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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2011	Mar. 05, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	ARMOUR Residential REIT, Inc.
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		141,707,289
Entity Public Float			$ 410,850,844
Amendment Flag	false
Entity Central Index Key	0001428205
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2011	Dec. 31, 2010
Cash	$ 252,372,445	$ 35,343,907
Restricted cash	147,198,634	4,680,603
Agency securities, available for sale, at fair value (including pledged assets of $5,225,234,476 and $1,023,749,488)	5,393,674,681	1,161,850,680
Receivable for unsettled securities	382,931,459
Principal payments receivable	12,492,637	2,642,149
Accrued interest receivable	18,637,166	3,892,834
Prepaid and other assets	439,729	266,203
Refundable income taxes		547,574
Total Assets	6,207,746,751	1,209,223,950
Liabilities:
Repurchase agreements	5,335,962,345	971,675,658
Payable for unsettled securities	117,884,633	125,418,369
Derivatives, at fair value	121,726,843	2,581,348
Accrued interest payable	2,154,215	228,903
Accounts payable and accrued expenses	2,662,555	174,773
Dividends payable	750,533	436,322
Total Liabilities	5,581,141,124	1,100,515,373
Stockholders’ Equity:
Preferred stock, $0.001 par value, 25,000,000 shares authorized, none outstanding at December 31, 2011 and December 31, 2010
Common stock, $0.001 par value, 500,000,000 and 250,000,000 shares authorized, 95,436,949 and 16,441,554 shares issued and outstanding at December 31, 2011 and December 31, 2010	95,437	16,442
Additional paid-in capital	678,640,666	116,748,175
Accumulated deficit	(100,878,380)	(3,826,510)
Accumulated other comprehensive income (loss)	48,747,904	(4,229,530)
Total Stockholders’ Equity	626,605,627	108,708,577
Total Liabilities and Stockholders’ Equity	$ 6,207,746,751	$ 1,209,223,950

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Dec. 31, 2011	Dec. 31, 2010
Pledged assets (in Dollars)	$ 5,225,234,476	$ 1,023,749,488
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	250,000,000
Common stock, shares issued	95,436,949	16,441,554
Common stock, shares outstanding	95,436,949	16,441,554

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)

12 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Consolidated Statements of Operations and Comprehensive Income (Loss) [Member]

Other (Loss) Income:

Unrealized (loss) gain on derivatives

$ (97,086,940)

$ (2,581,008)

$ 50,363

Interest income, net of amortization of premium

117,638,569

12,160,722

446,598

Repurchase agreements

(11,855,947)

(1,207,097)

(13,433)

Net interest income

105,782,622

10,953,625

433,165

Realized gain on sale of agency securities

16,630,762

208,094

Miscellaneous income

500

Subtotal

16,630,762

208,094

500

Realized loss on derivatives (1)

^[1]

(25,005,995)

(511,758)

(720)

Subtotal

(122,092,935)

(3,092,766)

49,643

Total other (loss) income

(105,462,173)

(2,884,672)

50,143

Expenses:

Professional fees

1,387,045

419,719

28,523

Insurance

212,785

175,266

114,391

Management fee

6,858,355

670,969

112,184

Merger expenses

1,610,437

Formation and operating expenses

417,509

Franchise tax expense

151,407

Other

1,253,005

9,983

Total expenses

9,711,190

1,683,463

2,026,925

Net (loss) income before taxes

(9,390,741)

6,385,490

(1,543,617)

Income tax (expense) benefit

(51,313)

151,367

394,190

Net (Loss) Income

(9,442,054)

6,536,857

(1,149,427)

Less: Interest attributable to common stock subject to possible conversion (net of income taxes of $657,000)

(1,200,614)

Net (loss) income attributable to common stock not subject to possible conversion

$ (9,442,054)

$ 6,536,857

$ (2,350,041)

Maximum number of shares subject to possible conversion:

Weighted average shares outstanding subject to possible conversion (in Shares)

7,569,179

Income per share amount (basic and diluted) (in Dollars per share)

$ 0.16

Weighted average shares outstanding not subject to conversion:

Basic and diluted (in Shares)

61,421,177

5,854,568

20,459,664

Pro forma diluted (in Shares)

20,456,664

Net (loss) income per share

Basic and diluted (in Dollars per share)

$ (0.15)

$ 1.12

$ (0.11)

Pro forma diluted (in Dollars per share)

$ 1.12

$ (0.11)

[1]	Interest expense related to our interest rate swap contracts is recorded in realized losses on derivatives on the consolidated statements of operation. For additional information, see Note 5 to the consolidated financial statements.

CONSOLIDATED STATEMENTS OF OPERATIONS (Parentheticals) - USD ($)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Interest attributable to common stock subject to possible conversion, income taxes	$ 0	$ 0	$ 657,000

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Comprehensive Income [Member]	Total
Balance, January 1, 2009 at Dec. 31, 2008	$ 31,250	$ 164,998,210	$ 1,354,173			$ 166,383,633
Balance, January 1, 2009 (in Shares) at Dec. 31, 2008	31,250,000
Trust account income relating to common stock redeemed			(1,200,614)			(1,200,614)
Shares contributed by founders and shares redeemed in excess of number estimated	$ (28,946)	(150,410,929)				(150,439,875)
Shares contributed by founders and shares redeemed in excess of number estimated (in Shares)	(28,945,946)
Waiver of accrued underwriters fees		8,057,846				8,057,846
Dividends declared			(201,306)			(201,306)
Net income (loss)			(1,149,427)		$ (1,149,427)	(1,149,427)
Net change in unrealized gain (loss) in available for sale securities				$ 40,839	40,839	40,839
Comprehensive income (loss)					(1,108,588)
Balance at Dec. 31, 2009	$ 2,304	22,645,127	(1,197,174)	40,839		21,491,096
Balance (in Shares) at Dec. 31, 2009	2,304,054
Dividends declared			(9,166,193)			(9,166,193)
Issuance of common stock, net	$ 14,138	94,103,048				94,117,186
Issuance of common stock, net (in Shares)	14,137,500
Net income (loss)			6,536,857		6,536,857	6,536,857
Net change in unrealized gain (loss) in available for sale securities				(4,270,369)	(4,270,369)	(4,270,369)
Comprehensive income (loss)					2,266,488
Balance at Dec. 31, 2010	$ 16,442	116,748,175	(3,826,510)	(4,229,530)		108,708,577
Balance (in Shares) at Dec. 31, 2010	16,441,554
Dividends declared			(87,609,816)			(87,609,816)
Issuance of common stock, net	$ 78,977	561,747,279				561,826,256
Issuance of common stock, net (in Shares)	78,977,111
Stock based compensation, net of withholding requirements	$ 18	145,212				145,230
Stock based compensation, net of withholding requirements (in Shares)	18,284
Net income (loss)			(9,442,054)		(9,442,054)	(9,442,054)
Reclassification adjustment for realized gain on sale of Agency Securities					(16,630,762)
Unrealized gain on available for sale securities					69,608,196
Net change in unrealized gain (loss) in available for sale securities				52,977,434	52,977,434	52,977,434
Comprehensive income (loss)					$ 43,535,380
Balance at Dec. 31, 2011	$ 95,437	$ 678,640,666	$ (100,878,380)	$ 48,747,904		$ 626,605,627
Balance (in Shares) at Dec. 31, 2011	95,436,949

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Cash Flows [Member]
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Unrealized loss (gain) on derivatives	$ 119,145,495	$ 2,631,711	$ (50,363)
Net (loss) income	(9,442,054)	6,536,857	(1,149,427)
Net amortization of premium on Agency Securities	34,806,590	3,615,400	15,063
Realized gain on sale of Agency Securities	(16,630,762)	(208,094)
Stock based compensation	145,230
Changes in operating assets and liabilities:
Increase in accrued interest receivable	(14,744,332)	(3,480,720)	(412,114)
Decrease (increase) in prepaid income taxes and other assets	374,047	(257,686)	(493,210)
Increase in accrued interest payable	1,925,312	223,804	5,099
Increase (decrease) in accounts payable and accrued expenses	2,492,081	103,378	(521,874)
Net cash provided by operating activities	118,071,607	9,164,650	(2,606,826)
Cash Flows From Investing Activities:
Purchases of Agency Securities	(6,677,722,946)	(1,096,273,562)	(60,315,460)
Principal repayments of Agency Securities	834,946,737	78,153,111	178,286
Proceeds from sales of Agency Securities	1,245,438,130	31,531,266
Increase in restricted cash	(142,518,031)	(4,381,323)	(299,280)
Net cash used in investing activities	(4,739,856,110)	(990,970,508)	(60,436,454)
Cash Flows From Financing Activities:
Cash received from Trust			249,807,349
Cash paid for stock redemptions (including converted common shares)			(226,478,058)
Issuance of common stock, net of expenses	561,821,957	94,117,186
Proceeds from repurchase agreements	39,069,779,141	3,837,217,750	46,388,602
Principal repayments on repurchase agreements	(34,705,492,454)	(2,911,930,693)
Dividends paid	(87,295,603)	(8,907,809)	(23,368)
Net cash provided by financing activities	4,838,813,041	1,010,496,434	69,694,525
Net increase in cash	217,028,538	28,690,576	6,651,245
Cash - beginning of year	35,343,907	6,653,331	2,086
Cash - end of year	252,372,445	35,343,907	6,653,331
Supplemental Disclosure:
Cash paid for income taxes (not including tax refunds received)	21,533	3,116
Cash paid during the period for interest	9,024,039	883,294
Non-Cash Investing and Financing Activities:
Receivable for unsettled security sales	382,931,459
Payable for unsettled security purchases	117,884,633	125,418,369	58,559,479
Unrealized gain (loss) on investment in available for sale securities	69,608,196	(4,270,369)	40,839
Amounts receivable for issuance of common stock	4,299
Dividends declared, to be paid in subsequent period	$ 643,042	$ 328,831
Increase in capital due to waiver of accrued deferred underwriters’ fees			$ 8,057,846

Note 1 - Organization and Nature of Business Operations

12 Months Ended

Dec. 31, 2011

Nature of Operations [Text Block]

Note 1 - Organization and Nature of Business Operations

Business

References to “we”, “us”, “our”, "ARMOUR" or the “Company” are to ARMOUR Residential REIT, Inc. References to "ARRM" are to ARMOUR Residential Management LLC, a Delaware limited liability company. References to “Enterprise” are to Enterprise Acquisition Corp., which became a wholly-owned subsidiary of ARMOUR after completion of the business combination (the “Merger” and “Merger Agreement”) described below.

