%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 91.75 653.00 Td (T) Tj ET Q q 0 0 0 rg BT 99.46 653.00 Td (wo Harbors Investment Corp. Reports ) Tj ET Q BT /F3 13.00 Tf ET q 0 0 0 rg BT 316.83 653.00 Td (First Quarter) Tj ET Q BT /F3 13.00 Tf ET q 0 0 0 rg BT 392.03 653.00 Td ( ) Tj ET Q BT /F3 13.00 Tf ET q 0 0 0 rg BT 395.28 653.00 Td (2013) Tj ET Q BT /F3 13.00 Tf ET q 0 0 0 rg BT 421.28 653.00 Td ( Financial Results) Tj ET Q BT /F4 12.00 Tf ET q 0 0 0 rg BT 181.45 638.60 Td (Deliver) Tj ET Q q 0 0 0 rg BT 216.99 638.60 Td (ed Compr) Tj ET Q q 0 0 0 rg BT 264.21 638.60 Td (ehensive Income of $248.0 Million) 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 (May7, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 174.06 606.40 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 183.11962890625 604.93369140625 m 319.7255859375 604.93369140625 l s q 0 0 1 rg BT 183.02 606.40 Td (T) Tj ET Q q 0 0 1 rg BT 188.97 606.40 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 319.73 606.40 Td ( \(NYSE: ) Tj ET Q q 0 0 0 rg BT 360.47 606.40 Td (TWO; NYSE MKT) Tj ET Q q 0 0 0 rg BT 446.69 606.40 Td (: ) Tj ET Q q 0 0 0 rg BT 452.30 606.40 Td (TWO.WS\), a real estate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 593.25 Td (investment trust that invests in residential mortgage-backed securities \(RMBS\), residential mortgage loans and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 580.05 Td (other financial assets, today announced its financial results for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 405.85 580.05 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 475.80 580.05 Td (.) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 547.85 Td (Highlights ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 534.60 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 521.45 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 521.45 Td (Delivered Comprehensive Income of $248.0 million, or $0.81 per diluted weighted average common share. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 495.05 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 495.05 Td (Book value was $1) Tj ET Q q 0 0 0 rg BT 169.61 495.05 Td (1.19 per diluted common share, representing an 8.5%) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 404.82 500.03 Td (1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 408.39 495.05 Td ( return on book value, after ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 481.85 Td (accounting for a cash dividend of $0.32 per common share and a special dividend of shares of Silver Bay ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 468.65 Td (Realty ) Tj ET Q q 0 0 0 rg BT 117.27 468.65 Td (T) Tj ET Q q 0 0 0 rg BT 123.60 468.65 Td (rust Corp. \("Silver Bay"\) common stock amounting to $1.01) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 389.22 473.63 Td (2) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.79 468.65 Td ( per share. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 442.25 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 442.25 Td (Reported Core Earnings of $89.7 million, or $0.29 per diluted weighted average common share. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 415.85 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 415.85 Td (Completed an accretive public of) Tj ET Q q 0 0 0 rg BT 231.80 415.85 Td (fering in March, which resulted in the issuance of 57.5 million shares of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 402.65 Td (common stock for net proceeds of approximately $762.9 million.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 376.25 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 376.25 Td (Generated an aggregate yield of 4.0% in the RMBS portfolio, consistent with the company's expectations. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 363.05 Td (Y) Tj ET Q q 0 0 0 rg BT 93.34 363.05 Td (ields were driven by non-Agency portfolio performance of 9.2%.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 68.00 336.65 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 336.65 Td (Reported progress regarding a number of previously-identified new business initiatives, including the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 323.45 Td (acquisition of a company that has seller) Tj ET Q q 0 0 0 rg BT 259.89 323.45 Td (-servicer approvals from the Federal National Mortgage ) Tj ET Q q 0 0 0 rg BT 508.22 323.45 Td (Association ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 310.25 Td (\(Fannie Mae\), the Federal Home Loan Mortgage Corporation \(Freddie Mac\) and the Government National ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 297.05 Td (Mortgage ) Tj ET Q q 0 0 0 rg BT 130.91 297.05 Td (Association \(Ginnie Mae\) to hold and manage mortgage servicing rights \(MSRs\).) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 257.45 Td (W) Tj ET Q q 0 0 0 rg BT 64.38 257.45 Td (e had another terrific quarter) Tj ET Q q 0 0 0 rg BT 189.59 257.45 Td (. Comprehensive income was strong, and our book value increased considerably ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 244.25 Td (during the first quarter after accounting for our special dividend, said ) Tj ET Q q 0 0 0 rg BT 361.36 244.25 Td (Thomas Siering, ) Tj ET Q q 0 0 0 rg BT 436.62 244.25 Td (T) Tj ET Q q 0 0 0 rg BT 442.57 244.25 Td (wo Harbors' President and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 231.05 Td (Chief Executive Of) Tj ET Q q 0 0 0 rg BT 135.33 231.05 Td (ficer) Tj ET Q q 0 0 0 rg BT 154.87 231.05 Td (. W) Tj ET Q q 0 0 0 rg BT 174.75 231.05 Td (e were pleased to af) Tj ET Q q 0 0 0 rg BT 261.89 231.05 Td (fect the distribution of Silver Bay common stock, fulfilling our ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 217.85 Td (stated intention for this investment. ) 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 50.00 191.45 Td () Tj ET Q BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 102.60 Td (\(1\) Decrease in book value per diluted share from December 31, 2012 to March 31, 2013 of $0.35 plus dividends declared of $1.33 divided by December 31, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 93.00 Td (2012 diluted book value of $1) Tj ET Q q 0 0 0 rg BT 145.91 93.00 Td (1.54.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 73.80 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 63.18 73.80 Td (The per share calculation utilized the closing price of Silver Bay common stock on March 28, 2013, which was $20.70, multiplied by 17,824,647 shares of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 64.20 Td (Silver Bay common stock, divided by ) Tj ET Q q 0 0 0 rg BT 172.73 64.20 Td (T) Tj ET Q q 0 0 0 rg BT 177.06 64.20 Td (wo Harbors' shares outstanding of 365,065,756 on the record date, ) Tj ET Q q 0 0 0 rg BT 391.12 64.20 Td (April 2, 2013. ) Tj ET Q q 0 0 0 rg BT 439.86 64.20 Td (The dividend per share received by a ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 54.60 Td (stockholder for tax purposes was approximately $0.95 per share, which utilized the closing share price of Silver Bay common stock on the payable date, ) Tj ET Q q 0 0 0 rg BT 538.98 54.60 Td (April ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 45.00 Td (24, 2013, adjusted for the shares sold in open market and converted to cash proceeds which were distributed in lieu of fractional shares.) 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 50.00 728.40 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 715.20 Td (The following table summarizes the company's GAAP) Tj ET Q q 0 0 0 rg BT 289.86 715.20 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 360.94 715.20 Td ( earnings measurements and key metrics for ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 702.00 Td (the first quarter ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 120.55 702.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 142.55 702.00 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 678.30 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 678.30 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 678.30 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 678.30 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 650.30 340.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 650.30 44.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 650.30 51.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 650.30 58.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 595.30 340.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 595.30 44.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 595.30 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 595.30 58.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 549.30 340.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 549.30 44.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 549.30 51.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 549.30 58.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 528.30 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 528.30 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 528.30 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 528.30 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 500.30 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 500.30 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 500.30 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 500.30 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 463.30 340.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 463.30 44.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 463.30 51.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 463.30 58.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 59.00 411.30 493.00 -42.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 650.3 m 443 650.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 650.3 m 494 650.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 650.3 m 552 650.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 609.3 m 443 609.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 609.3 m 494 609.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 609.3 m 552 609.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 609.3 m 443 609.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 609.3 m 494 609.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 609.3 m 552 609.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 542.3 m 443 542.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 542.3 m 443 542.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 528.3 m 443 528.3 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 668.75 Td (Two Harbors Operating Performance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.50 654.76 Td (\(dollars in thousands, except per share data\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.00 654.76 Td (Q1-2013) 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 61.5 612.346337890625 m 96.51123046875 612.346337890625 l s q 0 0 0 rg BT 61.50 613.75 Td (Earnings) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 405.25 613.76 Td ( Earnings) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 449.00 631.76 Td ( Per diluted) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 457.50 622.76 Td (weighted) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.50 613.76 Td (share) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 507.00 640.76 Td (Annualized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 515.75 631.76 Td (return on) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 520.50 622.76 Td (average) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 526.00 613.76 Td (equity) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.50 599.76 Td (Core Earnings) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 113.24 603.84 Td (1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.50 599.