AGENCY MORTGAGE-BACKED SECURITIES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Available-for-sale Securities Reconciliation

The following tables present the Company’s available-for-sale Agency mortgage-backed securities portfolio as of December 31, 2013 and 2012 which were carried at their fair value:

December 31, 2013	Freddie Mac			Fannie Mae			Ginnie Mae			Total
	(dollars in thousands)
Principal outstanding	$	24,458,925		$	43,564,657		$	120,739		$	68,144,321
Unamortized premium		1,627,966			2,970,813			27,085			4,625,864
Unamortized discount		(9,533	)		(11,568	)		(383	)		(21,484	)
Amortized cost		26,077,358			46,523,902			147,441			72,748,701
Gross unrealized gains		227,423			456,057			9,845			693,325
Gross unrealized losses		(1,267,106	)		(1,781,683	)		(4,288	)		(3,053,077	)
Estimated fair value	$	25,037,675		$	45,198,276		$	152,998		$	70,388,949
	Fixed Rate			Adjustable Rate			Total
	(dollars in thousands)
Amortized cost	$	68,784,424		$	3,964,277		$	72,748,701
Gross unrealized gains		538,556			154,769			693,325
Gross unrealized losses		(3,040,153	)		(12,924	)		(3,053,077	)
Estimated fair value	$	66,282,827		$	4,106,122		$	70,388,949
December 31, 2012	Freddie Mac			Fannie Mae			Ginnie Mae			Total
	(dollars in thousands)
Principal outstanding	$	44,296,234		$	70,649,782		$	273,988		$	115,220,004
Unamortized premium		2,121,478			3,695,381			39,348			5,856,207
Unamortized discount		(9,515	)		(12,315	)		(389	)		(22,219	)
Amortized cost		46,408,197			74,332,848			312,947			121,053,992
Gross unrealized gains		1,166,299			1,913,334			17,583			3,097,216
Gross unrealized losses		(36,890	)		(146,533	)		(4,578	)		(188,001	)
Estimated fair value	$	47,537,606		$	76,099,649		$	325,952		$	123,963,207
	Fixed Rate			Adjustable Rate			Total
	(dollars in thousands)
Amortized cost	$	115,267,274		$	5,786,718		$	121,053,992
Gross unrealized gains		2,838,203			259,013			3,097,216
Gross unrealized losses		(183,388	)		(4,613	)		(188,001	)
Estimated fair value	$	117,922,089		$	6,041,118		$	123,963,207

Schedule of Agency Mortgage Backed Securities by Estimated Weighted Average Life Classification

The following table summarizes the Company’s Agency mortgage-backed securities as of December 31, 2013 and 2012, according to their estimated weighted average life classifications:

	December 31, 2013				December 31, 2012
Weighted Average Life	Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost
	(dollars in thousands)
Less than one year	$	65,584	$	64,561	$	1,264,094	$	1,250,405
Greater than one year through five years		50,046,013		51,710,059		119,288,168		116,510,310
Greater than five years through ten years		14,915,716		15,292,973		3,104,073		2,992,054
Greater than ten years		5,361,636		5,681,108		306,872		301,223
Total	$	70,388,949	$	72,748,701	$	123,963,207	$	121,053,992

Schedule of Continuous Unrealized Loss Position

The following table presents the gross unrealized losses and estimated fair value of the Company’s Agency mortgage-backed securities by length of time that such securities have been in a continuous unrealized loss position at December 31, 2013 and 2012.

	December 31, 2013							December 31, 2012
	Estimated Fair Value		Gross Unrealized Losses			Number of Securities		Estimated Fair Value		Gross Unrealized Losses			Number of Securities
	(dollars in thousands)
Less than 12 Months	$	47,677,197	$	(2,569,474	)		583	$	11,220,514	$	(82,721	)		187
12 Months or More		6,102,283		(483,603	)		55		147,775		(105,280	)		39
Total	$	53,779,480	$	(3,053,077	)		638	$	11,368,289	$	(188,001	)		226