We are an externally-managed Maryland corporation organized in 2008, managed by ARRM. We invest primarily in hybrid adjustable rate, adjustable rate and fixed rate residential mortgage backed securities issued or guaranteed by a U.S. Government-sponsored entity (“GSE”), such as the Federal National Mortgage Association (more commonly known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (more commonly known as Freddie Mac) or guaranteed by the Government National Mortgage Administration, a U.S. Government corporation (more commonly known as Ginnie Mae) (collectively, "Agency Securities"). From time to time, a portion of our portfolio may be invested in unsecured notes and bonds issued by U.S. Government-chartered entities (collectively, “Agency Debt”), U.S. Treasuries and money market instruments, subject to certain income tests we must satisfy for our qualification as a real estate investment trust (“REIT”). On December 1, 2011, our stockholders approved an amendment to our charter to broaden our investment asset class restriction in response to potential changes in Agency Securities to include non-Agency as well as Agency Securities in our investment asset class restriction. While we remain committed to investing in Agency Securities for so long as an adequate supply and pricing exists, we believe it is prudent for us to have the flexibility to invest in non-Agency Securities and respond to changes in GSE policy.

We intend to qualify and have elected to be taxed as a REIT under the Internal Revenue Code (“the Code”). Our qualification as a REIT depends on our ability to meet, on a continuing basis, various complex requirements under the Code relating to, among other things, the sources of our gross income, the composition and values of our assets, our distribution levels and the concentration of ownership of our capital stock. We believe that we are organized in conformity with the requirements for qualification as a REIT under the Code and our manner of operations enables us to meet the requirements for taxation as a REIT for federal income tax purposes.

As a REIT, we will generally not be subject to federal income tax on the REIT taxable income that we currently distribute to our stockholders. If we fail to qualify as a REIT in any taxable year and do not qualify for certain statutory relief provisions, we will be subject to federal income tax at regular corporate rates. Even if we qualify as a REIT for federal income tax purposes, we may still be subject to some federal, state and local taxes on our income.

Enterprise was formed in 2007 as a Delaware corporation to acquire through a merger, stock exchange, asset acquisition or similar business combination an operating business or businesses. Prior to the Merger Agreement (described below), Enterprise had not commenced any operations and all activity was related to Enterprises’ formation, and initial public offering efforts to identify potential business combinations.

On July 29, 2009, Enterprise entered into an Agreement and Plan of Merger (the “Merger Agreement”), with ARMOUR and ARMOUR Merger Sub Corp., a Delaware corporation and a wholly-owned subsidiary of ARMOUR, (“Merger Sub Corp.”). The Merger Agreement provided for two primary transactions: (i) the merger of Merger Sub Corp. with and into Enterprise with Enterprise surviving the merger and becoming a wholly-owned subsidiary of ARMOUR and (ii) ARMOUR becoming the new publicly-traded corporation of which the holders of Enterprise securities became security holders of ARMOUR. A summary of these transactions is as follows:

On November 5, 2009, the stockholders of Enterprise approved certain proposals to: (i) amend Enterprise's amended and restated certificate of incorporation to allow for a business combination with ARMOUR and (ii) adopt the Merger Agreement and approve the merger of Merger Sub Corp. with and into Enterprise, which we refer to as the Business Combination.

On November 6, 2009, Merger Sub Corp. merged with and into Enterprise pursuant to the Merger Agreement. In connection with the closing, the holders of Enterprise common stock and warrants became holders of the securities of ARMOUR after the Business Combination.

Note 2 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Text Block]

Note 2 - Summary of Significant Accounting Policies

Basis of Presentation and Consolidation and Use of Estimates

Our financial statements are presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The consolidated financial statements include the accounts of ARMOUR and all subsidiaries; all intercompany accounts and transactions have been eliminated.

The preparation of financial information in conformity with GAAP requires management to make estimates that affect the reported assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassification

We reclassified previously presented financial information to conform to the presentation in our consolidated financial statements as of and for the year ended December 31, 2011. Accrued interest payable on our repurchase agreements, which was previously included in the caption “accounts payable and accrued expenses”, has been reclassified and is presented in a separate item. Accrued interest receivable and payable with respect to our interest rate swap contracts was previously netted and was included in the accounts payable and accrued expenses caption, has now been reclassified to “Derivatives, at fair value”. Certain commissions with respect to Futures Contracts which were previously included in interest expense have been reclassified into realized gain or loss on those contracts. The unrealized gains and losses on our derivatives previously classified on our statement of operations as an adjustment to arrive at “net interest income after change in fair value of interest rate contracts” is no longer presented as an adjustment to interest income and has been reclassified into “other income” as part of the unrealized gain or loss on derivatives. This reclassification had no effect on previously reported net (loss) income or comprehensive income (loss). This reclassification caused derivatives at fair value to increase by $50,703, accrued interest payable to increase by $228,903 and accounts payable and accrued expenses to decrease by the net amount of $279,606 for the period ending December 31, 2010. This reclassification also caused interest income to decrease by $15,401, interest expense to decrease by $112,236 and realized loss on derivatives to increase by the net amount of $96,835 for the period ending December 31, 2010. This reclassification also caused interest expense to decrease by $720 and realized loss on derivatives to increase by the same amount for the year ended December 31, 2009.

Cash

Cash includes cash on deposit with financial institutions and investments in high quality overnight money market funds, all of which have maturities of three months or less, at time of purchase. We may maintain deposits in federally insured financial institutions in excess of federally insured limits. However, management believes we are not exposed to significant credit risk due to the financial position and creditworthiness of the depository institutions in which those deposits are held.

Restricted Cash

Restricted cash at December 31, 2011 and December 31, 2010, represents approximately $147.2 million and $4.7 million, respectively, held by counterparties as collateral.

Agency Securities, at Fair Value

We invest primarily in Agency Securities. A portion of our portfolio may be invested in Agency Debt, U.S. Treasuries and money market instruments, subject to certain income tests we must satisfy for our qualification as a REIT. As of December 31, 2011, all of our financial instrument investments consist of Agency Securities, Agency Debt, U.S. Treasuries and money market instruments (including reverse repurchase agreements) and hedging and other derivative instruments related to the foregoing investments.

We generally intend to hold most of our Agency Securities for long-term periods, we may, from time to time, sell any of our Agency Securities as part of our overall management of our portfolio. Management determines the appropriate classifications of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. As of December 31, 2011, all of our Agency Securities were classified as available for sale. Agency securities classified as available for sale are reported at estimated fair value, based on fair values obtained from independent sources, with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity. Agency securities transactions are recorded on the trade date and are valued using third-party pricing services and dealer quotes. If the fair value of a security is not available from the independent pricing service or such data appears unreliable, we obtain valuations from up to three dealers who make markets in similar financial instruments. Management reviews pricing used to ensure that current market conditions are properly represented. The resulting unrealized gains and losses are reflected in our consolidated balance sheets as accumulated other comprehensive income (loss). Realized gains and losses on sales of Agency Securities are determined using the specific identification method.

We evaluate securities for other than temporary impairment at least on a quarterly basis and more frequently when economic or market concerns warrant such evaluation. We determine if we (1) have the intent to sell the Agency Securities, (2) believe it is more likely than not that we will be required to sell the securities before recovery or (3) do not expect to recover the entire amortized cost basis of the Agency Securities. There was no other than temporary impairment for years ended December 31, 2011, 2010 or 2009.

Fair Value of Financial Instruments

The carrying amounts of cash, restricted cash, accrued interest receivable and accounts payable approximate their fair value due to the short maturities of these instruments. See Notes 4 and 5, respectively, for discussion of the fair value of Agency Securities, Available for Sale and Derivatives. The carrying amount of repurchase agreements and accrued interest payable is deemed to approximate fair value due to the short-term maturities of these instruments.

Repurchase Agreements

We finance the acquisition of our Agency Securities through the use of repurchase agreements. Our repurchase agreements are secured by our Agency Securities and bear interest rates that have historically moved in close relationship to the London Interbank Offered Rate (“LIBOR”). Under these agreements, we sell securities to a lender and agree to repurchase the same securities in the future for a price that is higher than the original sales price. The difference between the sales price that we receive and the repurchase price that we pay represents interest paid to the lender. A repurchase agreement operates as financing under which we pledge our securities as collateral to secure a loan which is equal in value to a specified percentage of the estimated fair value of the pledged collateral. We retain beneficial ownership of the pledged collateral. At the maturity of a repurchase agreement, we are required to repay the loan and concurrently receive back our pledged collateral from the lender or, with the consent of the lender, we may renew such agreement at the then prevailing financing rate. The repurchase agreements may require us to pledge additional assets to the lender in the event the estimated fair value of the existing pledged collateral declines.

Derivatives

We seek to economically mitigate the exposure to potential interest rate mismatches between the interest earned on investments and the borrowing costs caused by fluctuations in short-term interest rates. In a simple interest rate swap, one investor pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, an investor may pay a fixed rate and receive a floating rate. During the term of the interest rate swap, we make or receive periodic payments and unrealized gains or losses are recorded as a result of marking the swaps to their fair value. If a swap is terminated prior to maturity, we record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and our cost basis in the contract, if any. Any realized gains or losses are reported under realized gain (loss) on derivatives in our consolidated statement of operations. All unrealized gains or losses are reported under unrealized (loss) gain on derivatives in our consolidated statements of operations. Periodic payments are reported as other income (loss) under the heading of realized loss on derivatives on our consolidated statement of operations. Interest rate swap contracts involve a risk that interest rates will move contrary to our expectations, which may reduce the periodic payments we receive or increase our payment obligations.

We recognize all derivative instruments as either assets or liabilities at fair value on our consolidated balance sheets. We do not designate our derivative activities as cash flow hedges, which, among other factors, would require us to match the pricing dates of both derivative transactions and repurchase agreements. Operational issues and credit market volatility make such matching impractical for us. Since we have not elected cash flow hedge accounting treatment as prescribed by GAAP, our operating results may reflect greater volatility than otherwise would be the case, because gains or losses on the interest hedging may not be offset by changes in the fair value or cash flows of the transaction within the same accounting period or ever. Consequently, any declines in the fair value of our derivatives result in a charge to earnings. We will continue to designate derivative activities as hedges for tax purposes and any unrealized gains or losses should not affect our distributable net income.

Accrued Interest Receivable and Payable

Accrued interest receivable includes interest accrued between payment dates on Agency Securities and interest receivable on our derivatives. Accrued interest payable includes interest payable on our repurchase agreements and on our derivatives.

Credit Risk

We have limited our exposure to credit losses on our portfolio of Agency Securities by only purchasing securities issued by Freddie Mac, Fannie Mae or Ginnie Mae. The payment of principal and interest on the Freddie Mac and Fannie Mae Agency Securities are guaranteed by those respective agencies and the payment of principal and interest on the Ginnie Mae Agency Securities are backed by the full faith and credit of the U.S. Government.

