%PDF-1.5 1 0 obj <> endobj 3 0 obj <> endobj 4 0 obj <> stream BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 297.65 31.60 Td (- 1 -) Tj ET Q /GS0 gs q 165.00 0 0 54.00 50.00 695.00 cm /I1 Do Q BT /F2 10.00 Tf ET BT /F3 13.00 Tf ET q 0 0 0 rg BT 83.60 653.00 Td (T) Tj ET Q q 0 0 0 rg BT 91.31 653.00 Td (wo Harbors Investment Corp. Reports ) Tj ET Q BT /F3 13.00 Tf ET q 0 0 0 rg BT 308.68 653.00 Td (Fourth Quarter) Tj ET Q BT /F3 13.00 Tf ET q 0 0 0 rg BT 396.17 653.00 Td ( ) Tj ET Q BT /F3 13.00 Tf ET q 0 0 0 rg BT 399.42 653.00 Td (2013) Tj ET Q BT /F3 13.00 Tf ET q 0 0 0 rg BT 425.42 653.00 Td ( Financial Results) Tj ET Q BT /F4 12.00 Tf ET q 0 0 0 rg BT 76.85 638.60 Td (Deliver) Tj ET Q q 0 0 0 rg BT 112.39 638.60 Td (ed Str) Tj ET Q q 0 0 0 rg BT 140.27 638.60 Td (ong 2013 Return on Book V) Tj ET Q q 0 0 0 rg BT 272.59 638.60 Td (alue of 10.4%) Tj ET Q BT /F4 12.00 Tf ET BT /F4 7.80 Tf ET q 0 0 0 rg BT 339.58 644.04 Td (\(1\)) Tj ET Q BT /F4 12.00 Tf ET q 0 0 0 rg BT 348.67 638.60 Td ( While ) Tj ET Q q 0 0 0 rg BT 382.45 638.60 Td (Advancing Strategic Initiatives) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 606.40 Td (NEW) Tj ET Q q 0 0 0 rg BT 76.08 606.40 Td ( ) Tj ET Q q 0 0 0 rg BT 78.42 606.40 Td (YORK, ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 116.92 606.40 Td (February5, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 197.28 606.40 Td ( - ) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 206.3388671875 604.93369140625 m 342.94482421875 604.93369140625 l s q 0 0 1 rg BT 206.24 606.40 Td (T) Tj ET Q q 0 0 1 rg BT 212.19 606.40 Td (wo Harbors Investment Corp.) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 342.94 606.40 Td ( \(NYSE: ) Tj ET Q q 0 0 0 rg BT 383.69 606.40 Td (TWO\), a real estate investment trust ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 593.25 Td (that invests in residential mortgage-backed securities \(RMBS\), residential mortgage loans, mortgage servicing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 580.05 Td (rights \(MSR\) and other financial assets, today announced its financial results for the quarter ended) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 482.85 580.05 Td ( ) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 566.85 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 566.85 Td (.) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 534.60 Td (Highlights ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 509.45 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 509.45 Td (Book value was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.01 509.45 Td ($10.56) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 189.26 509.45 Td ( per diluted common share, representing a 4.5%) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 399.73 514.43 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.06 509.45 Td ( return on book value, after ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 496.25 Td (accounting for a dividend of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.38 496.25 Td ($0.26) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 238.13 496.25 Td ( per share. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 469.85 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.85 469.85 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 469.85 Td (Delivered Comprehensive Income of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 251.55 469.85 Td ($171.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.80 469.85 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.75 469.85 Td ($0.47) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.50 469.85 Td ( per diluted weighted average common ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 456.65 Td (share. Comprehensive Income for the year ended December 31, 2013 was $327.3 million, a return on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 443.45 Td (average equity of 8.5%, or $0.93 per diluted weighted average common share.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 418.25 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 418.25 Td (Reported Core Earnings of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 206.97 418.25 Td ($76.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 231.72 418.25 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.66 418.25 Td ($0.21) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.41 418.25 Td ( per diluted weighted average common share. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 391.85 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 391.85 Td (Generated an aggregate yield of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.23 391.85 Td (4.3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 252.14 391.85 Td ( in the portfolio, driven primarily by ) Tj ET Q q 0 0 0 rg BT 414.06 391.85 Td (Agency RMBS, ) Tj ET Q q 0 0 0 rg BT 486.48 391.85 Td (Agency ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 378.65 Td (Derivatives and MSR yield of 3.2%.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 352.25 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 352.25 Td (Completed a bulk acquisition of MSR from Flagstar Bank, FSB \(Flagstar\), a subsidiary of Flagstar ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 339.05 Td (Bancorp, Inc., and initiated a flow sale arrangement with PHH Mortgage Corporation \(PHH\) to acquire ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 325.85 Td (MSR on newly originated residential mortgage loans.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 300.65 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 300.65 Td (Announced that ) Tj ET Q q 0 0 0 rg BT 158.50 300.65 Td (TH Insurance Holdings Company LLC \(TH Insurance\), a wholly owned subsidiary of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 287.45 Td (company) Tj ET Q q 0 0 0 rg BT 125.61 287.45 Td (, was approved for membership in the Federal Home Loan Bank of Des Moines \(FHLB\), ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 274.25 Td (providing a diversified funding source and increased portfolio flexibility through a variety of products and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 261.05 Td (services provided by the FHLB. ) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 86.00 246.65 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 207.05 Td (T) Tj ET Q q 0 0 0 rg BT 60.83 207.05 Td (wo Harbors delivered strong return on book value of 10.4%) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 323.54 212.03 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 331.88 207.05 Td ( in 2013 despite a challenging backdrop, which is a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 193.85 Td (testament to our portfolio management and risk mitigation strategies, stated ) Tj ET Q q 0 0 0 rg BT 389.80 193.85 Td (Thomas Siering, ) Tj ET Q q 0 0 0 rg BT 465.06 193.85 Td (T) Tj ET Q q 0 0 0 rg BT 471.01 193.85 Td (wo Harbors) Tj ET Q q 0 0 0 rg BT 525.49 193.85 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 180.60 Td (President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 197.65 180.60 Td (ficer) Tj ET Q q 0 0 0 rg BT 217.19 180.60 Td (. Importantly) Tj ET Q q 0 0 0 rg BT 278.79 180.60 Td (, we also reported significant achievements related to our new ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 167.40 Td (investment initiatives this year) Tj ET Q q 0 0 0 rg BT 184.28 167.40 Td (, which we believe will create franchise value and drive attractive long-term returns ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 154.20 Td (for our stockholders. ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 88.20 Td (\(1\) Return on book value for the year ended December 31, 2013 is defined as the decrease in book value per diluted share, from December 31, 2012 to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 78.60 Td (December 31, 2013 of $0.98, plus dividends declared of $2.18 per share, including the Silver Bay common stock dividend amounting to $1.01 per share, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 69.00 Td (divided by December 31, 2012 diluted book value of $1) Tj ET Q q 0 0 0 rg BT 228.77 69.00 Td (1.54 per share.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 59.40 Td (\(2\) Return on book value for the quarter ended December 31, 2013 is defined as the increase in book value per diluted share, from September 30, 2013 to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 49.80 Td (December 31, 2013 of $0.21, plus dividend declared of $0.26 per share, divided by September 30, 2013 diluted book value of $10.35 per share.) Tj ET Q endstream endobj 5 0 obj <> endobj 6 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.65 31.60 Td (- 2 -) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 741.60 Td (Operating Performance) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 723.40 Td (The following table summarizes the company) Tj ET Q q 0 0 0 rg BT 254.36 723.40 Td (s GAAP) Tj ET Q q 0 0 0 rg BT 290.93 723.40 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 362.02 723.40 Td ( earnings measurements and key metrics for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 710.20 Td (the respective periods in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 159.96 710.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.96 710.20 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 686.50 490.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 658.50 184.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 658.50 150.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 658.50 6.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 658.50 150.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 621.50 184.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 621.50 50.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.50 621.50 50.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 621.50 50.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 621.50 6.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 621.50 50.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 621.50 50.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 621.50 50.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 553.50 184.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 553.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.50 553.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 553.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 553.50 6.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 553.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 553.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 553.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 517.50 184.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 517.50 50.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.50 517.50 50.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 517.50 50.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 517.50 6.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 517.50 50.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 517.50 50.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 517.50 50.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 492.50 184.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 492.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.50 492.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 492.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 492.50 6.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 492.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 492.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 492.50 50.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 456.50 184.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.50 456.50 50.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.50 456.50 50.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 456.50 50.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 456.50 6.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 456.50 50.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 456.50 50.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 456.50 50.00 -22.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 635.5 m 292.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 635.5 m 342.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 635.5 m 392.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 635.5 m 398.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 635.5 m 448.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 635.5 m 498.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 635.5 m 548.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 571.5 m 292.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 571.5 m 342.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 571.5 m 392.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 571.5 m 398.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 571.5 m 448.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 571.5 m 498.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 571.5 m 548.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242.5 571.5 m 292.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 571.5 m 342.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 571.5 m 392.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 571.5 m 398.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 571.5 m 448.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 571.5 m 498.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 571.5 m 548.5 571.5 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 676.95 Td (Two Harbors Operating Performance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 662.96 Td (\(dollars in thousands, except per share data\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 279.00 648.96 Td (Three Months Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 281.60 639.96 Td (December 31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 452.05 648.96 Td (Year Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 437.60 639.96 Td (December 31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 296.25 625.96 Td (\(unaudited\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 452.25 625.96 Td (\(unaudited\)) Tj ET Q BT /F3 9.00 Tf ET 0 0 0 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 61 574.546337890625 m 96.01123046875 574.546337890625 l s q 0 0 0 rg BT 61.00 575.95 Td (Earnings) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 254.75 575.96 Td ( Earnings) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 297.50 593.96 Td ( Per diluted) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 306.00 584.96 Td (weighted) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 320.00 575.96 Td (share) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 347.50 602.96 Td (Annualized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 356.25 593.96 Td (return on) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 361.00 584.96 Td (average) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 366.50 575.96 Td (equity) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 410.75 575.96 Td ( Earnings) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.50 593.96 Td ( Per diluted) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 462.00 584.96 Td (weighted) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 476.00 575.96 Td (share) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 503.50 602.96 Td (Annualized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.25 593.96 Td (return on) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 517.00 584.96 Td (average) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 522.50 575.96 Td (equity) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 557.96 Td (Core Earnings) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 112.74 562.04 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 245.00 557.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 259.75 557.96 Td (76,390) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 295.00 557.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 323.25 557.96 Td (0.21) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 373.25 557.96 Td (7.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 384.50 557.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.00 557.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 415.75 557.96 Td (311,829) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.00 557.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 479.25 557.96 Td (0.89) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.25 557.96 Td (8.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 557.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 539.96 Td (GAAP Net Income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 245.00 539.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 255.25 539.96 Td (239,414) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 295.00 539.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 323.25 539.96 Td (0.66) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 368.75 539.96 Td (24.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 384.50 539.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.00 539.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 415.75 539.96 Td (579,039) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.00 539.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 479.25 539.96 Td (1.65) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 524.75 539.96 Td (15.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 539.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 521.96 Td (Comprehensive Income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 245.00 521.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 255.25 521.96 Td (171,375) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 295.00 521.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 323.25 521.96 Td (0.47) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 368.75 521.96 Td (17.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 384.50 521.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.00 521.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 415.75 521.96 Td (327,316) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.00 521.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 479.25 521.96 Td (0.93) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.25 521.96 Td (8.5) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 521.96 Td (%) Tj ET Q BT /F3 9.00 Tf ET 0 0 0 RG /GS0 gs 0.86 w 0 i [] 0 d 1 J 1 j 3 M 61 495.546337890625 m 132.2265625 495.546337890625 l s q 0 0 0 rg BT 61.00 496.95 Td (Operating Metrics) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 478.96 Td (Dividend per common share) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 245.00 478.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 268.75 478.96 Td (0.26) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 460.96 Td (Book value per diluted share at period end) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 245.00 460.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 264.25 460.96 Td (10.56) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 447.76 Td (Other operating expenses as a percentage of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 438.76 Td (average equity) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.25 438.96 Td (1.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 284.50 438.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 418.76 Td (\(1\) Core Earnings is a non-GAAP measure that the company defines as net income, excluding impairment losses, gains or losses on) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 409.76 Td (sales of securities and termination of interest rate swaps, unrealized gains or losses on the aggregate portfolio, certain non-recurring) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 400.76 Td (gains and losses related to discontinued operations and amortization of business combination intangible assets, and certain non-) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 391.76 Td (recurring upfront costs related to securitization transactions. As defined, Core Earnings includes interest income associated with the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 382.76 Td (company's inverse interest-only securities \(Agency Derivatives\) and premium income or loss on credit default swaps, and servicing) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 373.76 Td (income, net of estimated amortization on mortgage servicing rights.) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 343.33369140625 m 134.626953125 343.33369140625 l s q 0 0 0 rg BT 50.00 344.80 Td (Earnings Summary) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 326.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 326.60 Td (wo Harbors reported Core Earnings for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.39 326.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.83 326.60 Td ( of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 411.49 326.60 Td ($76.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.24 326.60 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 488.18 326.60 Td ($0.21) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 512.93 326.60 Td ( per ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 313.40 Td (diluted weighted average common share outstanding, as compared to Core Earnings for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 300.20 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 138.29 300.20 Td ( of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 152.95 300.20 Td ($67.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.70 300.20 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.65 300.20 Td ($0.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.40 300.20 Td ( per diluted weighted average common share outstanding. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 273.80 Td (For the fourth quarter) Tj ET Q q 0 0 0 rg BT 144.56 273.80 Td (, the company recognized:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 260.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 260.60 Td (a net realized gain on RMBS and mortgage loans held-for) Tj ET Q q 0 0 0 rg BT 340.24 260.60 Td (-sale of $98.6 million, net of tax;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 247.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 247.40 Td (unrealized losses on trading securities, mortgage loan forward purchase commitments and mortgage loans ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 234.20 Td (held-for) Tj ET Q q 0 0 0 rg BT 121.21 234.20 Td (-sale of $6.2 million, net of tax;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 221.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 221.00 Td (a net gain of $21.1 million, net of tax, related to swap and swaption terminations and expirations; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 207.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 207.80 Td (an unrealized gain, net of tax, of $8.3 million associated with its interest rate swaps and swaptions ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 194.60 Td (economically hedging its repurchase agreements, available-for) Tj ET Q q 0 0 0 rg BT 361.27 194.60 Td (-sale securities, trading securities, to-be-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 181.40 Td (announced securities \(TBAs\) and MSR;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 168.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 168.20 Td (net realized and unrealized gains on other derivative instruments of approximately $25.7 million, net of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 155.00 Td (tax; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 141.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 141.80 Td (a net realized and unrealized loss on financing securitizations of $2.4 million, net of tax;) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 128.60 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.85 128.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 128.60 Td (a net increase in fair value of $12.5 million) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 275.69 133.58 Td (\(2\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 284.02 128.60 Td ( on MSR, net of tax; ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 115.40 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 71.85 115.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 115.40 Td (income from discontinued operations of $0.7 million, net of tax; and) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 102.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 102.20 Td (amortization of intangible assets of $0.7 million, net of tax.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 57.80 Td (\(2\) Increase in fair value on MSR, net of tax, of $12.5 million is comprised of an increase in fair value of $17.9 million excluded from Core Earnings, of) Tj ET Q q 0 0 0 rg BT 537.95 57.80 Td (fset ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 48.20 Td (by $5.4 million of estimated amortization included in Core Earnings.) Tj ET Q endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.65 31.60 Td (- 3 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 741.40 Td (The company reported GAAP) Tj ET Q q 0 0 0 rg BT 181.86 741.40 Td ( Net Income of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.89 741.40 Td ($239.