WMC's GAAP book value increased to 29.2% in the quarter to $4.07 per share.
GAAP net income was $59.8 million or $0.98 per share and core earnings were $6.4 million or $0.10 per share in the quarter.
Our net interest margin improved to 2.27%, which together with the underlying performance of the portfolio contributed to solid core earnings despite a significant reduction in recourse leverage from 3 times as of June 30 to 2.2 times as of September 30.
In light of our results this quarter including the strengthening of our balance sheet, improved liquidity and solid core earnings, the Company declared a cash dividend of $0.05 in the quarter.
The recovery and asset prices across the portfolio and the redemption of our dividend contributed to an economic return on book value of 30.8% for shareholders this quarter.
Our non-QM residential loan portfolio is performing well and experienced a decline in the percentage of loans that were part of a forbearance plan dropping to 10% at September 30, from 16% at the end of the second quarter.
The commercial whole loan portfolio carries an approximate 65% original LTV and all but one of the loans remains current.
As we mentioned last quarter, the delinquent loan has a principal balance of $30 million which is secured by a hotel.
Our large low non-Agency CMBS portfolio has an original LTV of 60% and despite exposures to some retail and hotel assets over 82% of the loans by principal balance remain current compared with 70% at June 30.
In July, we retired $5 million of our convertible senior notes at a 25% discount to par value.
In exchange for the issuance of $1.4 million shares of our common stock.
Among other terms the amended facility has a 12-month term and bears interest at one month LIBOR plus 2.75%.
We reported core earnings of $6.4 million or $0.10 per share for the third quarter.
Our core earnings came in higher than the $4.3 million generated in the second quarter, primarily driven by a higher net interest margin and a full quarter's benefit of the lower financing costs associated with last quarter's Arroyo securitization, which allowed us to reduce the income drag experience under the original Residential hold on facility.
Economic book value for the quarter increased 2.2% to $4.11 per share.
This quarter the difference between our GAAP book value and our economic book value narrowed only $0.04 due to the sharp rebound in asset values, mainly in the residential whole loan portfolio, which reduce this accounting mismatch.
Our Recourse leverage was 2.2 times at September 30, significantly lower than the 9.5 times level at the end of March and 5.4 times at the beginning of the year.

Summary:
GAAP net income was $59.8 million or $0.98 per share and core earnings were $6.4 million or $0.10 per share in the quarter.
In light of our results this quarter including the strengthening of our balance sheet, improved liquidity and solid core earnings, the Company declared a cash dividend of $0.05 in the quarter.
We reported core earnings of $6.4 million or $0.10 per share for the third quarter.