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 410.25 599.76 Td (89,657) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 445.50 599.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 474.75 599.76 Td (0.29) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 532.75 599.76 Td (9.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.00 599.76 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.50 576.76 Td (GAAP Net Income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.50 576.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 405.75 576.76 Td (143,716) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 445.50 576.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 474.75 576.76 Td (0.47) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.25 576.76 Td (15.6) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.00 576.76 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.50 553.76 Td (Comprehensive Income) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.50 553.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 405.75 553.76 Td (247,968) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 445.50 553.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 474.75 553.76 Td (0.81) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.25 553.76 Td (26.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 544.00 553.76 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 61.5 531.346337890625 m 132.7265625 531.346337890625 l s q 0 0 0 rg BT 61.50 532.75 Td (Operating Metrics) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.50 532.76 Td (Q1-2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.50 518.76 Td (Dividend per common share) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.50 518.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 419.25 518.76 Td (0.32) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.50 504.76 Td (Special dividend declaration - Silver Bay common stock) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 264.70 508.84 Td (2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.50 504.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 419.25 504.76 Td (1.01) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.50 490.76 Td (Book value per diluted share at period end) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 401.50 490.76 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 414.75 490.76 Td (11.19) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.50 467.76 Td (Other operating expenses as a percentage of average equity) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 423.75 467.76 Td (0.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 435.00 467.76 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 447.55 Td (\(1\) Core Earnings is a non-GAAP) Tj ET Q q 0 0 0 rg BT 169.85 447.55 Td ( measure that the company defines as GAAP) Tj ET Q q 0 0 0 rg BT 312.85 447.55 Td ( net income, excluding impairment losses, gains or losses on sales of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 439.55 Td (securities and termination of interest rate swaps, unrealized gains or losses on trading securities, interest rate swaps and swaptions, certain gains or ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 431.55 Td (losses on derivative instruments, certain non-recurring gains and losses related to discontinued operations, and certain non-recurring upfront costs ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 423.55 Td (related to securitization transactions. ) Tj ET Q q 0 0 0 rg BT 180.35 423.55 Td (As defined, Core Earnings includes interest income associated with the company's inverse interest-only securities ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 415.55 Td (\("Agency Derivatives"\) and premium income or loss on credit default swaps. ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 403.25 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.68 403.25 Td (The per share calculation utilized the closing price of Silver Bay common stock on March 28, 2013, which was $20.70, multiplied by 17,824,647 ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 395.25 Td (shares of Silver Bay common stock, divided by ) Tj ET Q q 0 0 0 rg BT 214.89 395.25 Td (T) Tj ET Q q 0 0 0 rg BT 219.21 395.25 Td (wo Harbors' shares outstanding of 365,065,756 on the record date, ) Tj ET Q q 0 0 0 rg BT 433.28 395.25 Td (April 2, 2013. ) Tj ET Q q 0 0 0 rg BT 482.02 395.25 Td (The dividend per ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 387.25 Td (share received by a stockholder for tax purposes was approximately $0.95 per share, which utilized the closing share price of Silver Bay common stock ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 379.25 Td (on the payable date, ) Tj ET Q q 0 0 0 rg BT 127.03 379.25 Td (April 24, 2013, adjusted for the shares sold in open market and converted to cash proceeds which were distributed in lieu of partial ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 61.50 371.30 Td (shares.) 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 50 343.13369140625 m 134.626953125 343.13369140625 l s q 0 0 0 rg BT 50.00 344.60 Td (Earnings Summary) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 331.40 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 331.40 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 310.39 331.40 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 380.34 331.40 Td (, of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 397.76 331.40 Td ($89.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 422.51 331.40 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 474.45 331.40 Td ($0.29) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.20 331.40 Td ( per diluted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 318.20 Td (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 484.04 318.20 Td (December31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 305.00 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 305.00 Td (, of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 89.41 305.00 Td ($84.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 114.16 305.00 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 166.11 305.00 Td ($0.28) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 190.86 305.00 Td ( per diluted weighted average common share outstanding. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 279.80 Td (During the quarter) Tj ET Q q 0 0 0 rg BT 130.81 279.80 Td (, the company recognized:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 266.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 266.60 Td (a net realized gain of $18.9 million, net of tax, due to the sale of RMBS for $796.6 million with an ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 253.40 Td (amortized cost of $777.7 million;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 240.20 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 240.20 Td (a change in unrealized fair value gains on equity securities of $7.8 million, net of tax, and recognized a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 227.00 Td (change in unrealized fair value gains on mortgage loans held-for) Tj ET Q q 0 0 0 rg BT 369.53 227.00 Td (-sale of $9.3 million, net of tax; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 213.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 213.80 Td (other) Tj ET Q q 0 0 0 rg BT 108.38 213.80 Td (-than-temporary credit impairment losses on its RMBS of $0.2 million, net of tax; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 200.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 200.60 Td (a net loss of $58.6 million, net of tax, related to swap and swaption terminations and expirations; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 187.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 187.40 Td (an unrealized gain, net of tax, of $84.0 million associated with its interest rate swaps and swaptions ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 174.20 Td (economically hedging its repurchase agreements and available-for) Tj ET Q q 0 0 0 rg BT 377.16 174.20 Td (-sale securities;) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 161.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 161.00 Td (an unrealized gain, net of tax, of $1.0 million associated with its interest rate swaps economically hedging ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 147.80 Td (its trading securities; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 134.60 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 134.60 Td (net losses on other derivative instruments of approximately $14.0 million, net of tax; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 121.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 121.40 Td (a net unrealized gain of $6.3 million on mortgage loans held-for) Tj ET Q q 0 0 0 rg BT 367.72 121.40 Td (-investment and collateralized borrowings ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 108.20 Td (in securitization trust, net of tax; ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 95.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 95.00 Td (securitization deal costs of $2.0 million, net of tax; and) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 81.80 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 86.00 81.80 Td (income from discontinued operations of $1.3 million, net of tax.) 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 50.00 728.20 Td (The company reported GAAP) Tj ET Q q 0 0 0 rg BT 181.86 728.20 Td ( Net Income of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.89 728.20 Td ($143.7) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 281.14 728.20 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 333.08 728.20 Td ($0.47) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 357.83 728.20 Td ( per diluted weighted average common share ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 715.00 Td (outstanding, for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 201.51 715.00 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.47 715.00 Td (, as compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 346.30 715.00 Td ($189.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.55 715.00 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 428.50 715.00 Td ($0.64) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 453.25 715.00 Td ( per diluted weighted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 701.80 Td (average common share outstanding, for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 305.65 701.80 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 392.10 701.80 Td (. On a GAAP) Tj ET Q q 0 0 0 rg BT 450.96 701.80 Td ( basis, the company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 688.60 Td (earned an annualized return on average equity of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.45 688.60 Td (15.6%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.86 688.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 317.24 688.60 Td (22.1%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 345.66 688.60 Td ( for the quarters ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 447.36 688.60 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 517.32 688.60 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 675.40 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 136.44 675.