Core Insights - Old National Bancorp has appointed Matt Keen as Chief Information Officer (CIO), joining the Executive Leadership Team [1][2] - Keen brings over 30 years of technology leadership experience, including roles at American Express, Ameriprise Financial, and Bremer Bank [2][4] - The appointment aligns with Old National's strategy to enhance technology capabilities to meet client needs during its expansion in the Midwest and Southeast [2][3] Company Overview - Old National Bancorp is the fifth largest commercial bank headquartered in the Midwest, with approximately $70 billion in assets and $37 billion in assets under management [6] - The company focuses on building long-term partnerships with clients and supporting the communities it serves [6] - Old National offers a range of services, including consumer and commercial banking, wealth management, and capital markets services [6] Leadership Transition - Matt Keen succeeds retiring CIO Paul S. Kilroy, who led significant improvements in contact center quality and received the "Tech Exec of the Year" award in 2024 [5] - Keen aims to advance the technology foundation established by Kilroy and enhance client and team member experiences through innovation [3][4]

I 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 calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.Analyst’s D ...

T2 Metals Reports Results from the Third Drill Program at the Sherridon VMS Project, Manitoba Includes High Grade Gold and Silver Intersection Grading 7.2 g/t Au, and 145.5 g/t Ag June 04, 2025 8:00 AM EDT | Source: T2 Metals Corp. Vancouver, British Columbia--(Newsfile Corp. - June 4, 2025) - T2 Metals Corp. (TSXV: TWO) (OTCQB: TWOSF) (WKN: A2DR6E) ("T2" or the "Company") is pleased to announce results from the Q1 2025 drill program at the Sherridon Volcanogenic Massive Sulphide ("VMS") project in central ...

Core Viewpoint - T2 Metals Corp is actively monitoring the wildfire situation near its Sherridon copper-gold-zinc Project in Manitoba, prioritizing the safety of personnel and the local community [2][4]. Group 1: Wildfire Situation - The Manitoba Wildfire Service has reported active fires close to the Sherridon community and the company's mineral concessions [2]. - As a precaution, T2 Metals has temporarily suspended field activities at the Sherridon project site to ensure safety and allow for continuous monitoring of the situation [3]. Group 2: Company Response - T2 Metals maintains clear communication with the Manitoba Wildfire Service and local authorities for real-time updates and guidance [3]. - CEO Mark Saxon expressed concern for the affected community and emphasized that the safety of the team and residents is the top priority, with plans to resume operations once it is safe [4]. Group 3: Company Overview - T2 Metals Corp is focused on enhancing shareholder value through exploration and discovery in under-explored areas, including the Sherridon, Lida, Cora, and Copper Eagle projects [5].

Group 1 - The article focuses on the analysis of Two Harbors Investment Corporation (NYSE: TWO) and its recent developments in the context of an exchange-traded fixed-income security IPO [1] - The analysis is part of a series of informative articles aimed at active investors, encouraging participation in discussions and sharing insights in a chat room with experienced traders [1] Group 2 - The article does not provide specific financial data or performance metrics related to Two Harbors Investment Corporation [2] - There is no recommendation or advice given regarding the suitability of investments for particular investors [2]

Core Viewpoint - Two Harbors Investment Corp. experienced a significant drop in share price in April, reaching a new 1-year low, but has since undergone a substantial recovery, partly driven by its earnings performance [1] Group 1 - The share price of Two Harbors Investment Corp. fell to a new 1-year low in April [1] - Following the low, the company has seen a profound recovery in its share price [1] - The recovery was aided by the mortgage REIT's earnings scorecard [1]

Group 1 - The article discusses the preferred stock and baby bond market activity, providing both bottom-up analysis of individual news and events, and top-down overview of the broader market [1] - ADS Analytics is a team of analysts with experience in research and trading at leading global investment banks, focusing on generating income ideas from various security types including CEFs, ETFs, mutual funds, BDCs, and individual preferred stocks and baby bonds [1]

Financial Data and Key Metrics Changes - The company generated a total economic return of 4.4% for Q1 2025, with both RMBS and MSR contributing positively to the results [4] - Book value increased to $14.66 per share at March 31, compared to $14.47 at December 31, including a $0.45 common stock dividend [10] - Comprehensive income for the first quarter was $64.9 million, or $0.62 per weighted average common share [11] - Economic debt to equity decreased to 6.2 times [15] Business Line Data and Key Metrics Changes - Net interest and servicing income increased by $5.2 million due to portfolio shifts into higher coupon agency RMBS and lower borrowing rates [11] - The company decreased its mortgage exposure by 30% and reduced leverage during the first quarter [15] - The MSR portfolio's prepayment speed was 4.2 CPR for Q1, down 0.7% quarter over quarter [24] Market Data and Key Metrics Changes - Interest rates across the US treasury yield curve ended the first quarter lower than at the end of 2024, with two-year and ten-year notes both decreasing by 36 basis points [5] - Prepayment rates for the thirty-year agency RMBS universe decreased by 1.4 percentage points quarter over quarter to 5.6% CPR [20] Company Strategy and Development Direction - The company aims to scale its direct-to-consumer originations platform, increase offerings of second liens, and explore opportunities in the Ginnie Mae market [6][7] - The focus is on growing the presence in third-party subservicing and generating cost efficiencies through technology and AI applications [7] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about economic uncertainty driven by proposals on tariffs and trade policy, which could impact the dollar's status as the world's reserve currency [6] - The company is managing its portfolio for long-term stability while keeping leverage and risk at muted levels until there is more clarity on the economic path forward [29] Other Important Information - The company has maintained high liquidity levels, with $950 million in unused MSR asset financing capacity and $47 million in unused capacity for service and advances [13] - The MSR market remains well supported, with transfer volume normalizing to pre-COVID levels [22] Q&A Session Summary Question: Update on book value through April and portfolio adjustments - Management indicated a 3.5% decline in book value through early April and noted further risk reduction in the portfolio due to increased volatility [33][34] Question: Impact of Rocket and Mr. Cooper merger on the servicing market - Management believes the merger's impact on demand for MSR will be muted, with combined demand likely equal to the sum of individual demands [41][42] Question: Comfort level with the dividend - Management expressed confidence in supporting the dividend given the current portfolio composition and wider spreads [50] Question: Sensitivity of book value to spread changes - Management explained that the sensitivity to spread changes is lower due to the allocation of capital between MSR and securities [52][56] Question: Liquidity levels and recapture efforts - Management confirmed high liquidity levels and noted that organic recapture from the direct-to-consumer channel remains low but is expected to improve as the platform scales [81][84] Question: Interest in the Ginnie Mae market - Management is exploring the Ginnie Mae market for potential opportunities and to enhance their service offerings [86]

Financial Data and Key Metrics Changes - The company generated a total economic return of 4.4% for Q1 2025, with both RMBS and MSR contributing positively [5] - Book value increased to $14.66 per share at March 31, compared to $14.47 at December 31 [10] - Comprehensive income for the first quarter was $64.9 million, or $0.62 per weighted average common share [11] Business Line Data and Key Metrics Changes - Net interest and servicing income increased by $5.2 million due to portfolio shifts into higher coupon agency RMBS and lower borrowing rates [11] - The company’s economic debt to equity decreased to 6.2 times, with a 30% reduction in mortgage exposure [16] - The MSR portfolio's prepayment speed was 4.2 CPR for Q1, down 0.7% quarter over quarter [25] Market Data and Key Metrics Changes - Interest rates across the US treasury yield curve ended the first quarter lower than at the end of 2024, with two-year and ten-year notes decreasing by 36 basis points [6] - Prepayment rates for the thirty-year agency RMBS universe decreased by 1.4 percentage points quarter over quarter to 5.6% CPR [21] Company Strategy and Development Direction - The company aims to scale its direct-to-consumer originations platform, increase offerings of second liens, and grow its presence in third-party subservicing [7][8] - The company is exploring opportunities in the Ginnie Mae market and diversifying its portfolio in response to the evolving mortgage finance landscape [8] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about economic uncertainty driven by trade policies and the Fed's response, indicating a cautious approach to portfolio risk [7][28] - The company sees attractive levered returns on Agency RMBS and expects stable cash flows from its low weighted average mortgage rate MSR portfolio [29] Other Important Information - The company maintained high liquidity levels with $950 million in unused MSR asset financing capacity [13] - The company is actively managing its portfolio to take advantage of market dislocations and attractive return opportunities [5][29] Q&A Session Summary Question: Update on book value through April and portfolio changes - Management reported a 3.5% decline in book value through early April and noted further risk reduction in the portfolio due to increased volatility [33][35] Question: Impact of Rocket and Mr. Cooper merger on competitive landscape - Management indicated that the merger may lead to slightly better bidding for MSR but does not represent a wholesale change in market dynamics [42][46] Question: Comfort level with the dividend - Management expressed confidence in supporting the dividend given the current portfolio composition and wider spreads [51] Question: Sensitivity of book value to spread changes - Management explained that the sensitivity to spread changes is lower due to the allocation of capital between servicing and securities [56][58] Question: Volatility and hedging activity impact on static return estimates - Management acknowledged higher convexity costs due to realized volatility but noted that wider spreads could mitigate some of these costs [67][68]

Financial Instruments and Assets - As of March 31, 2025, approximately 84.8% of the company's total assets, or $11.6 billion, consisted of financial instruments recorded at fair value[221] - At March 31, 2025, 21.7% of the company's total assets were classified as Level 3 fair value assets, indicating significant judgment in valuation[228] - The carrying value of the investment portfolio as of March 31, 2025, was $11,591,094 thousand, up from $10,374,970 thousand as of December 31, 2024[238] - The total carrying value of the Agency RMBS portfolio was $8,627,708 thousand as of March 31, 2025, an increase from $7,376,965 thousand as of December 31, 2024[241] - The company held $11.6 billion in available-for-sale securities, mortgage servicing rights, mortgage loans held-for-sale, and derivative assets at fair value as of March 31, 2025[288] - Available-for-sale securities at fair value rose to $8.607 billion as of March 31, 2025, compared to $7.372 billion as of December 31, 2024[274] Interest Rates and Income - The company's net interest income is influenced by changes in market interest rates, financing costs, and prepayment speeds on its assets[220] - Interest rates for 2-year and 10-year U.S. Treasury notes decreased by 36 basis points to 3.88% and 4.21%, respectively, compared to year-end 2024[231] - Net interest income decreased from $117.8 million in Q1 2024 to $111.4 million in Q1 2025, primarily due to a decrease in the Agency RMBS portfolio size and lower average cash balances[250] - Interest expense decreased from $160.0 million in Q1 2024 to $131.7 million in Q1 2025, attributed to lower interest rates and reduced borrowing balances[251] - The average net asset yield for interest-earning assets was 5.1% for Q1 2025, down from 5.3% in Q1 2024, reflecting changes in the interest rate environment[252] - The interest rate sensitivity table indicates that a +25 bps change in interest rates would result in a decrease of $1,055,000 in annualized net interest income, representing a -0.7% change[320] - A +50 bps change in interest rates would lead to a decrease of $2,226,000 in annualized net interest income, representing a -1.5% change[320] Mortgage Servicing Rights (MSR) - The company's MSR business leverages core competencies in prepayment and interest rate risk analytics, providing offsetting risks to its Agency RMBS[213] - The MSR portfolio experienced an aggregate speed of 4.2% CPR for Q1 2025, down 0.7 percentage points compared to Q4 2024[235] - The MSR market remains well supported with limited bulk acquisition opportunities, indicating a stable market environment[235] - As of March 31, 2025, the fair market value of the Mortgage Servicing Rights (MSR) was $3.0 billion[277] - The MSR portfolio included 794,466 loans with an unpaid principal balance of approximately $196.8 billion[278] - The weighted average coupon rate for the total MSR portfolio was 3.5%[278] - An increase in prepayment rates on the mortgage loans underlying MSR would likely result in a decline in the value of MSR, cutting short the anticipated life of the servicing income stream[327] Financial Performance - Comprehensive income attributable to common stockholders for the three months ended March 31, 2025, was $64.9 million, compared to $89.4 million for the same period in 2024, indicating a decline of approximately 27.5%[248] - The net (loss) income attributable to common stockholders for the three months ended March 31, 2025, was $(92.2) million, compared to $192.4 million in the same period of 2024[249] - Other comprehensive income increased to $157.172 million in Q1 2025 from $(103.078) million in Q1 2024, driven by unrealized gains on available-for-sale securities[273] - The book value per common share increased to $14.66 at March 31, 2025, up from $14.47 at December 31, 2024, driven by unrealized gains on AFS securities and net servicing income[248] Leverage and Debt - The debt-to-equity ratio as of March 31, 2025, was 5.1:1.0, indicating a significant leverage position in funding investment securities and mortgage loans[245] - The debt-to-equity ratio increased from 4.3:1.0 to 5.1:1.0 during the three months ended March 31, 2025, primarily due to increased financing on Agency RMBS[288] - Total borrowings as of March 31, 2025, amounted to $10,942,563, with a weighted average borrowing rate of 4.99%[280] - Total outstanding debt as of March 31, 2025, was $10.9 billion, with significant amounts maturing within 30 days[302] - Total indebtedness to tangible net worth was 5.3:1.0 as of March 31, 2025, below the covenant limit of 8.0:1.0[298] Cash Flow and Liquidity - Cash and cash equivalents available to support operations amounted to $573.9 million as of March 31, 2025[288] - For the three months ended March 31, 2025, cash flows from operating activities increased cash balances by approximately $111.9 million, primarily driven by financial results for the quarter[304] - Cash flows from investing activities decreased cash balances by approximately $2.0 billion, primarily due to net purchases of AFS securities and MSR, and an increase in amounts due from counterparties[304] - Cash flows from financing activities increased cash balances by approximately $1.8 billion, primarily driven by increases in repurchase agreement and warehouse facility financing[304] Market Conditions and Risks - Forward-looking statements indicate potential risks including changes in interest rates, prepayment rates, and economic conditions that could affect actual results[218] - The Fed revised lower real GDP growth expectations for 2025 from 2.1% to 1.7% and increased the core personal consumption expenditures index from 2.5% to 2.8%[232] - The implementation of tariffs is expected to further depress home sales, impacting the housing market negatively[234] - Liquidity risk is associated with financing long-maturity assets with shorter-term borrowings, which may not always be matched[332] - A sudden decrease in asset value could lead to increased lender margin calls, adversely affecting liquidity[333] - The portfolio construction of MSR and RMBS may lead to variation margin calls in certain market scenarios[333] Investment Strategy - The company aims to maintain moderate leverage through financing strategies including repurchase agreements and revolving credit facilities[216] - The company plans to maintain muted portfolio leverage and risk levels until there is more clarity on the economic outlook[237] - The investment strategy aims to maintain low to moderate credit loss risk, particularly on mortgage loans held-for-sale[334] - The company believes it can reinvest proceeds from scheduled principal payments and prepayments at acceptable yields, although no assurances can be given regarding market conditions[326]