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.14 741.40 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.08 741.40 Td ($0.66) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.83 741.40 Td ( per diluted weighted average common share ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 728.20 Td (outstanding, for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.51 728.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 287.95 728.20 Td (, as compared to GAAP) Tj ET Q q 0 0 0 rg BT 392.33 728.20 Td ( Net Loss of $192.7 million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 715.00 Td ($0.53 per diluted weighted average common share outstanding, for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.32 715.00 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.61 715.00 Td (. On a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 701.80 Td (GAAP) Tj ET Q q 0 0 0 rg BT 79.54 701.80 Td ( basis, the company earned an annualized return on average equity of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 386.50 701.80 Td (24.8%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 414.91 701.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 436.29 701.80 Td (\(20.2\)%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 472.03 701.80 Td ( for the quarters ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 688.60 Td (ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.01 688.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 165.46 688.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 186.84 688.60 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 275.13 688.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 333.06 688.60 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 675.40 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 662.20 Td (The company reported Comprehensive Income of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.76 662.20 Td ($171.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.01 662.20 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.95 662.20 Td ($0.47) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.70 662.20 Td ( per diluted weighted average common ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 649.00 Td (share outstanding, for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.47 649.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.91 649.00 Td (, as compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.74 649.00 Td ($54.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 413.49 649.00 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 465.44 649.00 Td ($0.15) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 490.19 649.00 Td ( per diluted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 635.80 Td (weighted average common share outstanding, for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 348.72 635.80 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.01 635.80 Td (. ) Tj ET Q q 0 0 0 rg BT 442.32 635.80 Td (The company records ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 622.60 Td (unrealized fair value gains and losses for RMBS securities, classified as available-for) Tj ET Q q 0 0 0 rg BT 424.88 622.60 Td (-sale, as Other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 609.40 Td (Comprehensive Income in the Statement of Stockholders) Tj ET Q q 0 0 0 rg BT 303.96 609.40 Td ( Equity) Tj ET Q q 0 0 0 rg BT 335.32 609.40 Td (. On a Comprehensive Income basis, the company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 596.20 Td (recognized an annualized return on average equity of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 286.39 596.20 Td (17.7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 314.80 596.20 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 336.18 596.20 Td (5.7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.10 596.20 Td ( for the quarters ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 460.80 596.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 547.25 596.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 583.00 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.63 583.00 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.92 583.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 214.85 583.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 569.80 Td () Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 555.13369140625 m 132.47314453125 555.13369140625 l s q 0 0 0 rg BT 50.00 556.60 Td (Other Key Metrics) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 538.40 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 538.40 Td (wo Harbors declared a quarterly cash dividend of $0.26 per common share for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.04 538.40 Td (December31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.20 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 525.20 Td (. ) Tj ET Q q 0 0 0 rg BT 77.30 525.20 Td (The annualized dividend yield on the company) Tj ET Q q 0 0 0 rg BT 286.85 525.20 Td (s common stock for the fourth quarter of 2013, based on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 512.00 Td ( closing price of $9.28, was 1) Tj ET Q q 0 0 0 rg BT 265.56 512.00 Td (1.2%. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 498.80 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 485.60 Td (The company) Tj ET Q q 0 0 0 rg BT 113.23 485.60 Td (s book value per diluted share, after taking into account the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.53 485.60 Td (fourth quarter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.31 485.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.06 485.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.06 485.60 Td ( dividend of $0.26 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 472.40 Td (per share, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 115.36 472.40 Td ($10.56) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 145.61 472.40 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 172.19 472.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 258.63 472.40 Td (, compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.55 472.40 Td ($10.35) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 351.80 472.40 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.38 472.40 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 466.67 472.40 Td (, which represented ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 459.20 Td (a total return on book value for the quarter of 4.5%.) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 277.26 464.18 Td (\(1\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 432.80 Td (Other operating expenses for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 196.31 432.80 Td (fourth quarter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 257.09 432.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 259.84 432.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.84 432.80 Td ( were approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.99 432.80 Td ($12.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.74 432.80 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.69 432.80 Td (1.3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.60 432.80 Td ( of average equity) Tj ET Q q 0 0 0 rg BT 552.99 432.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 419.60 Td (compared to approximately $9.2 million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.90 419.60 Td (1.0%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.81 419.60 Td ( of average equity) Tj ET Q q 0 0 0 rg BT 346.20 419.60 Td (, for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.46 419.60 Td (third quarter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 438.14 419.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.89 419.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 462.89 419.60 Td (. ) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 393.20 Td (Portfolio Summary) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 375.00 Td (The company) Tj ET Q q 0 0 0 rg BT 113.23 375.00 Td (s aggregate portfolio is principally comprised of RMBS available-for) Tj ET Q q 0 0 0 rg BT 417.26 375.00 Td (-sale securities and ) Tj ET Q q 0 0 0 rg BT 503.09 375.00 Td (Agency ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 361.80 Td (Derivatives, MSR, residential mortgage loans held-for) Tj ET Q q 0 0 0 rg BT 288.97 361.80 Td (-sale and net economic interests in securitization trusts. ) Tj ET Q q 0 0 0 rg BT 537.01 361.80 Td (As ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 348.60 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 61.91 348.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 148.36 348.60 Td (, the total value of the company) Tj ET Q q 0 0 0 rg BT 290.39 348.60 Td (s portfolio was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 358.53 348.60 Td ($13.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.28 348.60 Td ( billion. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 323.40 Td (The portfolio includes the rates strategy) Tj ET Q q 0 0 0 rg BT 224.31 323.40 Td (, which consists of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 308.95 323.40 Td ($10.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.70 323.40 Td ( billion of ) Tj ET Q q 0 0 0 rg BT 379.23 323.40 Td (Agency RMBS, ) Tj ET Q q 0 0 0 rg BT 451.65 323.40 Td (Agency Derivatives and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 310.20 Td (MSR, as well as associated notional hedges. ) Tj ET Q q 0 0 0 rg BT 249.60 310.20 Td (The remaining portfolio was invested in the credit strategy) Tj ET Q q 0 0 0 rg BT 506.70 310.20 Td (, which ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 297.00 Td (consists of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.50 297.00 Td ($3.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 118.75 297.00 Td ( billion of non-Agency RMBS, net economic interests in securitization trusts, prime jumbo ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 283.80 Td (residential mortgage loans and credit sensitive loans \(CSL\), and their associated notional hedges.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 258.60 Td (For the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.13 258.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 233.57 258.60 Td (, the annualized yield on our average aggregate portfolio was 4.3% and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 245.40 Td (the annualized cost of funds on the associated average borrowings, which includes net interest rate spread expense ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 232.20 Td (on interest rate swaps, was 1.1%. ) Tj ET Q q 0 0 0 rg BT 198.57 232.20 Td (This resulted in a net interest rate spread of 3.2%.) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 205.53369140625 m 189.00927734375 205.53369140625 l s q 0 0 0 rg BT 50.00 207.00 Td (RMBS and ) Tj ET Q q 0 0 0 rg BT 101.35 207.00 Td (Agency Derivatives) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 188.80 Td (For the quarter ended December31, 2013, the annualized yield on average RMBS securities and ) Tj ET Q q 0 0 0 rg BT 476.73 188.80 Td (Agency ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 175.60 Td (Derivatives was 4.2%, consisting of an annualized yield of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.18 175.60 Td (3.1%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.09 175.60 Td ( in ) Tj ET Q q 0 0 0 rg BT 347.54 175.60 Td (Agency RMBS and ) Tj ET Q q 0 0 0 rg BT 435.85 175.60 Td (Agency Derivatives and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 162.40 Td (8.9% in non-Agency RMBS. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 137.20 Td (The company experienced a three-month average constant prepayment rate \(CPR\) of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.98 137.20 Td (7.9%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.90 137.20 Td ( for ) Tj ET Q q 0 0 0 rg BT 466.61 137.20 Td (Agency RMBS ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 124.00 Td (securities and ) Tj ET Q q 0 0 0 rg BT 112.32 124.00 Td (Agency Derivatives held as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 248.24 124.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 334.68 124.00 Td (, as compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.52 124.00 Td (8.7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 432.43 124.00 Td ( for securities held as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 110.80 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 138.29 110.80 Td (. ) Tj ET Q q 0 0 0 rg BT 143.59 110.80 Td (The weighted average cost basis of the principal and interest ) Tj ET Q q 0 0 0 rg BT 411.78 110.80 Td (Agency portfolio was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 509.84 110.80 Td (108.2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 543.75 110.80 Td ( of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 97.60 Td (par as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 90.62 97.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.06 97.60 Td (, compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.99 97.60 Td (108.1%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.90 97.60 Td ( of par as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 329.18 97.60 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.47 97.60 Td (. ) Tj ET Q q 0 0 0 rg BT 422.78 97.60 Td (The net premium amortization ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 84.40 Td (was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 69.86 84.40 Td ($35.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 94.61 84.40 Td ( million and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 150.52 84.40 Td ($42.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 175.27 84.40 Td ( million for the quarters ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 311.51 84.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.95 84.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.33 84.40 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 507.62 84.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 71.20 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 71.20 Td (.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 55.60 Td (\(1\) Return on book value for the quarter ended December 31, 2013 is defined as the increase in book value per diluted share, from September 30, 2013 to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 46.00 Td (December 31, 2013 of $0.21, plus dividend declared of $0.26 per share, divided by September 30, 2013 diluted book value of $10.35 per share.) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.65 31.60 Td (- 4 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 741.40 Td (The company experienced a three-month average CPR of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.34 741.40 Td (3.8%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.25 741.40 Td ( for non-Agency principal and interest RMBS ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 728.20 Td (securities held as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 139.80 728.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 226.25 728.20 Td (, as compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.08 728.20 Td (4.8%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.00 728.20 Td ( for those securities held as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 458.10 728.20 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 546.39 728.20 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 715.00 Td (The weighted average cost basis of the non-Agency portfolio was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 341.41 715.00 Td (53.7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 369.82 715.00 Td ( of par as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 425.11 715.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 511.55 715.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 701.80 Td (compared to 52.6% of par in the prior quarter) Tj ET Q q 0 0 0 rg BT 249.46 701.80 Td (. ) Tj ET Q q 0 0 0 rg BT 254.76 701.80 Td (The discount accretion was $33.5 million and $37.2 million for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 688.60 Td (quarters ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 117.19 688.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 203.63 688.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 225.02 688.60 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 313.31 688.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 371.23 688.60 Td (. ) Tj ET Q q 0 0 0 rg BT 376.54 688.60 Td (The total net discount remaining was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 675.40 Td ($2.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 69.25 675.40 Td ( billion as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 127.30 675.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 213.74 675.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 235.13 675.40 Td ($2.5) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 254.38 675.40 Td ( billion as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 312.43 675.40 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.72 675.40 Td (, with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.52 675.40 Td ($1.2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.77 675.40 Td ( billion designated as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 662.20 Td (credit reserve as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.12 662.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 222.56 662.20 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 635.80 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.89 635.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.33 635.80 Td (, fixed-rate investments composed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 316.98 635.80 Td (70.9%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 345.39 635.80 Td ( and adjustable-rate investments composed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 622.60 Td (29.1%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 78.41 622.60 Td ( of the company) Tj ET Q q 0 0 0 rg BT 152.64 622.60 Td (s RMBS and ) Tj ET Q q 0 0 0 rg BT 211.02 622.60 Td (Agency Derivatives portfolio. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 596.20 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.89 596.20 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.33 596.20 Td (, the company had mortgage loans held-for) Tj ET Q q 0 0 0 rg BT 352.19 596.20 Td (-investment with a carrying value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 514.69 596.20 Td ($792.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 544.94 596.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 583.00 Td (million and the company) Tj ET Q q 0 0 0 rg BT 162.73 583.00 Td (s collateralized borrowings had a carrying value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 388.75 583.00 Td ($639.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 419.00 583.00 Td ( million, resulting in net ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 569.80 Td (economic interests in securitization trusts of $152.7 million.) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 541.93369140625 m 169.15234375 541.93369140625 l s q 0 0 0 rg BT 50.00 543.40 Td (Mortgage Servicing Rights) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 525.20 Td (The company held MSR on mortgage loans having ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 277.29 525.20 Td ($42.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.04 525.20 Td ( billion in unpaid principal balance, which were carried at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 512.00 Td (a fair market value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.42 512.00 Td ($514.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 177.67 512.00 Td ( million on its balance sheet as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 327.36 512.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 413.80 512.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 486.80 Td (The company does not directly service mortgage loans, but instead contracts with fully licensed subservicers to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 473.60 Td (handle all servicing functions for the loans underlying the company) Tj ET Q q 0 0 0 rg BT 350.28 473.60 Td (s MSR assets. ) Tj ET Q q 0 0 0 rg BT 417.01 473.60 Td (The company recognized $10.8 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 460.40 Td (million of servicing income, $2.2 million of sub-servicing expense and $13.1 million increase in fair value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 447.20 Td (MSR.) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 420.53369140625 m 183.7939453125 420.53369140625 l s q 0 0 0 rg BT 50.00 422.00 Td (Mortgage Loans Held for Sale) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 403.80 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.89 403.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.33 403.80 Td (, the company held prime jumbo residential mortgage loans with a carrying value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 390.60 Td ($1) Tj ET Q q 0 0 0 rg BT 60.59 390.60 Td (19.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.84 390.60 Td ( million. ) Tj ET Q q 0 0 0 rg BT 122.42 390.60 Td (The company) Tj ET Q q 0 0 0 rg BT 185.65 390.60 Td (s forward purchase commitment to acquire mortgage loans consisted of $12.1 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 377.40 Td (million in unpaid principal balance. For the quarter ended December31, 2013, the annualized yield on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 364.20 Td (mortgage loan portfolio was 4.0%. ) Tj ET Q q 0 0 0 rg BT 205.29 364.20 Td (The company) Tj ET Q q 0 0 0 rg BT 268.52 364.20 Td (s intention in the future is to securitize and/or exit through a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 351.00 Td (whole loan sale. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 325.80 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.89 325.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.33 325.80 Td (, the company held CSL) Tj ET Q q 0 0 0 rg BT 269.54 325.80 Td ( with a carrying value of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.11 325.80 Td ($424.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.36 325.80 Td ( million. For the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 312.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 312.60 Td (, the annualized yield on the mortgage loan portfolio was 5.2%. ) Tj ET Q q 0 0 0 rg BT 418.50 312.60 Td (The company) Tj ET Q q 0 0 0 rg BT 481.73 312.60 Td (s intention in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 299.40 Td (future is to securitize and/or exit through a whole loan sale. ) Tj ET Q BT /F2 11.00 Tf ET 0 0 0 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 260.73369140625005 m 286.134765625 260.73369140625005 l s q 0 0 0 rg BT 50.00 262.20 Td (Other Investments and Risk Management Derivatives) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 244.00 Td (The company held ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 134.61 244.00 Td ($1.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 153.86 244.00 Td ( billion of U.S. ) Tj ET Q q 0 0 0 rg BT 222.11 244.00 Td (T) Tj ET Q q 0 0 0 rg BT 228.44 244.00 Td (reasuries classified on its balance sheet as trading securities as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 230.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 230.80 Td (. ) Tj ET Q q 0 0 0 rg BT 144.49 230.80 Td (The company also held ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 249.57 230.80 Td ($0.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 268.82 230.80 Td ( billion notional of net long ) Tj ET Q q 0 0 0 rg BT 392.06 230.80 Td (TBAs as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 444.92 230.80 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 531.36 230.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 217.60 Td (which are accounted for as derivative instruments, in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 388.74 217.60 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 192.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.89 192.40 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.33 192.40 Td (, the company was a party to interest rate swaps and swaptions with a net aggregate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 179.20 Td (notional amount of $24.7 billion, of which $19.6 billion was utilized to economically hedge interest rate risk ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 166.00 Td (associated with the company) Tj ET Q q 0 0 0 rg BT 179.82 166.00 Td (s short-term LIBOR-based repurchase agreements.) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.65 31.60 Td (- 5 -) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (The following table summarizes the company) Tj ET Q q 0 0 0 rg BT 235.78 742.10 Td (s investment portfolio: ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 731.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 731.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 731.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 731.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 707.60 325.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 707.60 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 707.60 93.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 707.60 76.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 680.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 680.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 680.60 169.