ (2,379 )
                                                 

CMBS

  $ 16,357     $ (273 )   $     $     $ 16,357     $ (273 )

Total investment securities available for sale held in securitization trusts

  $ 16,357     $ (273 )   $     $     $ 16,357     $ (273 )

For the year ended December 31, 2013 and December 31, 2011, the Company recognized $0.2 million and $0.3 million in other-than-temporary impairment through earnings, respectively. For the year ended December 31, 2012, the Company did not have unrealized losses in investment securities that were deemed other-than-temporary.