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 194.37 675.40 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 662.20 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 649.00 Td (The company reported Comprehensive Income of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 271.76 649.00 Td ($248.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 302.01 649.00 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 353.95 649.00 Td ($0.81) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 378.70 649.00 Td ( per diluted weighted average common ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 635.80 Td (share outstanding, for the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.47 635.80 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 297.42 635.80 Td (, as compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.26 635.80 Td ($185.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 402.51 635.80 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 454.45 635.80 Td ($0.63) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 479.20 635.80 Td ( per diluted ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 622.60 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 348.72 622.60 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 435.17 622.60 Td (. ) Tj ET Q q 0 0 0 rg BT 440.47 622.60 Td (The company records ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 609.40 Td (unrealized fair value gains and losses for RMBS securities, classified as available-for) Tj ET Q q 0 0 0 rg BT 424.88 609.40 Td (-sale, as Other Comprehensive ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 596.20 Td (Income. On a Comprehensive Income basis, the company recognized an annualized return on average equity of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 583.00 Td (26.9%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 78.41 583.00 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 99.80 583.00 Td (21.6%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 128.21 583.00 Td ( for the quarters ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 229.92 583.00 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 299.87 583.00 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 321.26 583.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 407.70 583.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 465.63 583.00 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 50.00 543.40 Td (During the quarter) Tj ET Q q 0 0 0 rg BT 130.81 543.40 Td (, ) Tj ET Q q 0 0 0 rg BT 136.11 543.40 Td (T) Tj ET Q q 0 0 0 rg BT 142.06 543.40 Td (wo Harbors declared a quarterly cash dividend of $0.32 per common share, and also declared a ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 530.20 Td (special dividend of shares of Silver Bay common stock, which amounted to $1.01) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 409.87 535.18 Td (3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 413.45 530.20 Td ( per common share. ) Tj ET Q q 0 0 0 rg BT 502.34 530.20 Td (As ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 517.00 Td (previously announced on March 18, 2013, the company's board of directors declared a special dividend pursuant to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 503.80 Td (which the company distributed, on a pro rata basis, 17,824,647 shares of Silver Bay common stock to ) Tj ET Q q 0 0 0 rg BT 499.19 503.80 Td (T) Tj ET Q q 0 0 0 rg BT 505.14 503.80 Td (wo Harbors ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 490.60 Td (stockholders of record at the close of business as of ) Tj ET Q q 0 0 0 rg BT 278.50 490.60 Td (April 2, 2013. ) Tj ET Q q 0 0 0 rg BT 342.77 490.60 Td (This distribution was payable on or about ) Tj ET Q q 0 0 0 rg BT 527.60 490.60 Td (April ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 477.40 Td (24, 2013.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 464.20 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 451.00 Td (The company'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 375.46 451.00 Td (first quarter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 427.07 451.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.82 451.00 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 451.82 451.00 Td ( dividend of $1.33) Tj ET Q BT /F2 11.00 Tf ET BT /F2 7.15 Tf ET q 0 0 0 rg BT 532.48 455.98 Td (4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 536.05 451.00 Td (, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 437.80 Td ($1) Tj ET Q q 0 0 0 rg BT 60.59 437.80 Td (1.19) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 79.84 437.80 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 106.42 437.80 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.38 437.80 Td (, compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 239.30 437.80 Td ($1) Tj ET Q q 0 0 0 rg BT 249.89 437.80 Td (1.54) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 269.14 437.80 Td ( as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 295.72 437.80 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 382.16 437.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 411.40 Td (Other operating expenses for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 196.31 411.40 Td (first quarter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 247.92 411.40 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 250.67 411.40 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 272.67 411.40 Td ( were approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 365.83 411.40 Td ($6.6) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 385.08 411.40 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 437.02 411.40 Td (0.7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 459.94 411.40 Td ( of average equity) Tj ET Q q 0 0 0 rg BT 538.32 411.40 Td (,) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 398.20 Td (compared to approximately ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 173.71 398.20 Td ($6.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 192.96 398.20 Td ( million, or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 244.90 398.20 Td (0.7%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 267.81 398.20 Td ( of average equity) Tj ET Q q 0 0 0 rg BT 346.20 398.20 Td (, for the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 383.46 398.20 Td (fourth quarter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 444.24 398.20 Td ( 2012. ) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 371.80 Td (Portfolio Summary) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 358.60 Td (For the quarter ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 147.13 358.60 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 217.09 358.60 Td (, the annualized yield on average RMBS securities and ) Tj ET Q q 0 0 0 rg BT 460.24 358.60 Td (Agency Derivatives ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 345.40 Td (was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 69.86 345.40 Td (4.0%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 92.77 345.40 Td ( and the annualized cost of funds on the average borrowings, which includes net interest rate spread ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 332.20 Td (expense on interest rate swaps, was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 208.53 332.20 Td (1.1%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 231.45 332.20 Td (. ) Tj ET Q q 0 0 0 rg BT 236.75 332.20 Td (This resulted in a net interest rate spread of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.48 332.20 Td (2.9%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 452.40 332.20 Td (, which is equivalent to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 319.00 Td (the prior quarter) Tj ET Q q 0 0 0 rg BT 120.86 319.00 Td (. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 292.60 Td (The company reported debt-to-equity) Tj ET Q q 0 0 0 rg BT 213.92 292.60 Td (, defined as total borrowings to fund RMBS securities, mortgage loans held-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 279.40 Td (for) Tj ET Q q 0 0 0 rg BT 62.61 279.40 Td (-sale and ) Tj ET Q q 0 0 0 rg BT 104.15 279.40 Td (Agency Derivatives divided by total equity) Tj ET Q q 0 0 0 rg BT 293.13 279.40 Td (, of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 310.55 279.40 Td (3.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 324.30 279.40 Td (:1.0 and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 362.48 279.40 Td (3.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 376.23 279.40 Td (:1.0 at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 406.48 279.40 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.44 279.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.82 279.40 Td (December31, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 266.20 Td (2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 266.20 Td (, respectively) Tj ET Q q 0 0 0 rg BT 129.93 266.20 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 239.80 Td (The company's portfolio is principally comprised of RMBS available-for) Tj ET Q q 0 0 0 rg BT 370.69 239.80 Td (-sale securities and ) Tj ET Q q 0 0 0 rg BT 456.52 239.80 Td (Agency Derivatives. ) Tj ET Q q 0 0 0 rg BT 549.08 239.80 Td (As ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 226.60 Td (of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 61.91 226.60 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 131.87 226.60 Td (, the total value of the portfolio was $15.3 billion, of which approximately $12.3 billion was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 213.40 Td (Agency RMBS and ) Tj ET Q q 0 0 0 rg BT 138.31 213.40 Td (Agency Derivatives and $3.0 billion was non-Agency RMBS. ) Tj ET Q q 0 0 0 rg BT 413.27 213.40 Td (As of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 440.16 213.40 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 510.11 213.40 Td (, fixed-rate ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 200.20 Td (securities composed 79.7% of the company's portfolio and adjustable-rate securities composed ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 469.25 200.20 Td (20.3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 497.66 200.20 Td ( of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 187.00 Td (company's portfolio. In addition, the company held $) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 283.24 187.00 Td (1.0) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 296.99 187.00 Td ( billion of U.S. ) Tj ET Q q 0 0 0 rg BT 365.24 187.00 Td (T) Tj ET Q q 0 0 0 rg BT 371.57 187.00 Td (reasuries classified on its balance sheet as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 173.80 Td (trading securities as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 152.02 173.80 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.98 173.80 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 160.60 Td () Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 147.40 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 147.40 Td (wo Harbors was a party to interest rate swaps and swaptions as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 347.68 147.40 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 417.64 147.40 Td ( with an aggregate notional ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 134.20 Td (amount of $22.5 billion, of which $21.5 billion was utilized to economically hedge interest rate risk associated with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 121.00 Td (the company's short-term LIBOR-based repurchase agreements. ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 98.20 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 61.18 98.20 Td (The per share calculation utilized the closing price of Silver Bay common stock on March 28, 2013, which was $20.70, multiplied by 17,824,647 shares of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 88.60 Td (Silver Bay common stock, divided by ) Tj ET Q q 0 0 0 rg BT 172.73 88.60 Td (T) Tj ET Q q 0 0 0 rg BT 177.06 88.60 Td (wo Harbors' shares outstanding of 365,065,756 on the record date, ) Tj ET Q q 0 0 0 rg BT 391.12 88.60 Td (April 2, 2013. ) Tj ET Q q 0 0 0 rg BT 439.86 88.60 Td (The dividend per share received by a ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 79.00 Td (stockholder for tax purposes was approximately $0.95 per share, which utilized the closing share price of Silver Bay common stock on the payable date, ) Tj ET Q q 0 0 0 rg BT 538.98 79.00 Td (April ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 69.40 Td (24, 2013, adjusted for the shares sold in open market and converted to cash proceeds which were distributed in lieu of fractional shares.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.00 50.20 Td (\(4\) Includes cash dividend of $0.32 per share and Silver Bay distribution amounting to $1.01 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 following table summarizes the company's investment portfolio:) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 728.20 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 717.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 717.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 717.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 717.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 693.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 693.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 693.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 693.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 664.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 664.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 664.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 664.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 640.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 640.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 640.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 640.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 616.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 616.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 616.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 616.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 592.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 592.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 592.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 592.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 568.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 568.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 568.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 568.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 544.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 544.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 544.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 544.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 520.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 520.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 520.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 520.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 496.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 496.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 496.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 496.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 472.70 311.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 472.70 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 472.70 101.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 472.70 45.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 427.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 427.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 427.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 427.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 403.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 403.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 403.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 403.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 379.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 379.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 379.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 379.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 355.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 355.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 355.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 355.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 331.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 331.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 331.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 331.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 307.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 307.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 307.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 307.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 283.70 311.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 283.70 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 283.70 101.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 283.70 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 75.00 259.70 461.00 -32.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 75 664.7 m 386 664.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 664.7 m 491 664.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 664.7 m 536 664.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 664.7 m 491 664.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 628.7 m 491 628.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 628.7 m 536 628.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 628.7 m 491 628.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 628.7 m 536 628.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 556.7 m 491 556.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 556.7 m 536 556.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 556.7 m 491 556.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 556.7 m 536 556.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 532.7 m 491 532.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 521.7 m 491 521.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 519.7 m 491 519.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 75 449.70000000000005 m 386 449.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 449.70000000000005 m 491 449.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 449.70000000000005 m 536 449.70000000000005 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 77.50 709.10 Td (Two Harbors Portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 696.96 Td (\(dollars in thousands, except per share data\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 131.60 669.16 Td (RMBS and Agency Derivatives Portfolio Composition) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 400.35 669.16 Td (As of March 31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 655.96 Td (Agency Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 643.96 Td (Fixed Rate Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.50 643.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.50 643.96 Td (11,750,898) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.25 643.96 Td (76.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.00 643.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 631.96 Td (Hybrid ARMs) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.75 631.96 Td (181,657) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 516.75 631.96 Td (1.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.00 631.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 101.50 619.96 Td (Total Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.50 619.96 Td (11,932,555) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.25 619.96 Td (78.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.00 619.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 607.96 Td (Agency Derivatives) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.75 607.96 Td (309,740) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 516.75 607.96 Td (2.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.00 607.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 595.96 Td (Non-Agency Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 583.96 Td (Senior Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 447.00 583.96 Td (2,450,813) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.25 583.96 Td (16.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.00 583.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 571.96 Td (Mezzanine Bonds) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.75 571.96 Td (576,205) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 516.75 571.96 Td (3.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.00 571.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 559.96 Td (Non-Agency Other) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 462.75 559.96 Td (3,958) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 519.00 559.96 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.00 559.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 101.50 547.96 Td (Total Non-Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 447.00 547.96 Td (3,030,976) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.25 547.96 Td (19.8) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.00 547.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 101.50 523.96 Td (Aggregate Portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.50 523.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.50 523.96 Td (15,273,271) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 499.96 Td (Fixed-rate investment securities as a percentage of aggregate portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 467.25 499.96 Td (79.7) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 499.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 487.96 Td (Adjustable-rate investment securities as a percentage of aggregate portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 467.25 487.96 Td (20.3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 487.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 199.10 454.16 Td (Portfolio Metrics) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 399.60 463.16 Td (For the Quarter Ended ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 411.35 454.16 Td (March 31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 432.16 Td (Annualized yield on average RMBS and Agency Derivatives during the quarter) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 418.96 Td (Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.75 418.96 Td (2.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 418.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 406.96 Td (Non-Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.75 406.96 Td (9.2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 406.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 101.50 394.96 Td (Aggregate Portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.75 394.96 Td (4.