In September 2008, both Freddie Mac and Fannie Mae were placed in the conservatorship of the U.S. government. While it is hoped that the conservatorship will help stabilize Freddie Mac's and Fannie Mae's losses and overall financial position, there can be no assurance that it will succeed or that, if necessary, Freddie Mac or Fannie Mae will be able to satisfy their guarantees of Agency Securities. On August 5, 2011, Standard & Poor’s Corporation downgraded the U.S.’s credit rating from AAA to AA+ and on August 8, 2011, Fannie Mae and Freddie Mac’s credit ratings were downgraded from AAA to AA+. Because Fannie Mae and Freddie Mac are in conservatorship of the U.S. Government, the U.S.'s credit rating downgrade and Fannie Mae and Freddie Mac’s credit rating downgrades will impact the credit risk associated with Agency Securities and, therefore, may decrease the value of the Agency Securities in our portfolio.

Market Risk

Weakness in the mortgage market may adversely affect the performance and market value of our investments. This could negatively impact our net book value. Furthermore, if our lenders are unwilling or unable to provide additional financing, we could be forced to sell our Agency Securities at an inopportune time when prices are depressed.

Preferred Stock

We are authorized to issue 25,000,000 shares of preferred stock, par value $0.001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by our Board of Directors (“Board”) or a committee thereof.

Common Stock and Warrants

At December 31, 2011, we were authorized to issue up to 500,000,000 shares of common stock, par value $0.001 per share, with such designations, voting and other rights and preferences as my be determined from time to time by our Board. We had 95,436,949 shares of common stock issued and outstanding at December 31, 2011. At December 31, 2011, we had outstanding warrants to purchase 32,500,000 shares of common stock, which are exercisable at $11.00 per share and expire in 2013.

Income per Common Share

Basic income per common share for all periods is computed by dividing the earnings applicable to common stockholders by the weighted average number of common shares outstanding for the period. The basic and diluted income per common share for the years ended December 31, 2011, 2010 and 2009 does not include 32,500,000 of outstanding warrants as the effect of including such warrants would be anti-dilutive. Diluted (loss) income per share would reflect the potential dilution assuming common shares were issued upon the exercise of outstanding warrants and the proceeds thereof were used to purchase common shares at the average market price during the period. Basic and diluted (loss) income per common share are equal for the years ended December 31, 2011, 2010 and 2009.

Comprehensive Income

Other comprehensive income refers to revenue, expenses, gains and losses that are recorded directly as an adjustment to shareholders’ equity. Other comprehensive income arises primarily from changes in unrealized gains or losses generated from changes in market values of our Agency Securities classified as available for sale.

Revenue Recognition

Interest income is earned and recognized based on the unpaid principal amount of the Agency Securities and their contractual terms. Premiums and discounts associated with the purchase of Agency Securities are amortized or accreted into interest income over the actual lives of the securities using the effective interest method.

Income Taxes

We intend to qualify and have elected to be taxed as a REIT under the Code. We will generally not be subject to federal income tax to the extent that we distribute 90% of our taxable income to our shareholders and as long as we satisfy the ongoing REIT requirements including meeting certain asset, income and stock ownership tests.

Our management is responsible for determining whether a tax position taken by us is more likely than not to be sustained on its merits. We have no material unrecognized tax benefits and have not recognized in these financial statements any interest or penalties related to income taxes. Should any such penalties and interest be recognized, they will be included in other expenses and interest expense, respectively. None of our income tax returns have been examined by federal, state or local authorities; therefore our 2009 and 2010 federal and state tax returns remain open for examination.

Note 3 - Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2011

Recent Accounting Pronouncements [Text Block]

Note 3 - Recent Accounting Pronouncements

In April 2011, the FASB issued amendments to authoritative guidance related to the accounting for repurchase agreements and other agreements that entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. These amendments eliminate the criteria to assess whether a transferor must have the ability to repurchase or redeem the financial assets in order to demonstrate effective control over the transferred asset. Transferors that maintain effective control over a transferred asset are required to account for the transaction as a secured borrowing rather than a sale. These amendments are effective for annual and interim periods beginning after December 15, 2011 and are to be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. We do not anticipate that the application of this amended guidance will have a material impact on our financial statements.

In May 2011, the FASB issued amendments to authoritative guidance to establish common fair value measurement and disclosure requirements in GAAP and International Financial Reporting Standards (“IFRSs”). These amendments change the wording used to describe many of the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements to ensure consistency between GAAP and IFRSs as well as expand the disclosures for Level 3 measurements. These amendments are to be applied prospectively and are effective for annual and interim periods beginning after December 15, 2011. We do not anticipate that the adoption of this amended guidance will materially expand disclosures in our financial statements.

In June 2011, the FASB issued an amendment to authoritative guidance which allows an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This amendment eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity, but does not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The effective date of certain provisions within this amendment have been deferred indefinitely. All other provisions of this amendment require retrospective application, and are effective for annual and interim periods beginning after December 15, 2011. We anticipate that the adoption of this amended guidance may change the presentation of our financial statements.

In November 2011, the FASB issued amendments to authoritative guidance requiring entities that have financial instruments and derivative instruments to disclose information about offsetting and related arrangements. The disclosures required under this amended guidance are intended to enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. The provisions of these amendments are effective for annual periods beginning after January 1, 2013. We anticipate the adoption of these amendments may change the presentation of our financial statements and related disclosures.

Note 4 - Agency Securities, Available for Sale

12 Months Ended

Dec. 31, 2011

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 4 - Agency Securities, Available for Sale

All of our Agency Securities are classified as available for sale and, as such, are reported at their estimated fair value. Management generally determines the fair values of Agency Securities by using third-party pricing services and dealer quotes. Management reviews pricing used to ensure that current market conditions are represented. At December 31, 2011 and December 31, 2010, all of our Agency Security values were based solely on third-party sources.

Actual maturities of Agency Securities are generally shorter than stated contractual maturities because actual maturities of Agency Securities are affected by the contractual lives of the underlying mortgages, periodic payments of principal and prepayments of principal. The following table summarizes our settled Agency Securities as of December 31, 2011 and December 31, 2010.

	December 31, 2011				December 31, 2010
Weighted Average Life of all Settled Securities	Fair Value		Amortized Cost		Fair Value		Amortized Cost
Less than one year	$	178,947	$	179,497	$	79,653,941	$	79,799,280
Greater than one year and less than five years		5,274,072,102		5,226,255,300		861,718,749		862,995,378
Greater than or equal to five years		119,423,632		118,491,980		220,477,990		223,285,551
Total Agency Securities	$	5,393,674,681	$	5,344,926,777	$	1,161,850,680	$	1,166,080,209

The weighted average lives of the Agency Securities as of December 31, 2011 and 2010 in the table above are based upon assumptions, models and estimates of the manager based on the manager’s judgment and experience. The actual weighted average lives of the Agency Securities could be longer or shorter than estimated.

As of December 31, 2011, we had the following securities in a net unrealized gain position as presented below. The table below includes $118.1 million of current carrying value of forward settle purchased securities.

	Amortized Cost		Fair Value		Unrealized Loss			Unrealized Gain		Net Unrealized Gain
Fannie Mae Certificates	$	3,596,243,064	$	3,626,531,906	$	(3,268,901	)	$	33,557,743	$	30,288,842
Freddie Mac Certificates		1,337,906,876		1,350,950,774		(612,541	)		13,656,439		13,043,898
Ginnie Mae Certificates		410,776,837		416,192,001		(24,016	)		5,439,180		5,415,164
Total Agency Securities	$	5,344,926,777	$	5,393,674,681	$	(3,905,458	)	$	52,653,362	$	48,747,904

As of December 31, 2010, we had the following securities in a net unrealized (loss) gain position as presented below. The table below includes $125.3 million of current carrying value of forward settle purchased securities.

	Amortized Cost		Fair Value		Unrealized Loss			Unrealized Gain		Net Unrealized (Loss)Gain
Fannie Mae Certificates	$	847,473,686	$	843,872,174	$	(5,767,276	)	$	2,165,764	$	(3,601,512	)
Freddie Mac Certificates		258,457,021		257,316,342		(2,060,057	)		919,378		(1,140,679	)
Ginnie Mae Certificates		60,149,503		60,662,164		(45,676	)		558,337		512,661
Total Agency Securities	$	1,166,080,210	$	1,161,850,680	$	(7,873,009	)	$	3,643,479	$	(4,229,530	)

The components of the carrying value of available for sale Agency Securities at December 31, 2011 are presented below.

	December 31, 2011
Principal balance settled securities	$	5,016,414,323
Principal balance forward settle purchased securities		111,815,423
Unamortized premium settled securities		210,690,326
Unamortized premium forward settle purchased securities		6,006,705
Gross unrealized gains		52,653,362
Gross unrealized losses		(3,905,458	)
Carrying value/estimated fair value	$	5,393,674,681

The components of the carrying value of available for sale Agency Securities at December 31, 2010 are presented below.

	December 31, 2010
Principal balance settled securities	$	995,994,552
Principal balance forward settle purchased securities		120,473,239
Unamortized premium settled securities		44,724,477
Unamortized premium forward settle purchased securities		4,887,942
Gross unrealized gains		3,643,479
Gross unrealized losses		(7,873,009	)
Carrying value/estimated fair value	$	1,161,850,680

As of December 31, 2011, our Agency Securities portfolio was purchased at a net premium to par value with a weighted average amortized cost, including settled and forward settle purchased securities of 104.23%, due to the average interest rates on these securities being higher than prevailing market rates. As of December 31, 2011, we had approximately $216.7 million of unamortized premium included in the cost basis of our investments, inclusive of both settled and forward settle purchased securities. As of December 31, 2011, our investment portfolio of securities consisted of Agency Securities as follows:

Adjustable and Hybrid Adjustable Rate Settled Securities as of December 31, 2011

Months to Reset	Percentage of Settled Securities Portfolio			Weighted Average Months to Reset		Current Face Value(1)		Weighted Average Coupon(2)			Weighted Average Amortized Purchase Price(3)		Amortized Cost(4)		Weighted Average Market Price(5)		Current Market Value(6)
0-18		0.7	%		9	$	36,717,021		3.97	%	$	104.57	$	38,396,017	$	105.14	$	38,606,075
19-36		3.2			27		159,343,035		4.62			104.78		166,961,217		105.91		168,759,191
37-60		12.8			46		641,009,968		3.68			103.98		666,554,069		105.31		675,046,217
61-84		19.2			73		965,640,715		3.55			103.37		998,192,012		104.75		1,011,479,755
85+		17.4			113		879,200,061		3.77			104.58		919,448,730		104.56		919,282,954
Total/Average		53.3	%		76	$	2,681,910,800		3.72	%	$	104.01	$	2,789,552,045	$	104.89	$	2,813,174,192

