CYS Investments — Merger or Acquisition (April 2018)
12 slides from CYS Investments's merger presentation, Apr 26, 2018
Slide 1: 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 2: Transaction Summary
transaction-related adjustments, divided by each respective company’s number of shares of common stock issued and outstanding, including shares issuable upon the vesting of restricted stock. Transaction Summary O V E R V I E W O F T R A N S A C T I O N • Proposed acquisition of CYS Investments, Inc.
Slide 3: Anticipated Benefits for Two Harbors Stockholders From the Merger
Anticipated Benefits for Two Harbors Stockholders From the Merger Additional capital supports continued growth in target assets: A larger capital base will support the continued growth across Two Harbors’ target assets and positions Two Harbors to take advantage of market opportunities as they arise
Slide 4: Benefits for CYS Investments, Inc. Stockholders From the Merger
not been adjusted for the return of capital from dividends, if any, to peer stockholders during the same period. Benefits for CYS Investments, Inc. Stockholders From the Merger Enhanced scale and liquidity: CYS stockholders will benefit from increased operating scale, liquidity and capital alternati
Slide 5: Overview of Investment Portfolios
(2) Assets in “Credit” include non-Agency securities and other credit sensitive assets. Overview of Investment Portfolios 20-Year Non-Agency,Fixed Rate 13.4%0.2% MSR, 5.9% 15-Year Fixed Rate 37.1%30-Year Fixed Rate Agency,59.0% 80.7% Hybrid ARMs 3.7% AgencyMSRNon-Agency30-Year Fixed Rate Hybrid ARMs
Slide 6: Two Harbors' Projected Capital Allocation
1)“NPL” is non performing loans, “SFR” is single family rental, and “CRT” is GSE credit risk transfer securities. Two Harbors’ Projected Capital Allocation A D D I T I O N A L C A P I TA L S U P P O R T S C O N T I N U E D G R O W T H I N TA R G E T A S S E T S • The combination of the Rates(1) and
Slide 7: Two Harbors Investment Corp. Overview
Two Harbors Investment Corp. Overview A L E AD I N G H Y B R I D M O R T G AG E R E I T Residentially-focused mortgage REIT formed in 2009 Substantial total stockholder return outperformance since its inception relative to peers Proven stability in book value, especially during volatile periods Soph
Slide 8: Two Harbors Snapshot
hybrid portfolio comprised of Rates difference in book value volatility total stockholder return since substantial book value growth since since inception(3) of book values in the measured period by the average book value from the measured period. Two Harbors Snapshot $2.8 billion$3.6 billion$22.4 b
Slide 9: Proven Book Value Stability
adjusted for the return of capital from dividends, if any, to peer stockholders during the same period. Proven Book Value Stability… • Book value has grown by 20.1% since inception through December 31, 2017, when adjusted to include the value of the Granite Point and Silver Bay stock distributions t
Slide 10: ...Particularly Through Volatile Times
volatility: in the 2013 “taper tantrum” Two Harbors book value volatility than comparable mortgage REIT points(1)(2) of Silver Bay common stock and, beginning in Q4 2017, $3.67 of stock distributions associated with the special dividend of Granite Point common stock. …Particularly Through Volatile T
Slide 11: ...Particularly Through Volatile Times
...Particularly Through Volatile Times REFLECTS SOPHISTICATED APPROACH TO RISK MANAGEMENT AND HEDGING Proven stability of book value through times of + Importantly, these results were achieved with less volatility: in the 2013 “taper tantrum’ Two Harbors book value volatility than comparable mortgag
Slide 12: Two Harbors Investment Corp.
TWO HARBORS Investment Corp. [AP Pe Cat Manoes Conoary