Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash Flows From Operating Activities:      
Net (loss) income from continuing operations $ (44,290) $ 308,239 $ 317,921
Adjustments to reconcile net (loss) income from continuing operations to net cash provided by operating activities:      
Amortization of premiums and discounts on investment securities, net 93,830 67,651 42,888
Amortization of deferred debt issuance costs on convertible senior notes 1,029 714 0
Other-than-temporary impairment losses 470 789 1,822
Realized and unrealized losses on investment securities 344,468 35,401 107,374
Loss on servicing asset 69,033 91,033 83,531
(Gain) loss on residential mortgage loans held-for-investment and collateralized borrowings in securitization trusts 0 (22,683) 11,834
Realized and unrealized losses (gains) on interest rate swaps, caps and swaptions 33,174 930 (66,444)
Unrealized loss (gain) on other derivative instruments 23,489 50,099 (37,463)
Equity based compensation 12,995 11,330 15,197
Excess consideration in the acquisition of CYS Investments, Inc. 77,602 0 0
Net change in assets and liabilities:      
Decrease (increase) in accrued interest receivable 12,366 (24,689) (10,603)
Decrease (increase) in deferred income taxes, net 41,988 (11,030) 13,766
Increase in accrued interest payable 44,820 67,118 10,200
Increase (decrease) in other, net (8,104) (229) (270,513)
Net cash provided by operating activities from discontinued operations 0 32,108 20,169
Net cash provided by operating activities 702,870 606,781 239,679
Cash Flows From Investing Activities:      
Purchases of available-for-sale securities (12,621,282) (18,232,105) (21,310,083)
Proceeds from sales of available-for-sale securities 15,202,406 8,708,941 14,404,458
Principal payments on available-for-sale securities 2,434,071 1,553,051 1,276,159
Purchases of mortgage servicing rights, net of purchase price adjustments (976,393) (484,261) (317,709)
Proceeds from sales of mortgage servicing rights 637 355 40,137
(Purchases) short sales of derivative instruments, net (83,887) (103,175) (19,240)
Proceeds from sales and settlement (payments for termination and settlement) of derivative instruments, net 354,822 85,811 76,040
Proceeds from reverse repurchase agreements 4,085,127 0 0
Repayments of reverse repurchase agreements (4,085,482) 0 0
Proceeds from sales of beneficial interests in securitization trusts 0 190,160 0
Proceeds from repayment of residential mortgage loans held-for-investment in securitization trusts 0 332,085 913,894
Net cash paid for the acquisition of CYS Investments, Inc. (13,552) 0 0
Increase (decrease) in due to counterparties, net 449,274 (805,158) 34,665
Increase (decrease) in other, net 44,257 83,976 (11,206)
Net cash used in investing activities from discontinued operations 0 (813,939) (757,393)
Net cash provided by (used in) investing activities 4,789,998 (9,484,259) (5,670,278)
Cash Flows From Financing Activities:      
Proceeds from repurchase agreements 151,887,922 139,559,059 111,505,422
Principal payments on repurchase agreements (156,949,180) (128,973,036) (107,589,163)
Proceeds from issuance of collateralized borrowings in securitization trusts 0 0 1,877,399
Principal payments on collateralized borrowings in securitization trusts 0 (328,978) (832,405)
Proceeds from Federal Home Loan Bank advances 0 0 215,000
Principal payments on Federal Home Loan Bank advances (350,000) (2,784,976) 0
Proceeds from revolving credit facilities 397,400 123,000 70,000
Principal payments on revolving credit facilities (107,400) (173,000) 0
Proceeds from convertible senior notes 0 282,113 0
Proceeds from issuance of preferred stock, net of offering costs (36) 702,537 0
Proceeds from issuance of common stock, net of offering costs 215 449 502
Repurchase of common stock 0 0 (61,307)
Dividends paid on preferred stock (58,394) (13,173) 0
Dividends paid on common stock (270,626) (422,885) (331,865)
Net cash provided by financing activities from discontinued operations 0 1,146,168 391,818
Net cash (used in) provided by financing activities (5,450,099) 9,117,278 5,245,401
Net increase (decrease) in cash, cash equivalents and restricted cash 42,769 239,800 (185,198)
Cash, cash equivalents and restricted cash of continuing operations at beginning of period 1,054,995 758,916 944,055
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 1,000,393
Cash, cash equivalents and restricted cash at end of period 1,097,764 1,054,995 815,195
Supplemental Disclosure of Cash Flow Information:      
Cash paid for interest 419,878 227,518 116,147
Cash paid (received) for taxes 397 (856) (5,146)
Acquisition of the assets and liabilities of CYS Investments, Inc.      
Available-for-sale securities 10,034,557 0 0
Cash and cash equivalents 386 0 0
Restricted cash 1,062 0 0
Accrued interest receivable 30,646 0 0
Reverse repurchase agreements 761,460 0 0
Other assets 11,977 0 0
Repurchase agreements (8,743,527) 0 0
Derivative liabilities, net (451,026) 0 0
Due to counterparties, net (279,715) 0 0
Accrued interest payable (27,487) 0 0
Other liabilities (821) 0 0
Deconsolidation of the assets and liabilities of variable interest entities      
Recognition of beneficial interests in securitization trusts 0 59,826 0
Distribution of TH Commercial Holdings LLC to Granite Point Mortgage Trust Inc. in exchange for common shares 0 651,000 0
Distribution of Granite Point Mortgage Trust Inc. common stock 0 650,848 0
Transfers of residential mortgage loans held-for-sale to residential mortgage loans held-for-investment in securitization trusts 0 0 (1,031,226)
Cumulative-effect adjustment for adoption of new accounting principle 9,918 0 0
Dividends declared but not paid at end of period 135,551 12,552 83,437
Residential mortgage loans held-for-investment in securitization trusts      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of assets in securitization trusts 0 2,894,507 0
Accrued interest receivable      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of assets in securitization trusts 0 15,386 0
Collateralized borrowings in securitization trusts      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of liabilities in securitization trusts 0 2,920,970 0
Accrued interest payable      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of liabilities in securitization trusts 0 8,271 0
Accrued expenses and other liabilities      
Deconsolidation of the assets and liabilities of variable interest entities      
Deconsolidation of liabilities in securitization trusts 0 10,826 0
Preferred Stock      
Acquisition of the assets and liabilities of CYS Investments, Inc.      
Issuance of stock in connection with the acquisition of CYS Investments, Inc. 275,000 0 0
Common Stock Including Additional Paid in Capital      
Acquisition of the assets and liabilities of CYS Investments, Inc.      
Issuance of stock in connection with the acquisition of CYS Investments, Inc. $ 1,125,114 $ 0 $ 0