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Hatteras Financial Corp. Announces Hires

Hatteras Financial Corp. (NYSE:HTS) (“Hatteras” or the “Company”) today announced that Michael Nardacci and Kent Willard have joined the management team at Onslow Bay Financial LLC (“Onslow”), a Hatteras Financial Corp. subsidiary, as Conduit Credit Manager and Conduit Operations Manager respectively.

Mr. Nardacci comes to Onslow after five years at Ginnie Mae (“GNMA”) where he was Director, Capital Markets - Structured Transactions, managing and closing 230 Real Estate Mortgage Investment Conduit (REMIC) transactions in 2013; managing a team that modelled the transactions and cash flows on all of GNMA’s structured products and monthly issuances and working closely with sponsors, trustees, and financial and legal advisors. Prior responsibilities include establishing and managing internal and external processes and procedures for Fieldstone Investment Corporation’s residential mortgages securitizations. Mr. Nardacci past experience includes roles at KPMG LLP and Freddie Mac. Mr. Nardacci holds an MBA from George Washington University and a BS, Business Administration-Management from Norwich University.

Mr. Willard comes to Onslow with more than 20 years’ experience in risk management, including quantitative modeling, risk strategy, policy development, analysis, and performance reporting. For the last five years, as an independent consultant, he has performed consumer finance portfolio due diligence, analysis, and origination risk management for financial institutions that have acquired consumer finance lenders. Previously he performed similar modeling, forecasting, reporting and risk surveillance roles for Paulson & Company, Triad Guaranty and Fannie Mae. Earlier in his career he held positions at Washington Mutual, Fannie Mae, Freddie Mac and the Resolution Trust Corporation. Mr. Willard holds a BA in Economics and Finance from the University of Texas at Dallas.

“We are very pleased Mike and Kent have joined us to assist in the development of the Hatteras’ business,” said Michael R. Hough, Hatteras’ Chairman and Chief Executive Officer. “Their senior-level expertise in the origination, evaluation, management, securitization and monitoring residential mortgage loans will allow us to add a dimension to our focus on adjustable rate mortgages in an area where risks and returns are attractive and will also add depth to risk control procedures across all our operations.”

About Hatteras Financial Corp.

Hatteras is a real estate investment trust formed in 2007 to invest in single-family residential real estate mortgage assets. Based in Winston-Salem, N.C., Hatteras is managed and advised by Atlantic Capital Advisors LLC. Hatteras is a component of the Russell 1000® index.