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 656.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 656.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 656.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 656.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 632.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 632.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 632.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 632.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 608.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 608.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 608.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 608.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 584.60 325.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 584.60 4.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 584.60 93.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 584.60 76.00 -8.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 564.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 564.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 564.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 564.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 540.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 540.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 540.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 540.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 516.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 516.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 516.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 516.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 492.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 492.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 492.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 492.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 468.60 325.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 468.60 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 468.60 93.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 468.60 76.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 435.60 325.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 435.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 435.60 169.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 407.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 407.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 407.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 407.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 383.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 383.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 383.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 383.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 359.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 359.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 359.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 359.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 335.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 335.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 335.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 335.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 311.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 311.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 311.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 311.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 287.60 325.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 287.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 287.60 93.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 287.60 76.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 266.60 325.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 266.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 266.60 93.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 266.60 76.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 237.60 325.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 237.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 237.60 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 237.60 76.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 210.60 325.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 210.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 210.60 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 210.60 76.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 188.60 325.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 188.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 188.60 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 188.60 76.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 154.60 325.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 154.60 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 154.60 93.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 154.60 76.00 -22.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 680.6 m 375.5 680.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 680.6 m 379.5 680.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 680.6 m 472.5 680.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 680.6 m 548.5 680.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 620.6 m 472.5 620.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 620.6 m 548.5 620.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 516.6 m 472.5 516.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 516.6 m 548.5 516.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 480.6 m 472.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 435.6 m 375.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 435.6 m 379.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 435.6 m 472.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 435.6 m 548.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 248.60000000000002 m 375.5 248.60000000000002 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 723.00 Td (Two Harbors Portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 710.86 Td (\(dollars in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 172.10 685.06 Td (Portfolio Composition) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 417.10 685.06 Td (As of December 31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.75 671.86 Td (\(unaudited\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 659.86 Td (Rates Strategy) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 647.86 Td (Agency Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 635.86 Td (Fixed Rate Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 382.00 635.86 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 427.65 635.86 Td (8,490,788) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.90 635.86 Td (62.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 635.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 623.86 Td (Hybrid ARMs) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 427.65 623.86 Td (1,006,621) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 623.86 Td (7.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 623.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.00 611.86 Td (Total Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 427.65 611.86 Td (9,497,409) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.90 611.86 Td (69.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 611.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 599.86 Td (Agency Derivatives) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 434.40 599.86 Td (218,509) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 599.86 Td (1.6) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 599.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 587.86 Td (Mortgage Servicing Rights) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 434.40 587.86 Td (514,402) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 587.86 Td (3.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 587.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 567.86 Td (Credit Strategy) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 555.86 Td (Non-Agency Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 543.86 Td (Senior Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 427.65 543.86 Td (2,282,132) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.90 543.86 Td (16.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 543.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 531.86 Td (Mezzanine Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 434.40 531.86 Td (468,667) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 531.86 Td (3.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 531.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 519.86 Td (Non-Agency Other) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 443.40 519.86 Td (8,519) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 530.65 519.86 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 519.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 507.86 Td (Total Non-Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 427.65 507.86 Td (2,759,318) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.90 507.86 Td (20.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 507.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 495.86 Td (Net Economic Interest in Securitization) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 201.45 499.94 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 434.40 495.86 Td (152,659) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 495.86 Td (1.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 495.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 483.86 Td (Mortgage Loans Held-For-Sale) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 434.40 483.86 Td (544,581) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 483.86 Td (4.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 483.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.00 471.86 Td (Aggregate Portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 382.00 471.86 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.15 471.86 Td (13,686,878) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 181.60 440.06 Td (Portfolio Metrics) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 425.50 449.06 Td (Three Months Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.10 440.06 Td (December 31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.75 426.06 Td (\(unaudited\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 412.06 Td (Annualized portfolio yield during the quarter) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 412.06 Td (4.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 412.06 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 398.86 Td (Rates Strategy) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 65.00 386.86 Td (Agency RMBS, Agency Derivatives and Mortgage servicing rights) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 386.86 Td (3.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 386.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 374.86 Td (Credit Strategy) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 65.00 362.86 Td (Non-Agency RMBS, including net economic interest in securitizations) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 362.86 Td (8.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 362.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 65.00 350.86 Td (Mortgage loans held-for-sale) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.00 338.86 Td (Prime nonconforming residential mortgage loans) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 338.86 Td (4.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 338.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.00 326.86 Td (Credit sensitive residential mortgage loans) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 326.86 Td (5.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 326.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 302.86 Td (Annualized cost of funds on average repurchase balance during the quarter) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 322.38 306.94 Td (\(2\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 302.86 Td (1.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 302.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 290.86 Td (Annualized interest rate spread for aggregate portfolio during the quarter) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 290.86 Td (3.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 290.86 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 278.86 Td (Debt-to-equity ratio at period-end) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 174.71 282.94 Td (\(3\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 510.95 278.86 Td (2.9 to 1.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 67.75 253.06 Td (Portfolio Metrics Specific to RMBS and Agency Derivatives During the Quarter) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 239.91 Td (Weighted average cost basis of principal and interest securities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 228.86 Td (Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.00 228.86 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 514.90 228.86 Td (108.15) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 215.06 Td (Non-Agency) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 117.49 219.14 Td (\(4\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.00 215.06 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 519.40 215.06 Td (53.69) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.00 201.91 Td (Weighted average three month CPR) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 190.91 Td (Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 190.91 Td (7.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 190.91 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.00 179.91 Td (Non-Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.40 179.91 Td (3.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 179.91 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 168.06 Td (Fixed-rate investments as a percentage of aggregate RMBS and Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 159.06 Td (Derivatives portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.90 159.06 Td (70.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 159.06 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 145.86 Td (Adjustable-rate investments as a percentage of aggregate RMBS and Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 136.86 Td (Derivatives portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.90 137.06 Td (29.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 540.50 137.06 Td (%) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 115.65 Td (\(1\) Net economic interest in securitization is mortgage loans held-for-investment net of collateralized borrowings in securitization trust.) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 103.65 Td (\(2\) Cost of funds includes interest spread expense associated with the portfolio's interest rate swaps.) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 91.65 Td (\(3\) Defined as total borrowings to fund RMBS, mortgage loans held-for-sale and Agency Derivatives, divided by total equity.) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 80.25 Td (\(4\) Average purchase price utilized carrying value for weighting purposes. If current face were utilized for weighting purposes, total non-Agency RMBS excluding the) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 73.30 Td (company's non-Agency interest-only portfolio would be $49.28 at December 31, 3013.) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.65 31.60 Td (- 6 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 741.40 Td (W) Tj ET Q q 0 0 0 rg BT 64.38 741.40 Td (e were pleased to announce two MSR transactions in the fourth quarter - a bulk transaction with Flagstar and a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 728.20 Td (flow sale arrangement with PHH, stated Bill Roth, ) Tj ET Q q 0 0 0 rg BT 279.53 728.20 Td (T) Tj ET Q q 0 0 0 rg BT 285.48 728.20 Td (wo Harbors) Tj ET Q q 0 0 0 rg BT 339.96 728.20 Td ( Chief Investment Of) Tj ET Q q 0 0 0 rg BT 432.93 728.20 Td (ficer) Tj ET Q q 0 0 0 rg BT 452.47 728.20 Td (. W) Tj ET Q q 0 0 0 rg BT 475.11 728.20 Td (e also announced ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 715.00 Td (our subsidiary) Tj ET Q q 0 0 0 rg BT 115.69 715.00 Td (s membership with the FHLB, which provides a diversified funding source, increasing financing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 701.80 Td (flexibility) Tj ET Q q 0 0 0 rg BT 92.67 701.80 Td (.) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 675.40 Td (Financing Summary) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 657.20 Td (The company reported a debt-to-equity ratio, defined as total borrowings to fund RMBS securities, mortgage loans ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 644.00 Td (held-for) Tj ET Q q 0 0 0 rg BT 85.21 644.00 Td (-sale and ) Tj ET Q q 0 0 0 rg BT 126.75 644.00 Td (Agency Derivatives divided by total equity) Tj ET Q q 0 0 0 rg BT 315.73 644.00 Td (, of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.15 644.00 Td (2.9 to 1.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 374.70 644.00 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.09 644.00 Td (3.0 to 1.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.64 644.00 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 464.22 644.00 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 550.66 644.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 630.80 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.63 630.80 Td (September30, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 156.92 630.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 214.85 630.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 605.60 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 76.89 605.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 163.33 605.60 Td (, the company had borrowings of $1) Tj ET Q q 0 0 0 rg BT 322.08 605.60 Td (1.1 billion with 20 repurchase agreement ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 592.40 Td (counterparties to fund RMBS securities and ) Tj ET Q q 0 0 0 rg BT 244.91 592.40 Td (Agency derivatives with an average of 72 days to maturity) Tj ET Q q 0 0 0 rg BT 501.70 592.40 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 579.20 Td (Additionally) Tj ET Q q 0 0 0 rg BT 104.89 579.20 Td (, the company had $147.3 million outstanding under short-term financing arrangements to fund the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 566.00 Td (prime jumbo and CSL) Tj ET Q q 0 0 0 rg BT 147.67 566.00 Td ( collateral.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 539.60 Td (The following table summarizes the company) Tj ET Q q 0 0 0 rg BT 254.36 539.60 Td (s borrowings by collateral type under repurchase agreements, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 526.40 Td (excluding borrowings on U.S. ) Tj ET Q q 0 0 0 rg BT 184.85 526.40 Td (T) Tj ET Q q 0 0 0 rg BT 191.18 526.40 Td (reasuries, and related cost of funds:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 501.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 501.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 501.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 475.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 475.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 475.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 449.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 449.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 449.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 423.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 423.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 423.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 397.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 397.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 397.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 384.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 384.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 384.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 347.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 347.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 347.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 321.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 321.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 321.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 295.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 295.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 295.90 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.00 269.90 400.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 269.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 269.90 100.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 51 501.9 m 451 501.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 501.9 m 456 501.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 501.9 m 556 501.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 397.9 m 556 397.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 385.9 m 556 385.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 383.9 m 556 383.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 51 347.9 m 451 347.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 347.9 m 456 347.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 347.9 m 556 347.9 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.10 506.36 Td (As of December 31, 2013) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.50 492.95 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 484.75 493.16 Td (\(unaudited\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.50 480.16 Td (Collateral type:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.50 467.16 Td (Agency RMBS and Agency Derivatives) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 458.50 467.16 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.00 467.16 Td (9,275,948) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.50 454.16 Td (Mortgage servicing rights) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 539.00 454.16 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.50 441.16 Td (Non-Agency RMBS) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.00 441.16 Td (1,829,709) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.50 428.16 Td (Mortgage loans held-for-sale) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.50 415.16 Td (Prime nonconforming residential mortgage loans) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.25 415.16 Td (97,572) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.50 402.16 Td (Credit sensitive residential mortgage loans) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.25 402.16 Td (49,721) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 458.50 389.16 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 507.50 389.16 Td (11,252,950) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 210.35 352.36 Td (Cost of Funds Metrics) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 467.50 361.36 Td (Three Months Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 470.10 352.36 Td (December 31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 484.75 339.16 Td (\(unaudited\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.50 326.16 Td (Annualized cost of funds on average repurchase balance during the quarter:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 536.75 326.16 Td (0.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 548.00 326.16 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.50 313.16 Td (Agency RMBS and Agency Derivatives) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 536.75 313.16 Td (0.5) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 548.00 313.16 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.50 300.16 Td (Mortgage servicing rights) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 539.00 300.16 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.50 287.16 Td (Non-Agency RMBS) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 536.75 287.16 Td (2.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 548.00 287.16 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 59.50 274.16 Td (Mortgage loans held-for-sale) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.50 261.16 Td (Prime nonconforming residential mortgage loans) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 536.75 261.16 Td (2.6) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 548.00 261.16 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 71.50 248.16 Td (Credit sensitive residential mortgage loans) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 536.75 248.16 Td (3.5) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 548.00 248.16 Td (%) Tj ET Q BT /F2 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 218.00 Td (In December 2013, the company) Tj ET Q q 0 0 0 rg BT 196.92 218.00 Td (s wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 313.84 218.00 Td (, ) Tj ET Q q 0 0 0 rg BT 319.14 218.00 Td (TH Insurance, was approved for membership in the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 204.80 Td (FHLB. ) Tj ET Q q 0 0 0 rg BT 85.76 204.80 Td (As a member of the FHLB, ) Tj ET Q q 0 0 0 rg BT 208.68 204.80 Td (TH Insurance has access to a variety of products and services of) Tj ET Q q 0 0 0 rg BT 490.40 204.80 Td (fered by the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 191.60 Td (FHLB, including secured advances. ) Tj ET Q q 0 0 0 rg BT 212.21 191.60 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.10 191.60 Td (December31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.54 191.60 Td (, ) Tj ET Q q 0 0 0 rg BT 330.84 191.60 Td (TH Insurance had not requested any secured ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 178.40 Td (advances and had $1 billion of available uncommitted credit for borrowings, which amount may be adjusted at the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 165.20 Td (sole discretion of the FHLB. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 152.00 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 138.80 Td (TH Insurance) Tj ET Q q 0 0 0 rg BT 113.22 138.80 Td (s ability to borrow from the FHLB is subject to the company) Tj ET Q q 0 0 0 rg BT 382.99 138.80 Td (s continued creditworthiness, pledging ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 125.60 Td (of suf) Tj ET Q q 0 0 0 rg BT 75.16 125.60 Td (ficient eligible collateral to secure advances, and compliance with certain agreements with the FHLB. Each ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 112.40 Td (advance will require approval by the FHLB and will be secured by collateral in accordance with the FHLB) Tj ET Q q 0 0 0 rg BT 523.15 112.40 Td (s credit ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 99.20 Td (and collateral guidelines, as may be revised from time to time by the FHLB. Eligible collateral may include ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 86.00 Td (conventional 1-4 family residential loans, ) Tj ET Q q 0 0 0 rg BT 235.12 86.00 Td (Agency RMBS and non-Agency RMBS with an ) Tj ET Q q 0 0 0 rg BT 449.31 86.00 Td (A) Tj ET Q q 0 0 0 rg BT 456.65 86.00 Td ( rating and above.) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.65 31.60 Td (- 7 -) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 741.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.96 741.60 Td (arrants) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 723.40 Td (For the quarter ended December 31, 2013, warrant holders exercised 51) Tj ET Q q 0 0 0 rg BT 365.42 723.40 Td (1,090 warrants to purchase approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 710.20 Td (548,242 shares of the company) Tj ET Q q 0 0 0 rg BT 190.22 710.20 Td (s common stock. ) Tj ET Q q 0 0 0 rg BT 267.01 710.20 Td (This resulted in proceeds to the company totaling approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 697.00 Td ($5.2 million. ) Tj ET Q q 0 0 0 rg BT 109.08 697.00 Td (The remaining 3.6 million warrants expired on November 7, 2013 at 5:00 p.m. EST) Tj ET Q q 0 0 0 rg BT 476.38 697.00 Td (. ) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 670.60 Td (Share Repurchase Program) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 652.40 Td (During the fourth quarter) Tj ET Q q 0 0 0 rg BT 160.44 652.40 Td (, no shares were repurchased by the company) Tj ET Q q 0 0 0 rg BT 359.48 652.40 Td (. During the year ended December 31, 2013, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 639.20 Td (an aggregate of 2.45 million shares were repurchased by the company under its share repurchase program for a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 626.00 Td (total cost of $23.9 million. ) Tj ET Q q 0 0 0 rg BT 169.27 626.00 Td (The company may repurchase up to an additional 22.5 million shares under its existing ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 612.80 Td (share repurchase program. ) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 586.40 Td (Dividends and T) Tj ET Q q 0 0 0 rg BT 123.55 586.40 Td (axable Income) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 568.20 Td (The company declared cash dividends to stockholders totaling $427.1 million, or $1.17 per share, not inclusive of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 555.00 Td (the dividend of Silver Bay common stock amounting to $345.8 million, or $0.95 per share, for the 2013 taxable ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 541.80 Td (year) Tj ET Q q 0 0 0 rg BT 68.32 541.80 Td (. ) Tj ET Q q 0 0 0 rg BT 73.21 541.80 Td (As a REIT) Tj ET Q q 0 0 0 rg BT 119.44 541.80 Td (, the company is required to distribute at least 90% of its taxable income to stockholders, subject to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 528.60 Td (certain distribution requirements. ) Tj ET Q q 0 0 0 rg BT 198.87 528.60 Td (The company distributed approximately 183.7% of its 2013 taxable income to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 515.40 Td (stockholders, inclusive of the Silver Bay common stock dividend.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 484.00 Td (Confer) Tj ET Q q 0 0 0 rg BT 82.79 484.00 Td (ence Call) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 465.80 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 465.80 Td (wo Harbors Investment Corp. will host a conference call on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.40 465.80 Td (February6, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 396.86 465.80 Td ( at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 410.30 465.80 Td (9:00 am) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 446.04 465.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 448.79 465.80 Td (EST) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 468.15 465.80 Td ( to discuss ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 516.74 465.80 Td (fourth ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 452.60 Td (quarter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 81.15 452.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 83.90 452.60 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 105.90 452.60 Td ( financial results and related information. ) Tj ET Q q 0 0 0 rg BT 289.88 452.60 Td (T) Tj ET Q q 0 0 0 rg BT 295.83 452.60 Td (o participate in the teleconference, please call toll-free ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 439.40 Td (\(877\) 868-1835) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 118.74 439.40 Td ( \(or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.07 439.40 Td (\(914\) 495-8581) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 205.80 439.40 Td (for international callers\), Conference Code ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.00 439.40 Td (17899766) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 441.00 439.40 Td (, approximately 10 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 426.20 Td (minutes prior to the above start time. ) Tj ET Q q 0 0 0 rg BT 214.55 426.20 Td (Y) Tj ET Q q 0 0 0 rg BT 221.40 426.20 Td (ou may also listen to the teleconference live via the Internet on the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 413.00 Td (company) Tj ET Q q 0 0 0 rg BT 93.38 413.00 Td (s website at ) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 147.44775390625 411.53369140625 m 292.7626953125 411.53369140625 l s q 0 0 1 rg BT 147.45 413.00 Td (www) Tj ET Q q 0 0 1 rg BT 170.56 413.00 Td (.twoharborsinvestment.com) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 292.76 413.00 Td ( in the Investor Relations section under the Events and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 399.80 Td (Presentations link. For those unable to attend, a telephone playback will be available beginning at 12:00 p.m. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.36 399.80 Td (EST) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 551.71 399.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 386.60 Td (on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 63.75 386.60 Td (February6, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 139.21 386.60 Td (, through 12:00 a.m. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 231.17 386.60 Td (EST) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.53 386.60 Td ( on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.03 386.60 Td (February24, 2014) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.99 386.60 Td (. ) Tj ET Q q 0 0 0 rg BT 353.29 386.60 Td (The playback can be accessed by calling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 373.40 Td (\(855\) 859-2056) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 118.74 373.40 Td ( \(or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.07 373.40 Td (\(404\) 537-3406) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 205.80 373.40 Td ( for international callers\), Conference Code ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 399.75 373.40 Td (17899766) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 443.75 373.40 Td (. ) Tj ET Q q 0 0 0 rg BT 449.05 373.40 Td (The call will also be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 360.20 Td (archived on the company) Tj ET Q q 0 0 0 rg BT 163.93 360.20 Td (s website in the Investor Relations section under the Events and Presentations link.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 323.80 Td (T) Tj ET Q q 0 0 0 rg BT 56.52 323.80 Td (wo Harbors Investment Corp. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 305.60 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 305.60 Td (wo Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 292.40 Td (mortgage-backed securities, residential mortgage loans, mortgage servicing rights and other financial assets. ) Tj ET Q q 0 0 0 rg BT 529.06 292.40 Td (T) Tj ET Q q 0 0 0 rg BT 535.01 292.40 Td (wo ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 279.20 Td (Harbors is headquartered in New ) Tj ET Q q 0 0 0 rg BT 197.73 279.20 Td (Y) Tj ET Q q 0 0 0 rg BT 204.57 279.20 Td (ork, New ) Tj ET Q q 0 0 0 rg BT 247.85 279.20 Td (Y) Tj ET Q q 0 0 0 rg BT 254.69 279.20 Td (ork, and is externally managed and advised by PRCM ) Tj ET Q q 0 0 0 rg BT 494.21 279.20 Td (Advisers ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 266.00 Td (LLC, a wholly-owned subsidiary of Pine River Capital Management L.P) Tj ET Q q 0 0 0 rg BT 368.64 266.00 Td (. ) Tj ET Q q 0 0 0 rg BT 373.53 266.00 Td (Additional information is available at ) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 50 251.33369140624995 m 198.06494140625 251.33369140624995 l s q 0 0 1 rg BT 50.00 252.80 Td (www) Tj ET Q q 0 0 1 rg BT 73.12 252.80 Td (.twoharborsinvestment.com.) Tj ET Q BT /F3 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 216.40 Td (Forward-Looking Statements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 198.20 Td (This ) Tj ET Q q 0 0 0 rg BT 73.33 198.20 Td (presentation ) Tj ET Q q 0 0 0 rg BT 130.87 198.20 Td (includes ) Tj ET Q q 0 0 0 rg BT 171.30 198.20 Td (forward-looking ) Tj ET Q q 0 0 0 rg BT 252.05 198.20 Td (statements ) Tj ET Q q 0 0 0 rg BT 307.14 198.20 Td (within ) Tj ET Q q 0 0 0 rg BT 339.03 198.20 Td (the ) Tj ET Q q 0 0 0 rg BT 356.24 198.20 Td (meaning ) Tj ET Q q 0 0 0 rg BT 397.90 198.20 Td (of ) Tj ET Q q 0 0 0 rg BT 410.84 198.20 Td (the ) Tj ET Q q 0 0 0 rg BT 428.05 198.20 Td (safe ) Tj ET Q q 0 0 0 rg BT 449.53 198.20 Td (harbor ) Tj ET Q q 0 0 0 rg BT 482.02 198.20 Td (provisions ) Tj ET Q q 0 0 0 rg BT 531.63 198.20 Td (of ) Tj ET Q q 0 0 0 rg BT 544.57 198.20 Td (the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 185.00 Td (United ) Tj ET Q q 0 0 0 rg BT 81.82 185.00 Td (States ) Tj ET Q q 0 0 0 rg BT 109.97 185.00 Td (Private ) Tj ET Q q 0 0 0 rg BT 143.01 185.00 Td (Securities ) Tj ET Q q 0 0 0 rg BT 188.26 185.00 Td (Litigation ) Tj ET Q q 0 0 0 rg BT 233.52 185.00 Td (Reform ) Tj ET Q q 0 0 0 rg BT 268.59 185.00 Td (Act ) Tj ET Q q 0 0 0 rg BT 286.35 185.00 Td (of ) Tj ET Q q 0 0 0 rg BT 297.39 185.00 Td (1995. ) Tj ET Q q 0 0 0 rg BT 324.02 185.00 Td ( ) Tj ET Q q 0 0 0 rg BT 325.48 185.00 Td (Actual ) Tj ET Q q 0 0 0 rg BT 356.68 185.00 Td (results ) Tj ET Q q 0 0 0 rg BT 387.28 185.00 Td (may ) Tj ET Q q 0 0 0 rg BT 408.10 185.00 Td (dif) Tj ET Q q 0 0 0 rg BT 420.12 185.00 Td (fer ) Tj ET Q q 0 0 0 rg BT 434.20 185.00 Td (from ) Tj ET Q q 0 0 0 rg BT 457.46 185.00 Td (expectations, ) Tj ET Q q 0 0 0 rg BT 517.07 185.00 Td (estimates ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 171.80 Td (and ) Tj ET Q q 0 0 0 rg BT 67.66 171.80 Td (projections ) Tj ET Q q 0 0 0 rg BT 118.32 171.80 Td (and, ) Tj ET Q q 0 0 0 rg BT 138.73 171.80 Td (consequently) Tj ET Q q 0 0 0 rg BT 196.06 171.80 Td (, ) Tj ET Q q 0 0 0 rg BT 200.58 171.80 Td (readers ) Tj ET Q q 0 0 0 rg BT 234.12 171.80 Td (should ) Tj ET Q q 0 0 0 rg BT 265.23 171.80 Td (not ) Tj ET Q q 0 0 0 rg BT 281.07 171.80 Td (rely ) Tj ET Q q 0 0 0 rg BT 299.95 171.80 Td (on ) Tj ET Q q 0 0 0 rg BT 312.73 171.80 Td (these ) Tj ET Q q 0 0 0 rg BT 337.11 171.80 Td (forward-looking ) Tj ET Q q 0 0 0 rg BT 410.98 171.80 Td (statements ) Tj ET Q q 0 0 0 rg BT 459.19 171.80 Td (as ) Tj ET Q q 0 0 0 rg BT 470.14 171.80 Td (predictions ) Tj ET Q q 0 0 0 rg BT 520.79 171.80 Td (of ) Tj ET Q q 0 0 0 rg BT 531.73 171.80 Td (future ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 158.60 Td (events. ) Tj ET Q q 0 0 0 rg BT 82.29 158.60 Td ( ) Tj ET Q q 0 0 0 rg BT 83.63 158.60 Td (W) Tj ET Q q 0 0 0 rg BT 93.13 158.60 Td (ords ) Tj ET Q q 0 0 0 rg BT 113.52 158.60 Td (such ) Tj ET Q q 0 0 0 rg BT 135.12 158.60 Td (as ) Tj ET Q q 0 0 0 rg BT 145.72 158.60 Td (expect, ) Tj ET Q q 0 0 0 rg BT 188.38 158.60 Td (tar) Tj ET Q q 0 0 0 rg BT 204.67 158.60 Td (get, ) Tj ET Q q 0 0 0 rg BT 227.18 158.60 Td (assume, ) Tj ET Q q 0 0 0 rg BT 273.52 158.60 Td (estimate, ) Tj ET Q q 0 0 0 rg BT 324.13 158.60 Td (project, ) Tj ET Q q 0 0 0 rg BT 368.62 158.60 Td (budget, ) Tj ET Q q 0 0 0 rg BT 412.51 158.60 Td (forecast, ) Tj ET Q q 0 0 0 rg BT 461.28 158.60 Td (anticipate, ) Tj ET Q q 0 0 0 rg BT 517.99 158.60 Td (intend, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 145.40 Td (plan, ) Tj ET Q q 0 0 0 rg BT 84.22 145.40 Td (may) Tj ET Q q 0 0 0 rg BT 107.33 145.40 Td (, ) Tj ET Q q 0 0 0 rg BT 117.72 145.40 Td (will, ) Tj ET Q q 0 0 0 rg BT 150.12 145.40 Td (could, ) Tj ET Q q 0 0 0 rg BT 189.84 145.40 Td (should, ) Tj ET Q q 0 0 0 rg BT 234.45 145.40 Td (believe, ) Tj ET Q q 0 0 0 rg BT 281.49 145.40 Td (predicts, ) Tj ET Q q 0 0 0 rg BT 331.60 145.40 Td (potential, ) Tj ET Q q 0 0 0 rg BT 385.37 145.40 Td (continue, ) Tj ET Q q 0 0 0 rg BT 438.52 145.40 Td (and ) Tj ET Q q 0 0 0 rg BT 457.17 145.40 Td (similar ) Tj ET Q q 0 0 0 rg BT 490.49 145.40 Td (expressions ) Tj ET Q q 0 0 0 rg BT 544.58 145.40 Td (are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 132.20 Td (intended ) Tj ET Q q 0 0 0 rg BT 91.31 132.20 Td (to ) Tj ET Q q 0 0 0 rg BT 103.29 132.20 Td (identify ) Tj ET Q q 0 0 0 rg BT 140.94 132.20 Td (such ) Tj ET Q q 0 0 0 rg BT 164.53 132.20 Td (forward-looking ) Tj ET Q q 0 0 0 rg BT 240.05 132.20 Td (statements. ) Tj ET Q q 0 0 0 rg BT 292.67 132.20 Td ( ) Tj ET Q q 0 0 0 rg BT 295.85 132.20 Td (These ) Tj ET Q q 0 0 0 rg BT 325.55 132.20 Td (forward-looking ) Tj ET Q q 0 0 0 rg BT 401.07 132.20 Td (statements ) Tj ET Q q 0 0 0 rg BT 450.93 132.20 Td (involve ) Tj ET Q q 0 0 0 rg BT 487.36 132.20 Td (significant ) Tj ET Q q 0 0 0 rg BT 537.22 132.20 Td (risks ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 119.00 Td (and ) Tj ET Q q 0 0 0 rg BT 69.18 119.00 Td (uncertainties ) Tj ET Q q 0 0 0 rg BT 128.67 119.00 Td (that ) Tj ET Q q 0 0 0 rg BT 148.46 119.00 Td (could ) Tj ET Q q 0 0 0 rg BT 176.19 119.00 Td (cause ) Tj ET Q q 0 0 0 rg BT 203.92 119.00 Td (actual ) Tj ET Q q 0 0 0 rg BT 233.47 119.00 Td (results ) Tj ET Q q 0 0 0 rg BT 265.49 119.00 Td (to ) Tj ET Q q 0 0 0 rg BT 277.34 119.00 Td (dif) Tj ET Q q 0 0 0 rg BT 289.36 119.00 Td (fer ) Tj ET Q q 0 0 0 rg BT 304.86 119.00 Td (materially ) Tj ET Q q 0 0 0 rg BT 352.75 119.00 Td (from ) Tj ET Q q 0 0 0 rg BT 377.43 119.00 Td (expected ) Tj ET Q q 0 0 0 rg BT 419.81 119.00 Td (results, ) Tj ET Q q 0 0 0 rg BT 454.57 119.00 Td (including, ) Tj ET Q q 0 0 0 rg BT 502.17 119.00 Td (among ) Tj ET Q q 0 0 0 rg BT 535.40 119.00 Td (other ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 105.80 Td (things, ) Tj ET Q q 0 0 0 rg BT 82.44 105.80 Td (those ) Tj ET Q q 0 0 0 rg BT 108.46 105.80 Td (described ) Tj ET Q q 0 0 0 rg BT 153.40 105.80 Td (in ) Tj ET Q q 0 0 0 rg BT 164.76 105.80 Td (the ) Tj ET Q q 0 0 0 rg BT 181.00 105.80 Td (company) Tj ET Q q 0 0 0 rg BT 224.37 105.80 Td (s ) Tj ET Q q 0 0 0 rg BT 230.83 105.80 Td (Annual ) Tj ET Q q 0 0 0 rg BT 266.01 105.80 Td (Report ) Tj ET Q q 0 0 0 rg BT 298.75 105.80 Td (on ) Tj ET Q q 0 0 0 rg BT 312.55 105.80 Td (Form ) Tj ET Q q 0 0 0 rg BT 339.19 105.80 Td (10-K ) Tj ET Q q 0 0 0 rg BT 364.59 105.80 Td (for ) Tj ET Q q 0 0 0 rg BT 380.21 105.80 Td (the ) Tj ET Q q 0 0 0 rg BT 396.45 105.80 Td (year ) Tj ET Q q 0 0 0 rg BT 418.18 105.80 Td (ended ) Tj ET Q q 0 0 0 rg BT 447.24 105.80 Td (December ) Tj ET Q q 0 0 0 rg BT 495.23 105.80 Td (31, ) Tj ET Q q 0 0 0 rg BT 511.78 105.80 Td (2012, ) Tj ET Q q 0 0 0 rg BT 539.33 105.80 Td ( ) Tj ET Q q 0 0 0 rg BT 542.13 105.80 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 92.60 Td (any ) Tj ET Q q 0 0 0 rg BT 68.80 92.60 Td (subsequent ) Tj ET Q q 0 0 0 rg BT 120.61 92.60 Td (Quarterly ) Tj ET Q q 0 0 0 rg BT 165.68 92.60 Td (Reports ) Tj ET Q q 0 0 0 rg BT 202.82 92.60 Td (on ) Tj ET Q q 0 0 0 rg BT 216.74 92.60 Td (Form ) Tj ET Q q 0 0 0 rg BT 243.50 92.60 Td (10-Q, ) Tj ET Q q 0 0 0 rg BT 271.78 92.60 Td (under ) Tj ET Q q 0 0 0 rg BT 299.75 92.60 Td (the ) Tj ET Q q 0 0 0 rg BT 316.11 92.60 Td (caption ) Tj ET Q q 0 0 0 rg BT 351.40 92.60 Td (Risk ) Tj ET Q q 0 0 0 rg BT 379.38 92.60 Td (Factors. ) Tj ET Q q 0 0 0 rg BT 422.32 92.60 Td (Factors ) Tj ET Q q 0 0 0 rg BT 457.62 92.60 Td (that ) Tj ET Q q 0 0 0 rg BT 477.04 92.60 Td (could ) Tj ET Q q 0 0 0 rg BT 504.40 92.60 Td (cause ) Tj ET Q q 0 0 0 rg BT 531.75 92.60 Td (actual ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 79.40 Td (results ) Tj ET Q q 0 0 0 rg BT 81.64 79.40 Td (to ) Tj ET Q q 0 0 0 rg BT 93.13 79.40 Td (dif) Tj ET Q q 0 0 0 rg BT 105.15 79.40 Td (fer ) Tj ET Q q 0 0 0 rg BT 120.28 79.40 Td (include, ) Tj ET Q q 0 0 0 rg BT 158.33 79.40 Td (but ) Tj ET Q q 0 0 0 rg BT 175.31 79.40 Td (are ) Tj ET Q q 0 0 0 rg BT 191.66 79.40 Td (not ) Tj ET Q q 0 0 0 rg BT 208.65 79.40 Td (limited ) Tj ET Q q 0 0 0 rg BT 242.73 79.40 Td (to, ) Tj ET Q q 0 0 0 rg BT 256.96 79.40 Td (higher ) Tj ET Q q 0 0 0 rg BT 287.99 79.40 Td (than ) Tj ET Q q 0 0 0 rg BT 309.85 79.40 Td (expected ) Tj ET Q q 0 0 0 rg BT 351.86 79.40 Td (operating ) Tj ET Q q 0 0 0 rg BT 396.33 79.40 Td (costs, ) Tj ET Q q 0 0 0 rg BT 424.00 79.40 Td (changes ) Tj ET Q q 0 0 0 rg BT 462.36 79.40 Td (in ) Tj ET Q q 0 0 0 rg BT 473.84 79.40 Td (prepayment ) Tj ET Q q 0 0 0 rg BT 528.68 79.40 Td (speeds ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 66.20 Td (of ) Tj ET Q q 0 0 0 rg BT 63.12 66.20 Td (mortgages ) Tj ET Q q 0 0 0 rg BT 112.89 66.20 Td (underlying ) Tj ET Q q 0 0 0 rg BT 164.50 66.20 Td (the ) Tj ET Q q 0 0 0 rg BT 181.89 66.20 Td (company) Tj ET Q q 0 0 0 rg BT 225.27 66.20 Td (s ) Tj ET Q q 0 0 0 rg BT 233.50 66.20 Td (residential ) Tj ET Q q 0 0 0 rg BT 283.27 66.20 Td (mortgage-backed ) Tj ET Q q 0 0 0 rg BT 363.58 66.20 Td (securities, ) Tj ET Q q 0 0 0 rg BT 411.82 66.20 Td (the ) Tj ET Q q 0 0 0 rg BT 429.21 66.20 Td (rates ) Tj ET Q q 0 0 0 rg BT 453.93 66.20 Td (of ) Tj ET Q q 0 0 0 rg BT 467.04 66.20 Td (default ) Tj ET Q q 0 0 0 rg BT 501.54 66.20 Td (or ) Tj ET Q q 0 0 0 rg BT 514.65 66.20 Td (decreased ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 53.00 Td (recovery ) Tj ET Q q 0 0 0 rg BT 91.96 53.00 Td (on ) Tj ET Q q 0 0 0 rg BT 106.44 53.00 Td (the ) Tj ET Q q 0 0 0 rg BT 123.36 53.00 Td (mortgages ) Tj ET Q q 0 0 0 rg BT 172.67 53.00 Td (underlying ) Tj ET Q q 0 0 0 rg BT 223.81 53.00 Td (our ) Tj ET Q q 0 0 0 rg BT 241.96 53.00 Td (non-Agency ) Tj ET Q q 0 0 0 rg BT 299.82 53.00 Td (securities, ) Tj ET Q q 0 0 0 rg BT 347.59 53.00 Td (failure ) Tj ET Q q 0 0 0 rg BT 379.78 53.00 Td (to ) Tj ET Q q 0 0 0 rg BT 391.82 53.00 Td (recover ) Tj ET Q q 0 0 0 rg BT 428.28 53.00 Td (credit ) Tj ET Q q 0 0 0 rg BT 456.80 53.00 Td (losses ) Tj ET Q q 0 0 0 rg BT 486.56 53.00 Td (in ) Tj ET Q q 0 0 0 rg BT 498.61 53.00 Td (our ) Tj ET Q q 0 0 0 rg BT 516.75 53.00 Td (portfolio, ) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.65 31.60 Td (- 8 -) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 741.40 Td (changes ) Tj ET Q q 0 0 0 rg BT 88.85 741.40 Td (in ) Tj ET Q q 0 0 0 rg BT 100.83 741.40 Td (interest ) Tj ET Q q 0 0 0 rg BT 136.64 741.40 Td (rates ) Tj ET Q q 0 0 0 rg BT 160.83 741.40 Td (and ) Tj ET Q q 0 0 0 rg BT 180.13 741.40 Td (the ) Tj ET Q q 0 0 0 rg BT 197.00 741.40 Td (market ) Tj ET Q q 0 0 0 rg BT 230.96 741.40 Td (value ) Tj ET Q q 0 0 0 rg BT 258.21 741.40 Td (of ) Tj ET Q q 0 0 0 rg BT 270.80 741.40 Td (our ) Tj ET Q q 0 0 0 rg BT 288.89 741.40 Td (assets, ) Tj ET Q q 0 0 0 rg BT 320.72 741.40 Td (the ) Tj ET Q q 0 0 0 rg BT 337.59 741.40 Td (availability ) Tj ET Q q 0 0 0 rg BT 390.50 741.40 Td (of ) Tj ET Q q 0 0 0 rg BT 403.09 741.40 Td (financing, ) Tj ET Q q 0 0 0 rg BT 450.80 741.40 Td (the ) Tj ET Q q 0 0 0 rg BT 467.67 741.40 Td (availability ) Tj ET Q q 0 0 0 rg BT 520.57 741.40 Td (of ) Tj ET Q q 0 0 0 rg BT 533.16 741.40 Td (tar) Tj ET Q q 0 0 0 rg BT 544.57 741.40 Td (get ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 728.20 Td (assets ) Tj ET Q q 0 0 0 rg BT 78.05 728.20 Td (at ) Tj ET Q q 0 0 0 rg BT 88.38 728.20 Td (attractive ) Tj ET Q q 0 0 0 rg BT 131.68 728.20 Td (prices, ) Tj ET Q q 0 0 0 rg BT 163.08 728.20 Td (the ) Tj ET Q q 0 0 0 rg BT 178.91 728.20 Td (company) Tj ET Q q 0 0 0 rg BT 222.29 728.20 Td (s ) Tj ET Q q 0 0 0 rg BT 228.96 728.20 Td (ability ) Tj ET Q q 0 0 0 rg BT 259.45 728.20 Td (to ) Tj ET Q q 0 0 0 rg BT 270.39 728.20 Td (manage ) Tj ET Q q 0 0 0 rg BT 306.98 728.20 Td (various ) Tj ET Q q 0 0 0 rg BT 341.75 728.20 Td (operational ) Tj ET Q q 0 0 0 rg BT 393.62 728.20 Td (risks ) Tj ET Q q 0 0 0 rg BT 416.79 728.20 Td (associated ) Tj ET Q q 0 0 0 rg BT 464.38 728.20 Td (with ) Tj ET Q q 0 0 0 rg BT 486.32 728.20 Td (the ) Tj ET Q q 0 0 0 rg BT 502.15 728.20 Td (business, ) Tj ET Q q 0 0 0 rg BT 544.57 728.20 Td (the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 715.00 Td (company) Tj ET Q q 0 0 0 rg BT 93.38 715.00 Td (s ) Tj ET Q q 0 0 0 rg BT 99.87 715.00 Td (ability ) Tj ET Q q 0 0 0 rg BT 130.19 715.00 Td (to ) Tj ET Q q 0 0 0 rg BT 140.96 715.00 Td (maintain ) Tj ET Q q 0 0 0 rg BT 181.66 715.00 Td (our ) Tj ET Q q 0 0 0 rg BT 198.54 715.00 Td (REIT) Tj ET Q q 0 0 0 rg BT 222.78 715.00 Td ( ) Tj ET Q q 0 0 0 rg BT 224.99 715.00 Td (qualification, ) Tj ET Q q 0 0 0 rg BT 285.54 715.00 Td (limitations ) Tj ET Q q 0 0 0 rg BT 334.81 715.00 Td (imposed ) Tj ET Q q 0 0 0 rg BT 374.30 715.00 Td (on ) Tj ET Q q 0 0 0 rg BT 387.51 715.00 Td (the ) Tj ET Q q 0 0 0 rg BT 403.17 715.00 Td (business ) Tj ET Q q 0 0 0 rg BT 442.66 715.00 Td (due ) Tj ET Q q 0 0 0 rg BT 460.75 715.00 Td (to ) Tj ET Q q 0 0 0 rg BT 471.52 715.00 Td (our ) Tj ET Q q 0 0 0 rg BT 488.40 715.00 Td (REIT) Tj ET Q q 0 0 0 rg BT 512.64 715.00 Td ( ) Tj ET Q q 0 0 0 rg BT 514.85 715.00 Td (status ) Tj ET Q q 0 0 0 rg BT 542.12 715.00 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 701.80 Td (the ) Tj ET Q q 0 0 0 rg BT 65.73 701.80 Td (company) Tj ET Q q 0 0 0 rg BT 109.11 701.80 Td (s ) Tj ET Q q 0 0 0 rg BT 115.68 701.80 Td (exempt ) Tj ET Q q 0 0 0 rg BT 150.35 701.80 Td (status ) Tj ET Q q 0 0 0 rg BT 177.70 701.80 Td (under ) Tj ET Q q 0 0 0 rg BT 205.04 701.80 Td (the ) Tj ET Q q 0 0 0 rg BT 220.77 701.80 Td (Investment ) Tj ET Q q 0 0 0 rg BT 271.94 701.80 Td (Company ) Tj ET Q q 0 0 0 rg BT 316.51 701.80 Td (Act ) Tj ET Q q 0 0 0 rg BT 334.68 701.80 Td (of ) Tj ET Q q 0 0 0 rg BT 346.14 701.80 Td (1940, ) Tj ET Q q 0 0 0 rg BT 373.18 701.80 Td (the ) Tj ET Q q 0 0 0 rg BT 388.91 701.80 Td (impact ) Tj ET Q q 0 0 0 rg BT 421.14 701.80 Td (of ) Tj ET Q q 0 0 0 rg BT 432.60 701.80 Td (new ) Tj ET Q q 0 0 0 rg BT 453.22 701.80 Td (legislation ) Tj ET Q q 0 0 0 rg BT 501.34 701.80 Td (or ) Tj ET Q q 0 0 0 rg BT 512.79 701.80 Td (regulatory ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 688.60 Td (changes ) Tj ET Q q 0 0 0 rg BT 87.84 688.60 Td (on ) Tj ET Q q 0 0 0 rg BT 101.25 688.60 Td (the ) Tj ET Q q 0 0 0 rg BT 117.10 688.60 Td (company) Tj ET Q q 0 0 0 rg BT 160.48 688.60 Td (s ) Tj ET Q q 0 0 0 rg BT 167.17 688.60 Td (operations, ) Tj ET Q q 0 0 0 rg BT 218.15 688.60 Td (the ) Tj ET Q q 0 0 0 rg BT 234.00 688.60 Td (impact ) Tj ET Q q 0 0 0 rg BT 266.35 688.60 Td (of ) Tj ET Q q 0 0 0 rg BT 277.92 688.60 Td (any ) Tj ET Q q 0 0 0 rg BT 296.22 688.60 Td (deficiencies ) Tj ET Q q 0 0 0 rg BT 351.15 688.60 Td (in ) Tj ET Q q 0 0 0 rg BT 362.12 688.60 Td (the ) Tj ET Q q 0 0 0 rg BT 377.97 688.60 Td (servicing ) Tj ET Q q 0 0 0 rg BT 420.70 688.60 Td (or ) Tj ET Q q 0 0 0 rg BT 432.28 688.60 Td (foreclosure ) Tj ET Q q 0 0 0 rg BT 484.16 688.60 Td (practices ) Tj ET Q q 0 0 0 rg BT 525.66 688.60 Td (of ) Tj ET Q q 0 0 0 rg BT 537.23 688.60 Td (third ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 675.40 Td (parties ) Tj ET Q q 0 0 0 rg BT 82.53 675.40 Td (and ) Tj ET Q q 0 0 0 rg BT 101.63 675.40 Td (related ) Tj ET Q q 0 0 0 rg BT 134.76 675.40 Td (delays ) Tj ET Q q 0 0 0 rg BT 166.07 675.40 Td (in ) Tj ET Q q 0 0 0 rg BT 177.84 675.40 Td (the ) Tj ET Q q 0 0 0 rg BT 194.49 675.40 Td (foreclosure ) Tj ET Q q 0 0 0 rg BT 247.18 675.40 Td (process, ) Tj ET Q q 0 0 0 rg BT 286.13 675.40 Td (the ) Tj ET Q q 0 0 0 rg BT 302.78 675.40 Td (company) Tj ET Q q 0 0 0 rg BT 346.16 675.40 Td (s ) Tj ET Q q 0 0 0 rg BT 353.65 675.40 Td (ability ) Tj ET