TWO HARBORS INVEST reports Q2 2026: Net income $49.4M, comprehensive income $47.9M, book value $10.68

TWO HARBORS INVEST reported second-quarter 2026 results with GAAP net income attributable to common stockholders of $49.4 million and comprehensive income of $47.9 million, or $0.45 per basic common share. The company declared a Q2 common dividend of $0.34 per share and reported book value per common share of $10.68 at June 30, 2026. Management also disclosed progress on a definitive merger agreement under which CrossCountry Mortgage will acquire all outstanding common shares for $12.00 per share, with the transaction expected to close August 3, 2026.

Financial Highlights

• GAAP net income attributable to common stockholders: $49.4 million for Q2 2026 (basic EPS $0.47).
• Comprehensive income attributable to common stockholders: $47.9 million, or $0.45 per weighted average basic common share.
• Declared second-quarter common stock dividend: $0.34 per share (annualized dividend yield reported at 11.0%).
• Book value per common share at period end: $10.68 as of June 30, 2026.
• Earnings Available for Distribution (non-GAAP): $29.6 million, or $0.28 per weighted average basic common share for Q2 2026 (reconciliation provided in release).

Business Highlights

• Merger progress: Definitive merger agreement (as amended) with CrossCountry Mortgage; common shareholders approved the merger on July 2, 2026, and the transaction is expected to close on August 3, 2026, subject to closing conditions. Preferred shares will be redeemed at $25.00 per share plus accrued dividends upon closing.
• MSR portfolio activity: Added $186.5 million in unpaid principal balance of mortgage servicing rights through flow-sale acquisitions and recapture during the quarter.
• Portfolio composition: Aggregate on-balance sheet portfolio of $7.48 billion comprised of Agency RMBS (68.8%) and MSR (31.2%) as of June 30, 2026; net TBA position of $3.81 billion bond equivalent value.
• MSR performance metrics: MSR portfolio weighted average gross coupon of 3.54%, 60+ day delinquency rate of 0.79%, and reported three-month CPR of 6.3% (portfolio UPB approximately $155.1 billion as of June 30, 2026).
• Originations and lending activity: Funded $84.0 million UPB in loans and brokered an additional $48.8 million UPB in second lien loans during the quarter.

Original SEC Filing:

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