TWO - Two Harbors Investment Q2 earnings exceed consensus as portfolio grows

Two Harbors Investment ( NYSE: TWO ) Q2 earnings exceeded the consensus estimate as its total portfolio grew and its net spread widened. Separately, the company announced on Wednesday an agreement to acquire Roundpoint Mortgage Servicing to self-service mortgage servicing rights.

"As mortgage spreads continued to widen to historically attractive levels, we deployed capital into RMBS and took advantage of relative value opportunities across the stack," said President, CEO and Chief Investment Officer Bill Greenberg.

Q2 earnings available for distribution was $0.22 per share, topping the $0.19 consensus and an increase from $0.18 per share in Q1 2022. Two Harbors ( TWO ) stock is rising 1.5% in after-hours trading.

Reported book value of $5.10 per common share represents a -4.7% quarterly return on book value, compares with $5.53 at March 31 and -2.9% quarterly return in Q1.

Total portfolio of $18.4B in Q2 vs. $14.8B in Q1.

Average portfolio yield of 4.39% increased from 3.90% in Q1; average cost of financing rose to 1.13% from 0.70%, resulting in net spread of 3.26% in Q2 from 2.75% in Q1.

Q2 servicing income of $157.5M vs. $136.6M in Q1 and $112.8M in Q2 2021.

Q2 net interest income of $19.9M vs. $22.5M in Q1 and $19.0M in Q2 2021.

Total interest income of $57.0M vs. $44.8M in the prior quarter and $43.4M in the year-ago quarter.

Conference call on Aug. 4 at 9:00 AM ET.

Earlier, Two Harbors Investment ( TWO ) non-GAAP EPS of $0.22 beats by $0.03

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