Fixed Rate Settled Securities as of December 31, 2011

Months to Maturity	Percentage of Settled Securities Portfolio			Weighted Average Months to Maturity		Current Face Value(1)		Weighted Average Coupon(2)			Weighted Average Amortized Purchase Price(3)		Amortized Cost(4)		Weighted Average Market Price(5)		Current Market Value(6)
0-90		0.0	%		64	$	1,188,758		5.56	%	$	106.56	$	1,266,764	$	106.65	$	1,267,816
91-180		35.6			169		1,779,553,629		3.94			104.29		1,855,952,125		105.43		1,876,192,280
181+		11.1			237		553,761,136		4.03			104.80		580,333,715		105.63		584,941,352
Total/Average		46.7	%		183	$	2,334,503,523		3.97	%	$	104.41	$	2,437,552,604	$	105.48	$	2,462,401,448

All Settled Securities as of December 31, 2011

		Percentage of Settled Securities Portfolio				Current Face Value(1)				Weighted Average Coupon(2)				Weighted Average Amortized Purchase Price(3)				Amortized Cost(4)				Weighted Average Market Price(5)				Current Market Value(6)
Total/Average			100.0	%		$	5,016,414,323				3.84	%		$	104.20			$	5,227,104,649			$	105.17			$	5,275,575,640

(1)	The current face is the current monthly remaining dollar amount of principal of an Agency Security. We compute current face by multiplying the original face value of the security by the current principal balance factor. The current principal balance factor is a fraction, where the numerator is the current outstanding balance and the denominator is the original principal balance.
(2)	For a pass-through certificate, the coupon reflects the weighted average nominal rate of interest paid on the underlying mortgage loans, net of fees paid to the servicer and the agency. The coupon for a pass-through certificate may change as the underlying mortgage loans are prepaid.

(3)	Amortized purchase price is the dollar amount, per $100 of current face, of our purchase price for the security, adjusted for amortization as a result of scheduled and unscheduled principal repayments.
(4)	Amortized cost is our total purchase price for the Agency Security, adjusted for amortization as a result of scheduled and unscheduled principal repayments.
(5)	Market price is the dollar amount of market value, per $100 of nominal, or face value, of the Agency Security. We value our Agency Securities using a third-party pricing service whose pricing model incorporates common market pricing methods. Management reviews the pricing to ensure that current market conditions are properly represented.
(6)	Market value is the total fair value for the security.

As of December 31, 2011, we had committed to purchase securities for settlements in January of 2012. The information below was current as of December 31, 2011, but subject to change due to amortization prior to settlement. In addition, some forward trades of new issue securities are subject to modest changes in delivery size and coupon.

Fixed Rate Forward Settle Purchased Securities as of December 31, 2011

Months to Maturity	Percentage of Forward Settle Portfolio			Weighted Average Months to Maturity		Current Face Value(1)		Weighted Average Coupon(2)			Weighted Average Amortized Purchase Price(3)		Expected Amortized Cost(4)		Weighted Average Market Price(5)		Current Market Value(6)
181+		100.0	%		238	$	111,815,423		4.00	%	$	105.37	$	117,822,128	$	105.62	$	118,099,041
Total/Average		100.0	%		238	$	111,815,423		4.00	%	$	105.37	$	117,822,128	$	105.62	$	118,099,041

All Forward Settle Purchased Securities as of December 31, 2011

		Percentage of Forward Settle Portfolio				Current Face Value(1)				Weighted Average Coupon(2)				Weighted Average Amortized Purchase Price(3)				Expected Amortized Cost(4)				Weighted Average Market Price(5)				Current Market Value(6)
Total/Average			100.0	%		$	111,815,423				4.00	%		$	105.37			$	117,822,128			$	105.62			$	118,099,041

All Settled and Forward Settle Purchased Securities as of December 31, 2011

		Percentage of Settled and Forward Settle Portfolio				Current Face Value(1)				Weighted Average Coupon(2)				Weighted Average Amortized Purchase Price(3)				Expected Amortized Cost(4)				Weighted Average Market Price(5)				Current Market Value(6)
Total/Average			100.0	%		$	5,128,229,746				3.84	%		$	104.23			$	5,344,926,777			$	105.18			$	5,393,674,681

(1)	The current face is the current monthly remaining dollar amount of principal of an Agency Security. We compute current face by multiplying the original face value of the security by the current principal balance factor. The current principal balance factor is a fraction, where the numerator is the current outstanding balance and the denominator is the original principal balance.
(2)	For a pass-through certificate, the coupon reflects the weighted average nominal rate of interest paid on the underlying mortgage loans, net of fees paid to the servicer and the agency. The coupon for a pass-through certificate may change as the underlying mortgage loans are prepaid.
(3)	Amortized purchase price is the dollar amount, per $100 of current face, of our purchase price for the security, adjusted for amortization as a result of scheduled and unscheduled principal repayments.
(4)	Amortized cost is our total purchase price for the Agency Security, adjusted for amortization as a result of scheduled and unscheduled principal repayments.
(5)	Market price is the dollar amount of market value, per $100 of nominal, or face value, of the Agency Security. We value our Agency Securities using a third-party pricing service whose pricing model incorporates common market pricing methods. Management reviews the pricing to ensure that current market conditions are properly represented.
(6)	Market value is the total fair value for the security.

As of December 31, 2010, our Agency Securities portfolio was purchased at a net premium to par value with a weighted average amortized cost, including settled and forward settle purchased securities, of 104.44%, due to the average interest rates on these securities being higher than prevailing market rates. As of December 31, 2010, we had approximately $49.6 million of unamortized premium included in the cost basis of our investments, inclusive of both settled and forward settle purchased securities. All unsettled purchases of securities as of December 31, 2010, were settled in January and February 2011. As of December 31, 2010, our investment portfolio of settled securities consisted of Agency Securities as follows:

Adjustable and Hybrid Adjustable Rate Settled Securities as of December 31, 2010

Months to Reset	Percentage of Settled Securities Portfolio			Weighted Average Months to Reset		Current Face Value(1)		Weighted Average Coupon(2)			Weighted Average Amortized Purchase Price(3)		Amortized Cost(4)		Weighted Average Market Price(5)		Current Market Value(6)
0-18		4.8	%		7	$	47,989,156		3.67	%	$	104.31	$	50,058,987	$	104.45	$	50,126,097
19-36		3.3			29		32,967,374		4.00			103.71		34,192,034		104.37		34,407,131
37-60		25.0			52		247,952,187		4.00			103.96		257,686,509		104.44		258,969,161
61-84		32.5			78		325,954,726		3.87			104.26		339,833,155		103.34		336,849,193
85+		4.4			114		44,397,480		4.07			105.39		46,789,017		102.66		45,578,166
Total/Average		70.0	%		64	$	699,260,923		3.92	%	$	104.20	$	728,559,702	$	103.81	$	725,929,748

Fixed Rate Settled Securities as of December 31, 2010

Months to Maturity	Percentage of Settled Securities Portfolio			Weighted Average Months to Maturity		Current Face Value(1)		Weighted Average Coupon(2)			Weighted Average Amortized Purchase Price(3)		Amortized Cost(4)		Weighted Average Market Price(5)		Current Market Value(6)
0-90		0.1	%		63	$	1,171,170		6.15	%	$	107.23	$	1,255,843	$	108.53	$	1,271,054
91-180		29.9			172		295,562,459		4.33			105.19		310,903,484		104.65		309,319,711
Total/Average		30.0	%		171	$	296,733,629		4.34	%	$	105.20	$	312,159,327	$	104.67	$	310,590,765

All Settled Securities as of December 31, 2010

		Percentage Of Settled Securities Portfolio				Current Face Value(1)				Weighted Average Coupon(2)				Weighted Average Amortized Purchase Price(3)				Amortized Cost(4)				Weighted Average Market Price(5)				Current Market Value(6)
Total/Average			100.0	%		$	995,994,552				4.04	%		$	104.50			$	1,040,719,029			$	104.07			$	1,036,520,513

(1)	The current face is the current monthly remaining dollar amount of principal of an Agency Security. We compute current face by multiplying the original face value of the security by the current principal balance factor. The current principal balance factor is a fraction, where the numerator is the current outstanding balance and the denominator is the original principal balance.
(2)	For a pass-through certificate, the coupon reflects the weighted average nominal rate of interest paid on the underlying mortgage loans, net of fees paid to the servicer and the agency. The coupon for a pass-through certificate may change as the underlying mortgage loans are prepaid.
(3)	Amortized purchase price is the dollar amount, per $100 of current face, of our purchase price for the security, adjusted for amortization as a result of scheduled and unscheduled principal repayments.
(4)	Amortized cost is our total purchase price for the Agency Security, adjusted for amortization as a result of scheduled and unscheduled principal repayments.
(5)	Market price is the dollar amount of market value, per $100 of nominal, or face value, of the Agency Security. We value our Agency Securities using a third-party pricing service whose pricing model incorporates common market pricing methods. Management reviews the pricing to ensure that current market conditions are properly represented.
(6)	Market value is the total fair value for the security.

As of December 31, 2010, we had committed to purchase securities for settlements in January and February of 2011. The information below was current as of December 31, 2010, but subject to change due to amortization prior to settlement. In addition, some forward trades of new issue securities are subject to modest changes in delivery size and coupon. All, but one, of the forward settling Agency Securities were adjustable rate with a minimum expected reset of 11 months and a maximum expected reset of 71 months.

