- Reported book value of $10.01 per common share, representing a 4.2% (1) total return on book value after accounting for a dividend of $0.23 per share.
- Delivered Comprehensive Income of $136.5 million, a return on average equity of 15.7%, or $0.39 per weighted average common share.
- Reported Core Earnings of $82.5 million, or $0.24 per weighted average common share. (2)
- Added $10.6 billion in unpaid principal balance (UPB) of MSR and secured initial financing facility.
- Increased assets in commercial real estate portfolio; aggregate carrying value of $1.1 billion at September 30, 2016.
- Mortgage loan conduit wind down on track to be substantially complete by year-end 2016.
|(1)||Return on book value for the quarter ended September 30, 2016 is defined as the increase in book value from June 30, 2016 to September 30, 2016 of $0.18, plus the dividend declared of $0.23 per share, divided by June 30, 2016 book value of $9.83 per share.|
|(2)||Core Earnings is a non-GAAP measure. Please see page 13 for a definition of Core Earnings and a reconciliation of GAAP to non-GAAP financial information.|
|Two Harbors Investment Corp. Operating Performance (unaudited)|
|(dollars in thousands, except per share data)|
|Three Months Ended||Nine Months Ended|
|September 30, 2016||September 30, 2016|
|Per||return on||Per||return on|
|GAAP Net Income||$||117,786||$||0.34||13.6||%||$||11,875||$||0.03||0.5||%|
|Core Earnings (1)||$||82,529||$||0.24||9.5||%||$||230,535||$||0.66||8.9||%|
|Dividend per common share||$||0.23|
|Book value per share at period end||$||10.01|
|Other operating expenses as a percentage of average equity||1.7||%|
|(1) Please see page 13 for a reconciliation of GAAP to non-GAAP financial information.|