Two Harbors Investment Corp · NYSE:TWO
Two Harbors Investment — Q2 2010 Earnings Presentation
9 slides from Two Harbors Investment's earnings presentation, Aug 5, 2010
Slide 1: Two Harbors Investment Corp. 2010 Second Quarter Earnings Call
Two Harbors Investment Corp. 2010 Second Quarter Farnines Call
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and,
Slide 3: Second Quarter 2010 Highlights
Second Quarter 2010 Highlights = Declared quarterly dividend of $0.33 per share in June 2010, representing 16% yield on an annualized basis}. = Delivered core earnings of $0.26 per share and realized gains of $0.05 per share for the quarter. = Portfolio delivered weighted, annualized yield of 5.4%,
Slide 4: Operating Performance
Operating Performance ‘co ‘Realized Unmealized Quanto ‘Gore “Realized Unrealized Qb-200 Eaminge ‘Gaine MIM Financials Eamings Gains) MEM Financials, e 28 ee son Pe 4 . - 08 08 - z a8 Nevin incor : : 36 83 E : 83 Galea ae ereeenan ie 2 2 2 2 2 08 zZ os {Low on ines te rap agreements 04 - my as 5) - 3
Slide 5: Operating Performance Metrics
Operating Performance Metrics Eamings per Diluted Weighted Average Share Outstanding, Qt2010 © QL-2m10-QR-ama = Qa-2m1a = QAYTD = Q2yTD (in millions, except for pet shize amounts) Eamings EPS Earnings EPS Earnings EPS Com Earnings! $ 39 ¢ 02 $ «658 § «026 § 97 § Osa GAAP Net Income $ 538 om $ 41 $ O
Slide 6: Balance Sheet
Balance Sheet Balance Sheet (ln mallions, except for pet shate asnounts) March 31, 2010 June 30, 2010 Assets Avnilable-for-sale secusitins, at fit value $ sm $ os Cash and cash equivalents 284 na Detivative assets, a fie value 35 326 Othe asets 499 449 Toul Asses $3990 $1268 Liabilities and Stockhol
Slide 7: Change in Stockholders' Equity
Change in Stockholders’ Equity Q1-2010 Book Q2-2010 Book Change in Stockholders’ Equity Q1-2010 Value per Share Q2-2010 Value per Share (dn aulioas, except for per shaze amousts) Book Value (diluted basis)! Book Value (diluted basis)! Beginning stockholdess! equity $ m7 § 908 § 1258 0 § 9.38 Net pro
Slide 8: RMBS Portfolio Composition
RMBS Portfolio Composition Deployment of Capital Du: As of March 31, 2010 '$520M RMBS Portfolio Mezzanine Senior Intecest Only Fised A | ‘Hybed ARMS MB Agency Bonds $4150 Nos-Agency Boad: $107M Agency: Vintage & Prepayment Protection QU2010__Q2-2010 Prepayment protected 28% 18% Tow loan balances o%
Slide 9: Portfolio Metrics and Financing
Portfolio Metrics and Financing Portfolio ind Metrics Financing at at Realized March31, Realized June 30, Repurchase Agreements: RMBS and Agency Portfolio Yield Q1-2010 2010 Q2-2010 2010 Derivatives Amount (6M) Annudlized yield 49% 50% 54% 52% Within 30 days Pt Agency 36% s 35% = 304059 days $176 No
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