Two Harbors Investment Corp · NYSE:TWO
Two Harbors Investment — Q4 2009 Earnings Presentation
9 slides from Two Harbors Investment's earnings presentation, Feb 24, 2010
Slide 1: Two Harbors Investment Corp. 2009 Fourth Quarter Earnings Call
‘Two Harbors Investment Corp. 2009 Fourth Quarter Earnings Call
Slide 2: Safe Harbor Statement
Sate Harbor Statement Forward-Looking Statements This presentation may include “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Secutities Litigation Reform Act of 1995. Actual sesults may differ from expectations, estimates and projections a
Slide 3: Key Highlights
Key Highlights = Two Harbors commenced operations as a REIT investing in residential mortgage- backed securities on October 28, 2009. = Raised approximately $124 million in cash for investments as a result of a merger with Capitol Acquisition Corp. = Declared quarterly dividend of $0.26 per share! i
Slide 4: 2009 Fourth Quarter Timeline
2009 Fourth Quarter Timeline TWO Commencement Date October 28, 2009 ———— Pre-combination Period Capitol’s operating expenses + Operating Period Operating expenses incusred (~2 months) Transaction costs, ‘net of tax benefits elimination = $8.1 million Investment Period Interest income earned (~37 day
Slide 5: Adjusted Core Earnings
Adjusted Core Earnings Adjusted Core Eamings (6000s except for shares outstanding) Q4-2009 ‘Netloss atuibutabe to othe: common stocklieldess 6421) _Adjnstmeat: for aon-oose exeaings: Impsicment losses (OTD e Gains on sles of secnties 35, ‘Terusination of interest rate saps = Uacedlized gains on inte
Slide 6: Operating Performance
Operating Performance Operacing Performance ($000) e-2009 Tatecert income 2809 Tasers expense 1B ‘Net inter income 2678 Gein on sale af investment series, ast 336 Unsealized gaia on inecest cate arap agreements 364 ‘Tonal other come 700 Operating expences 948 Masagement fees 326 ‘onl expenses 9751 ‘
Slide 7: Balanced Risk Approach
Balanced Risk Approach Interest Rate Risk Prepayment Risk ff Mortgage Spread Risk + Low interest rate exposure. | * Portfolio focused on + Low moxtgage spread Objective | prepayment upside. | exposure. + Interest-only bonds used | * Agency bonds and | * Interest-only bonds to offset fixed sate | int
Slide 8: Portfolio Composition
Portfolio Composition Porto Componion As of December 31, 2009 _— sic so ve Em _ ies engi son ee $104 7 $519 $495 Portfolio Yield Realized Q42009 Ar December 31, 2009 Anaualized yield 6.2% 47% (Cost of fancing! Ose Nevintecest epend 59% 43% Portfolio Metrics Portfolio Metrics Ageasr: Weighted average
Slide 9: Contact Information
Contact Intormation For further information, please contact: Anh Huynh Investor Relations Two Harbors Investment Corp. 612.238.3348 th. Huyn@ twoharborsinvestment.com
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