Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash Flows From Operating Activities:    
Net income from continuing operations $ 334,809 $ 58,531
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:    
Amortization of premiums and discounts on investment securities, net 22,086 8,502
Amortization of deferred debt issuance costs on convertible senior notes 227 78
Other-than-temporary impairment losses 94 0
Realized and unrealized losses on investment securities 21,301 52,352
(Gain) loss on servicing asset (71,807) 14,565
Gain on residential mortgage loans held-for-sale (316) (1,461)
Gain on residential mortgage loans held-for-investment and collateralized borrowings in securitization trusts 0 (6,683)
Realized and unrealized gain on interest rate swaps and swaptions (146,736) (17,831)
Unrealized loss on other derivative instruments 41,724 59,841
Equity based compensation 2,341 3,957
Depreciation of fixed assets 184 285
Purchases of residential mortgage loans held-for-sale 0 (437)
Proceeds from sales of residential mortgage loans held-for-sale 0 3,708
Proceeds from repayment of residential mortgage loans held-for-sale 1,120 3,995
Net change in assets and liabilities:    
Decrease (increase) in accrued interest receivable 939 (12,611)
Decrease (increase) in deferred income taxes, net 4,508 (24,710)
(Increase) decrease in income taxes receivable (724) 86
Decrease in prepaid and fixed assets 393 306
(Increase) decrease in other receivables (5,032) 11,343
Decrease in servicing advances 2,871 1,466
(Decrease) increase in accrued interest payable (2,293) 11,159
Increase in income taxes payable 0 30
Decrease in accrued expenses and other liabilities (2,546) (13,501)
Net cash provided by operating activities of discontinued operations 0 9,294
Net cash provided by operating activities 203,143 162,264
Cash Flows From Investing Activities:    
Purchases of available-for-sale securities (2,720,032) (6,837,176)
Proceeds from sales of available-for-sale securities 2,047,032 2,414,267
Principal payments on available-for-sale securities 447,664 272,954
Purchases of mortgage servicing rights, net of purchase price adjustments (142,799) (68,551)
Proceeds from sales of mortgage servicing rights 300 250
(Purchases) short sales of derivative instruments, net (50,500) (42,293)
Proceeds from sales and settlement (payments for termination and settlement) of derivative instruments, net 205,553 78,763
Proceeds from repayment of residential mortgage loans held-for-investment in securitization trusts 0 102,545
Redemptions of Federal Home Loan Bank stock 12,981 19,760
Increase (decrease) in due to counterparties, net 707,895 (74,936)
Net cash used in investing activities of discontinued operations 0 (133,843)
Net cash (used in) provided by investing activities 508,094 (4,268,260)
Cash Flows From Financing Activities:    
Proceeds from repurchase agreements 35,053,094 36,483,681
Principal payments on repurchase agreements (35,355,622) (32,244,366)
Principal payments on collateralized borrowings in securitization trusts 0 (101,562)
Principal payments on Federal Home Loan Bank advances (350,000) (428,238)
Principal payments on revolving credit facilities 0 (55,000)
Proceeds from convertible senior notes 0 282,469
Proceeds from issuance of preferred stock, net of offering costs 13 138,872
Proceeds from issuance of common stock, net of offering costs 76 102
Dividends paid on preferred stock (11,949) 0
Dividends paid on common stock (603) (83,437)
Net cash provided by financing activities of discontinued operations 0 85,054
Net cash (used in) provided by financing activities (664,991) 4,077,575
Net increase (decrease) in cash, cash equivalents and restricted cash 46,246 (28,421)
Cash, cash equivalents and restricted cash of continuing operations at beginning of period 1,054,995 758,916
Cash, cash equivalents and restricted cash of discontinued operations at beginning of period 0 56,279
Cash, cash equivalents and restricted cash at beginning of period 1,054,995 815,195
Cash, cash equivalents and restricted cash at end of period 1,101,241 786,774
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 98,854 38,237
Cash paid for taxes 0 81
Noncash Activities:    
Transfers of residential mortgage loans held-for-sale to other receivables for foreclosed government-guaranteed loans (182) (1,626)
Transfer of fair value of mortgage servicing rights to fair value of Ginnie Mae residential mortgage loans held-for-sale upon buyout 0 (9)
Additions to mortgage servicing rights due to sale of residential mortgage loans held-for-sale 0 20
Cumulative-effect adjustment for adoption of new accounting principle 9,918 0
Dividends declared but not paid at end of period 96,201 87,228
Reconciliation of residential mortgage loans held-for-sale:    
Residential mortgage loans held-for-sale at beginning of period 30,414 40,146
Purchases of residential mortgage loans held-for-sale 0 437
Transfers to other receivables for foreclosed government-guaranteed loans (182) (1,626)
Transfer of fair value of mortgage servicing rights to fair value of Ginnie Mae residential mortgage loans held-for-sale upon buyout 0 (9)
Proceeds from sales of residential mortgage loans held-for-sale 0 (3,708)
Proceeds from repayment of residential mortgage loans held-for-sale (1,120) (3,995)
Realized and unrealized gains on residential mortgage loans held-for-sale 316 1,441
Residential mortgage loans held-for-sale at end of period $ 29,428 $ 32,686