Adjustable and Hybrid Adjustable Rate Forward Settle Purchased Securities as of December 31, 2010

		Percentage of Forward Settle Portfolio				Weighted Average Months to Reset				Current Face Value(1)				Weighted Average Coupon(2)				Weighted Average Amortized Purchase Price(3)				Expected Amortized Cost(4)				Weighted Average Market Price(5)				Current Market Value(6)
Total/Average			63.6	%			27			$	76,288,258				3.22	%		$	104.60			$	79,799,280			$	104.41			$	79,653,941

Fixed Rate Forward Settle Purchased Securities as of December 31, 2010

		Percentage of Forward Settle Portfolio				Weighted Average Months to Maturity				Current Face Value(1)				Weighted Average Coupon(2)				Weighted Average Amortized Purchase Price(3)				Expected Amortized Cost(4)				Weighted Average Market Price(5)				Current Market Value(6)
Total/Average			36.4	%			179			$	44,184,981				4.00	%		$	103.12			$	45,561,900			$	103.38			$	45,676,226

All Forward Settle Purchased Securities as of December 31, 2010

		Percentage of Forward Settle Portfolio				Current Face Value(1)				Weighted Average Coupon(2)				Weighted Average Amortized Purchase Price(3)				Expected Amortized Cost(4)				Weighted Average Market Price(5)				Current Market Value(6)
Total/Average			100.0	%		$	120,473,239				3.51	%		$	104.06			$	125,361,180			$	104.03			$	125,330,167

All Settled and Forward Settle Purchased Securities as of December 31, 2010

		Percentage of Settled and Forward Settle Portfolio				Current Face Value(1)				Weighted Average Coupon(2)				Weighted Average Amortized Purchase Price(3)				Expected Amortized Cost(4)				Weighted Average Market Price(5)				Current Market Value(6)
Total/Average			100.0	%		$	1,116,467,791				3.98	%		$	104.44			$	1,166,080,209			$	103.73			$	1,161,850,680

(1)	The current face is the current monthly remaining dollar amount of principal of an Agency Security. We compute current face by multiplying the original face value of the security by the current principal balance factor. The current principal balance factor is a fraction, where the numerator is the current outstanding balance and the denominator is the original principal balance.
(2)	For a pass-through certificate, the coupon reflects the weighted average nominal rate of interest paid on the underlying mortgage loans, net of fees paid to the servicer and the agency. The coupon for a pass-through certificate may change as the underlying mortgage loans are prepaid.
(3)	Amortized purchase price is the dollar amount, per $100 of current face, of our purchase price for the security, adjusted for amortization as a result of scheduled and unscheduled principal repayments.
(4)	Amortized cost is our total purchase price for the Agency Security, adjusted for amortization as a result of scheduled and unscheduled principal repayments.
(5)	Market price is the dollar amount of market value, per $100 of nominal, or face value, of the Agency Security. We value our Agency Securities using a third-party pricing service whose pricing model incorporates common market pricing methods. Management reviews the pricing to ensure that current market conditions are properly represented.
(6)	Market value is the total fair value for the security.

As of December 31, 2011 and December 31, 2010, the adjustable and hybrid adjustable rate mortgage loans underlying our Agency Securities have fixed-interest rates for an average period of approximately 76 months and 64 months, respectively, after which time the interest rates reset and become adjustable. After a reset date, interest rates on our adjustable and hybrid adjustable Agency Securities float based on spreads over various indices, typically LIBOR or the one-year Constant Maturity Treasury rate. These interest rates are subject to caps that limit the amount the applicable interest rate can increase during any year, known as an annual cap and through the maturity of the security, known as a lifetime cap.

Our investment portfolio consisted of the following breakdown between Fannie Mae, Freddie Mac and Ginnie Mae at December 31, 2011.

Agency Securities	December 31, 2011
	Estimated Fair Value		Percentage of Total
Settled Securities
Fannie Mae Certificates	$	3,542,883,368		65.7	%
Freddie Mac Certificates		1,316,500,271		24.4
Ginnie Mae Certificates		416,192,001		7.7

Forward Settle Purchased Securities
Fannie Mae Certificates		83,648,538		1.6
Freddie Mac Certificates		34,450,503		0.6
Ginnie Mae Certificates		-		-
Total Securities	$	5,393,674,681		100.0	%

Our investment portfolio consisted of the following breakdown between Fannie Mae, Freddie Mac and Ginnie Mae at December 31, 2010.

Agency Securities	December 31, 2010
	Estimated Fair Value		Percentage of Total
Settled Securities
Fannie Mae Certificates	$	718,542,007		61.8	%
Freddie Mac Certificates		257,316,342		22.2
Ginnie Mae Certificates		60,662,164		5.2

Forward Settle Purchased Securities
Fannie Mae Certificates		125,330,167		10.8
Freddie Mac Certificates		-		-
Ginnie Mae Certificates		-		-
Total Securities	$	1,161,850,680		100.0	%

The following table presents the gross unrealized losses and estimated fair value of our Agency Securities by length of time that such securities have been in a continuous unrealized loss position at December 31, 2011 and December 31, 2010.

	Less than 12 months					12 Months or More					Total
As of	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
December 31, 2011	$	1,173,097,553	$	(3,559,963	)	$	96,684,474	$	(345,495	)	$	1,269,782,027	$	(3,905,458	)
December 31, 2010		706,575,108		(7,873,009	)		-		-			706,575,108		(7,873,009	)

During the years ended December 31, 2011 and 2010, we sold $1.6 billion and $31.5 million of Agency Securities, respectively, resulting in realized gains of $16.6 and $0.2 million. We did not sell any Agency Securities in the year ended December 31, 2009.

The decline in value of these securities is solely due to market conditions and not the quality of the assets. All of our Agency Securities are issued by the GSEs. The GSEs have a rating of “Aaa/AA”. The investments are not considered other than temporarily impaired because we currently have the ability and intent to hold the investments to maturity or for a period of time sufficient for a forecasted market price recovery up to or beyond the cost of the investments and we are not required to sell for regulatory or other reasons. Also, we are guaranteed payment of the principal amount of the securities by the U.S. Government-chartered entity which created them.

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
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+ Details

Note 5 - Derivatives

12 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 5 - Derivatives

We enter into transactions to manage our interest rate risk exposure. These transactions include purchasing or selling Eurodollar Futures Contracts (“Futures Contracts”) as well as entering into interest rate swap contracts. These transactions are designed to lock in funding costs for financing activities associated with our assets in such a way to help assure the realization of attractive net interest margins. Such transactions are based on assumptions about prepayments which, if not realized, will cause transaction results to differ from expectations. We do not designate our activities as cash flow hedges and as such, we recognize changes in the market value of these transactions through earnings. For the years ended December 31, 2011, 2010 and 2009, we recognized an unrealized (loss) gain of ($97.1) million, ($2.6) million and $0.05 million, respectively related to our derivatives. Our derivative instruments are carried on our consolidated balance sheets at fair value, as assets, if their fair value is positive, or as liabilities, if their fair value is negative.

As of December 31, 2011 and December 31, 2010, we had entered into interest rate swap contracts with an aggregate notional balance of $2.8 billion and $155.0 million, respectively. We have agreements with our swap counterparties that provide for the posting of collateral based on the fair values of our interest rate swap contracts. Through this margin process, either we or our swap counterparty may be required to pledge cash or Agency Securities as collateral. Collateral requirements vary by counterparty and change over time based on the market value, notional amount and remaining term of the swap. Certain interest rate swap contracts provide for cross collateralization and cross default with repurchase agreements and other contracts with the same counterparty.

As of December 31, 2011 and December 31, 2010, we had entered into Futures Contracts with an aggregate notional balance of $131.0 million and $214.0 million, respectively, traded in 1,033 and 2,361 individual contracts, respectively. Our Futures Contracts are traded on the Chicago Mercantile Exchange (“CME”) which requires the use of daily mark-to-market collateral and the CME provides substantial credit support. The collateral requirements of the CME require us to pledge assets under a bi-lateral margin arrangement, including either cash or Agency Securities and these requirements may vary and change over time based on the market value, notional amount and remaining term of the Futures Contracts. In the event we are unable to meet a margin call under one of our Futures Contracts, the counterparty to such agreement may have the option to terminate or close-out all of the outstanding Futures Contracts with us. In addition, any close-out amount due to the counterparty upon termination of the counterparty’s transactions would be immediately payable by us pursuant to the applicable agreement.

As of December 31, 2011, included in restricted cash on the consolidated balance sheet is $5.9 million related to margin posted for Futures Contracts as well as $141.3 million of restricted cash related to interest rate swap contracts. As of December 31, 2010, we had $4.4 million of restricted cash related to margin posted for Futures Contracts and $0.3 million related to interest rate swap contracts.

The following tables present information about interest rate swap contracts which are included in derivatives on the accompanying consolidated balance sheet as of December 31, 2011 and December 31, 2010:

	Notional Amount		Fair Value as of December 31, 2011 (1)			Weighted Average Rate
Interest rate swaps maturing 0-12 months	$	20,000,000	$	(83,044	)		0.5	%
Interest rate swaps maturing 12-24 months		45,000,000		(335,290	)		1.1
Interest rate swaps maturing 24-36 months		245,000,000		(6,479,134	)		1.1
Interest rate swaps maturing 36-48 months		905,000,000		(27,247,129	)		1.1
Interest rate swaps maturing 48-60 months		1,550,000,000		(82,290,157	)		1.7
Totals	$	2,765,000,000	$	(116,434,754	)		1.5	%

(1)	See Note 11, “Fair Value of Financial Instruments” for additional discussion.

	Notional Amount		Fair Value as of December 31, 2010 (1)			Weighted Average Rate
Interest rate swaps maturing 12-24 months	$	20,000,000	$	(11,863	)		0.5	%
Interest rate swaps maturing 24-36 months		100,000,000		112,802			1.0
Interest rate swaps maturing 36-48 months		10,000,000		(12,320	)		1.4
Interest rate swaps maturing 48-60 months		25,000,000		(37,255	)		1.9
Totals	$	155,000,000	$	51,364			1.1	%

(1)	See Note 11, “Fair Value of Financial Instruments” for additional discussion.

The following tables present information about Futures Contracts which are included in derivatives on the accompanying consolidated balance sheet as of December 31, 2011 and December 31, 2010:

	Notional Amount		Fair Value as of December 31, 2011 (1)			Weighted Average Rate
Eurodollar Future contracts maturing in 2012	$	10,000,000	$	(52,563	)		1.0	%
Eurodollar Future contracts maturing in 2013		47,000,000		(1,097,438	)		1.6
Eurodollar Future contracts maturing in 2014		64,000,000		(3,473,463	)		2.1
Eurodollar Future contracts maturing in 2015		10,000,000		(668,625	)		2.1
Totals	$	131,000,000	$	(5,292,089	)		1.8	%

(2)	See Note 11, “Fair Value of Financial Instruments” for additional discussion.

	Notional Amount		Fair Value as of December 31, 2010 (1)			Weighted Average Rate
Eurodollar Future contracts maturing in 2012	$	28,000,000	$	(137,950	)		0.8	%
Eurodollar Future contracts maturing in 2013		107,000,000		(1,114,125	)		1.3
Eurodollar Future contracts maturing in 2014		64,000,000		(1,193,113	)		1.8
Eurodollar Future contracts maturing in 2015		15,000,000		(187,524	)		2.1
Totals	$	214,000,000	$	(2,632,712	)		1.6	%

(1)	See Note 11, “Fair Value of Financial Instruments” for additional discussion.

The following table represents the location and information regarding our derivatives which are included in total other (loss) income in the accompanying consolidated statements of operations for the years ended December 31, 2011, 2010 and 2009, respectively.