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 394.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 382.96 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 346.88 387.04 Td (1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.75 382.96 Td (1.1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 382.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 370.96 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 471.75 370.96 Td (2.9) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 370.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 358.96 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 89.50 346.96 Td (Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.50 346.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 458.25 346.96 Td (107.83) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 334.96 Td (Non-Agency) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 135.99 339.04 Td (2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.50 334.96 Td ($) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 462.75 334.96 Td (52.25) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 322.96 Td (W) Tj ET Q q 0 0 0 rg BT 85.27 322.96 Td (eighted average three month CPR for its RMBS and ) Tj ET Q q 0 0 0 rg BT 274.50 322.96 Td (Agency Derivative portfolio) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 310.96 Td (Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.75 310.96 Td (7.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 310.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 89.50 298.96 Td (Non-Agency) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.75 298.96 Td (2.6) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.00 298.96 Td (%) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 286.96 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 199.21 291.04 Td (3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.45 286.96 Td (3.1 to 1.0) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 262.96 Td (\(1\) Cost of funds includes interest spread expense associated with the portfolio's interest rate swaps.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 250.16 Td (\(2\) Average purchase price utilized carrying value for weighting purposes. If current face were utilized for weighting) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 241.16 Td (purposes, total non-Agency RMBS excluding the company's non-Agency interest-only portfolio would be $48.56 at March) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 232.16 Td (31, 2013.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 77.50 218.16 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 10.00 Tf ET BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 189.00 Td (Our non-Agency portfolio performed well in the first quarter) Tj ET Q q 0 0 0 rg BT 322.02 189.00 Td (, driving our strong overall performance, said Bill ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 175.80 Td (Roth, ) Tj ET Q q 0 0 0 rg BT 76.69 175.80 Td (T) Tj ET Q q 0 0 0 rg BT 82.65 175.80 Td (wo Harbors' Chief Investment Of) Tj ET Q q 0 0 0 rg BT 229.23 175.80 Td (ficer) Tj ET Q q 0 0 0 rg BT 248.77 175.80 Td (. W) Tj ET Q q 0 0 0 rg BT 268.65 175.80 Td (e believe our existing portfolio combined with new initiatives will ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 162.60 Td (enable us to deliver value to stockholders going forward.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 136.20 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 432.73 136.20 Td (7.0%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 455.64 136.20 Td ( for ) Tj ET Q q 0 0 0 rg BT 473.36 136.20 Td (Agency RMBS and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 123.00 Td (Agency Derivatives held as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 185.93 123.00 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 255.88 123.00 Td (, as compared to 6.6% for securities held as of December 31, 2012. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 109.80 Td (The weighted average cost basis of the ) Tj ET Q q 0 0 0 rg BT 222.58 109.80 Td (Agency portfolio was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 320.64 109.80 Td (107.8%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.55 109.80 Td ( of par as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.84 109.80 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 479.79 109.80 Td (, and 108.2% as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 96.60 Td (December 31, 2012. ) Tj ET Q q 0 0 0 rg BT 141.74 96.60 Td (The net premium amortization was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 298.45 96.60 Td ($38.1) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 323.20 96.60 Td ( million and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 379.11 96.60 Td ($43.9) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 403.86 96.60 Td ( million for the quarters ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 83.40 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.96 83.40 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 141.34 83.40 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 227.78 83.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 285.71 83.40 Td (.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 70.20 Td () 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 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 (2.6%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 328.25 741.40 Td ( for non-Agency RMBS held as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 482.54 741.40 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 552.50 741.40 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 728.20 Td (as compared to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 119.34 728.20 Td (3.2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 142.25 728.20 Td ( for such securities held as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.29 728.20 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 359.73 728.20 Td (. ) Tj ET Q q 0 0 0 rg BT 365.04 728.20 Td (The weighted average cost basis of the non-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 715.00 Td (Agency portfolio was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 148.06 715.00 Td (52.3%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 176.47 715.00 Td ( of par as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 231.76 715.00 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 301.72 715.00 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 325.85 715.00 Td (52.2%) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.26 715.00 Td ( of par as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 409.55 715.00 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 495.99 715.00 Td (. ) Tj ET Q q 0 0 0 rg BT 501.29 715.00 Td (The discount ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 701.80 Td (accretion was ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 112.91 701.80 Td ($35.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 137.66 701.80 Td ( million and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 193.57 701.80 Td ($37.3) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 218.32 701.80 Td ( million for the quarters ended ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 354.56 701.80 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 424.52 701.80 Td ( and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 445.90 701.80 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 532.35 701.80 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 688.60 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.43 688.60 Td (. ) Tj ET Q q 0 0 0 rg BT 107.73 688.60 Td (The total net discount remaining was $2.3 billion as of both ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 372.90 688.60 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 442.86 688.60 Td (, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 467.00 688.60 Td (December31, 2012) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 553.44 688.60 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 675.40 Td (with ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.31 675.40 Td ($1.4) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 91.56 675.40 Td ( billion designated as credit reserve as of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 273.60 675.40 Td (March31, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 343.56 675.40 Td (.) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 635.80 Td (New Business Initiatives) 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 50 621.13369140625 m 238.78857421875 621.13369140625 l s q 0 0 0 rg BT 50.00 622.60 Td (Mortgage Loan Conduit and Securitization) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 609.40 Td (During the quarter) Tj ET Q q 0 0 0 rg BT 130.81 609.40 Td (, the company participated in a securitization through which it acquired subordinated debt and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 596.20 Td (excess servicing rights from a securitization trust issued by a third party) Tj ET Q q 0 0 0 rg BT 365.46 596.20 Td (. Due to certain control rights the company ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 583.00 Td (holds and management's conclusion that the company is the primary beneficiary of the trust, the underlying prime ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 569.80 Td (jumbo residential mortgage loans are classified on the company's balance sheet as mortgage loans held-for) Tj ET Q q 0 0 0 rg BT 518.49 569.80 Td (-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 556.60 Td (investment in securitization trust and the underlying debt is classified as collateralized borrowings in securitization ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 543.40 Td (trust. ) Tj ET Q q 0 0 0 rg BT 74.45 543.40 Td (As of March 31, 2013, the company had mortgage loans held-for) Tj ET Q q 0 0 0 rg BT 360.15 543.40 Td (-investment with a carrying value of $434.1 ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 530.20 Td (million and the company's collateralized borrowings had a carrying value of $397.2 million.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 503.80 Td (As of March 31, 2013, the company held prime jumbo residential mortgage loans held-for) Tj ET Q q 0 0 0 rg BT 446.60 503.80 Td (-sale with a carrying ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 490.60 Td (value of $69.2 million and had outstanding purchase commitments to acquire an additional $8.7 million. ) Tj ET Q q 0 0 0 rg BT 511.71 490.60 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 477.40 Td (company's intention in the future is to securitize these loans 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 50 449.53369140625 m 206.74462890625 449.53369140625 l s q 0 0 0 rg BT 50.00 451.00 Td (Mortgage Servicing Rights \(MSRs\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 437.80 Td (In mid-March, the company announced that one of its wholly-owned subsidiaries had been approved by Freddie ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 424.60 Td (Mac as a servicer in its home mortgage \(1-4 unit\) program. ) Tj ET Q q 0 0 0 rg BT 312.50 424.60 Td (This approval allows the company to invest in MSRs on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 411.40 Td (mortgage loans guaranteed by Freddie Mac.