Two Harbors Investment Corp. (NASDAQ: TWO) stock gains by 1.29% at last close whereas the TWO stock price declines by 7.52% at last check in the after-hour trading after they have announced their first quarter 2021 financial results. Two Harbors Investment is a real estate company that invests in residential mortgage-backed securities, mortgage servicing rights, and other financial instruments, all of which are handled internally. Two Harbors is based in Minnetonka, Minnesota.
On May 5, 2021, Two Harbors Investment Corp has announced its first quarter financial results. Stated below is the summary:
- TWO has recorded book value of $7.29 per common share which shows a 2.2% quarterly return on book value.
- The Generated Comprehensive income is recorded as $48.5 million which is a yearly return on 9.3% average common equity.
- TWO has stated its first quarter common stock dividend as $0.17 per share.
- Also, the core earnings are totaled as $45.8 million or $0.17 per weighted average basic common share.
- Whereas the ongoing strength in mortgage servicing rights (MSR) flow-sale program settled $21.3 billion unpaid principal balance of MSR.
- With the closure of a $300 million MSR asset lending loan, of which $225 million is pledged, TWO has increased its funding capability.
Bill Greenberg, Two Harbors’ President, and CEO said that following the mortgage spreads at record lows, the Agency + MSR approach, with its lower mortgage spread exposure, is particularly appealing. Also mentioned that they continue to boost leverage and invest surplus capital at more favorable levels as spreads normalize. Meanwhile, TWO remains committed to expanding their MSR portfolio and have increased their funding resources to do so.
Also, Matt Koeppen, Two Harbors’ Chief Investment Officer stated that despite high refinance prices, they expanded the MSR portfolio, demonstrating the platform’s power. In a higher-rate setting, the MSR industry remains stable, and success should be well-supported. They hope to continue to source new servicing at competitive rates across flow and bulk networks.