On October 31, 2011, we paid our third quarter 2011 dividend of $0.25 per share of common stock to shareholders of record as of October 11, 2011. Book value per common share was $7.16 at the end of the third quarter versus $7.48 at June 30, 2011 due primarily to price weakness within the Non-Agency mortgage backed security sector. This is after the $0.25 dividend deducted.
For the third quarter ended September 30, 2011 we generated net income allocable to common stockholders of $81.2 million or $0.23 per share of common stock. Core earnings for the third quarter were $84.7 million or $0.24 per share of common stock. We continue to provide stockholders good attractive returns to appropriate leverage investments in our Agency and Non-Agency residential mortgage backed securities.
Our Agency portfolio had an average amortized cost basis of 102.6% of par as of September 30, 2011, and generated a 3.37% yield in the third quarter. Our Non-Agency portfolio had an average amortized cost of 73.2% of par as of September 30, 2011. And generated a loss adjusted yield of 7.29% in the third quarter. In the third quarter we continue to selectively find value in the Agency hybrid MBS market. In addition, we continue to implement our strategy of identifying and acquiring Non-Agency mortgage backed security with what we consider to be superior loss adjusted yields of prices well below par. Our goal remains to continue positioning MFA to generate double-digits returns on equity overtime.
In the third quarter, the Non-Agency mortgage backed security market like other credit set is a good market became less listed. All this made prices more volatile and also has given longer term investors such as MFA. The opportunity to acquire assets with attractive long-term cash flows. Due to underlying borrower characteristics and structural features, our Non-Agency portfolio was less impacted by price movements, declining an average of 2.4 points.