Net Interest Income Analysis

12 Months Ended

Dec. 31, 2011

Net Interest Income Analysis [Abstract]

Net Interest Income Analysis

NOTE 12 — NET INTEREST INCOME ANALYSIS (UNAUDITED)

The following tables summarize interest income, interest expense and weighted average interest rates as well as related changes due to changes in interest rates versus changes in volume (dollars in thousands):

	2011						2010						2009
	Amount			Average Rate			Amount			Average Rate			Amount			Average Rate
Interest income:
Mortgage securities and similar investments	$	243,077			2.24	%	$	199,300			2.60	%	$	314,100			4.13	%
Other		301			0.12			478			0.19			495			0.34
		243,378			2.20			199,778			2.52			314,595			4.06
Interest expense:
Repurchase arrangements and similar borrowings		(57,328	)		0.56			(47,502	)		0.66			(120,083	)		1.73
Unsecured borrowings		(8,747	)		8.49			(8,747	)		8.49			(8,747	)		8.49
Other		(5	)		0.14			(2	)		0.19			–			–
		(66,080	)		0.64			(56,251	)		0.78			(128,830	)		1.83
	$	177,298			1.56		$	143,527			1.74		$	185,765			2.23

	Rate *			Volume *			Total *
Change from 2010 to 2011
Interest income:
Mortgage securities and similar investments	$	(30,460	)	$	74,237		$	43,777
Other		(153	)		(24	)		(177	)
		(30,613	)		74,213			43,600
Interest expense:
Repurchase arrangements and similar borrowings		(7,839	)		17,665			9,826
Other		–			3			3
		(7,839	)		17,668			9,829
	$	(22,774	)	$	56,545		$	33,771
Change from 2009 to 2010
Interest income:
Mortgage securities and similar investments	$	(117,267	)	$	2,467		$	(114,800	)
Other		(278	)		261			(17	)
		(117,545	)		2,728			(114,817	)
Interest expense:
Repurchase arrangements and similar borrowings		(75,353	)		2,772			(72,581	)
Other		–			2			2
		(75,353	)		2,774			(72,579	)
	$	(42,192	)	$	(46	)	$	(42,238	)

* The change in interest income and interest expense due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the absolute dollar amounts of the change in each.