Summarized Quarterly Financial Results (Tables)

12 Months Ended

Dec. 31, 2012

Quarterly Results of Operations

The following is a presentation of the quarterly results of operations for the years ended December 31, 2012 and 2011.

Hatteras Financial Corp.

Statements of Income

(In thousands, except per share amounts)	Three months Ended December 31, 2012 (Unaudited)		Three months Ended September 30, 2012 (Unaudited)		Three months Ended June 30, 2012 (Unaudited)		Three months Ended March 31, 2012 (Unaudited)
Interest income:
Interest income on mortgage-backed securities	$	131,381	$	131,940	$	128,720	$	112,759
Interest income on short-term cash investments		347		387		441		333
Interest income		131,728		132,327		129,161		113,092
Interest expense		57,019		52,767		46,169		41,109
Net interest income		74,709		79,560		82,992		71,983
Operating expenses:
Management fee		4,709		4,557		4,312		3,842
Share based compensation		619		447		425		429
General and administrative		1,737		1,040		1,316		913
Total operating expenses		7,065		6,044		6,053		5,184
Other income:
Gain on sale of mortgage-backed securities		39,103		10,534		12,205		2,505
Net income		106,747		84,050		89,144		69,304
Dividends on preferred stock		5,481		2,070		0		0
Net income available to common shareholders	$	101,266	$	81,980	$	89,144	$	69,304
Earnings per share - common stock, basic	$	1.02	$	0.83	$	0.91	$	0.89
Earnings per share - common stock, diluted	$	1.02	$	0.83	$	0.91	$	0.89
Dividends per share	$	0.70	$	0.80	$	0.90	$	0.90
Weighted average shares outstanding		98,811,996		98,233,589		97,969,074		77,610,117

Hatteras Financial Corp.

Statements of Income

(In thousands, except per share amounts)	Three months Ended December 31, 2011 (Unaudited)		Three months Ended September 30, 2011 (Unaudited)		Three months Ended June 30, 2011 (Unaudited)		Three months Ended March 31, 2011 (Unaudited)
Interest income:
Interest income on mortgage-backed securities	$	114,465	$	110,125	$	113,188	$	86,935
Interest income on short-term cash investments		356		380		331		340
Interest income		114,821		110,505		113,519		87,275
Interest expense		42,299		40,259		35,910		26,194
Net interest income		72,522		70,246		77,609		61,081
Operating expenses:
Management fee		3,592		3,572		3,531		3,092
Share based compensation		415		334		194		207
General and administrative		731		688		746		559
Total operating expenses		4,738		4,594		4,471		3,858
Other income:
Gain on sale of mortgage-backed securities		2,841		13,330		4,405		—
Net income		70,625		78,982		77,543		57,223
Dividends on preferred stock		—		—		—		—
Net income available to common shareholders	$	70,625	$	78,982	$	77,543	$	57,223
Earnings per share - common stock, basic	$	0.92	$	1.04	$	1.04	$	0.96
Earnings per share - common stock, diluted	$	0.92	$	1.04	$	1.04	$	0.96
Dividends per share	$	0.90	$	1.00	$	1.00	$	1.00
Weighted average shares outstanding		76,606,611		75,743,002		74,807,174		59,442,488