Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash Flows From Operating Activities    
Net income (loss) $ 391,171 $ 185,442
Adjustments to reconcile net income to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations):    
Change in fair value of investments in excess mortgage servicing rights (40,670) (43,899)
Change in fair value of investments in excess mortgage servicer rights, equity method investees (50,950) (41,741)
Change in fair value of investments in servicer advances (105,825) 0
Earnings from consumer loan equity method investees (60,185) (60,293)
Change in fair value of investments in derivative assets (2,355) 0
Accretion and other amortization (213,945) (40,156)
(Gain) / loss on settlement of investments (net) (57,834) (11,271)
(Gain) / loss on transfer of loans to REO (11,861) 0
(Gain) / loss on mortgage servicing rights recapture agreement (323) 0
Other-than-temporary impairment (“OTTI”) 943 3,756
Valuation provision on loans 1,591 0
Non-cash directors’ compensation 328 0
Deferred tax provision 22,485 0
Changes in:    
Restricted cash 3,376 0
Other assets (8,961) (7,145)
Due to affiliates 15,972 1,973
Accrued expenses and other liabilities 4,665 1,752
Reduction of liability deemed as capital contribution by Newcastle 0 11,515
Other operating cash flows:    
Interest received from excess mortgage servicing rights 38,548 12,399
Interest received from servicer advance investments 91,829 0
Interest received from residential mortgage loans, held-for-investment 5,536 2,432
Cash proceeds from investments, in excess of interest income 0 41,435
Net cash proceeds deemed as capital distributions to Newcastle 0 (35,571)
Net cash provided by (used in) operating activities 68,814 104,580
Cash Flows From Investing Activities    
Acquisition of investments in excess mortgage servicing rights (75,206) (46,421)
Acquisition of investments in excess mortgage servicing rights, equity method investees 0 (226,837)
Purchase of servicer advance investments (5,569,238) 0
Purchase of Agency RMBS (1,229,580) (292,980)
Purchase of Non-Agency RMBS (1,148,631) (202,484)
Purchase of residential mortgage loans, held-for-investment (1,357,268) 0
Purchase of derivative assets (70,027) 0
Purchase of real estate owned (6,314) 0
Payment for settlement of derivatives (22,643) 0
Return of investments in excess mortgage servicing rights 30,615 15,132
Principal repayments from servicing advance investments 5,188,295 0
Principal repayments from Agency RMBS 213,993 219,187
Principal repayments from Non-Agency RMBS 71,019 50,878
Principal repayments from residential mortgage loans, held-for-investment 33,235 2,400
Proceeds from sale of Agency RMBS 796,392 0
Proceeds from sale of Non-Agency RMBS 1,273,191 123,130
Proceeds from settlement of derivatives 14,107 0
Proceeds from sale of residential mortgage loans 249,690 0
Proceeds from sale of real estate owned 4,140 0
Net cash provided by (used in) investing activities (1,577,732) (301,054)
Cash Flows From Financing Activities    
Repayments of repurchase agreements (2,839,051) (1,283,567)
Margin deposits under repurchase agreements and derivatives (221,598) (210,507)
Repayments of notes payable (5,019,000) 0
Payment of deferred financing fees (8,389) (166)
Common stock dividends paid (178,162) (17,712)
Borrowings under repurchase agreements 3,957,212 1,425,413
Return of margin deposits under repurchase agreements and derivatives 243,658 210,158
Borrowings under notes payable 5,377,633 0
Issuance of common stock 173,201 0
Costs related to issuance of common stock (2,693) 0
Capital contributions 0 245,058
Noncontrolling interest in equity of consolidated subsidiaries - contributions 142,082 0
Noncontrolling interest in equity of consolidated subsidiaries - distributions (200,368) 0
Net cash provided by (used in) financing activities 1,424,525 368,677
Net Increase (Decrease) in Cash and Cash Equivalents (84,393) 172,203
Cash and Cash Equivalents, Beginning of Period 271,994 0
Cash and Cash Equivalents, End of Period 187,601 172,203
Supplemental Disclosure of Cash Flow Information    
Cash paid during the period for interest 105,937 6,853
Cash paid during the period for income taxes 9,119 0
Supplemental Schedule of Non-Cash Investing and Financing Activities Prior to Date of Cash Contribution by Newcastle    
Cash proceeds from investments, in excess of interest income 0 41,435
Acquisition of real estate securities 0 242,750
Acquisition of investments in excess mortgage servicing rights, equity method investees at fair value 0 125,099
Acquisition of residential mortgage loans, held-for-investment 0 35,138
Acquisition of investments in consumer loan equity method investees 0 245,421
Borrowings under repurchase agreements 0 1,179,068
Repayments of repurchase agreements 0 3,902
Capital contributions by Newcastle 0 648,408
Contributions in-kind by Newcastle 0 1,093,684
Capital distributions to Newcastle 0 1,228,054
Supplemental Schedule of Non-Cash Investing and Financing Activities Subsequent to Date of Cash Contribution by Newcastle    
Dividends payable 49,484 44,308
Equity Method Investments, Non-Cash Distribution 609 0
Excess Mortgage Servicing Rights Investees
   
Other operating cash flows:    
Distributions of earnings, equity method investees 34,680 23,659
Cash Flows From Investing Activities    
Return of investments in excess mortgage servicing rights, equity method investees 26,498 4,018
Consumer Loan, Equity Method Investees
   
Other operating cash flows:    
Distributions of earnings, equity method investees 10,599 60,293
Cash Flows From Investing Activities    
Return of investments in excess mortgage servicing rights, equity method investees $ 0 $ 52,923