Q q 0 0 0 rg BT 384.97 675.40 Td (to ) Tj ET Q q 0 0 0 rg BT 396.74 675.40 Td (acquire ) Tj ET Q q 0 0 0 rg BT 432.31 675.40 Td (mortgage ) Tj ET Q q 0 0 0 rg BT 477.07 675.40 Td (loans ) Tj ET Q q 0 0 0 rg BT 503.50 675.40 Td (or ) Tj ET Q q 0 0 0 rg BT 515.87 675.40 Td (securitize ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 662.20 Td (the ) Tj ET Q q 0 0 0 rg BT 66.25 662.20 Td (mortgage ) Tj ET Q q 0 0 0 rg BT 110.61 662.20 Td (loans ) Tj ET Q q 0 0 0 rg BT 136.65 662.20 Td (the ) Tj ET Q q 0 0 0 rg BT 152.90 662.20 Td (company ) Tj ET Q q 0 0 0 rg BT 196.04 662.20 Td (acquires, ) Tj ET Q q 0 0 0 rg BT 238.25 662.20 Td (the ) Tj ET Q q 0 0 0 rg BT 254.50 662.20 Td (company) Tj ET Q q 0 0 0 rg BT 297.88 662.20 Td (s ) Tj ET Q q 0 0 0 rg BT 304.98 662.20 Td (involvement ) Tj ET Q q 0 0 0 rg BT 362.78 662.20 Td (in ) Tj ET Q q 0 0 0 rg BT 374.15 662.20 Td (securitization ) Tj ET Q q 0 0 0 rg BT 436.22 662.20 Td (transactions, ) Tj ET Q q 0 0 0 rg BT 494.33 662.20 Td (the ) Tj ET Q q 0 0 0 rg BT 510.58 662.20 Td (timing ) Tj ET Q q 0 0 0 rg BT 542.13 662.20 Td (and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 649.00 Td (profitability ) Tj ET Q q 0 0 0 rg BT 106.82 649.00 Td (of ) Tj ET Q q 0 0 0 rg BT 120.26 649.00 Td (the ) Tj ET Q q 0 0 0 rg BT 137.98 649.00 Td (company) Tj ET Q q 0 0 0 rg BT 181.35 649.00 Td (s ) Tj ET Q q 0 0 0 rg BT 189.91 649.00 Td (securitization ) Tj ET Q q 0 0 0 rg BT 253.44 649.00 Td (transactions, ) Tj ET Q q 0 0 0 rg BT 313.01 649.00 Td (the ) Tj ET Q q 0 0 0 rg BT 330.73 649.00 Td (risks ) Tj ET Q q 0 0 0 rg BT 355.78 649.00 Td (associated ) Tj ET Q q 0 0 0 rg BT 405.26 649.00 Td (with ) Tj ET Q q 0 0 0 rg BT 429.10 649.00 Td (the ) Tj ET Q q 0 0 0 rg BT 446.81 649.00 Td (company) Tj ET Q q 0 0 0 rg BT 490.19 649.00 Td (s ) Tj ET Q q 0 0 0 rg BT 498.75 649.00 Td (securitization ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 635.80 Td (transactions, ) Tj ET Q q 0 0 0 rg BT 107.91 635.80 Td ( ) Tj ET Q q 0 0 0 rg BT 110.52 635.80 Td (the ) Tj ET Q q 0 0 0 rg BT 126.58 635.80 Td (company) Tj ET Q q 0 0 0 rg BT 169.96 635.80 Td (s ) Tj ET Q q 0 0 0 rg BT 176.85 635.80 Td (ability ) Tj ET Q q 0 0 0 rg BT 207.58 635.80 Td (to ) Tj ET Q q 0 0 0 rg BT 218.75 635.80 Td (acquire ) Tj ET Q q 0 0 0 rg BT 253.74 635.80 Td (MSR, ) Tj ET Q q 0 0 0 rg BT 282.34 635.80 Td (the ) Tj ET Q q 0 0 0 rg BT 298.39 635.80 Td (impact ) Tj ET Q q 0 0 0 rg BT 330.94 635.80 Td (of ) Tj ET Q q 0 0 0 rg BT 342.72 635.80 Td (new ) Tj ET Q q 0 0 0 rg BT 363.67 635.80 Td (or ) Tj ET Q q 0 0 0 rg BT 375.45 635.80 Td (modified ) Tj ET Q q 0 0 0 rg BT 417.78 635.80 Td (government ) Tj ET Q q 0 0 0 rg BT 472.94 635.80 Td (mortgage ) Tj ET Q q 0 0 0 rg BT 517.09 635.80 Td (refinance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 622.60 Td (or ) Tj ET Q q 0 0 0 rg BT 60.98 622.60 Td (principal ) Tj ET Q q 0 0 0 rg BT 101.89 622.60 Td (reduction ) Tj ET Q q 0 0 0 rg BT 145.24 622.60 Td (programs, ) Tj ET Q q 0 0 0 rg BT 191.35 622.60 Td (unanticipated ) Tj ET Q q 0 0 0 rg BT 252.42 622.60 Td (changes ) Tj ET Q q 0 0 0 rg BT 289.66 622.60 Td (in ) Tj ET Q q 0 0 0 rg BT 300.03 622.60 Td (overall ) Tj ET Q q 0 0 0 rg BT 332.38 622.60 Td (market ) Tj ET Q q 0 0 0 rg BT 364.74 622.60 Td (and ) Tj ET Q q 0 0 0 rg BT 382.43 622.60 Td (economic ) Tj ET Q q 0 0 0 rg BT 427.01 622.60 Td (conditions, ) Tj ET Q q 0 0 0 rg BT 477.40 622.60 Td (and ) Tj ET Q q 0 0 0 rg BT 495.10 622.60 Td (the ) Tj ET Q q 0 0 0 rg BT 510.35 622.60 Td (company) Tj ET Q q 0 0 0 rg BT 553.73 622.60 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 609.40 Td (exposure ) Tj ET Q q 0 0 0 rg BT 92.46 609.40 Td (to ) Tj ET Q q 0 0 0 rg BT 103.76 609.40 Td (claims ) Tj ET Q q 0 0 0 rg BT 135.23 609.40 Td (and ) Tj ET Q q 0 0 0 rg BT 153.86 609.40 Td (litigation, ) Tj ET Q q 0 0 0 rg BT 199.08 609.40 Td (including ) Tj ET Q q 0 0 0 rg BT 243.38 609.40 Td (litigation ) Tj ET Q q 0 0 0 rg BT 285.85 609.40 Td (arising ) Tj ET Q q 0 0 0 rg BT 318.54 609.40 Td (from ) Tj ET Q q 0 0 0 rg BT 342.67 609.40 Td (its ) Tj ET Q q 0 0 0 rg BT 355.81 609.40 Td (involvement ) Tj ET Q q 0 0 0 rg BT 413.55 609.40 Td (in ) Tj ET Q q 0 0 0 rg BT 424.86 609.40 Td (securitization ) Tj ET Q q 0 0 0 rg BT 486.86 609.40 Td (transactions. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 583.00 Td (Readers ) Tj ET Q q 0 0 0 rg BT 88.16 583.00 Td (are ) Tj ET Q q 0 0 0 rg BT 104.32 583.00 Td (cautioned ) Tj ET Q q 0 0 0 rg BT 149.82 583.00 Td (not ) Tj ET Q q 0 0 0 rg BT 166.61 583.00 Td (to ) Tj ET Q q 0 0 0 rg BT 177.90 583.00 Td (place ) Tj ET Q q 0 0 0 rg BT 203.83 583.00 Td (undue ) Tj ET Q q 0 0 0 rg BT 233.45 583.00 Td (reliance ) Tj ET Q q 0 0 0 rg BT 270.99 583.00 Td (upon ) Tj ET Q q 0 0 0 rg BT 295.72 583.00 Td (any ) Tj ET Q q 0 0 0 rg BT 314.34 583.00 Td (forward-looking ) Tj ET Q q 0 0 0 rg BT 389.16 583.00 Td (statements, ) Tj ET Q q 0 0 0 rg BT 441.08 583.00 Td (which ) Tj ET Q q 0 0 0 rg BT 470.70 583.00 Td (speak ) Tj ET Q q 0 0 0 rg BT 498.48 583.00 Td (only ) Tj ET Q q 0 0 0 rg BT 520.77 583.00 Td (as ) Tj ET Q q 0 0 0 rg BT 532.66 583.00 Td (of ) Tj ET Q q 0 0 0 rg BT 544.56 583.00 Td (the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 569.80 Td (date ) Tj ET Q q 0 0 0 rg BT 71.16 569.80 Td (made. ) Tj ET Q q 0 0 0 rg BT 100.37 569.80 Td (T) Tj ET Q q 0 0 0 rg BT 106.32 569.80 Td (wo ) Tj ET Q q 0 0 0 rg BT 122.60 569.80 Td (Harbors ) Tj ET Q q 0 0 0 rg BT 160.87 569.80 Td (does ) Tj ET Q q 0 0 0 rg BT 183.88 569.80 Td (not ) Tj ET Q q 0 0 0 rg BT 200.77 569.80 Td (undertake ) Tj ET Q q 0 0 0 rg BT 246.98 569.80 Td (or ) Tj ET Q q 0 0 0 rg BT 258.98 569.80 Td (accept ) Tj ET Q q 0 0 0 rg BT 289.91 569.80 Td (any ) Tj ET Q q 0 0 0 rg BT 308.63 569.80 Td (obligation ) Tj ET Q q 0 0 0 rg BT 356.08 569.80 Td (to ) Tj ET Q q 0 0 0 rg BT 367.47 569.80 Td (release ) Tj ET Q q 0 0 0 rg BT 400.84 569.80 Td (publicly ) Tj ET Q q 0 0 0 rg BT 439.73 569.80 Td (any ) Tj ET Q q 0 0 0 rg BT 458.45 569.80 Td (updates ) Tj ET Q q 0 0 0 rg BT 494.90 569.80 Td (or ) Tj ET Q q 0 0 0 rg BT 506.90 569.80 Td (revisions ) Tj ET Q q 0 0 0 rg BT 549.46 569.80 Td (to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 556.60 Td (any ) Tj ET Q q 0 0 0 rg BT 70.24 556.60 Td (forward-looking ) Tj ET Q q 0 0 0 rg BT 146.68 556.60 Td (statement ) Tj ET Q q 0 0 0 rg BT 193.19 556.60 Td (to ) Tj ET Q q 0 0 0 rg BT 206.10 556.60 Td (reflect ) Tj ET Q q 0 0 0 rg BT 238.54 556.60 Td (any ) Tj ET Q q 0 0 0 rg BT 258.78 556.60 Td (change ) Tj ET Q q 0 0 0 rg BT 294.28 556.60 Td (in ) Tj ET Q q 0 0 0 rg BT 307.19 556.60 Td (its ) Tj ET Q q 0 0 0 rg BT 321.94 556.60 Td (expectations ) Tj ET Q q 0 0 0 rg BT 381.27 556.60 Td (or ) Tj ET Q q 0 0 0 rg BT 394.79 556.60 Td (any ) Tj ET Q q 0 0 0 rg BT 415.03 556.60 Td (change ) Tj ET Q q 0 0 0 rg BT 450.53 556.60 Td (in ) Tj ET Q q 0 0 0 rg BT 463.44 556.60 Td (events, ) Tj ET Q q 0 0 0 rg BT 498.65 556.60 Td (conditions ) Tj ET Q q 0 0 0 rg BT 548.84 556.60 Td (or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 543.40 Td (circumstances ) Tj ET Q q 0 0 0 rg BT 114.78 543.40 Td (on ) Tj ET Q q 0 0 0 rg BT 128.26 543.40 Td (which ) Tj ET Q q 0 0 0 rg BT 157.63 543.40 Td (any ) Tj ET Q q 0 0 0 rg BT 175.99 543.40 Td (such ) Tj ET Q q 0 0 0 rg BT 198.63 543.40 Td (statement ) Tj ET Q q 0 0 0 rg BT 243.26 543.40 Td (is ) Tj ET Q q 0 0 0 rg BT 253.08 543.40 Td (based. ) Tj ET Q q 0 0 0 rg BT 283.36 543.40 Td ( ) Tj ET Q q 0 0 0 rg BT 285.29 543.40 Td (Additional ) Tj ET Q q 0 0 0 rg BT 334.82 543.40 Td (information ) Tj ET Q q 0 0 0 rg BT 389.23 543.40 Td (concerning ) Tj ET Q q 0 0 0 rg BT 440.58 543.40 Td (these ) Tj ET Q q 0 0 0 rg BT 465.66 543.40 Td (and ) Tj ET Q q 0 0 0 rg BT 484.02 543.40 Td (other ) Tj ET Q q 0 0 0 rg BT 509.10 543.40 Td (risk ) Tj ET Q q 0 0 0 rg BT 528.08 543.40 Td (factors ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 530.20 Td (is ) Tj ET Q q 0 0 0 rg BT 59.30 530.20 Td (contained ) Tj ET Q q 0 0 0 rg BT 104.03 530.20 Td (in ) Tj ET Q q 0 0 0 rg BT 114.41 530.20 Td (T) Tj ET Q q 0 0 0 rg BT 120.36 530.20 Td (wo ) Tj ET Q q 0 0 0 rg BT 135.77 530.20 Td (Harbors) Tj ET Q q 0 0 0 rg BT 174.05 530.20 Td ( ) Tj ET Q q 0 0 0 rg BT 176.01 530.20 Td (most ) Tj ET Q q 0 0 0 rg BT 199.37 530.20 Td (recent ) Tj ET Q q 0 0 0 rg BT 228.21 530.20 Td (filings ) Tj ET Q q 0 0 0 rg BT 258.28 530.20 Td (with ) Tj ET Q q 0 0 0 rg BT 279.81 530.20 Td (the ) Tj ET Q q 0 0 0 rg BT 295.21 530.20 Td (Securities ) Tj ET Q q 0 0 0 rg BT 340.55 530.20 Td (and ) Tj ET Q q 0 0 0 rg BT 358.40 530.20 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 403.73 530.20 Td (Commission ) Tj ET Q q 0 0 0 rg BT 461.32 530.20 Td (\(SEC\). ) Tj ET Q q 0 0 0 rg BT 493.10 530.20 Td (All ) Tj ET Q q 0 0 0 rg BT 509.13 530.20 Td (subsequent ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 517.00 Td (written ) Tj ET Q q 0 0 0 rg BT 84.01 517.00 Td (and ) Tj ET Q q 0 0 0 rg BT 102.75 517.00 Td (oral ) Tj ET Q q 0 0 0 rg BT 122.70 517.00 Td (forward ) Tj ET Q q 0 0 0 rg BT 160.37 517.00 Td (looking ) Tj ET Q q 0 0 0 rg BT 196.84 517.00 Td (statements ) Tj ET Q q 0 0 0 rg BT 246.12 517.00 Td (concerning ) Tj ET Q q 0 0 0 rg BT 297.64 517.00 Td (T) Tj ET Q q 0 0 0 rg BT 303.59 517.00 Td (wo ) Tj ET Q q 0 0 0 rg BT 319.89 517.00 Td (Harbors ) Tj ET Q q 0 0 0 rg BT 358.17 517.00 Td (or ) Tj ET Q q 0 0 0 rg BT 370.19 517.00 Td (matters ) Tj ET Q q 0 0 0 rg BT 405.42 517.00 Td (attributable ) Tj ET Q q 0 0 0 rg BT 458.36 517.00 Td (to ) Tj ET Q q 0 0 0 rg BT 469.57 517.00 Td (T) Tj ET Q q 0 0 0 rg BT 475.52 517.00 Td (wo ) Tj ET Q q 0 0 0 rg BT 491.81 517.00 Td (Harbors ) Tj ET Q q 0 0 0 rg BT 530.10 517.00 Td (or ) Tj ET Q q 0 0 0 rg BT 542.12 517.00 Td (any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 503.80 Td (person ) Tj ET Q q 0 0 0 rg BT 82.08 503.80 Td (acting ) Tj ET Q q 0 0 0 rg BT 111.70 503.80 Td (on ) Tj ET Q q 0 0 0 rg BT 125.45 503.80 Td (its ) Tj ET Q q 0 0 0 rg BT 138.60 503.80 Td (behalf ) Tj ET Q q 0 0 0 rg BT 168.83 503.80 Td (are ) Tj ET Q q 0 0 0 rg BT 185.01 503.80 Td (expressly ) Tj ET Q q 0 0 0 rg BT 229.30 503.80 Td (qualified ) Tj ET Q q 0 0 0 rg BT 271.15 503.80 Td (in ) Tj ET Q q 0 0 0 rg BT 282.46 503.80 Td (their ) Tj ET Q q 0 0 0 rg BT 305.36 503.80 Td (entirety ) Tj ET Q q 0 0 0 rg BT 341.71 503.80 Td (by ) Tj ET Q q 0 0 0 rg BT 355.46 503.80 Td (the ) Tj ET Q q 0 0 0 rg BT 371.65 503.80 Td (cautionary ) Tj ET Q q 0 0 0 rg BT 420.82 503.80 Td (statements ) Tj ET Q q 0 0 0 rg BT 470.00 503.80 Td (above. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 472.40 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 103.78 472.40 Td ( Financial Measur) Tj ET Q q 0 0 0 rg BT 189.13 472.40 Td (es) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 454.20 Td (In addition to disclosing financial results calculated in accordance with United States generally accepted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 441.00 Td (accounting principles \(GAAP\), this press release and the accompanying investor presentation present non-GAAP) Tj ET Q q 0 0 0 rg BT 547.82 441.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 427.80 Td (financial measures, such as Core Earnings and Core Earnings per common share, that exclude certain items. ) Tj ET Q q 0 0 0 rg BT 527.83 427.80 Td (T) Tj ET Q q 0 0 0 rg BT 533.79 427.80 Td (wo ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 414.60 Td (Harbors) Tj ET Q q 0 0 0 rg BT 88.28 414.60 Td ( management believes that these non-GAAP) Tj ET Q q 0 0 0 rg BT 283.07 414.60 Td ( measures enable it to perform meaningful comparisons of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 401.40 Td (past, present and future results of the company) Tj ET Q q 0 0 0 rg BT 258.33 401.40 Td (s core business operations, and uses these measures to gain a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 388.20 Td (comparative understanding of the company) Tj ET Q q 0 0 0 rg BT 243.66 388.20 Td (s operating performance and business trends. ) Tj ET Q q 0 0 0 rg BT 444.15 388.20 Td (The non-GAAP) Tj ET Q q 0 0 0 rg BT 513.71 388.20 Td ( financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 375.00 Td (measures presented by the company represent supplemental information to assist investors in analyzing the results ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 361.80 Td (of its operations. However) Tj ET Q q 0 0 0 rg BT 166.25 361.80 Td (, because these measures are not calculated in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 473.20 361.80 Td (, they should not ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 348.60 Td (be considered a substitute for) Tj ET Q q 0 0 0 rg BT 178.47 348.60 Td (, or superior to, the financial measures calculated in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 511.70 348.60 Td (. ) Tj ET Q q 0 0 0 rg BT 517.01 348.60 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 335.40 Td (company) Tj ET Q q 0 0 0 rg BT 93.38 335.40 Td (s GAAP) Tj ET Q q 0 0 0 rg BT 129.95 335.40 Td ( financial results and the reconciliations from these results should be carefully evaluated. See the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 322.20 Td (GAAP) Tj ET Q q 0 0 0 rg BT 79.54 322.20 Td ( to Non-GAAP) Tj ET Q q 0 0 0 rg BT 145.75 322.20 Td ( reconciliation table on page 12 of this release. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 290.80 Td (Additional Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 272.60 Td (Stockholders of ) Tj ET Q q 0 0 0 rg BT 121.90 272.60 Td (T) Tj ET Q q 0 0 0 rg BT 127.85 272.60 Td (wo Harbors and other interested persons may find additional information regarding the company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 259.40 Td (at the SEC) Tj ET Q q 0 0 0 rg BT 100.11 259.40 Td (s Internet site at ) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.54 w 0 i [] 0 d 1 J 1 j 3 M 172.8046875 257.93369140625 m 231.96728515625 257.93369140625 l s q 0 0 1 rg BT 172.80 259.40 Td (www) Tj ET Q q 0 0 1 rg BT 195.92 259.40 Td (.sec.gov) Tj ET Q BT /F2 11.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 231.97 259.40 Td ( or by directing requests to: ) Tj ET Q q 0 0 0 rg BT 355.19 259.40 Td (T) Tj ET Q q 0 0 0 rg BT 361.14 259.40 Td (wo Harbors Investment Corp., ) Tj ET Q q 0 0 0 rg BT 496.78 259.40 Td (Attn: ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 246.20 Td (Investor Relations, 590 Madison ) Tj ET Q q 0 0 0 rg BT 195.74 246.20 Td (A) Tj ET Q q 0 0 0 rg BT 202.87 246.20 Td (venue, 36th Floor) Tj ET Q q 0 0 0 rg BT 280.33 246.20 Td (, New ) Tj ET Q q 0 0 0 rg BT 308.95 246.20 Td (Y) Tj ET Q q 0 0 0 rg BT 315.79 246.20 Td (ork, NY) Tj ET Q q 0 0 0 rg BT 351.43 246.20 Td ( 10022, telephone \(612\) 629-2500.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 219.80 Td (Contact) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 201.60 Td (July Hugen, Investor Relations, ) Tj ET Q q 0 0 0 rg BT 191.56 201.60 Td (T) Tj ET Q q 0 0 0 rg BT 197.51 201.60 Td (wo Harbors Investment Corp., \(612\) 629-2514, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 188.40 Td (July) Tj ET Q q 0 0 0 rg BT 67.62 188.40 Td (.Hugen@twoharborsinvestment.com) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 83.20 Td () Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 292.00 47.60 Td (# # #) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.65 31.60 Td (- 9 -) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 748.50 487.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 720.50 487.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 692.50 350.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 692.50 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 692.50 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 650.50 350.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 650.50 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 650.50 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 622.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 622.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 622.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 592.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 592.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 592.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 562.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 562.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 562.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 532.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 532.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 532.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 502.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 502.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 502.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 472.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 472.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 472.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 442.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 442.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 442.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 412.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 412.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 412.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 382.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 382.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 382.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 352.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 352.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 352.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 322.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 322.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 322.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 292.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 292.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 292.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 262.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 262.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 262.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 232.50 350.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 232.50 71.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 232.50 66.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 180.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 180.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 180.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 150.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 150.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 150.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 120.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 120.50 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 120.50 66.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 650.5 m 481 650.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 650.5 m 547 650.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 442.5 m 481 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 442.5 m 547 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 428.5 m 481 428.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 426.5 m 481 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 442.5 m 547 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 428.5 m 547 428.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 426.5 m 547 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 277.5 m 481 277.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 277.5 m 547 277.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 277.5 m 481 277.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 277.5 m 547 277.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 120.5 m 481 120.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 105.5 m 481 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 120.5 m 547 120.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 105.5 m 547 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 105.5 m 481 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 91.5 m 481 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 89.5 m 481 89.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 105.5 m 547 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 91.5 m 547 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 89.5 m 547 89.5 l s BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.80 739.18 Td (TWO HARBORS INVESTMENT CORP.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 216.40 725.18 Td (CONSOLIDATED BALANCE SHEETS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.70 711.07 Td (\(dollars in thousands, except share data\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.95 665.17 Td (December 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.00 655.17 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 485.45 665.17 Td (December 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.50 655.17 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.95 641.07 Td (\(unaudited\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 62.50 627.18 Td (ASSETS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 612.17 Td (Available-for-sale securities, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.50 612.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.15 612.17 Td (12,256,727) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.50 612.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.10 612.17 Td (13,666,954) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 597.17 Td (Trading securities, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.15 597.17 Td (1,000,180) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.15 597.17 Td (1,002,062) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 582.17 Td (Equity securities, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 582.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 582.17 Td (335,638) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 567.17 Td (Mortgage loans held-for-sale, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 567.17 Td (544,581) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.65 567.17 Td (58,607) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 552.17 Td (Mortgage loans held-for-investment in securitization trusts, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 552.17 Td (792,390) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.15 552.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 537.17 Td (Mortgage servicing rights, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 537.17 Td (514,402) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.15 537.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 522.17 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.15 522.17 Td (1,025,487) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 522.17 Td (821,108) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 507.17 Td (Restricted cash) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 507.17 Td (401,647) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 507.17 Td (302,322) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 492.17 Td (Accrued interest receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.65 492.17 Td (50,303) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.65 492.17 Td (42,613) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 477.17 Td (Due from counterparties) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.65 477.17 Td (25,087) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.65 477.17 Td (39,974) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 462.17 Td (Derivative assets, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 462.17 Td (549,859) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 462.17 Td (462,080) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 447.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.65 447.17 Td (13,199) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.65 447.17 Td (82,586) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.50 432.18 Td (Total Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.50 432.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.15 432.17 Td (17,173,862) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.50 432.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.10 432.17 Td (16,813,944) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 62.50 402.18 Td (LIABILITIES AND STOCKHOLDERS EQUITY) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.50 402.17 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.50 402.17 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 62.50 387.18 Td (Liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.50 387.17 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.50 387.17 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 372.17 Td (Repurchase agreements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.50 372.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.15 372.17 Td (12,250,450) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.50 372.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.10 372.17 Td (12,624,510) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 357.17 Td (Collateralized borrowings in securitization trusts, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 357.17 Td (639,731) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.15 357.