		(Loss) Gain Recognized in Income
Derivatives	Location on consolidated financial statements	Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2009
Interest rate swap contracts:		$			$			$
Interest income	Realized loss on derivatives		1,457,498			15,401			-
Interest expense	Realized loss on derivatives		(25,017,337	)		(112,236	)		(720	)
Realized (loss) gain	Realized loss on derivatives		(239,000	)		-			-
Changes in fair value	Unrealized (loss)gain on derivatives		(94,427,564	)		(2,683,075	)		-
			(118,226,403	)		(2,779,910	)		(720	)
Futures Contracts:
Realized (loss) gain	Realized loss on derivatives		(1,207,156	)		(414,923	)		-
Changes in fair value	Unrealized (loss)gain on derivatives		(2,659,376	)		102,067			50,363
			(3,866,532	)		(312,856	)		50,363
Totals		$	(122,092,935	)	$	(3,092,766	)	$	49,643

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

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+ Details

Note 6 - Repurchase Agreements

12 Months Ended

Dec. 31, 2011

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

Note 6 - Repurchase Agreements

At December 31, 2011 and December 31, 2010, we had repurchase agreements in place in the amount of $5.3 billion and $1.0 billion, respectively, to finance Agency Security purchases. For the year ended December 31, 2011 and the year ended December 31, 2010, the weighted average interest rate or cost of funds was 0.37% and 0.35%, respectively. At December 31, 2011 and December 31, 2010, we had repurchase agreements outstanding with 23 and 11 counterparties, respectively, with a weighted average maturity of 18 days and 32 days, respectively.

The following tables represent the contractual repricing information regarding our repurchase agreements as of December 31, 2011 and December 31, 2010:

December 31, 2011	Balance		Weighted Average Contractual Rate			Contractual Interest Payments		Total Contractual Obligation
Within 30 days	$	4,068,196,745		0.38	%	$	1,632,730	$	4,069,829,475
31 days to 60 days		1,111,480,600		0.35			544,132		1,112,024,732
61 days to 90 days		156,285,000		0.30			31,908		156,316,908
Total	$	5,335,962,345		0.37	%	$	2,208,770	$	5,338,171,115

December 31, 2010	Balance		Weighted Average Contractual Rate			Contractual Interest Payments		Total Contractual Obligation
Within 30 days	$	656,601,658		0.36	%	$	120,965	$	656,722,623
31 days to 60 days		123,840,000		0.33			27,244		123,867,244
61 days to 90 days		191,234,000		0.32			71,349		191,305,349
Total	$	971,675,658		0.35	%	$	219,558	$	971,895,216

At December 31, 2011, our repurchase agreements had the following counterparties, amount at risk and weighted average remaining maturities.

Repurchase Agreement Counterparties	Amount Outstanding		Amount at Risk (1)		Weighted Average Maturity of Repurchase Agreements in Days		Percent of Total Amount Outstanding
RBS Securities Inc.	$	394,505,679	$	20,979,244		8		7.4	%
Merrill Lynch, Pierce, Fenner & Smith Inc.		367,265,000		13,649,319		22		6.9
UBS Securities LLC		359,287,000		18,729,674		40		6.7
Mitsubishi UFJ Securities (USA)		347,358,589		18,058,050		22		6.5
South Street Securities, LLC		314,125,478		18,888,250		12		5.9
BNP Paribas Securities Corp.		305,908,300		16,208,312		12		5.7
Cantor Fitzgerald & Co.		294,388,000		18,040,438		29		5.5
Nomura Securities International, Inc.		289,596,549		14,723,075		18		5.4
Deutsche Bank Securities Inc.		288,493,000		15,693,979		7		5.4
Goldman Sachs & Company		288,367,000		13,991,518		11		5.4
ICBC Financial Services LLC		261,395,000		13,299,038		21		4.9
J.P. Morgan Securities LLC		257,148,000		13,050,069		10		4.8
Guggenheim Liquidity Securities, LLC		256,342,000		13,191,674		11		4.8
The Bank of Nova Scotia		213,374,000		8,704,316		52		4.0
ING Financial Markets LLC		178,599,000		9,455,890		6		3.3
Daiwa Securities America Inc.		166,385,000		9,496,978		32		3.1
CRT Capital Group LLC		158,689,887		8,469,985		17		3.0
Mizuho Securities USA Inc.		154,132,000		4,698,871		9		3.0
Credit Suisse Securities (USA) LLC		125,055,863		5,817,798		13		2.3
Barclays Capital Inc.		105,645,000		4,995,833		10		2.0
Citigroup Global Markets Inc.		73,986,000		4,205,147		9		1.4
Wells Fargo Bank, N.A.		69,400,000		3,688,555		6		1.3
Pierpont Securities LLC		66,516,000		2,695,502		15		1.3
Total	$	5,335,962,345	$	270,731,515				100.0	%

(1)

Equal to the fair value of securities sold, minus the sum of repurchase agreement liabilities plus accrued interest expense.

At December 31, 2010, our repurchase agreements had the following counterparties, amount at risk and weighted average remaining maturities:

Repurchase Agreement Counterparties	Amount Outstanding		Amount at Risk (1)		Weighted Average Maturity of Repurchase Agreements in Days		Percent of Total Amount Outstanding
Guggenheim Liquidity Securities, LLC	$	141,026,000	$	4,425,424		56		14.5	%
South Street Securities, LLC		135,297,000		6,204,002		29		13.9
Goldman Sachs & Company		132,638,000		6,424,071		19		13.7
MF Global Inc.		127,809,000		4,197,001		56		13.2
Cantor Fitzgerald & Co.		111,982,000		7,658,536		16		11.5
Nomura Securities International, Inc.		95,228,000		2,037,191		40		9.8
RBS Securities Inc.		86,535,658		4,774,360		18		8.9
UBS Securities LLC		46,535,000		2,805,301		27		4.8
Mizuho Securities USA Inc.		39,826,000		1,593,285		10		4.0
Jefferies and Company, Inc.		31,822,000		426,829		10		3.3
Daiwa Securities America Inc.		22,977,000		1,690,799		18		2.4
Total	$	971,675,658	$	42,236,799				100.0	%

(1)

Equal to the fair value of securities sold, minus the sum of repurchase agreement liabilities plus accrued interest expense.

As of December 31, 2011 and December 31, 2010, the weighted average margin requirement, or the percentage amount by which the collateral value must exceed the loan amount, which we also refer to as the haircut, under all our repurchase agreements, was approximately 5.0% and 5.3%, respectively.

Note 7 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Text Block]

Note 7 - Commitments and Contingencies

Management Agreement with ARRM

As discussed in Note 14 “Related Party Transactions,” we are party to a Management Agreement with ARRM. Pursuant to the Management Agreement, as amended, ARRM is entitled to receive a management fee payable monthly in arrears in an amount equal to 1/12th of an amount, with a minimum based on 1/12th of $900,000 (inclusive of the original gross merger equity as defined below), determined as follows:

our gross equity raised up to $50 million, 1% (per annum) of gross equity;

our gross equity raised up to $1.0 billion, 1.5% (per annum) of gross equity;

our gross equity raised exceeds $1.0 billion, 0.75% (per annum) of gross equity.

“Gross Equity Raised” represents an amount in dollars calculated as of the date of determination that is equal to (a) our initial equity capital following the consummation of the Merger, plus (b) equity capital raised in public or private issuances of our equity securities (calculated before underwriting fees and distribution expenses, if any), less (c) capital returned to our stockholders, as adjusted to exclude (d) one-time charges pursuant to changes in GAAP and certain non-cash charges after discussion between ARRM and approved by a majority of the Board.

Operating Leases

We are not party to any agreement for the rental of real property and office space, or any significant leases for office, computer and other equipment or office furnishings.

Indemnifications and Litigation

We enter into certain contracts that contain a variety of indemnifications, to third-parties principally with ARRM and brokers. The maximum potential amount of future payments we could be required to make under these indemnification provisions is unknown. We have not incurred any costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the estimated fair value of these agreements is minimal. Accordingly, we have no liabilities recorded for these agreements as of December 31, 2011 and December 31, 2010.

We are not party to any pending, threatened or contemplated litigation.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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+ Details

Note 8 - Comprehensive Income

12 Months Ended

Dec. 31, 2011

Comprehensive Income (Loss) Note [Text Block]

Note 8 - Comprehensive Income

Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes the reclassification adjustment for realized (gain) on Agency Securities and unrealized gain (loss) on available for sale securities during the period and is reported in our consolidated statements of stockholder’s equity.

	Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2009
Net (Loss) Income	$	(9,442,054	)	$	6,536,857		$	(1,149,427	)
Reclassification adjustment for realized gain on sale of Agency Securities		(16,630,762	)		-			-
Unrealized gain (loss) on available for sale securities		69,608,196			(4,270,369	)		40,839
Other comprehensive income (loss)		52,977,434			(4,270,369	)		40,839
Comprehensive Income (Loss)	$	43,535,380		$	2,266,488		$	(1,108,588	)

- Definition

The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14-26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Note 9 - Share-Based Compensation

12 Months Ended

Dec. 31, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 9 - Share-Based Compensation

2009 Stock Incentive Plan

We adopted the 2009 Stock Incentive Plan (the "Plan") to attract, retain and reward directors, officers and other employees of ours and other persons who provide services to us in the course of operations (collectively "Eligible Individuals").

The Plan provides for grants of common stock, restricted shares of common stock (“RSUs”), stock options, performance shares, performance units, stock appreciation rights and other equity and cash-based awards (collectively “awards.”) On May 12, 2010, the Board allocated up to 250,000 shares to be available under the Plan. In considering such allocation, the Board considered the size of the Plan relative to our capital base and our current and potential future performance and capitalization. On July 18, 2011, our stockholders approved an amendment to the Plan to increase the number of shares issuable thereunder from 250,000 shares to 2,000,000 shares and the Plan was amended accordingly.

The Plan allows for the Board to expand the types of awards available under the Plan and determine the maximum number of shares that may underlie these awards in any one year to any Eligible Individual. If an award granted under the Plan expires or terminates, the shares subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards.

Awards Under the Plan

During the year ended December 31, 2011, we allocated 2,000,000 RSUs subject to various conditions and awarded a total of 192,500 RSUs to members of our Board (the “Board Awards”) and employees of ARRM (the “ARRM Awards”). We account for the ARRM Awards under ASC Topic No. 505-50 ”Equity Based Payments to Non-Employees.” We account for the Board Awards under ASC Topic No. 718 “Compensation- Stock Compensation.” The Board Awards and the ARRM Awards were awarded at a weighted average grant date fair value per RSU of $7.91, determined at the grant date based on the closing price of our common stock. Both awards are service-based awards and vest quarterly in equal amounts over a five year term ending December 31, 2015. We recorded $0.28 million of non-cash compensation expense in the year ended December 31, 2011. These amounts are included in other expenses in our consolidated statement of operations. Of these amounts, $0.06 million at December 31, 2011, were included in accounts payable and accrued expenses representing shares issuable per the agreements and the remaining $0.14 million is included in additional paid in capital; this remaining amount is a net amount which includes $0.08 million of stock compensation withheld to pay income taxes.

