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Stockholders' Equity | 9 Months Ended
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Sep. 30, 2019
Stockholders' Equity Note [Abstract] |
Stockholders' Equity | Stockholders’ Equity (a) Preferred Stock On April 15, 2013, the Company completed the issuance of 8.0 million shares of its 7.50% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”) with a par value of $0.01 per share, and a liquidation preference of $25.00 per share plus accrued and unpaid dividends, in an underwritten public offering. The Company’s Series B Preferred Stock is entitled to receive a dividend at a rate of 7.50% per year on the $25.00 liquidation preference before the Company’s common stock is paid any dividends and is senior to the Company’s common stock with respect to distributions upon liquidation, dissolution or winding up. Dividends on the Series B Preferred Stock are payable quarterly in arrears on or about March 31, June 30, September 30 and December 31 of each year. The Series B Preferred Stock is redeemable at $25.00 per share plus accrued and unpaid dividends (whether or not authorized or declared) exclusively at the Company’s option. The Series B Preferred Stock generally does not have any voting rights, subject to an exception in the event the Company fails to pay dividends on such stock for six or more quarterly periods (whether or not consecutive). Under such circumstances, the Series B Preferred Stock will be entitled to vote to elect two additional directors to the Company’s Board of Directors (the “Board”), until all unpaid dividends have been paid or declared and set apart for payment. In addition, certain material and adverse changes to the terms of the Series B Preferred Stock cannot be made without the affirmative vote of holders of at least 66 2/3% of the outstanding shares of Series B Preferred Stock. The following table presents cash dividends declared by the Company on its Series B Preferred Stock from January 1, 2019 through September 30, 2019:
Declaration Date |  | Record Date |  | Payment Date |  | Dividend Per Share
August 9, 2019 |  | August 30, 2019 |  | September 30, 2019 |  | $ | 0.46875 |
May 20, 2019 |  | June 3, 2019 |  | June 28, 2019 |  | 0.46875 |
February 15, 2019 |  | March 4, 2019 |  | March 29, 2019 |  | 0.46875 |
(b) Dividends on Common Stock The following table presents cash dividends declared by the Company on its common stock from January 1, 2019 through September 30, 2019:
Declaration Date (1) |  | Record Date |  | Payment Date |  | Dividend Per Share |
September 12, 2019 |  | September 30, 2019 |  | October 31, 2019 |  | $ | 0.20 |  | (1)
June 12, 2019 |  | July 1, 2019 |  | July 31, 2019 |  | 0.20 |  |
March 6, 2019 |  | March 29, 2019 |  | April 30, 2019 |  | 0.20 |  |
(1) At September 30, 2019, the Company had accrued dividends and dividend equivalents payable of $90.6 million related to the common stock dividend declared on September 12, 2019. (c) Public Offering of Common Stock The table below presents information with respect to shares of the Company’s common stock issued through public offerings during the year ended December 31, 2018:
Share Issue Date |  | Shares Issued |  | Gross Proceeds Per Share |  | Gross Proceeds
(In Thousands, Except Per Share Amounts) |  |  |  |  |  |  |
August 7, 2018 |  | 50,875 |  | (1) | $7.78 |  | $395,807 | (1)
(1) Includes approximately 875,000 shares issued on September 5, 2018 pursuant to the exercise of the underwriters’ option to purchase additional shares. The Company incurred approximately $6.4 million of underwriting discounts and related expenses in connection with this equity offering. (d) Discount Waiver, Direct Stock Purchase and Dividend Reinvestment Plan (“DRSPP”) On September 16, 2016, the Company filed a shelf registration statement on Form S-3 with the SEC under the Securities Act of 1933, as amended (the “1933 Act”), for the purpose of registering additional common stock for sale through its DRSPP. Pursuant to Rule 462(e) under the 1933 Act, this shelf registration statement became effective automatically upon filing with the SEC and, when combined with the unused portion of the Company’s previous DRSPP shelf registration statements, registered