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 342.17 Td (Derivative liabilities, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.65 342.17 Td (22,081) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 342.17 Td (129,294) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 327.17 Td (Accrued interest payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.65 327.17 Td (20,277) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.65 327.17 Td (19,060) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 312.17 Td (Due to counterparties) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 312.17 Td (318,848) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 312.17 Td (412,861) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 297.17 Td (Dividends payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 297.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 297.17 Td (164,347) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 282.17 Td (Other liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.65 282.17 Td (67,480) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.65 282.17 Td (13,295) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.50 267.18 Td (Total liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.50 267.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.15 267.17 Td (13,318,867) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.50 267.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.10 267.17 Td (13,363,367) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 62.50 237.18 Td (Stockholders Equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.50 237.17 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.50 237.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 222.17 Td (Preferred stock, par value $0.01 per share; 50,000,000 shares authorized; no shares) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 212.17 Td (issued and outstanding) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 212.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 533.15 212.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 195.17 Td (Common stock, par value $0.01 per share; 900,000,000 shares authorized and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 185.17 Td (364,935,168 and 298,813,258 shares issued and outstanding, respectively) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.65 185.17 Td (3,649) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.65 185.17 Td (2,988) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 170.17 Td (Additional paid-in capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.15 170.17 Td (3,795,372) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.15 170.17 Td (2,948,345) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 155.17 Td (Accumulated other comprehensive income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 155.17 Td (444,735) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 155.17 Td (696,458) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 140.17 Td (Cumulative earnings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.15 140.17 Td (1,028,397) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.65 140.17 Td (449,358) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 62.50 125.17 Td (Cumulative distributions to stockholders) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.80 125.22 Td (\(1,417,158) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.15 125.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 507.30 125.22 Td (\(646,572) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.15 125.17 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.50 110.18 Td (Total stockholders equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.15 110.17 Td (3,854,995) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.15 110.17 Td (3,450,577) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 74.50 95.18 Td (Total Liabilities and Stockholders Equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.50 95.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.15 95.17 Td (17,173,862) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.50 95.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.10 95.17 Td (16,813,944) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.15 31.60 Td (- 10 -) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 748.50 508.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 717.50 508.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 691.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 691.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 691.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 691.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 691.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 651.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 651.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 651.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 651.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 651.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 619.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 619.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 619.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 619.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 619.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 587.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 587.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 587.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 587.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 587.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 555.50 252.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 555.50 64.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 555.50 64.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 555.50 64.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 555.50 64.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 512.50 252.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 512.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 512.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 512.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 512.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 483.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 483.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 483.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 483.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 483.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 451.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 451.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 451.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 451.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 451.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 419.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 419.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 419.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 419.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 419.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 388.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 388.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 388.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 388.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 388.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 356.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 356.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 356.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 356.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 356.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 324.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 324.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 324.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 324.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 324.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 292.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 292.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 292.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 292.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 292.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 260.50 252.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 260.50 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 260.50 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 260.50 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 260.50 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 229.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 229.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 229.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 229.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 229.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 197.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 197.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 197.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 197.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 197.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 166.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 166.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 166.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 166.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 166.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 134.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 134.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 134.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 134.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 134.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 104.50 252.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 104.50 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 104.50 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 104.50 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 104.50 64.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 635.5 m 365.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 635.5 m 429.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 635.5 m 493.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 635.5 m 557.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 512.5 m 365.5 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 512.5 m 429.5 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 512.5 m 493.5 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 512.5 m 557.5 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 512.5 m 365.5 512.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 451.5 m 365.5 451.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 451.5 m 429.5 451.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 451.5 m 493.5 451.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 451.5 m 557.5 451.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 435.5 m 365.5 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 435.5 m 493.5 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 435.5 m 557.5 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 435.5 m 365.5 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 435.5 m 429.5 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 435.5 m 493.5 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 435.5 m 557.5 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 276.5 m 365.5 276.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 276.5 m 493.5 276.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 276.5 m 365.5 276.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 276.5 m 429.5 276.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 276.5 m 493.5 276.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 276.5 m 557.5 276.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 181.5 m 365.5 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 181.5 m 429.5 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 181.5 m 493.5 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 181.5 m 557.5 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 181.5 m 365.5 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 166.5 m 365.5 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 181.5 m 429.5 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 166.5 m 429.5 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 181.5 m 493.5 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 166.5 m 493.5 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 181.5 m 557.5 181.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 166.5 m 557.5 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 166.5 m 365.5 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 166.5 m 429.5 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 134.5 m 365.5 134.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 134.5 m 429.5 134.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 134.5 m 493.5 134.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 134.5 m 557.5 134.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 134.5 m 365.5 134.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 118.5 m 365.5 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 134.5 m 429.5 134.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 118.5 m 429.5 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 134.5 m 493.5 134.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 118.5 m 493.5 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 134.5 m 557.5 134.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 118.5 m 557.5 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 118.5 m 365.5 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 104.5 m 365.5 104.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 118.5 m 429.5 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 104.5 m 429.5 104.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 118.5 m 493.5 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 104.5 m 493.5 104.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 118.5 m 557.5 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 104.5 m 557.5 104.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 104.5 m 365.5 104.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 90.5 m 365.5 90.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 88.5 m 365.5 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 104.5 m 429.5 104.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 90.5 m 429.5 90.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 88.5 m 429.5 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 104.5 m 493.5 104.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 90.5 m 493.5 90.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 88.5 m 493.5 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 104.5 m 557.5 104.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 90.5 m 557.5 90.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 88.5 m 557.5 88.5 l s BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.80 737.18 Td (TWO HARBORS INVESTMENT CORP.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 151.75 722.18 Td (CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 259.65 708.12 Td (\(dollars in thousands\)) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 106.45 696.06 Td (Certain prior period amounts have been reclassified to conform to the current period presentation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.75 666.07 Td (Three Months Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.95 656.07 Td (December 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.75 666.07 Td (Year Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.95 656.07 Td (December 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.00 640.17 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.00 640.17 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.00 640.17 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 640.17 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.95 624.17 Td (\(unaudited\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.90 624.17 Td (\(unaudited\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 608.18 Td (Interest income:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 592.17 Td (Available-for-sale securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 592.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 592.17 Td (120,934) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 592.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 592.17 Td (135,466) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 592.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 592.17 Td (507,180) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 592.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 592.17 Td (448,620) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 576.17 Td (Trading securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.15 576.17 Td (1,928) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.15 576.17 Td (1,295) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 576.17 Td (5,963) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 576.17 Td (4,873) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 560.17 Td (Mortgage loans held-for-sale) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.15 560.17 Td (6,776) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.65 560.17 Td (247) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 560.17 Td (22,185) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.65 560.17 Td (609) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 543.17 Td (Mortgage loans held-for-investment in securitization trusts,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 533.17 Td (at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.15 533.17 Td (7,548) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 533.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 533.17 Td (19,220) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 533.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 517.17 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 517.17 Td (271) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.65 517.17 Td (324) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 517.17 Td (1,043) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 538.65 517.17 Td (944) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 503.07 Td (Total interest income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 503.07 Td (137,457) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 503.07 Td (137,332) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 503.07 Td (555,591) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 503.07 Td (455,046) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 488.18 Td (Interest expense:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 472.17 Td (Repurchase agreements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 472.17 Td (22,097) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.15 472.17 Td (24,369) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 472.17 Td (89,470) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 472.17 Td (72,106) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 456.17 Td (Collateralized borrowings in securitization trusts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.15 456.17 Td (4,825) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 456.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 456.17 Td (10,937) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 456.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 440.17 Td (Total interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 440.17 Td (26,922) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.15 440.17 Td (24,369) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 440.17 Td (100,407) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 440.17 Td (72,106) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 424.17 Td (Net interest income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 424.17 Td (110,535) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 424.17 Td (112,963) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 424.17 Td (455,184) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 424.17 Td (382,940) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 408.17 Td (Other-than-temporary impairment losses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.65 408.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.80 408.22 Td (\(1,642) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.65 408.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.80 408.22 Td (\(1,662) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 408.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.80 408.22 Td (\(10,952) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 408.17 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 393.18 Td (Other income:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 377.17 Td (Gain \(loss\) on investment securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 377.17 Td (97,850) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 377.17 Td (108,219) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.80 377.22 Td (\(54,430) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 377.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 377.17 Td (122,466) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 361.17 Td (Gain \(loss\) on interest rate swap and swaption agreements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 361.17 Td (21,841) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.80 361.22 Td (\(6,096) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.65 361.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 361.17 Td (245,229) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 517.80 361.22 Td (\(159,775) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 361.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 345.17 Td (Gain \(loss\) on other derivative instruments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 345.17 Td (29,290) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 345.22 Td (\(27,276) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.65 345.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 345.17 Td (95,345) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.80 345.22 Td (\(40,906) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 345.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 329.17 Td (\(Loss\) gain on mortgage loans held-for-sale) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.80 329.22 Td (\(8,584) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 329.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.15 329.17 Td (1,679) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.80 329.22 Td (\(33,846) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 329.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 329.17 Td (2,270) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 313.17 Td (Servicing income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 313.17 Td (10,560) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 313.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 313.17 Td (12,011) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 313.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 297.17 Td (Servicing asset valuation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 297.17 Td (13,065) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 297.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 297.17 Td (13,881) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 297.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 281.17 Td (Other \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.80 281.22 Td (\(2,001) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 281.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 281.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 281.17 Td (14,619) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 281.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 265.17 Td (Total other income \(loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 265.17 Td (162,021) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.15 265.17 Td (76,526) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 265.17 Td (292,809) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.80 265.22 Td (\(75,945) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 265.17 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 250.18 Td (Expenses:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 234.17 Td (Management fees) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 234.17 Td (12,319) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.15 234.17 Td (9,886) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 234.17 Td (41,707) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 234.17 Td (33,168) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 218.17 Td (Securitization deal costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.65 218.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 218.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 218.17 Td (4,153) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 218.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 202.17 Td (Servicing expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.15 202.17 Td (2,561) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 202.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 202.17 Td (3,761) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 202.