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Jun 30, 2024
Two Harbors Q2 2024 Earnings Report
Reported stable results amidst heightened volatility.
Key Takeaways
Two Harbors Investment Corp. reported financial results for the quarter ended June 30, 2024, showcasing the benefits of its unique portfolio construction of MSR paired with Agency RMBS. The company strategically allocated more than 60% of its capital to MSR, which carries low duration and low spread volatility. They also launched a direct-to-consumer recapture originations platform.
Reported book value of $15.19 per common share, and declared a second quarter common stock dividend of $0.45 per share, representing a flat quarterly economic return on book value.
Generated Comprehensive Income of $0.5 million, or $0.00 per weighted average basic common share.
Repurchased $10.0 million principal amount of convertible senior notes due 2026.
Launched direct-to-consumer recapture originations platform.
Revenue by Segment
Forward Guidance
Intends to begin offering a suite of ancillary and home equity products to our customers, including second lien loans, in the third quarter. Nominal spreads for Agency RMBS are still wide on a historical basis, and possess tightening potential in a lower volatility environment, which we expect will be associated with the beginning of a Fed cutting cycle.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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