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 385.00 Td (In early May) Tj ET Q q 0 0 0 rg BT 106.10 385.00 Td (, the company announced that another of its wholly-owned subsidiaries had acquired a company that ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 371.80 Td (has seller) Tj ET Q q 0 0 0 rg BT 91.01 371.80 Td (-servicer approvals from Fannie Mae, Freddie Mac and Ginnie Mae to hold and manage MSRs. ) Tj ET Q q 0 0 0 rg BT 513.90 371.80 Td (The ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 358.60 Td (company believes this acquisition will greatly aid in the company's ef) Tj ET Q q 0 0 0 rg BT 356.04 358.60 Td (forts to advance its investments in MSRs. ) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 319.00 Td (New Investment Initiatives) 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 50 304.33369140625 m 184.7392578125 304.33369140625 l s q 0 0 0 rg BT 50.00 305.80 Td (Credit Sensitive Loans \(CSLs\)) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 292.60 Td (In early 2013, the company began acquiring credit sensitive loans \(CSLs\), which are loans that are currently ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 279.40 Td (performing, but where the borrower has previously experienced payment delinquencies and is more likely to be ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 266.20 Td (underwater \(i.e., the amount owed on a mortgage loan exceeds the current market value of the home\). ) Tj ET Q q 0 0 0 rg BT 499.30 266.20 Td (As a result, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 253.00 Td (the probability of default on CSLs is higher than on newly originated mortgage loans. ) Tj ET Q q 0 0 0 rg BT 429.12 253.00 Td (As of March 31, 2013, the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 239.80 Td (company had acquired CSLs with a carrying value of $123.2 million. ) Tj ET Q q 0 0 0 rg BT 357.43 239.80 Td (The company's intention in the future is to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 226.60 Td (either securitize these loans or hold them in an alternative financing structure.) Tj ET Q 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 /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 50.00 728.40 Td (During the first quarter 2013, warrant holders exercised warrants to purchase approximately 5.8 million shares of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 715.20 Td (the company's common stock. ) Tj ET Q q 0 0 0 rg BT 185.29 715.20 Td (This resulted in proceeds to the company totaling approximately $63.8 million. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 688.80 Td (On ) Tj ET Q q 0 0 0 rg BT 65.59 688.80 Td (April 2, 2013, the company announced certain adjustments to the terms of its outstanding warrants as a result of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 675.60 Td (the special dividend of shares of Silver Bay common stock to ) Tj ET Q q 0 0 0 rg BT 322.60 675.60 Td (T) Tj ET Q q 0 0 0 rg BT 328.56 675.60 Td (wo Harbors stockholders. Under the terms of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 662.40 Td (W) Tj ET Q q 0 0 0 rg BT 59.50 662.40 Td (arrant ) Tj ET Q q 0 0 0 rg BT 87.29 662.40 Td (Agreement governing the warrants to purchase shares of the company) Tj ET Q q 0 0 0 rg BT 397.93 662.40 Td (s common stock, the declaration of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 649.20 Td (the Silver Bay common stock dividend by the company triggered an adjustment to \(1\) the exercise price per warrant ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 636.00 Td (share payable upon exercise of the warrants \(previously) Tj ET Q q 0 0 0 rg BT 294.55 636.00 Td (, $1) Tj ET Q q 0 0 0 rg BT 310.64 636.00 Td (1.00 per warrant share\), and \(2\) the number of shares of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 622.80 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 622.80 Td (wo Harbors common stock issuable upon exercise of the warrants and payment of the exercise price therefore ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 609.60 Td (\(previously) Tj ET Q q 0 0 0 rg BT 99.39 609.60 Td (, one share of common stock was issued for each warrant share exercised\). ) Tj ET Q q 0 0 0 rg BT 429.57 609.60 Td (As a result, the exercise price ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 596.40 Td (is now $10.25 per warrant share and, upon exercise, a warrant holder will receive 1.0727 shares of ) Tj ET Q q 0 0 0 rg BT 485.68 596.40 Td (T) Tj ET Q q 0 0 0 rg BT 491.63 596.40 Td (wo Harbor) Tj ET Q q 0 0 0 rg BT 539.38 596.40 Td () Tj ET Q q 0 0 0 rg BT 542.44 596.40 Td (s ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 583.20 Td (common stock for each warrant exercised. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 556.80 Td (As of March 31, 2013, approximately 7.6 million warrants remained outstanding. ) Tj ET Q q 0 0 0 rg BT 410.59 556.80 Td (The warrants expire on November ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 543.60 Td (7, 2013. ) Tj ET Q BT /F5 11.00 Tf ET q 0 0 0 rg BT 50.00 517.20 Td (Public Stock Of) Tj ET Q q 0 0 0 rg BT 121.30 517.20 Td (fering) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 504.00 Td (The company completed an accretive public of) Tj ET Q q 0 0 0 rg BT 256.27 504.00 Td (fering in March 2013, which resulted in the issuance of 57.5 million ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 490.80 Td (shares of common stock for net proceeds of approximately $763 million.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 446.20 Td (Confer) Tj ET Q q 0 0 0 rg BT 82.79 446.20 Td (ence Call) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 428.00 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 428.00 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 321.40 428.00 Td (May8, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 377.31 428.00 Td ( at ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 390.75 428.00 Td (9:00 am) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 426.50 428.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 429.25 428.00 Td (EDT) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 450.43 428.00 Td ( to discuss ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 499.02 428.00 Td (first quarter) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 550.63 428.00 Td ( ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 414.80 Td (2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 72.00 414.80 Td ( financial results and related information. ) Tj ET Q q 0 0 0 rg BT 255.99 414.80 Td (T) Tj ET Q q 0 0 0 rg BT 261.94 414.80 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 503.50 414.80 Td (\(877\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 401.60 Td (868-1835) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 92.16 401.60 Td (, \(or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 113.24 401.60 Td (\(914\) 495-8581) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 181.98 401.60 Td ( for international callers\), Conference Code 35291699, approximately 10 minutes ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 388.40 Td (prior to the above start time. ) Tj ET Q q 0 0 0 rg BT 176.97 388.40 Td (Y) Tj ET Q q 0 0 0 rg BT 183.82 388.40 Td (ou may also listen to the teleconference live via the Internet on the company's ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 375.20 Td (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 97.0400390625 373.73369140625 m 242.35498046875 373.73369140625 l s q 0 0 1 rg BT 97.04 375.20 Td (www) Tj ET Q q 0 0 1 rg BT 120.16 375.20 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 242.35 375.20 Td ( in the Investor Relations section under the Events and Presentations ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 362.00 Td (link. For those unable to attend, a telephone playback will be available beginning at 12 p.m. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 456.89 362.00 Td (EDT) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 478.08 362.00 Td ( on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.58 362.00 Td (May8, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 550.49 362.00 Td (, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 348.80 Td (through 12 a.m. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 122.41 348.80 Td (EDT) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 143.59 348.80 Td ( on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 160.09 348.80 Td (May16, 2013) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 221.50 348.80 Td (. ) Tj ET Q q 0 0 0 rg BT 226.81 348.80 Td (The playback can be accessed by calling ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 407.91 348.80 Td (\(855\) 859-2056) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 476.65 348.80 Td ( \(or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 494.98 348.80 Td (\(404\) ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 335.60 Td (537-3406) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 92.16 335.60 Td ( for international callers\) and providing Confirmation Code ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 356.09 335.60 Td (35291699) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 400.09 335.60 Td (. ) Tj ET Q q 0 0 0 rg BT 405.39 335.60 Td (The call will also be archived on ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 322.40 Td (the company'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 50.00 286.00 Td (T) Tj ET Q q 0 0 0 rg BT 56.52 286.00 Td (wo Harbors Investment Corp. ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 267.80 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 267.80 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 50.00 254.60 Td (mortgage-backed securities, residential mortgage loans and other financial assets. ) Tj ET Q q 0 0 0 rg BT 411.14 254.60 Td (T) Tj ET Q q 0 0 0 rg BT 417.09 254.60 Td (wo Harbors is headquartered in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 241.40 Td (Minnetonka, Minnesota, and is externally managed and advised by PRCM ) Tj ET Q q 0 0 0 rg BT 379.95 241.40 Td (Advisers LLC, a wholly-owned ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 228.20 Td (subsidiary of Pine River Capital Management L.P) Tj ET Q q 0 0 0 rg BT 268.44 228.20 Td (. ) Tj ET Q q 0 0 0 rg BT 273.33 228.20 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 50 213.53369140625 m 198.06494140625 213.53369140625 l s q 0 0 1 rg BT 50.00 215.00 Td (www) Tj ET Q q 0 0 1 rg BT 73.12 215.00 Td (.twoharborsinvestment.com.) