Two Harbors Investment Corp. (NYSE:TWO) Q3 2023 Earnings Conference Call October 31, 2023 10:00 AM ET
Company Participants
Maggie Karr - Head of Investor Relations
William Greenberg - President and Chief Executive Officer
Mary Riskey - Vice President and Chief Financial Officer
Nicholas Letica - Vice President and Chief Investment Officer
Conference Call Participants
Bose George - Keefe, Bruyette, & Woods, Inc.
Trevor Cranston - JMP Securities LLC
Arren Cyganovich - Citi
Eric Hagen - BTIG
Operator
Greetings and welcome to the Two Harbors Investment Corp. Third Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Maggie Karr, Head of Investor Relations. Thank you, Maggie. You may begin.
Maggie Karr
Good morning, everyone, and welcome to our call to discuss Two Harbors' third quarter 2023 financial results. With me on the call this morning are Bill Greenberg, our President and Chief Executive Officer; Nick Letica, our Chief Investment Officer; and Mary Riskey, our Chief Financial Officer.
The press release and presentation associated with today's call have been filed with the SEC and are available on the SEC's website, as well as the Investor Relations page of our website at twoharborsinvestment.com. In our earnings release and presentation, we have provided reconciliations of GAAP to non-GAAP financial measures, and we urge you to review this information in conjunction with today's call.
As a reminder, our comments today will include forward-looking statements, which are subject to risks and uncertainties that may cause our results to differ materially from expectations. These are described on Page 2 of the presentation and in our Form 10-K and subsequent reports filed with the SEC. Except as may be required by law, Two Harbors does not update forward-looking statements and disclaims any obligation to do so.
I will now turn the call over to Bill.
William Greenberg
Thank you, Maggie. Good morning, everyone, and welcome to our third quarter earnings call. Today, I'll provide an overview of our quarterly performance and the markets. Mary will cover our financial results in detail and Nick will discuss our portfolio and return outlook.
Let's begin with Slide 3. Our book value at September 30th was $15.36 per share, representing a negative 3.5% total economic return. Income excluding market-driven value changes or IXM was $0.51 per share, representing a 12.6% annualized return. This backward looking metric or realized return is analogous to the forward-looking metrics on Slide 14, but includes actual cash flows, actual prepayments and actual costs incurred in the quarter.