This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Hatteras Financial Corp. Announces Second Quarter 2013 Financial Results

Stocks in this article: HTS

Hatteras Financial Corp. (NYSE: HTS) (“Hatteras” or the “Company”) today announced financial results for the quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  • GAAP net income of $0.66 per weighted average share
  • Net income of $0.60 per weighted average share excluding Eurodollar gains
  • Declared a $0.70 per share dividend
  • Quarter end book value of $22.18 per share
  • Equity decline of 19.3 % for quarter and year-to-date
  • Maintained earning assets
  • Realized average net interest spread of 0.93%
  • Weighted average constant prepayment rate (“CPR”) of 20.8
  • Annualized total expense ratio of 0.92% of average shareholders’ equity
  • Return on average common equity of 9.47%
  • Weighted average repurchase agreement rate of 0.38%

Second Quarter 2013 Results

During the quarter ended June 30, 2013, the Company earned net income available to common shareholders of $65.3 million, or $0.66 per diluted common share, compared to net income of $61.8 million, or $0.62 per diluted common share, during the quarter ended March 31, 2013. The Company realized gains of $8.8 million on sales of its agency securities during the quarter. In addition, $5.5 million of net income was attributable to the mark-to-market of the positive move in the hedge related Eurodollar futures contracts during the quarter. Net interest income for the quarter ended June 30, 2013 was $63.4 million, compared to $71.4 million for the quarter ended March 31, 2013 reflecting the decreasing yield on the portfolio. The Company’s average earning assets increased to $24.8 billion for the second quarter of 2013 from $24.1 billion in the first quarter of 2013. The Company’s net interest margin decreased to 0.93% for the second quarter of 2013 from 1.11% in the first quarter of 2013. The Company’s cost of funds (including hedges) was 0.92% compared to 0.95% in the first quarter of 2013. The Company’s average repurchase agreement (repo) rate for the second quarter of 2013 was 0.38% compared to 0.41% in the first quarter of 2013. The weighted average interest rate on the Company’s interest rate swaps declined from 1.43% in the first quarter of 2013 to 1.41% in the second quarter of 2013. Operating expenses increased slightly to $6.9 million from the prior quarter amount of $6.7 million. Total annualized expenses were 0.92% of average shareholders’ equity for the quarter ended June 30, 2013, slightly above the previous quarter at 0.88%, mostly a reflection of the decrease in average equity.

1 of 12

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs