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Shares in Two Harbors Investment Corp. ( TWO ) have delivered solid gains so far in 2026 as the market apparently feels increasingly confident that the merger with UWM Holdings Corporation ( UWMC ) will close successfully. As a reminder, TWO isI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered c ...

Shares in Two Harbors Investment Corp. ( TWO ) have delivered solid gains so far in 2026 as the market apparently feels increasingly confident that the merger with UWM Holdings Corporation ( UWMC ) will close successfully. As a reminder, TWO isI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered c ...

Two Harbors Investment (NYSE:TWO) Q4 2025 Earnings call February 03, 2026 09:00 AM ET Company ParticipantsBill Greenberg - CEOMaggie Karr - Head of Investor RelationsNick Letica - CIORick Shane - Executive Director Relationship ExecutiveWilliam Dellal - CFOConference Call ParticipantsBose T. George - AnalystDouglas M. Harter - AnalystEric Hagan - AnalystHarsh Hemnani - AnalystTrevor J. Cranston - AnalystOperatorGood morning. My name is Ruth, and I will be your conference facilitator. At this time, I would l ...

Two Harbors Investment (NYSE:TWO) Q4 2025 Earnings call February 03, 2026 09:00 AM ET Company ParticipantsBill Greenberg - CEOBose George - Managing DirectorDoug Harter - Equity ResearchEric Hagan - Managing DirectorHarsh Hemnani - Managing DirectorMaggie Karr - Head of Investor RelationsNick Letica - CIORick Shane - Executive Director Relationship ExecutiveTrevor Cranston - Managing DirectorWilliam Dellal - CFOOperatorGood morning. My name is Ruth, and I will be your conference facilitator. At this time, I ...

Two Harbors Investment (NYSE:TWO) Q4 2025 Earnings call February 03, 2026 09:00 AM ET Speaker7Good morning. My name is Ruth, and I will be your conference facilitator. At this time, I would like to welcome everyone to Two's fourth quarter 2025 financial results call. All participants are in a listen-only mode. After the speaker's remarks, there will be a question-and-answer period. I would now like to turn the call over to Maggie Karr.Speaker5Good morning, everyone, and welcome to our call to discuss Two's ...

An MSR-Focused REIT Fourth Quarter Earnings Call Presentation February 3, 2026 Safe Harbor Statement FORWARD-LOOKING STATEMENTS This presentation of Two Harbors Investment Corp., or TWO, includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of ...

Two Harbors Investment Corp. (NYSE:TWO) reported adjusted earnings per share of $0.26, missing the estimated $0.30. The company has a high debt-to-equity ratio of 4.76, indicating significant reliance on debt financing. A significant development for TWO is the $1.3 billion deal with UWM, expected to generate $150 million in synergies.  Two Harbors Investment Corp. (NYSE:TWO) is a real estate investment trust (REIT) that focuses on investing in and managing residential mortgage-backed securities and mortgage ...

Financial Performance - TWO reported a comprehensive income of $50.4 million, or $0.48 per weighted average basic common share for Q4 2025[6]. - The company declared a fourth quarter common stock dividend of $0.34 per share, representing a 3.9% quarterly economic return on book value[6]. - TWO's book value per common share was reported at $11.13, with a total stockholder return of 2.8% for the period from December 31, 2024, to December 31, 2025[6][5]. - The company experienced a (12.6)% economic return on book value, which improved to 12.1% when excluding a $375 million settlement expense related to litigation[6][8]. - The company reported a comprehensive income of $63,471 thousand for the three months ended December 31, 2025, compared to $10,164 thousand in the same period of 2024[42]. - Net income attributable to common stockholders turned negative at $(1,325) thousand for the three months ended December 31, 2025, compared to a profit of $264,945 thousand in the same period of 2024[42]. - Total interest income for the three months ended December 31, 2025, was $89,919,000, a decrease from $103,774,000 for the same period in 2024, representing a decline of approximately 13.3%[44]. - Total interest expense for the three months ended December 31, 2025, was $105,408,000, down from $138,668,000 in the prior year, reflecting a decrease of about 23.9%[44]. - Net interest expense for the three months ended December 31, 2025, was $(15,489,000), compared to $(34,894,000) for the same period in 2024, indicating an improvement of approximately 55.6%[44]. - Earnings available for distribution to common stockholders for the three months ended December 31, 2025, was $27,435,000, compared to $37,154,000 in the prior quarter, showing a decrease of about 26.2%[46]. - Earnings available for distribution per weighted average basic common share was $0.26 for the three months ended December 31, 2025, down from $0.36 in the previous quarter, a decline of approximately 27.8%[46]. - The company reported a realized loss on securities of $15,018,000 for the three months ended December 31, 2025[46]. - The unrealized gain on available-for-sale securities was $(51,754,000) for the three months ended December 31, 2025, compared to $(61,038,000) in the previous quarter[46]. Assets and Liabilities - Total assets decreased from $12,204,319 thousand as of December 31, 2024, to $10,859,217 thousand as of December 31, 2025, representing a decline of approximately 11.0%[41]. - Total liabilities decreased from $10,081,810 thousand in 2024 to $9,071,290 thousand in 2025, a reduction of approximately 10.0%[41]. - Cash and cash equivalents increased from $504,613 thousand in 2024 to $842,319 thousand in 2025, an increase of approximately 67.0%[41]. - The allowance for credit losses decreased from $2,866 thousand in 2024 to $1,609 thousand in 2025, a reduction of about 43.9%[41]. Borrowings and Financing - As of December 31, 2025, total borrowings amounted to $8,557,182, an increase from $8,430,709 as of September 30, 2025, representing a growth of 1.5%[22]. - The weighted average borrowing rate for total repurchase agreements was 4.36% as of December 31, 2025, compared to 4.61% as of September 30, 2025, indicating a decrease of 0.25 percentage points[22]. - The debt-to-equity ratio at period-end was 4.8:1.0 as of December 31, 2025, consistent with the previous quarter[22]. - The annualized cost of financing decreased to 5.04% for the three months ended December 31, 2025, down from 5.38% for the three months ended September 30, 2025[22]. - The company reported a total of $6,601,446 in repurchase agreements collateralized by securities as of December 31, 2025, an increase from $6,363,146 as of September 30, 2025[22]. Mortgage Servicing Rights and Acquisitions - The company added $399.1 million in unpaid principal balance (UPB) of mortgage servicing rights (MSR) through flow-sale acquisitions and recapture, and sold $9.6 billion MSR UPB on a subservicing-retained basis[6]. - As of December 31, 2025, the MSR portfolio had a weighted average gross coupon rate of 3.55% and a 60+ day delinquency rate of 0.87%[6]. - The company maintains a focus on acquiring mortgage servicing rights and managing its portfolio effectively[31]. Merger and Future Plans - TWO entered into a definitive merger agreement with UWM Holdings Corporation, where TWO stockholders will receive a fixed exchange ratio of 2.3328 shares of UWMC Class A Common Stock for each share of TWO common stock, representing an $11.94 per share value[6]. - The transaction with UWMC is expected to close in Q2 2026, subject to stockholder approval and regulatory conditions[6]. - The company has plans for a proposed transaction with UWMC, which includes expectations for future performance and synergies[30]. - The company is in the process of a proposed merger with UWMC, which has resulted in certain operating expenses related to transaction costs[48]. Risks and Conference Call - The company is exposed to various risks, including changes in credit markets and economic conditions, which could impact future performance[31]. - The company will host a conference call on February 3, 2026, to discuss its fourth quarter 2025 financial results[28].

NEW YORK--(BUSINESS WIRE)--TWO (Two Harbors Investment Corp., NYSE: TWO), an MSR-focused real estate investment trust (REIT), today announced its financial results for the quarter ended December 31, 2025. Quarterly Summary (1) Annual Summary (2) Post Quarter-End Update Convertible senior notes of $261.9 million in UPB were repaid in full on their January 15, 2026 maturity date. "Our portfolio performed well in the fourth quarter, as RMBS returns benefited from lower realized and implied volatility as well t ...