an aggregate of 15.0 million shares of common stock. The Company’s DRSPP is designed to provide existing stockholders and new investors with a convenient and economical way to purchase shares of common stock through the automatic reinvestment of dividends and/or optional cash investments. At September 30, 2019, approximately 11.6 million shares of common stock remained available for issuance pursuant to the DRSPP shelf registration statement. In October 2019, the Company filed a new shelf registration statement to replace the 2016 shelf registration statement. During the three and nine months ended September 30, 2019, the Company issued 87,886 and 240,741, respectively, shares of common stock through the DRSPP, raising net proceeds of approximately $634,000 and $1.8 million, respectively. From the inception of the DRSPP in September 2003 through September 30, 2019, the Company issued 34,296,621 shares pursuant to the DRSPP, raising net proceeds of $286.0 million. (e) At-the-Market Offering Program On August 16, 2019 the Company entered into a distribution agreement under the terms of which the Company may offer and sell shares of its common stock having an aggregate gross sales price of up to $400.0 million (the “ATM Shares”), from time to time, through various sales agents, pursuant to an at-the-market equity offering program (the “ATM Program”). Sales of the ATM Shares, if any, may be made in negotiated transactions or by transactions that are deemed to be “at-the-market” offerings, as defined in Rule 415 under the 1933 Act, including sales made directly on the New York Stock Exchange (“NYSE”) or sales made to or through a market maker other than an exchange. The sales agents are entitled to compensation of up to two percent of the gross sales price per share for any shares of common stock sold under the distribution agreement. During the three months ended September 30, 2019, the Company sold 982,350 shares of common stock through the ATM Program at a weighted average price of $7.29, raising proceeds of approximately $7.1 million, net of fees and commissions paid to sales agents of approximately $72,000. At September 30, 2019, approximately $392.8 million remained outstanding for future offerings under this program. Shares for the ATM Program are issued through the automatic shelf registration statement on Form S-3 that was filed with the SEC on August 16, 2019. (f) Stock Repurchase Program As previously disclosed, in August 2005, the Company’s Board authorized a stock repurchase program (the “Repurchase Program”) to repurchase up to 4.0 million shares of its outstanding common stock. The Board reaffirmed such authorization in May 2010. In December 2013, the Board increased the number of shares authorized under the Repurchase Program to an aggregate of 10.0 million. Such authorization does not have an expiration date and, at present, there is no intention to modify or otherwise rescind such authorization. Subject to applicable securities laws, repurchases of common stock under the Repurchase Program are made at times and in amounts as the Company deems appropriate (including, in our discretion, through the use of one or more plans adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (the “1934 Act”)) using available cash resources. Shares of common stock repurchased by the Company under the Repurchase Program are cancelled and, until reissued by the Company, are deemed to be authorized but unissued shares of the Company’s common stock. The Repurchase Program may be suspended or discontinued by the Company at any time and without prior notice. The Company did not repurchase any shares of its common stock during the nine months ended September 30, 2019. At September 30, 2019, 6,616,355 shares remained authorized for repurchase under the Repurchase Program. (g) Accumulated Other Comprehensive Income/(Loss) The following table presents changes in the balances of each component of the Company’s AOCI for the three and nine months ended September 30, 2019:
|  | Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019
(In Thousands) |  | Net Unrealized Gain/(Loss) on AFS Securities |  | Net (Loss) on Swaps |  | Total AOCI |  | Net Unrealized Gain/(Loss) on AFS Securities |  | Net Gain/(Loss) on Swaps |  | Total AOCI
