Q4 2025 Two Harbors Investment Corp Earnings Call Transcript
Key Points
- Two Harbors Investment Corp (TWO) announced a merger with United Wholesale Mortgage, which is expected to double the size of their MSR portfolio to a pro forma $400 billion.
- The company generated a positive 3.9% total economic return for the fourth quarter of 2025.
- The merger is anticipated to create a powerful strategic alignment, positioning the combined company for accelerated growth and enhanced outcomes.
- Two Harbors Investment Corp (TWO) reported a book value increase to $11.13 per share at the end of December 2025.
- The company's Direct-to-Consumer lending platform had a record quarter, funding $94 million in first and second liens, a 90% increase from the third quarter.
- For the full calendar year 2025, Two Harbors Investment Corp (TWO) generated a total economic return on book value of negative 12.6%, though this was impacted by a litigation settlement expense.
- Net interest and servicing income decreased due to MSR sales and lower float income.
- The company experienced a net overall decline in portfolio asset yields, although this was offset by lower financing costs.
- The reduction in return potential quarter over quarter was driven primarily by the large tightening of RMBS spreads and the sales of Inversis IOs.
- The MSR market volume in 2025 declined from prior years, indicating a more competitive environment for mortgage companies.
Good 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.
(Operator Instructions)
I would now like to turn the call over to Maggie Karr.
Good morning, everyone, and welcome to our call to discuss TWO's fourth-quarter 2025 financial results. With me on the call this morning are Bill Greenberg, our President and Chief Executive Officer; Nick Letica, our Chief Investment Officer; and William Dellal, our Chief Financial Officer.
The earnings press release and presentation associated with today's call have been filed with the SEC and are available on the SEC's website as well as the Investor Relations page of our website at twoinv.com.
In our earnings release and presentation, we have provided reconciliations of GAAP to non-GAAP financial measures, and we urge you to review this information in conjunction with today's
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