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 186.17 Td (Other operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 186.17 Td (12,395) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.15 186.17 Td (6,255) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 186.17 Td (37,259) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 186.17 Td (17,678) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 171.17 Td (Total expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 171.17 Td (27,275) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.15 171.17 Td (16,141) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 171.17 Td (86,880) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 526.15 171.17 Td (50,846) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 155.18 Td (Income from continuing operations before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 155.17 Td (245,281) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 155.17 Td (171,706) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 155.17 Td (659,451) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 155.17 Td (245,197) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 139.17 Td (Provision for \(benefit from\) income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.15 139.17 Td (6,602) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.80 139.22 Td (\(10,203) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.65 139.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 139.17 Td (84,411) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.80 139.22 Td (\(42,219) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 553.65 139.17 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 123.18 Td (Net income from continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 123.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 123.17 Td (238,679) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 123.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 123.17 Td (181,909) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 123.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 123.17 Td (575,040) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 123.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 123.17 Td (287,416) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 109.07 Td (Income from discontinued operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 109.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 109.07 Td (735) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 109.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.15 109.07 Td (7,391) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 109.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 109.07 Td (3,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 109.07 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 531.15 109.07 Td (4,490) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 94.18 Td (Net income attributable to common stockholders) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 94.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 94.17 Td (239,414) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 94.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 94.17 Td (189,300) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 94.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 94.17 Td (579,039) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 94.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 94.17 Td (291,906) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.35 31.60 Td (- 1) Tj ET Q q 0 0 0 rg BT 305.81 31.60 Td (1 -) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 731.50 508.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 699.50 508.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 667.50 252.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 667.50 128.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 667.50 128.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 625.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 625.50 128.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 625.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 625.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 593.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 593.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 593.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 593.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 593.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 561.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 561.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 561.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 561.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 561.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 529.50 252.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 529.50 64.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 529.50 64.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 529.50 64.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 529.50 64.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 487.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 487.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 487.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 487.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 487.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 455.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 455.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 455.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 455.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 455.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 423.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 423.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 423.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 423.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 423.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 391.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 391.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 391.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 391.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 391.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 359.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 359.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 359.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 359.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 359.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 327.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 327.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 327.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 327.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 327.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 295.50 252.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 295.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 295.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 295.50 64.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 295.50 64.00 -16.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 625.5 m 365.5 625.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 625.5 m 429.5 625.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 625.5 m 493.5 625.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 625.5 m 557.5 625.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 561.5 m 365.5 561.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 561.5 m 365.5 561.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 546.5 m 365.5 546.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 544.5 m 365.5 544.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 561.5 m 429.5 561.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 546.5 m 429.5 546.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 544.5 m 429.5 544.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 561.5 m 493.5 561.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 546.5 m 493.5 546.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 544.5 m 493.5 544.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 561.5 m 557.5 561.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 546.5 m 557.5 546.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 544.5 m 557.5 544.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 471.5 m 365.5 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 471.5 m 365.5 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 456.5 m 365.5 456.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 454.5 m 365.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 471.5 m 429.5 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 456.5 m 429.5 456.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 454.5 m 429.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 471.5 m 493.5 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 456.5 m 493.5 456.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 454.5 m 493.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 471.5 m 557.5 471.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 456.5 m 557.5 456.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 454.5 m 557.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 440.5 m 365.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 438.5 m 365.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 454.5 m 429.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 456.5 m 429.5 456.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 440.5 m 429.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 438.5 m 429.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 440.5 m 493.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 438.5 m 493.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 440.5 m 557.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 438.5 m 557.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 311.5 m 365.5 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 311.5 m 429.5 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 311.5 m 493.5 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 311.5 m 557.5 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 295.5 m 365.5 295.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 311.5 m 429.5 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 295.5 m 429.5 295.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 311.5 m 493.5 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 295.5 m 493.5 295.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 311.5 m 557.5 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 295.5 m 557.5 295.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 280.5 m 365.5 280.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 278.5 m 365.5 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 280.5 m 429.5 280.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 278.5 m 429.5 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 295.5 m 493.5 295.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 280.5 m 493.5 280.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 278.5 m 493.5 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 280.5 m 557.5 280.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 278.5 m 557.5 278.5 l s BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.80 736.18 Td (TWO HARBORS INVESTMENT CORP.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 151.75 720.18 Td (CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.70 704.17 Td (\(dollars in thousands, except share data\)) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 106.45 688.21 Td (Certain prior period amounts have been reclassified to conform to the current period presentation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.75 656.17 Td (Three Months Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.95 646.17 Td (December 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.75 656.17 Td (Year Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.95 646.17 Td (December 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.00 630.17 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.00 630.17 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.00 630.17 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.00 630.17 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.95 614.17 Td (\(unaudited\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.90 614.17 Td (\(unaudited\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 598.18 Td (Basic earnings \(loss\) per weighted average common share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 582.17 Td (Continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 582.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 582.17 Td (0.66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 582.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.15 582.17 Td (0.62) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 582.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 582.17 Td (1.64) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 582.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 582.17 Td (1.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 566.17 Td (Discontinued operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.65 566.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.15 566.17 Td (0.03) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 566.17 Td (0.01) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 566.17 Td (0.02) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 550.17 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 550.17 Td (0.66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.15 550.17 Td (0.65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 550.17 Td (1.65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 550.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 550.17 Td (1.21) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 518.18 Td (Diluted earnings \(loss\) per weighted average common) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 508.18 Td (share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 492.17 Td (Continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 492.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 492.17 Td (0.66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 492.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.15 492.17 Td (0.61) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 492.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 492.17 Td (1.64) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 492.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 492.17 Td (1.18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 476.17 Td (Discontinued operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.65 476.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.15 476.17 Td (0.02) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 476.17 Td (0.01) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 476.17 Td (0.02) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 460.17 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 460.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 460.17 Td (0.66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 460.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.15 460.17 Td (0.63) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 460.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 460.17 Td (1.65) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 460.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 460.17 Td (1.20) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 444.18 Td (Dividends declared per common share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 444.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 444.17 Td (0.26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 444.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.15 444.17 Td (0.55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 444.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 444.17 Td (1.17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 444.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 536.15 444.17 Td (1.71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 412.17 Td (Weighted average shares outstanding - Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.00 412.17 Td (364,700,903) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.00 412.17 Td (295,492,372) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 412.17 Td (350,361,827) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 504.00 412.17 Td (242,014,751) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 396.17 Td (Weighted average shares outstanding - Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.60 396.17 Td (364,700,903) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.60 396.17 Td (296,229,245) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.60 396.17 Td (350,992,387) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.60 396.17 Td (242,432,156) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 364.17 Td (Comprehensive income:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 348.17 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 348.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 348.17 Td (239,414) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 348.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 348.17 Td (189,300) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 348.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 348.17 Td (579,039) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 348.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 348.17 Td (291,906) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 332.17 Td (Other comprehensive \(loss\) income:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 316.17 Td (Unrealized \(loss\) gain on available-for-sale securities, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.80 316.22 Td (\(68,039) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 316.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.80 316.22 Td (\(3,938) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.65 316.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.80 316.22 Td (\(251,723) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 316.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 316.17 Td (755,174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 300.17 Td (Other comprehensive \(loss\) income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.80 300.22 Td (\(68,039) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 300.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.80 300.22 Td (\(3,938) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.65 300.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.80 300.22 Td (\(251,723) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 300.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 521.15 300.17 Td (755,174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 284.17 Td (Comprehensive income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 284.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 284.17 Td (171,375) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 368.00 284.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 284.17 Td (185,362) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 284.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 284.17 Td (327,316) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.00 284.17 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 513.65 284.17 Td (1,047,080) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.15 31.60 Td (- 12 -) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 748.50 508.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 722.50 508.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 696.50 508.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 671.50 256.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 671.50 121.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 671.50 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 645.50 256.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 645.50 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 645.50 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 645.50 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 645.50 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 620.50 256.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 620.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 620.50 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 620.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 620.50 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 593.50 256.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 593.50 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 593.50 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 593.50 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 593.50 67.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 568.50 256.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 568.50 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 568.50 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 568.50 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 568.50 67.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 543.50 256.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 543.50 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 543.50 63.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 543.50 64.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 543.50 67.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 497.50 256.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 497.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 497.50 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 497.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 497.50 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 460.50 256.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 460.50 58.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 460.50 63.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 460.50 64.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 460.50 67.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 415.50 256.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 415.50 58.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 415.50 63.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 415.50 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 415.50 67.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 382.50 256.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 382.50 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 382.50 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 382.50 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 382.50 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 357.50 256.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 357.50 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 357.50 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 357.50 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 357.50 67.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 333.50 256.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 333.50 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 333.50 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 333.50 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 333.50 67.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 307.50 256.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 307.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 307.50 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 307.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 307.50 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 279.50 256.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 279.50 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 279.50 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 279.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 279.50 67.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 632.5 m 363.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 632.5 m 426.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 632.5 m 490.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 632.5 m 557.5 632.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 333.5 m 363.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 322.5 m 363.5 322.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 320.5 m 363.5 320.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 333.5 m 426.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 322.5 m 426.5 322.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 320.5 m 426.5 320.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 333.5 m 490.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 322.5 m 490.5 322.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 320.5 m 490.5 320.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 333.5 m 557.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 322.5 m 557.5 322.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 320.5 m 557.5 320.5 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 222.70 739.90 Td (TWO HARBORS INVESTMENT CORP.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 148.45 726.90 Td (RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 272.75 713.90 Td (\(UNAUDITED\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 230.75 700.76 Td (\(dollars in thousands, except share data\)) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 126.10 687.75 Td (Certain prior period amounts have been reclassified to conform to the current period presentation) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 327.50 662.76 Td (Three Months Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 470.55 662.76 Td (Year Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 340.25 649.76 Td (December 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.25 649.76 Td (December 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.00 636.76 Td (2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 385.50 636.76 Td (2012) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 449.00 636.76 Td (2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 514.50 636.76 Td (2012) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 610.96 Td (Reconciliation of net income attributable to common stockholders to) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 597.76 Td (Core Earnings:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 572.76 Td (Net income attributable to common stockholders) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 308.00 572.