Balance at beginning of period |  | $ | 439,898 |  |  | $ | (28,114 | ) |  | $ | 411,784 |  |  | $ | 417,167 |  |  | $ | 3,121 |  |  | $ | 420,288 |
OCI before reclassifications |  | 5,483 |  |  | (233 | ) |  | 5,250 |  |  | 50,085 |  |  | (30,384 | ) |  | 19,701 |
Amounts reclassified from AOCI (1) |  | (14,499 | ) |  | (685 | ) |  | (15,184 | ) |  | (36,370 | ) |  | (1,769 | ) |  | (38,139 | )
Net OCI during the period (2) |  | (9,016 | ) |  | (918 | ) |  | (9,934 | ) |  | 13,715 |  |  | (32,153 | ) |  | (18,438 | )
Balance at end of period |  | $ | 430,882 |  |  | $ | (29,032 | ) |  | $ | 401,850 |  |  | $ | 430,882 |  |  | $ | (29,032 | ) |  | $ | 401,850 |
(1) See separate table below for details about these reclassifications. (2) For further information regarding changes in OCI, see the Company’s consolidated statements of comprehensive income/(loss). The following table presents changes in the balances of each component of the Company’s AOCI for the three and nine months ended September 30, 2018:
|  | Three Months Ended September 30, 2018 |  | Nine Months Ended September 30, 2018
(In Thousands) |  | Net Unrealized Gain/(Loss) on AFS Securities |  | Net Gain on Swaps |  | Total AOCI |  | Net Unrealized Gain/(Loss) on AFS Securities |  | Net (Loss)/Gain on Swaps |  | Total AOCI
Balance at beginning of period |  | $ | 548,551 |  |  | $ | 16,160 |  |  | $ | 564,711 |  |  | $ | 620,648 |  |  | $ | (11,424 | ) |  | $ | 609,224 |
OCI before reclassifications |  | (34,278 | ) |  | 5,390 |  |  | (28,888 | ) |  | (90,250 | ) |  | 32,974 |  |  | (57,276 | )
Amounts reclassified from AOCI (1) |  | (9,455 | ) |  | — |  |  | (9,455 | ) |  | (25,580 | ) |  | — |  |  | (25,580 | )
Net OCI during the period (2) |  | (43,733 | ) |  | 5,390 |  |  | (38,343 | ) |  | (115,830 | ) |  | 32,974 |  |  | (82,856 | )
Balance at end of period |  | $ | 504,818 |  |  | $ | 21,550 |  |  | $ | 526,368 |  |  | $ | 504,818 |  |  | $ | 21,550 |  |  | $ | 526,368 |
(1) See separate table below for details about these reclassifications. (2) For further information regarding changes in OCI, see the Company’s consolidated statements of comprehensive income/(loss). The following table presents information about the significant amounts reclassified out of the Company’s AOCI for the three and nine months ended September 30, 2019:
|  | Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019 |  |
Details about AOCI Components |  | Amounts Reclassified from AOCI |  | Affected Line Item in the Statement Where Net Income is Presented
(In Thousands) |  |  |  |  |  |
AFS Securities: |  |  |  |  |  |
Realized gain on sale of securities |  | $ | (14,499 | ) |  | $ | (36,370 | ) |  | Net realized gain on sales of residential mortgage securities
Total AFS Securities |  | $ | (14,499 | ) |  | $ | (36,370 | ) |  |
Swaps designated as cash flow hedges: |  |  |  |  |  |
Amortization of de-designated hedging instruments |  | (685 | ) |  | (1,769 | ) |  | Other, net
Total Swaps designated as cash flow hedges |  | $ | (685 | ) |  | $ | (1,769 | ) |  |
Total reclassifications for period |  | $ | (15,184 | ) |  | $ | (38,139 | ) |  |
The following table presents information about the significant amounts reclassified out of the Company’s AOCI for the three and nine months ended September 30, 2018:
|  | Three Months Ended September 30, 2018 |  | Nine Months Ended September 30, 2018 |  |
Details about AOCI Components |  | Amounts Reclassified from AOCI |  | Affected Line Item in the Statement Where Net Income is Presented
(In Thousands) |  |  |  |  |  |
AFS Securities: |  |  |  |  |  |
Realized gain on sale of securities |  | $ | (9,455 | ) |  | $ | (25,580 | ) |  | Net realized gain on sales of residential mortgage securities
Total AFS Securities |  | $ | (9,455 | ) |  | $ | (25,580 | ) |  |
Total reclassifications for period |  | $ | (9,455 | ) |  | $ | (25,580 | ) |  |
On securities for which OTTI had been recognized in prior periods, the Company did no t have any unrealized losses recorded in AOCI at September 30, 2019 and had $224,000 unrealized losses recorded in AOCI at December 31, 2018.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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