Fourth Quarter 2016
Delivered Total Stockholder Return of 20% in 2016(1)
MSR Instrumental to Fourth Quarter Book Value Stability
- Reported book value of $9.78 per common share, representing a 0.1%(2) total quarterly return on book value after accounting for a dividend of $0.24 per share.
- Delivered Comprehensive Income of $2.2 million, a return on average equity of 0.3%, or $0.01 per weighted average common share.
- Reported Core Earnings of $83.4 million, or $0.24 per weighted average common share.(3)
- Delivered total stockholder return of 20% in 2016.(1)
- Generated total annual return on book value of 5.9%, after accounting for dividends of $0.93 per share.(4)
- Completed wind down of mortgage loan conduit consistent with our timeline and expense expectations; reallocated
capital to assets with higher anticipated returns, including MSR and commercial real estate.
- Added $32.0 billion unpaid principal balance (UPB) of MSR; total fair market value of $693.8 million at
December 31, 2016.
- Increased capital allocated to commercial real estate strategy; aggregate portfolio carrying value of $1.4 billion at
December 31, 2016.
- Repurchased 8.0 million shares, at an average price of $7.64 per share, representing 2.3% of shares outstanding
at December 31, 2016.
(1) Two Harbors’ total stockholder return is calculated for the period December 31, 2015 to December 31, 2016. Total stockholder return is defined as stock price appreciation including dividends. Source: Bloomberg.
(2) Return on book value for the quarter ended December 31, 2016 is defined as the decrease in book value from September 30, 2016 to December 31, 2016 of $0.23, plus the dividend declared of $0.24 per share, divided by September 30, 2016 book value of $10.01 per share.
(3) Core Earnings is a non-GAAP measure. Please see page 13 for a definition of Core Earnings and a reconciliation of GAAP to non-GAAP financial information.
(4) Return on book value for the year ended December 31, 2016 is defined as the decrease in book value from December 31, 2015 to December 31, 2016 of $0.33, plus dividends declared of $0.93 per share, divided by December 31, 2015 book value of $10.11 per share.