X0306 4 2016-07-12 1 0001419521 Hatteras Financial Corp HTS 0001368571 McElreath Vicki W C/O HATTERAS FINANCIAL CORP. 751 W. FOURTH ST., SUITE 400 WINSTON-SALEM NC 27101 1 0 0 0 Common Stock 2016-07-12 4 D 0 10575 D 0 D Disposed of pursuant to the Agreement and Plan of Merger, dated as of April 10, 2016 (the "Merger Agreement"), by and among Hatteras Financial Corp., Annaly Capital Management, Inc. and Ridgeback Merger Sub Corporation. Pursuant to the Merger Agreement, (i) 9,229 shares of restricted common stock vested immediately prior to the Effective Time (as defined in the Merger Agreement) and were cancelled in exchange for the right to receive the Mixed Consideration (as defined in the Merger Agreement), and (ii) 1,346 shares of common stock were exchanged for the right to receive the Offer Consideration or the Common Merger Consideration (each as defined in the Merger Agreement). /s/ Kenneth A. Steele, Attorney-in-Fact 2016-07-12