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 330.75 572.76 Td (239,414) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 366.00 572.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 393.75 572.76 Td (189,300) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 429.00 572.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 457.75 572.76 Td (579,039) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 493.00 572.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 524.75 572.76 Td (291,906) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 547.76 Td (Adjustments for non-core earnings:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 532.96 Td (\(Gain\) loss on sale of securities and mortgage loans held-for-sale,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 523.96 Td (net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 332.25 523.96 Td (\(98,624) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 360.00 523.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 390.75 523.96 Td (\(104,452) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.00 523.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 462.25 523.96 Td (68,610) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 521.75 523.96 Td (\(115,338) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 554.00 523.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 510.76 Td (Unrealized loss \(gain\) on trading securities, equity securities and) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 501.76 Td (mortgage loans held-for-sale, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 339.75 501.96 Td (6,164) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 399.75 501.96 Td (\(5,128) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.00 501.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 501.96 Td (9,034) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 530.75 501.96 Td (\(7,372) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 554.00 501.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 487.96 Td (Other-than-temporary impairment loss, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 351.00 487.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 402.75 487.96 Td (1,642) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 487.96 Td (1,662) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.25 487.96 Td (10,952) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 473.96 Td (Realized \(gain\) loss on termination or expiration of swaps and) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 464.96 Td (swaptions, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 332.25 464.96 Td (\(21,075) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 360.00 464.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 402.75 464.96 Td (2,307) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.25 464.96 Td (\(12,836) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 464.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.25 464.96 Td (21,931) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 450.96 Td (Unrealized \(gain\) loss on interest rate swap and swaptions) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 441.96 Td (economically hedging repurchase agreements, TBAs, MSRs,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 432.96 Td (trading securities and available-for-sale securities, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 336.75 432.96 Td (\(8,277) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 360.00 432.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 395.25 432.96 Td (\(12,732) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.00 432.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.75 432.96 Td (\(241,680) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 432.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.25 432.96 Td (83,789) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 419.76 Td (\(Gain\) loss on other derivative instruments, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 332.25 419.76 Td (\(25,713) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 360.00 419.76 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 398.25 419.76 Td (20,428) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.25 419.76 Td (\(59,244) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 419.76 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 529.25 419.76 Td (29,707) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 406.76 Td (Realized and unrealized loss \(gain\) on financing securitizations, net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 397.76 Td (of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 339.75 398.96 Td (2,417) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 414.00 398.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.25 398.96 Td (\(14,204) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 398.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.00 398.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 385.76 Td (Unrealized gain on mortgage servicing rights, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 332.25 385.76 Td (\(17,885) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 360.00 385.76 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 414.00 385.76 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.25 385.76 Td (\(18,687) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 385.76 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.00 385.76 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 373.76 Td (Securitization deal costs, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 351.00 373.76 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 414.00 373.76 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.75 373.76 Td (3,430) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.00 373.76 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 360.76 Td (Income from discontinued operations, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 343.50 360.76 Td (\(735) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 360.00 360.76 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 399.75 360.76 Td (\(7,391) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.00 360.76 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 463.75 360.76 Td (\(3,999) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 487.00 360.76 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 530.75 360.76 Td (\(4,490) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 554.00 360.76 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 348.76 Td (Amortization of business combination intangible assets, net of tax) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 346.50 348.76 Td (704) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 414.00 348.76 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 473.50 348.76 Td (704) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 545.00 348.76 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 324.76 Td (Core Earnings) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 308.00 324.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 335.25 324.76 Td (76,390) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 366.00 324.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 398.25 324.76 Td (83,974) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 429.00 324.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 457.75 324.76 Td (311,829) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 493.00 324.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 524.75 324.76 Td (311,085) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 297.96 Td (Weighted average shares outstanding - Basic) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 315.00 297.96 Td (364,700,903) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 378.00 297.96 Td (295,492,372) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.00 297.96 Td (350,361,827) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.00 297.96 Td (242,014,751) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 283.96 Td (Weighted average shares outstanding - Diluted) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 315.00 283.96 Td (364,700,903) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 378.00 283.96 Td (296,229,245) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.00 283.96 Td (350,992,387) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 509.00 283.96 Td (242,432,156) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 255.96 Td (Core Earnings per weighted average share outstanding - diluted) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 308.00 255.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 344.25 255.96 Td (0.21) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 366.00 255.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.25 255.96 Td (0.28) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 429.00 255.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.25 255.96 Td (0.89) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 493.00 255.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 538.25 255.96 Td (1.28) Tj ET Q BT /F2 10.00 Tf ET endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.15 31.60 Td (- 13 -) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 748.50 508.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 722.50 508.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 696.50 508.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 671.50 210.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 671.50 298.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 640.50 210.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 640.50 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 640.50 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 640.50 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 640.50 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 640.50 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 613.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 613.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 613.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 613.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 613.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 613.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 585.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 585.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 585.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 585.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 585.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 585.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 557.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 557.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 557.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 557.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 557.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 557.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 529.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 529.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 529.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 529.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 529.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 529.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 501.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 501.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 501.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 501.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 501.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 501.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 473.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 473.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 473.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 473.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 473.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 473.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 445.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 445.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 445.50 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 445.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 445.50 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 445.50 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 417.50 210.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 417.50 59.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 417.50 64.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 417.50 59.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 417.50 57.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 417.50 59.00 -17.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 627.5 m 318.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 627.5 m 382.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 627.5 m 441.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 627.5 m 498.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 627.5 m 557.5 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 571.5 m 318.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 571.5 m 382.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 571.5 m 441.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 571.5 m 498.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 571.5 m 557.5 571.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 487.5 m 318.5 487.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 487.5 m 382.5 487.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 487.5 m 441.5 487.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 487.5 m 498.5 487.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 487.5 m 557.5 487.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 459.5 m 318.5 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 459.5 m 382.5 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 459.5 m 441.5 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 459.5 m 498.5 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 459.5 m 557.5 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 431.5 m 318.5 431.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 431.5 m 382.5 431.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 431.5 m 441.5 431.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 431.5 m 498.5 431.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 431.5 m 557.5 431.5 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 222.70 739.90 Td (TWO HARBORS INVESTMENT CORP.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 203.95 726.90 Td (SUMMARY OF QUARTERLY CORE EARNINGS) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 272.75 713.90 Td (\(UNAUDITED\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 227.15 700.76 Td (\(dollars in millions, except per share data\)) Tj ET Q BT /F4 9.00 Tf ET q 0 0 0 rg BT 126.10 687.75 Td (Certain prior period amounts have been reclassified to conform to the current period presentation) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 370.00 662.76 Td (Three Months Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 263.25 644.96 Td (December 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 324.00 644.96 Td (September 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 396.50 644.96 Td (June 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.00 644.96 Td (March 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 502.25 644.96 Td (December 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 279.50 631.76 Td (2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 341.00 631.76 Td (2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 402.50 631.76 Td (2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 460.50 631.76 Td (2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 518.50 631.76 Td (2012) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 603.96 Td (Net Interest Income:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 589.96 Td (Interest income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 262.00 589.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 294.40 589.96 Td (137.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 321.00 589.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 358.40 589.96 Td (138.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 385.00 589.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 417.40 589.96 Td (145.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 444.00 589.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 474.40 589.96 Td (134.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 501.00 589.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 533.40 589.96 Td (137.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 575.96 Td (Interest expense) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 298.90 575.96 Td (26.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 362.90 575.96 Td (24.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 421.90 575.96 Td (24.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 478.90 575.96 Td (23.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 537.90 575.96 Td (24.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 64.00 561.96 Td (Net interest income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 294.40 561.96 Td (110.5) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 358.40 561.96 Td (113.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 417.40 561.96 Td (120.6) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 474.40 561.96 Td (111.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 533.40 561.96 Td (112.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 547.96 Td (Other income:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 533.96 Td (Interest spread on interest rate swaps) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 295.90 533.96 Td (\(10.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 314.65 533.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 359.90 533.96 Td (\(15.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 378.65 533.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 418.90 533.96 Td (\(19.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 437.65 533.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.90 533.96 Td (\(14.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 494.65 533.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.90 533.96 Td (\(15.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 553.65 533.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 58.00 526.20 167.20 -8.18 re f /GS0 gs q 0 0 0 rg BT 58.00 519.96 Td (Interest spread on other derivative instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 300.40 519.96 Td (\(2.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 314.65 519.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 364.40 519.96 Td (\(7.5) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 378.65 519.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.40 519.96 Td (\(1.5) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 437.65 519.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.40 519.96 Td (2.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 542.40 519.96 Td (0.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 505.96 Td (Servicing income, net of amortization) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 194.21 510.04 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 303.40 505.96 Td (5.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 367.40 505.96 Td (1.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 426.40 505.96 Td (0.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 485.65 505.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.65 505.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 58.00 491.96 Td (Other income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 303.40 491.96 Td (0.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 369.65 491.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.65 491.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.40 491.96 Td (0.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.65 491.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 64.00 477.96 Td (Total other \(loss\) income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 300.40 477.96 Td (\(6.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 314.65 477.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 359.90 477.96 Td (\(21.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 378.65 477.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 418.90 477.96 Td (\(20.6) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 437.65 477.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.90 477.96 Td (\(10.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 494.65 477.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 534.90 477.96 Td (\(15.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 553.65 477.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 463.96 Td (Expenses) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 298.90 463.96 Td (26.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 362.90 463.96 Td (22.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 421.90 463.96 Td (22.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 478.90 463.96 Td (11.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 537.90 463.96 Td (16.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 449.96 Td (Core Earnings before income taxes) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 298.90 449.96 Td (77.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 362.90 449.96 Td (69.6) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 421.90 449.96 Td (77.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 478.90 449.96 Td (88.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 537.90 449.96 Td (81.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 435.96 Td (Income tax expense \(benefit\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 303.40 435.96 Td (1.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 367.40 435.96 Td (1.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.40 435.96 Td (\(0.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 437.65 435.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 480.40 435.96 Td (\(0.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 494.65 435.96 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 539.40 435.96 Td (\(2.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 553.65 435.96 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 421.95 Td (Core Earnings) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 262.00 421.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 298.90 421.96 Td (76.4) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 321.00 421.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 362.90 421.96 Td (67.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 385.00 421.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 421.90 421.96 Td (78.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 444.00 421.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 478.90 421.96 Td (89.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 501.00 421.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 537.90 421.96 Td (84.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 404.96 Td (Basic and diluted weighted average Core EPS) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 262.00 404.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 298.90 404.96 Td (0.21) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 321.00 404.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 362.90 404.96 Td (0.19) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 385.00 404.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 421.90 404.96 Td (0.21) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 444.00 404.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 478.90 404.96 Td (0.29) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 501.00 404.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 537.90 404.96 Td (0.28) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 52.00 392.55 Td (\(1\) Amortization refers to the portion of change in fair value of MSR attributed to the economic runoff of the portfolio as defined by the change in present value of the forecasted) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 52.00 385.55 Td (cash flows. This amortization has been deducted from Core Earnings. Amortization of MSR is deemed a non-GAAP measure due to the companys decision to account for MSR) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 52.00 378.55 Td (at fair value.) Tj ET Q BT /F2 10.00 Tf ET BT /F1 9.00 Tf ET endstream endobj 29 0 obj <> /View <>>>>> endobj 30 0 obj <> /View <>>>>> endobj 31 0 obj <> endobj 32 0 obj <> endobj 33 0 obj <> stream xy\E7~n{{w'd'52 HaGPPA!"" b-&h,+TLy?:uk?uΩoH""?W~.Xv3&rm 2\jMgwm'CڴzlycǏ\ rBjx\DsV@{twocmC{Iwl11z:1m!t-\q3D.:yz'Wɨp[_F=>E"ǢӦ/|K&_~=!wn-az3¦h$7,ؑ2Oo_eSFLlk}Fg[F>|;