These risks and uncertainties they discussed in the company’s reports filed with the SEC, including its reports on Forms-8K, 10Q, and 10K, and in particular item 1A on the Form-10K report under the title Risk Factors. Listeners are cautioned, not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligations to update any of these forward-looking statements.And with that I will turn it back to Jonathan. Jonathan Cohen Thank you, Purvi. First, a few highlights, for the three and nine months ended September 30, 2010 we had net income of $0.27 and $0.64 per share diluted respectively. And for the three and nine months ended September 30, 2010 we had retaxable income of $0.20 and $0.73. We announced a dividend of $0.25 per common share for the quarter ended September 2010 with $13.7 million in aggregate paid on October 26, 2010 the stockholders of record on September 30, 2010. GAAP book value increased, it was $6.03 per common share as of September 30, 2010 up $5.92 a quarter before. With those highlights out of the way, I will now introduce my colleagues with me today are David Bloom, Senior Vice President in charge of Real Estate Lending and David Bryant, our Chief Financial Officer, as well as Purvi Kamdar, our Director of Investor Relations. The third quarter of 2010 was marked by many positive events including the following, first, our book value per share increased to $6.03 per share from $5.92 per share in June, 2010. Second, we repurchased $20 million par value of our CDO debt at a discount of 31%. Third, our cash position increased to nearly $200 million close to $4 per share positioning us to expand our investment portfolio at substantially higher rates and deleveraging our balance sheet from a net debt standpoint. Fourth, our impairments and importantly our impairments reserves decreased substantially from last quarter while our gains and net interest income increased substantially.
And fifth, and also importantly, we paid our $0.25 dividend after earning $0.27 per share of net income. We focused this quarter on making investments and repositioning our commercial real estate mortgage origination business. We are doing this with $200 million of cash on the balance sheet and no short-term debt. We spent the last few years in defensive mode and that left us well positioned.We are now officially on the offense, our ability to play defense is demonstrated by our deleveraging to discount purchases of our bonds and by the performance of our overall portfolio throughout the financial crisis and after. As one can see, our credit seems to be getting better with write-offs and reserves going down by 50% quarter-over-quarter. Our ability to play offence is highlighted by the gains in the quarter from spotting attractive investment opportunities over the last six months. As for investments, we are restarting the engines of our real estate lending machine. We have kept our team intact from before the financial crisis, we reviewed many opportunities, but we’re selective to choose only the best one. That patience has paid off and we’re finally finding opportunities that indeed set to build. After the quarter, we closed our first two loans, which Dave Bloom our Head of Real Estate Lending will go over in his report. They are truly accretive to earnings as we are reinvesting cash that is currently sitting on the balance sheet earning nothing. Now to credits, this quarter we took the opportunity to increase our general reserve on our commercial real estate loan portfolio by $2.4 million. Also due to a quarter proved bankruptcy settlement, we foreclosed on a portfolio condominium and worked the asset down to the likely sales proceeds, resulting in a $600,000 charge. This was an asset that was already in the pause for many, many quarters.
Under the same path, we impaired one originally rated BBB legacy CMBS bonds, which was purchased in 2007. We replaced it with higher rated bonds at a steep discount and we are very happy to make this trade. Our credit otherwise remained stable and indeed I think improving.Read the rest of this transcript for free on seekingalpha.com