Summarized Quarterly Financial Results

12 Months Ended

Dec. 31, 2013

Summarized Quarterly Financial Results

13. Summarized Quarterly Financial Results

The following is a presentation of the quarterly results of operations for the years ended December 31, 2013 and 2012.

Hatteras Financial Corp.

Consolidated Statements of Income

(Dollars in thousands, except share related amounts)	Three months ended December 31, 2013 (Unaudited)			Three months ended September 30, 2013 (Unaudited)			Three months ended June 30, 2013 (Unaudited)		Three months ended March 31, 2013 (Unaudited)
Interest income:
Interest income on mortgage-backed securities	$	104,312		$	107,040		$	115,115	$	124,241
Interest income on short-term cash investments		456			303			359		442
Total interest income		104,768			107,343			115,474		124,683
Interest expense		40,754			51,599			52,079		53,277
Net interest margin		64,014			55,744			63,395		71,406
Operating expenses:
Management fee		4,224			4,522			4,714		4,720
Share based compensation		701			637			627		629
General and administrative		2,583			1,538			1,602		1,369
Total operating expenses		7,508			6,697			6,943		6,718
Other income (loss):
Net realized gain (loss) on sale of mortgage-backed securities		(68,679	)		(225,635	)		8,802		2,500
Impairment of mortgage-backed securities		-			(8,102	)		-		-
Gain (loss) on derivative instruments, net		2,205			(77,456	)		5,485		51
Total other income (loss)		(66,474	)		(311,193	)		14,287		2,551
Net income (loss)		(9,968	)		(262,146	)		70,739		67,239
Dividends on preferred stock		5,481			5,481			5,480		5,480
Net income (loss) available to common shareholders	$	(15,449	)	$	(267,627	)	$	65,259	$	61,759
Earnings (loss) per share - common stock, basic	$	(0.16	)	$	(2.72	)	$	0.66	$	0.62
Earnings (loss) per share - common stock, diluted	$	(0.16	)	$	(2.72	)	$	0.66	$	0.62
Dividends per share	$	0.50		$	0.55		$	0.70	$	0.70
Weighted average shares outstanding		97,389,614			98,318,205			98,830,054		98,827,587

Hatteras Financial Corp.

Consolidated 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 margin		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