As of December 31, 2011, there was approximately $0.2 million of unearned non-cash stock-based compensation related to the Board Awards and $0.9 million related to ARRM awards (based on December 31, 2011 stock price), that we expect to recognize as an expense over the remaining service period of 4.2 years. The Board Awards are expensed on a straight-line basis over the requisite service period of 5 years; the ARRM Awards are valued and expensed as they vest at each quarter commencing March 31, 2011 and ending December 31, 2015, based on the closing price of our common stock on the last trading day of the quarter. At December 31, 2011, 38,520 of our outstanding RSUs were vested.

RSU transactions for the period ended December 31, 2011, are summarized below:

	Number of Awards			Weighted Average Grant Date Fair Value per Award
Unvested Awards Outstanding, December 31, 2010		-		$	-
Granted		192,500			7.91
Vested		(38,520	)		7.91
Unvested Awards Outstanding December 31, 2011		153,980		$	7.91

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

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+ Details

Note 10 - Shareholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders' Equity Note Disclosure [Text Block]

Note 10 - Shareholders’ Equity

Dividends

On January 28, 2011, a cash dividend of $0.12 per common share, or $2.0 million in the aggregate, was paid to holders of record on January 15, 2011. This amount included $0.02 per common share, or $0.3 million in the aggregate, of taxable income related to the year ended December 31, 2010.

On February 25, 2011, a cash dividend of $0.12 per common share, or $3.9 million in the aggregate, was paid to holders of record on February 15, 2011.

On March 30, 2011, a cash dividend of $0.12 per common share, or $3.9 million in the aggregate, was paid to holders of record on March 15, 2011.

On April 28, 2011, a cash dividend of $0.12 per common share, or $5.9 million in the aggregate, was paid to holders of record on April 15, 2011.

On May 27, 2011, a cash dividend of $0.12 per common share, or $5.9 million in the aggregate, was paid to holders of record on May 15, 2011.

On June 29, 2011, a cash dividend of $0.12 per common share, or $8.3 million in the aggregate, was paid to holders of record on June 15, 2011.

On July 28, 2011, a cash dividend of $0.12 per common share, or $9.1 million in the aggregate, was paid to holders of record on July 15, 2011.

On August 30, 2011, a cash dividend of $0.12 per common share, or $9.1 million in the aggregate, was paid to holders of record on August 15, 2011.

On September 29, 2011, a cash dividend of $0.12 per common share, or $10.1 million in the aggregate, was paid to holders of record on September 15, 2011.

On October 28, 2011, a cash dividend of $0.11 per common share, or $9.4 million in the aggregate, was paid to holders of record on October 15, 2011.

On November 29, 2011, a cash dividend of $0.11 per common share, or $9.4 million in the aggregate, was paid to holders of record on November 15, 2011.

On December 29, 2011, a cash dividend of $0.11 per common share, or $10.3 million in the aggregate, was paid to holders of record on December 15, 2011. An additional amount of $0.006 per common share, or $0.6 million in the aggregate, of taxable income related to the year ended December 31, 2011 was paid on January 30, 2012.

On April 29, 2010, a cash dividend of $0.40 per common share, or $0.9 million in the aggregate, was paid to holders of record on March 15, 2010.

On July 29, 2010, a cash dividend of $0.40 per common share, or $0.9 million in the aggregate, was paid to holders of record on June 3, 2010.

On October 29, 2010, a cash dividend of $0.36 per common share, or $2.7 million in the aggregate, was paid to holders of record on September 23, 2010.

On December 27, 2010, a cash dividend of $0.36 per common share, or $4.3 million in the aggregate, was paid to holders of record on December 20, 2010.

Equity Capital Raising Activities

On January 26, 2011, we completed an underwritten follow-on public offering of 6,000,000 shares of common stock at a price of $7.55 per share. The underwriters fully exercised the over-allotment option for 900,000 additional shares. Net proceeds were $49.0 million, net of issuance costs of approximately $3.1 million.

On February 8, 2011, we completed an underwritten follow-on public offering of 7,750,000 shares of common stock at a price of $7.60 per share. The underwriters fully exercised the over-allotment option for 1,162,500 additional shares. Net proceeds were $64.0 million, net of issuance costs of approximately $3.7 million.

On February 18, 2011, we entered into an equity distribution agreement with JMP Securities LLC and Ladenburg Thalmann & Co. Inc., as agents, to offer and sell from time to time up to 6,500,000 shares of our common stock in at-the-market transactions. As of December 31, 2011, we had issued and sold 5,212,430 shares of our common stock under this agreement for net proceeds of $37.5 million.

On April 7, 2011, we implemented a Dividend Reinvestment and Stock Purchase Plan through which investors could purchase additional shares of our common stock by reinvesting some or all of the cash dividends received on shares of our common stock. Shareholders could also make optional cash purchases of shares of our common stock subject to certain limitations detailed in the plan prospectus. As of December 31, 2011 we had issued and sold 13,352,181 shares under the plan for net proceeds of $96.8 million.

On April 13, 2011, we completed an underwritten follow-on public offering of 16,000,000 shares of common stock at a price of $7.40 per share. The underwriters partially exercised the over-allotment option for 1,000,000 additional shares. Net proceeds were $121.1 million, net of issuance costs of approximately $4.7 million.

On June 6, 2011, we completed an underwritten follow-on public offering of 16,000,000 shares of common stock at a price of $7.40 per share. The underwriters fully exercised the over-allotment option for 2,400,000 additional shares. Net proceeds were $131.0 million, net of issuance costs of approximately $5.2 million.

On October 11, 2011, we entered into an equity distribution agreement with Deutsche Bank Securities Inc., JMP Securities LLC and Ladenburg Thalmann & Co. Inc., as agents, to offer and sell, from time to time, up to 40,000,000 shares of our common stock in at-the-market transactions. As of December 31, 2011, we have not sold any shares under this agreement.

On December 13, 2011, we completed an underwritten follow-on public offering of 8,000,000 shares of common stock at a price of $6.80 per share. The underwriters fully exercised the over-allotment option for 1,200,000 additional shares. Net proceeds were $62.4 million, net of issuance costs of approximately $0.2 million.

On June 21, 2010, we completed an underwritten follow-on public offering of 5,110,000 shares of common stock at a price of $6.75 per share. The underwriters did not exercise the over-allotment option for 766,500 additional shares of common stock. Net proceeds were $32.1 million, net of issuance costs of approximately $2.4 million.

On November 9, 2010, we completed an underwritten follow-on public offering of 4,000,000 shares of common stock at a price of $7.25 per share. The underwriters fully exercised the over-allotment option for 600,000 additional shares. Net proceeds were $31.0 million, net of issuance costs of approximately $2.4 million.

On December 22, 2010, we completed an underwritten follow-on public offering of 3,850,000 shares of common stock at a price of $7.50 per share. The underwriters fully exercised the over-allotment option for 577,500 additional shares. Net proceeds were $31.0 million, net of issuance costs of approximately $2.2 million.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Note 11 - Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Text Block]

Note 11 - Fair Value of Financial Instruments

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of valuation hierarchy are defined as follows:

Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The following describes the valuation methodologies used for our assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Cash and restricted cash - Cash includes cash on deposit with financial institutions and investments in high quality overnight money market funds, all of which have maturities of three months or less, at the time of purchase. The carrying amount of cash is deemed to be its fair value. Restricted cash includes cash held by counterparties as collateral.

Agency Securities Available for Sale - Fair value for the Agency Securities in our portfolio is based on obtaining a valuation for each Agency Security from third-party pricing services and dealer quotes. Management reviews pricing used to ensure that current market conditions are properly represented. Values obtained from the independent pricing service for similar instruments are classified as Level 2 securities if the pricing methods used are consistent with the Level 2 definition. If quoted prices for a security are not reasonably available from the pricing service, but dealer quotes are, the security will be re-classified as a Level 3 security. If neither is available, management will determine the fair value based on characteristics of the security that we receive from the issuer and based on available market information received from dealers and classify it as a Level 3 security. At December 31, 2011 and December 31, 2010, all of our Agency Security values were based solely on third-party sources.

Derivative Transactions - The fair value of our Futures Contracts are based on closing prices on the CME. The fair value of our interest rate swap contracts are valued using a third-party. Our Futures Contracts are classified as Level 1 and the value of our interest rate swap contracts are Level 2.

Repurchase Agreements - The fair value of repurchase agreements reflects the present value of the contractual cash flows discounted at the estimated LIBOR based market interest rates at the valuation date for repurchase agreements with a term equivalent to the remaining term to interest rate repricing, which may be at maturity, of our repurchase agreements. The carrying amount of repurchase agreements is deemed to be their fair value.

The following table presents our financial instruments measured at fair value as of December 31, 2011.

	Level 1			Level 2			Level 3		Total
Assets (liabilities) carried at fair value:
Agency Securities, available for sale	$	-		$	5,393,674,681		$	-	$	5,393,674,681
Derivatives		(5,292,089	)		(116,434,754	)		-		(121,726,843	)
Total	$	(5,292,089	)	$	5,277,239,927		$	-	$	5,271,947,838

The following table presents our financial instruments measured at fair value as of December 31, 2010.

	Level 1			Level 2		Level 3		Total
Assets (liabilities) carried at fair value:
Agency Securities, available for sale	$	-		$	1,114,175,921	$	47,674,759	$	1,161,850,680
Derivatives		(2,632,712	)		-		51,364		(2,581,348	)
Total	$	(2,632,712	)	$	1,114,175,921	$	47,726,123	$	1,159,269,332

When a new pool of mortgages is created, the third-party pricing services do not always become aware of the new pool for the early period of its existence. To the extent that we purchase a pool which the pricing service does not have listed, we seek independent third-party pricing from other services or brokers. Additionally, we will ask the third-party pricing service to include those assets in its list of priced assets in the future. As of December 31, 2010, we owned certain assets which were not priced by the independent third-party pricing service and those assets were therefore classified as Level 3 assets. On March 31, 2011, these assets were priced by the pricing service and were therefore, reclassified as Level 2 assets.

The following table presents detail of our Level 3 financial instruments measured at fair value as of December 31, 2011.

	Level 3
Balance as of December 31, 2010	$	47,726,123
Reclassification of Agency Securities		(47,674,759	)
Reclassification of interest rate swap contracts		(51,364	)
Purchases of Agency Securities, at cost		-
Unrealized gain on Agency Securities included in other comprehensive income (loss)		-
Balance as of December 31, 2011	$	-

The following table presents detail of our Level 3 financial instruments measured at fair value as of December 31, 2010.

