TWO
Two Harbors Investment Corp.9.91
-0.10-1%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Defensive tweaks amid tight spreads
Q&A largely reaffirms the UWM merger excitement and ordinary-course portfolio management, with no tactical shifts pre-close. Book value rose 1.5%-2% through January 30 amid spread tightening. Management turned defensive, trimming leverage and mortgage risk due to admin policies and asymmetric spreads--GSE buying caps potential upside. Reasonable LLPA reduction odds are somewhat priced in; MSR demand stays rock-solid. Return potential dipped marginally by ~5bps. Volatility could rise mildly on Fed changes. Watch spread stability and merger synergies.
Key Stats
Market Cap
1.03BP/E (TTM)
-Basic EPS (TTM)
-2.36Dividend Yield
0.16%Recent Filings
10-K
FY2025 results
Two Harbors closed FY2025 ended December 31, 2025, with $6.5B Agency RMBS and $2.4B MSR, down from $7.4B and $3.0B at year-end 2024 amid sales and run-off, yet Q4 prepayments held steady at 7.9% CPR for RMBS (vs. 7.5% Q4 2024) and 6.4% for MSR (vs. 4.9%). Net servicing income fell to $142M in Q4 from $163M y/y on smaller portfolios, while net interest expense narrowed to $15M from $35M as funding costs dropped with Fed cuts. Debt-to-equity held at 4.8x; $842M cash bolsters liquidity. Pending UWM merger expected Q2 2026. Pine River litigation settled for $375M.
8-K
TWO-UWMC merger announced
Two Harbors announced Q4 results with book value at $11.13 per share and a $0.34 dividend, delivering 3.9% economic return. But the big news: definitive all-stock merger with UWMC at 2.3328 UWMC shares per TWO share, implying $11.94 value. Deal doubles MSR portfolio to pro forma $400B, targets Q2 2026 close pending stockholder and regulatory nods. Merger risks loom large.
8-K
Two Harbors-UWM merger announced
Two Harbors signed a merger agreement on December 17, 2025, to merge into UWM's subsidiary, with common shareholders receiving 2.3328 UWM Class A shares for an equity value of $1.3 billion. Preferred stocks convert one-for-one into UWM equivalents. Closing awaits stockholder approval, HSR clearance, and tax opinions. Merger faces termination fee risks.
8-K
UWM to acquire TWO all-stock
UWM agreed to acquire Two Harbors in an all-stock deal announced December 17, 2025, valued at $1.3 billion equity with TWO shareholders getting 2.3328 UWM Class A shares per share. This adds a $176 billion UPB MSR portfolio, doubling UWM's to $400 billion for recurring revenue, plus $150 million annual synergies. Closing eyed for Q2 2026, pending approvals. Shareholder approval looms large.
10-Q
Q3 FY2025 results
Two Harbors narrowed Q3 net interest expense to $23.5M (44% y/y improvement) while net servicing income held steady at $162.7M, but posted a $127.9M net loss driven by $175.1M litigation settlement expense tied to prior manager dispute. MSR fair value dipped to $2.6B on $293M sales and runoff, yet comprehensive loss to common stockholders eased to $80.2M with $61M unrealized AFS gains; diluted EPS -$1.36 aligns with 104M shares. Cash swelled to $771M, debt-to-equity 4.8:1, balance sheet intact. Litigation behind them now.
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