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 723.20 Td (Forward-Looking Statements) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 705.00 Td (This press release includes forward-looking statements within the meaning of the safe harbor provisions of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 691.80 Td (United States Private Securities Litigation Reform ) Tj ET Q q 0 0 0 rg BT 273.63 691.80 Td (Act of 1995. ) Tj ET Q q 0 0 0 rg BT 331.06 691.80 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 428.31 691.80 Td (fer from expectations, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 678.60 Td (estimates and projections and, consequently) Tj ET Q q 0 0 0 rg BT 242.65 678.60 Td (, readers should not rely on these forward-looking statements as ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 665.40 Td (predictions of future events. ) Tj ET Q q 0 0 0 rg BT 175.96 665.40 Td (W) Tj ET Q q 0 0 0 rg BT 185.46 665.40 Td (ords such as expect, tar) Tj ET Q q 0 0 0 rg BT 302.23 665.40 Td (get, assume, estimate, project, budget, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 652.20 Td (forecast, anticipate, intend, plan, may) Tj ET Q q 0 0 0 rg BT 258.16 652.20 Td (, will, could, should, believe, predicts, potential, ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 639.00 Td (continue, and similar expressions are intended to identify such forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 463.71 639.00 Td (These forward-) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 625.80 Td (looking statements involve significant risks and uncertainties that could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 479.00 625.80 Td (fer materially ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 612.60 Td (from expected results. Factors that could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 342.74 612.60 Td (fer include, but are not limited to, higher than ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 599.40 Td (expected operating costs, changes in prepayment speeds of mortgages underlying our RMBS, the rates of default or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 586.20 Td (decreased recovery on the mortgages underlying our non-Agency securities, failure to recover certain losses that are ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 573.00 Td (expected to be temporary) Tj ET Q q 0 0 0 rg BT 160.76 573.00 Td (, changes in interest rates or the availability of financing, the impact of new legislation or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 559.80 Td (regulatory changes on our operations, the impact of any deficiencies in the servicing or foreclosure practices of ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 546.60 Td (third parties and related delays in the foreclosure process, the inability to acquire mortgage loans or securitize the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 533.40 Td (mortgage loans we acquire, the impact of new or modified government mortgage refinance or principal reduction ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 520.20 Td (programs, and unanticipated changes in overall market and economic conditions.) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 488.80 Td (Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 475.60 Td (date made. ) Tj ET Q q 0 0 0 rg BT 100.19 475.60 Td (T) Tj ET Q q 0 0 0 rg BT 106.14 475.60 Td (wo Harbors does not undertake or accept any obligation to release publicly any updates or revisions to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 462.40 Td (any forward-looking statement to reflect any change in its expectations or any change in events, conditions or ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 449.20 Td (circumstances on which any such statement is based. ) Tj ET Q q 0 0 0 rg BT 284.91 449.20 Td (Additional information concerning these and other risk factors ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 436.00 Td (is contained in ) Tj ET Q q 0 0 0 rg BT 116.70 436.00 Td (T) Tj ET Q q 0 0 0 rg BT 122.65 436.00 Td (wo Harbors' most recent filings with the Securities and Exchange Commission. ) Tj ET Q q 0 0 0 rg BT 473.52 436.00 Td (All subsequent ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 422.80 Td (written and oral forward looking statements concerning ) Tj ET Q q 0 0 0 rg BT 296.92 422.80 Td (T) Tj ET Q q 0 0 0 rg BT 302.87 422.80 Td (wo Harbors or matters attributable to ) Tj ET Q q 0 0 0 rg BT 468.24 422.80 Td (T) Tj ET Q q 0 0 0 rg BT 474.19 422.80 Td (wo Harbors or any ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 409.60 Td (person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 373.20 Td (Non-GAAP) Tj ET Q q 0 0 0 rg BT 103.78 373.20 Td ( Financial Measur) Tj ET Q q 0 0 0 rg BT 189.13 373.20 Td (es) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 355.00 Td (In addition to disclosing financial results calculated in accordance with United States generally accepted accounting ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 341.80 Td (principles \(GAAP\), this press release and the accompanying investor presentation present non-GAAP) Tj ET Q q 0 0 0 rg BT 496.81 341.80 Td ( financial ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 328.60 Td (measures that exclude certain items. ) Tj ET Q q 0 0 0 rg BT 211.68 328.60 Td (T) Tj ET Q q 0 0 0 rg BT 217.63 328.60 Td (wo Harbors' management believes that these non-GAAP) Tj ET Q q 0 0 0 rg BT 466.03 328.60 Td ( measures enable it to ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 315.40 Td (perform meaningful comparisons of past, present and future results of the company's core business operations, and ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 302.20 Td (uses these measures to gain a comparative understanding of the company's operating performance and business ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 289.00 Td (trends. ) Tj ET Q q 0 0 0 rg BT 82.18 289.00 Td (The non-GAAP) Tj ET Q q 0 0 0 rg BT 151.74 289.00 Td ( financial measures presented by the company represent supplemental information to assist ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 275.80 Td (investors in analyzing the results of ) Tj ET Q q 0 0 0 rg BT 208.66 275.80 Td (T) Tj ET Q q 0 0 0 rg BT 214.61 275.80 Td (wo Harbors' operations; however) Tj ET Q q 0 0 0 rg BT 360.02 275.80 Td (, as these measures are not in accordance ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 262.60 Td (with GAAP) Tj ET Q q 0 0 0 rg BT 101.04 262.60 Td (, they should not be considered a substitute for) Tj ET Q q 0 0 0 rg BT 305.58 262.60 Td (, or superior to, the financial measures calculated in ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 249.40 Td (accordance with GAAP) Tj ET Q q 0 0 0 rg BT 153.24 249.40 Td (. Our GAAP) Tj ET Q q 0 0 0 rg BT 208.14 249.40 Td ( financial results and the reconciliations from these results should be carefully ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 236.20 Td (evaluated. See the GAAP) Tj ET Q q 0 0 0 rg BT 162.00 236.20 Td ( to Non-GAAP) Tj ET Q q 0 0 0 rg BT 228.21 236.20 Td ( reconciliation table on page 1) Tj ET Q q 0 0 0 rg BT 360.66 236.20 Td (1 of this release. ) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 199.80 Td (Additional Information) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 181.60 Td (Stockholders and warrant holders of ) Tj ET Q q 0 0 0 rg BT 212.01 181.60 Td (T) Tj ET Q q 0 0 0 rg BT 217.96 181.60 Td (wo Harbors, and other interested persons, may find additional information ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 168.40 Td (regarding the company at the SEC'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 275.88671875 166.93369140624998 m 335.04931640625 166.93369140624998 l s q 0 0 1 rg BT 275.89 168.40 Td (www) Tj ET Q q 0 0 1 rg BT 299.00 168.40 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 335.05 168.40 Td ( or by directing requests to: ) Tj ET Q q 0 0 0 rg BT 458.27 168.40 Td (T) Tj ET Q q 0 0 0 rg BT 464.22 168.40 Td (wo Harbors ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 155.20 Td (Investment Corp., ) Tj ET Q q 0 0 0 rg BT 131.27 155.20 Td (Attn: Investor Relations, 601 Carlson Parkway) Tj ET Q q 0 0 0 rg BT 336.47 155.20 Td (, Suite 1400, Minnetonka, MN 55305, telephone ) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 142.00 Td (612-629-2500.) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 50.00 105.60 Td (Contact) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 87.40 Td (July Hugen, Investor Relations, ) Tj ET Q q 0 0 0 rg BT 191.56 87.40 Td (T) Tj ET Q q 0 0 0 rg BT 197.51 87.40 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 74.20 Td (July) Tj ET Q q 0 0 0 rg BT 67.62 74.20 Td (.Hugen@twoharborsinvestment.com.) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 312.00 54.80 Td (# # #) 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 0.8 0.9333333333333333 1 rg /GS0 gs 61.00 748.50 489.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.00 720.50 489.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.00 692.50 350.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 692.50 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 692.50 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.00 650.50 350.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 650.50 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 650.50 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.00 622.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 622.50 69.00 -15.00 re f /GS0 gs 0.8 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1 rg /GS0 gs 406.00 574.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 574.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 544.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 544.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 544.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 514.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 514.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 514.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 484.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 484.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 484.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 454.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 454.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 454.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 424.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 424.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 424.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 394.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 394.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 394.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 364.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 364.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 364.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 334.60 324.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 334.60 59.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 334.60 64.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 294.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 294.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 294.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 264.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 264.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 264.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 234.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 234.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 234.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 204.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 204.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 204.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 174.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 174.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 174.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 144.60 324.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 144.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 144.60 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 117.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 117.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 117.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 82.00 87.60 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 87.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 87.60 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 406 659.6 m 465 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 659.6 m 529 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 634.6 m 465 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 634.6 m 529 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 619.6 m 465 619.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 619.6 m 529 619.