Two Harbors Investments Q1 Earnings Call Highlights

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MarketBeat

Sat, May 2, 2026 astatine 11:27 AM CDT 8 min read

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Key Points

Two Harbors agreed to an amended all‑cash merger with CrossCountry Mortgage astatine $11.30 per share; the committee unanimously recommends the woody implicit competing bids, a peculiar shareholder ballot is acceptable for May 19, and the transaction is expected to adjacent successful H2 2026 with nary financing condition.
The institution reported a Q1 economical instrumentality of -2.0%, publication worth fell to $10.57 and it recorded a $24.7 cardinal broad nonaccomplishment arsenic mark‑to‑market losses connected bureau RMBS/TBAs from higher rates and wider spreads outweighed immoderate hedging gains.
Management said wider owe spreads precocious successful the 4th improved the portfolio’s instrumentality potential; portfolio size was $11.9 billion, economical debt‑to‑equity was 6.4x, and sensitivity to a 25 bp dispersed tightening fell to 3.2%.
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Two Harbors Investments (NYSE:TWO) reported a first-quarter 2026 economical instrumentality of antagonistic 2.0% arsenic owe markets shifted from a beardown commencement to weaker show aboriginal successful the play amid rising volatility and geopolitical uncertainty. Management besides spent important clip discussing an amended merger statement nether which CrossCountry Mortgage (CCM) would get the institution for $11.30 per stock successful cash.

Merger update: CrossCountry connection raised to $11.30 per stock

In opening remarks, President and CEO Bill Greenberg addressed the company’s alteration successful merger plans from the transaction announced successful December. He said Two Harbors received an unsolicited all-cash connection from CrossCountry Mortgage successful March and that the committee “unanimously determined that the CrossCountry connection was superior and successful the champion involvement of shareholders.”

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Greenberg said Two Harbors executed a caller merger statement with CCM connected March 27, 2026, nether which CCM agreed to get Two Harbors for $10.80 per stock successful cash, and Two Harbors terminated its anterior merger statement with UWM. He added that the institution announced an amendment to the CCM statement that increases the information to $11.30 per share, pursuing the board’s reappraisal of an unsolicited competing connection received April 20, 2026 from UWMC.

After evaluating “terms, projected financing, regulatory path, woody certainty and different factors,” Greenberg said the committee determined the CCM transaction, arsenic amended, “continues to beryllium successful the champion interests” of stockholders. He said the operation would brace “the country’s starring retail originator with RoundPoint’s best-in-class servicing platform.”

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