	Level 3
Balance as of January 1, 2010	$	-
Purchases of Agency Securities, at cost		47,681,986
Unrealized loss on Agency Securities included in other comprehensive income (loss)		(7,227	)
Unrealized gain on interest rate swap contracts included in unrealized (loss) gain on derivatives on the consolidated statements of operations		51,364
Balance as of December 31, 2010	$	47,726,123

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Note 12 - Income Taxes

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Text Block]

Note 12 – Income Taxes

We intend to qualify and have elected to be taxed as a REIT under the Code. We will generally not be subject to federal income tax to the extent that we distribute our taxable income to our shareholders and as long as we satisfy the ongoing REIT requirements including meeting certain asset, income and stock ownership tests.

We have elected to treat Enterprise as a taxable REIT subsidiary, which is a tax paying entity for income tax purposes and it is taxed separately from ARMOUR. As of December 31, 2010, we had recognized refundable income taxes of $0.5 million, related to the carry back of net operating losses incurred by Enterprise in 2009 to prior years in which Enterprise reported taxable income. This amount was received in January 2011.

Our provision for income taxes for the year ended December 31, 2011, included $0.1 million of federal income tax expense resulting from undistributed REIT taxable income. Our provision for income taxes for the year ended December 31, 2010, consisted of federal income tax benefit of $0.2 million resulting from the 2009 net operating loss carry back by Enterprise.

Prior to the merger, our provision for income taxes consisted of:

	Year Ended December 31, 2009
Current:
Federal	$	(393,700	)
State		(490	)
Total current		(394,190	)
Deferred		-
(Benefit) provision for income taxes	$	(394,190	)

Our effective tax rate of (2.0%) differs from the federal statutory rate of 35%, principally because of the dividends paid deduction and the net operating loss carry back of Enterprise from 2009.

The difference between the actual income tax expense and that computed by applying the statutory income tax rate of 35% to pre-tax income from operations for the year ended December 31, 2009, are summarized below:

	Year Ended December 31, 2009
Computed expected tax rate		35.0	%
State income tax, net of federal benefit		3.6
Change in valuation allowance		(16.2	)
Effective tax rate		22.4	%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Note 13 - Interest Rate Risk

12 Months Ended

Dec. 31, 2011

Interest Rate Risk [Text Block]

Note 13 - Interest Rate Risk

Our primary market risk is interest rate risk. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control. Changes in the general level of interest rates can affect net interest income, which is the difference between the interest income earned and the interest expense incurred in connection with the liabilities, by affecting the spread between the interest-earning assets and interest-bearing liabilities. Changes in the level of interest rates also can affect the value of Agency Securities and our ability to realize gains from the sale of these assets. A decline in the value of the Agency Securities pledged as collateral for borrowings under repurchase agreements could result in the counterparties demanding additional collateral pledges or liquidation of some of the existing collateral to reduce borrowing levels.

We seek to manage the extent to which net income changes as a function of changes in interest rates by matching adjustable rate long-term assets with short-term fixed-rate borrowings. We seek to economically mitigate the potential impact on net income of periodic and lifetime coupon adjustment restrictions in the portfolio of Agency Securities by entering into interest rate agreements such as interest rate swaps. As of December 31, 2011 and December 31, 2010, we had entered into interest rate swap contracts to pay a fixed rate and receive a floating rate of interest, with a total notional amount of $2.8 billion and $155.0 million, respectively. Changes in interest rates may also have an effect on the rate of mortgage principal prepayments and, as a result, prepayments on Agency Securities. Prepayments, which result in the expensing of unamortized premium, will reduce net income compared to what net income would be absent such prepayments.

Note 14 - Related Party Transactions

12 Months Ended

Dec. 31, 2011

Note 14 - Related Party Transactions

Post consummation of the Merger Agreement

We are externally-managed by ARRM pursuant to our Management Agreement (see Note 7 for a discussion of our commitments and contingencies). All of our executive officers are also employees of ARRM. ARRM manages our day-to-day operations, subject to the direction and oversight of the Board. The Management Agreement expires on November 6, 2014, and is thereafter automatically renewed for an additional one-year term unless terminated under certain circumstances. ARRM must provide 180 days prior notice of any such termination.

Under the terms of the Management Agreement, ARRM is responsible for costs incident to the performance of its duties, such as compensation of its employees and various overhead expenses. ARRM is responsible for the following primary roles:

Advising us with respect to, arrange for and manage the acquisition, financing, management and disposition of, elements of our investment portfolio,

Evaluating the duration risk and prepayment risk within the investment portfolio and arranging borrowing and hedging strategies,

Coordinating capital raising activities,

Advising us on the formulation and implementation of operating strategies and policies, arranging for the acquisition of assets, monitoring the performance of those assets, arranging for various types of financing and hedging strategies and providing administrative and managerial services in connection with our day-to-day operations and

Providing executive personnel along with administrative personnel, office space and other appropriate services required in rendering management services to us.

For the years ended December 31, 2011, 2010 and 2009, we incurred $6.8 million, $0.7 million and $0.1 million in management fees to ARRM, respectively.

Pre consummation of the Merger Agreement

Enterprise agreed to pay $7,500 per month for office space and general and administrative services. The office space was leased from Bell & Staton, Inc., an affiliate of our officers and directors. For the year ended December 31, 2010 and December 31, 2009, Enterprise paid $0 and $76,500 respectively, of expense related to this agreement.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 3A
-Section 04
-Paragraph b

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

Note 15 - Subsequent Events

12 Months Ended

Dec. 31, 2011

Subsequent Events [Text Block]

Note 15 – Subsequent Events

On January 13, 2012, we completed an underwritten follow-on public offering of 9,000,000 shares of common stock at a price of $6.80 per share. The underwriter fully exercised the over-allotment option for 1,350,000 additional shares. Net proceeds were $70.2 million, net of issuance costs of approximately $0.1 million.

On January 30, 2012, a cash dividend of $0.11 per common share, or $11.6 million in the aggregate, was paid to holders of record on January 15, 2012. This amount included $0.006 per common share of taxable income related to the year ended December 31, 2011.

During the months of January and February 2012, we issued and sold 3,526,000, and 1,197,400 shares of our common stock under the equity distribution agreement dated October 11, 2011, with Deutsche Bank Securities Inc., JMP Securities LLC and Ladenburg Thalmann & Co. Inc., as agents, to offer and sell, from time to time, up to 40,000,000 shares of our common stock in at-the-market transactions for net proceeds of $24.5 million and $8.3 million, respectively.

During the month of February 2012, we issued and sold 1,287,570 shares of our common stock under the equity distribution agreement dated February 18, 2011, with JMP Securities LLC and Ladenburg Thalmann & Co. Inc., as agents, to offer and sell, from time to time, up to 6,500,000 shares of our common stock in at-the-market transactions for net proceeds of $8.9 million.

On February 8, 2012, we completed an underwritten follow-on public offering of 26,000,000 shares of common stock at a price of $6.80 per share. The underwriters fully exercised the over-allotment option for 3,900,000 additional shares. Net proceeds were $203.2 million, net of issuance costs of approximately $0.1 million.

On February 10, 2012, we filed a registration statement on Form S-3 to register shares issuable under the 2012 Dividend Reinvestment and Stock Purchase Plan through which investors may purchase additional shares of our common stock by reinvesting some or all of the cash dividends received on shares of our common stock. Shareholders may also make optional cash purchases of shares of our common stock subject to certain limitations detailed in the plan prospectus.

On February 28, 2012, a cash dividend of $0.11 per common share, or $15.3 million in the aggregate, was paid to holders of record on February 15, 2012. This payment was a distribution of taxable income related to the year ended December 31, 2012.

Note 16 - Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Information [Text Block]

Note 16- Quarterly Financial Data (unaudited)

The following tables are a comparative breakdown of our unaudited quarterly financial results for the immediately preceding eight quarters.

	Quarter Ended
	March 30, 2011			June 30, 2011			September 30, 2011			December 31, 2011
Interest income, net of premium amortization	$	13,523,295		$	29,105,279		$	39,665,171		$	35,344,824
Interest expense		(1,355,481	)		(2,351,430	)		(3,450,885	)		(4,698,151	)
Net interest income		12,167,814			26,753,849			36,214,286			30,646,673
Unrealized (loss) on derivatives		(266,223	)		(25,816,511	)		(65,808,206	)		(5,196,000	)
Realized (loss) on derivatives		(1,925,884	)		(6,078,078	)		(8,420,990	)		(8,581,043	)
Gain on sale of Agency Securities		-			-			6,443,902			10,186,860
Total net revenues (expense)		9,975,707			(5,140,740	)		(31,571,008	)		27,056,490
Operating expenses		(1,370,634	)		(2,128,503	)		(2,898,862	)		(3,313,191	)
Income tax (expense)		(9,000	)		(3,213	)		(2,050	)		(37,050	)
Net income (loss)	$	8,596,073		$	(7,272,456	)	$	(34,471,920	)	$	23,706,249
Net income (loss) per share		0.33			(0.14	)		(0.44	)		0.27
Weighted average share outstanding		26,398,637			53,258,925			78,360,049			86,817,017
Cash dividends declared per share		0.36			0.36			0.36			0.33
Book value per share		6.84			7.14			6.78			6.57

	Quarter Ended
	March 30, 2010			June 30, 2010			September 30, 2010			December 31, 2010
Interest income, net of premium amortization	$	1,108,138		$	1,415,686		$	3,891,240		$	5,745,658
Interest expense		(113,490	)		(159,803	)		(376,728	)		(557,076	)
Net interest income		994,648			1,255,883			3,514,512			5,188,582
Unrealized (loss) gain on derivatives		(596,925	)		(1,456,525	)		(3,391,588	)		2,864,030
Realized (loss) on derivatives		(13,810	)		(6,668	)		(197,657	)		(293,623	)
Gain on sale of Agency Securities		208,094			-			-			-
Total net revenues (expense)		592,007			(207,310	)		(74,733	)		7,758,989
Operating expenses		(283,879	)		(493,033	)		(383,279	)		(523,272	)
Income tax (expense) benefit		(2,400	)		-			(82	)		153,849
Net income (loss)	$	305,728		$	(700,343	)	$	(458,094	)	$	7,389,566
Net income (loss) per share		0.13			(0.22	)		(0.06	)		0.71
Weighted average share outstanding		2,304,054			3,146,362			7,414,054			10,447,179
Cash dividends declared per share		0.40			0.40			0.36			0.38
Book value per share		9.30			7.33			7.29			6.61

The quarterly financial information for all quarters prior to the quarter ended September 30, 2011 has been reclassified to conform with presentation in the consolidated financial statements for the year ended December 31, 2011. See Note 2 "Reclassification".

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details