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 514.6 m 465 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 514.6 m 529 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 514.6 m 465 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 454.6 m 465 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 454.6 m 529 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 439.6 m 465 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 439.6 m 529 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 439.6 m 465 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 439.6 m 529 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 309.6 m 465 309.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 309.6 m 529 309.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 309.6 m 465 309.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 309.6 m 529 309.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 234.60000000000002 m 465 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 234.60000000000002 m 529 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 234.60000000000002 m 465 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 219.60000000000002 m 465 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 234.60000000000002 m 529 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 219.60000000000002 m 529 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 219.60000000000002 m 465 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 219.60000000000002 m 529 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 189.60000000000002 m 465 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 189.60000000000002 m 529 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 189.60000000000002 m 465 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 174.60000000000002 m 465 174.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 189.60000000000002 m 529 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 174.60000000000002 m 529 174.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 174.60000000000002 m 465 174.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 159.60000000000002 m 465 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 174.60000000000002 m 529 174.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 159.60000000000002 m 529 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 159.60000000000002 m 465 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 145.60000000000002 m 465 145.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 143.60000000000002 m 465 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 159.60000000000002 m 529 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 145.60000000000002 m 529 145.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 143.60000000000002 m 529 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 87.60000000000002 m 465 87.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 73.60000000000002 m 465 73.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 71.60000000000002 m 465 71.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 87.60000000000002 m 529 87.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 73.60000000000002 m 529 73.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 71.60000000000002 m 529 71.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 220.60 721.27 Td (TWO HARBORS INVESTMENT CORP.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 162.30 706.27 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 218.97 706.27 Td (TED ST) Tj ET Q q 0 0 0 rg BT 251.78 706.27 Td (A) Tj ET Q q 0 0 0 rg BT 257.89 706.27 Td (TEMENTS OF COMPREHENSIVE INCOME) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.10 691.27 Td (\(dollars in thousands, except per share data\)) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 108.45 676.31 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 424.75 649.27 Td (Three Months Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.45 639.27 Td (March 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.00 624.27 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.50 624.27 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.95 609.27 Td (\(unaudited\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 84.50 594.28 Td (Interest income:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.50 579.27 Td (Available-for-sale securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 579.27 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 579.27 Td (130,292) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.50 579.27 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.65 579.27 Td (84,214) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.50 564.27 Td (Trading securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 564.27 Td (1,264) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.65 564.27 Td (1,050) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.50 549.27 Td (Mortgage loans held-for-sale) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 549.27 Td (1,318) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.15 549.27 Td (69) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.50 534.27 Td (Mortgage loans held-for-investment in securitization trust, at fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 534.27 Td (1,654) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.15 534.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.50 519.27 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.15 519.27 Td (307) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.15 519.27 Td (168) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 96.50 504.27 Td (T) Tj ET Q q 0 0 0 rg BT 101.91 504.27 Td (otal Interest Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 504.27 Td (134,835) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.65 504.27 Td (85,501) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 84.50 489.28 Td (Interest expense:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.50 474.27 Td (Repurchase agreements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 474.27 Td (23,018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.65 474.27 Td (11,467) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 90.50 459.27 Td (Collateralized borrowings in securitization trust) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.15 459.27 Td (818) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.15 459.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 96.50 444.27 Td (T) Tj ET Q q 0 0 0 rg BT 101.91 444.27 Td (otal Interest Expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 444.27 Td (23,836) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.65 444.27 Td (11,467) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 102.50 429.27 Td (Net Interest Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 429.27 Td (110,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.65 429.27 Td (74,034) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 414.27 Td (Other) Tj ET Q q 0 0 0 rg BT 107.07 414.27 Td (-than-temporary impairment losses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.80 414.32 Td (\(236) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 414.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.30 414.32 Td (\(4,275) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 414.27 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 84.50 399.28 Td (Other income:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 384.27 Td (Gain on investment securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 384.27 Td (26,968) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.65 384.27 Td (9,931) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 369.27 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 433.65 369.27 Td (18,972) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 494.30 369.32 Td (\(16,193) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 369.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 354.27 Td (Loss on other derivative instruments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.30 354.32 Td (\(16,662) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 354.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.30 354.32 Td (\(8,903) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 354.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 339.27 Td (Gain \(loss\) on mortgage loans held-for-sale) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 339.27 Td (14,323) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.80 339.32 Td (\(32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 339.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 324.27 Td (Gain on mortgage loans held-for-investment and collateralized borrowings in) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 314.27 Td (securitization trust) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 314.27 Td (6,289) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.15 314.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 96.50 299.27 Td (T) Tj ET Q q 0 0 0 rg BT 101.91 299.27 Td (otal Other Income \(Loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 299.27 Td (49,890) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 494.30 299.32 Td (\(15,197) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 299.27 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 84.50 284.28 Td (Expenses:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 269.27 Td (Management fees) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 269.27 Td (4,761) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.65 269.27 Td (6,743) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 254.27 Td (Securitization deal costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 254.27 Td (2,028) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.15 254.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 239.27 Td (Other operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 239.27 Td (6,561) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.65 239.27 Td (3,550) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 96.50 224.27 Td (T) Tj ET Q q 0 0 0 rg BT 101.91 224.27 Td (otal Expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.65 224.27 Td (13,350) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.65 224.27 Td (10,293) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 84.50 209.28 Td (Income from continuing operations before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 209.27 Td (147,303) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.65 209.27 Td (44,269) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 194.27 Td (Provision for \(benefit from\) income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 194.27 Td (4,964) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.30 194.32 Td (\(7,577) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 194.27 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 84.50 179.28 Td (Net income from continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 179.27 Td (142,339) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.65 179.27 Td (51,846) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 84.50 164.27 Td (Income \(loss\) from discontinued operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 164.27 Td (1,377) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.80 164.32 Td (\(46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 525.15 164.27 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 84.50 149.28 Td (Net income attributable to common stockholders) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.50 149.27 Td ($) Tj 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