As such, our book value has fluctuated this year from being up 5.2% in the first quarter, to declining 6.6% in the second quarter.
Our year-to-date performance remained solid as our total economic return deposited 2.4%.
Our goal is to generate a cash return between 8% to 10%.
Most importantly, since this new era in history began last year, we have outperformed our industry and other income-oriented vehicles with a 28% total shareholder return as noted on Slide 5.
For the second quarter, we reported a comprehensive loss of $0.98 per common share, and a total economic return of minus $0.93 per common share or a minus 4.6%.
We also reported core net operating income of $0.51 per common share, an increase of 10% over last quarter's $0.46 per common share, and well exceeding our $0.39 quarterly common stock dividend.
Book value per share declined $1.32 or minus 6.6%, principally from economic losses on the investment portfolio of $48 million or $1.49 per common share, driven in part by mortgage spread widening and in part due to the lower rate environment during the quarter versus our hedge position.
In terms of specific performance, TBAs and dollar roll specialness continue to be important contributors to results for the quarter, adding an incremental $0.06 per common share to core net operating income, which was partially offset by lower earnings from a smaller pass-through portfolio.
In addition, G&A expenses were lower by $0.02 on a per-share basis and preferred stock dividend on core earnings per share was lower by $0.04 per share.
Average interest-earning assets, including TBAs increased to $4.8 billion versus $4.3 billion, as we deploy the capital raised over the first half of the year.
At quarter end, interest-earning assets, including TBAs, were $5.4 billion versus $5.2 billion at the end of last quarter and leverage including TBA dollar rolls, was 6.7 times versus 6.9 times last quarter.
Adjusted net interest spread increased eight basis points this quarter to 195 basis points, driven largely by the company's TBA position and a modest decline in repo borrowing cost.
The company's implied funding cost for its TBA dollar roll transactions was approximately 49 basis points lower than its repurchase agreement financing rate during the second quarter of 2021, an increase of 10 basis points in specialness relative to the prior quarter.
Regarding Agency RMBS prepayment speeds, they were essentially unchanged at 19% CPR for the quarter versus 18.6% EPR for quarter 1.
Overall, total shareholders' capital grew approximately $25 million during the quarter.
This includes $68 million in new common equity raised through at the market offerings in the quarter.
Our capital issuances added $0.07 per common share to book value for the quarter.
Financing in the TBA market has continued to be strong, contributing 1% to 3% excess core ROE versus pools.
And as returns are now in the 10% to 12% core ROE range, we have reinvested a portion of that capital, growing the balance sheet from a low point of $4.5 billion in the second quarter to $5.6 billion thus far in the third quarter.
We allocated out of TBAs into specified pools as pay-ups declined substantially in May, and we added outright marginal investments in Fannie 2.5 specified pools as well as Fannie two TBAs with wider spreads in June and July.
Our total economic return year-to-date is 2.4%, with book value on June 30 at $18.75, relatively unchanged versus year-end.
In the third quarter thus far, MBS spreads are wider and as the yield curve has flattened dramatically in July, book value has fluctuated with yields in a range of flat to down about 5% versus quarter end.
Leverage at the end of the quarter stood at 6.7 times, and we have the potential for two more turns from here.
We are on track for an 8% dividend yield on beginning book value for the year, with the excess core earnings providing a cushion to capital.
We expect that front-end rates will remain low, close to 0 through 2022, providing a solid base from which to generate returns.
In the short term, we expect choppy action in the markets to continue, and our current thinking is that 10-year yields will trade in a range between 1% and 1.5%.
In the medium term, there is room for 10-year yields to move to a higher range, 1.5% to 1.75%.
We are very respectful of a near-term scenario, resulting in yields remaining at the lower end of the 1% to 1.5% in the 10-year rate, as I mentioned earlier.
Mortgage rates are below 3%, originators are fully staffed and government policies favor broader access to refinancing and modifications.
We have relatively low starting leverage, over $400 million in liquidity and dry powder of two turns of leverage to drive future earnings power and total economic return generation well in excess of our cost of capital.
Dynex Capital, our number 1 purpose is to make lives better by being good stewards of individual savings.
Over the past 14 years, since I joined Dynex, we have earned your trust as we have managed our business with an ethical focus, remained patient and looking for the right opportunities to invest your savings at attractive long-term returns.

Summary:
For the second quarter, we reported a comprehensive loss of $0.98 per common share, and a total economic return of minus $0.93 per common share or a minus 4.6%.
We also reported core net operating income of $0.51 per common share, an increase of 10% over last quarter's $0.46 per common share, and well exceeding our $0.39 quarterly common stock dividend.