Two Harbors Investment (TWO) Tops Q4 EPS by 2c

Two Harbors Investment (NYSE: TWO) reported Q4 EPS of $0.49, $0.02 better than the analyst estimate of $0.47.

• Redeployed capital from CYS Investments, Inc. (CYS) acquisition in accordance with previously announced plan.
• Added $36.1 billion unpaid principal balance (UPB) of MSR through bulk acquisitions and monthly flow-sale arrangements, bringing total holdings to $163.1 billion UPB.
• Incurred a Comprehensive Loss of ($307.9) million, or ($1.24) per weighted average basic common share.
• Generated Core Earnings, including dollar roll income, of $120.7 million, or $0.49 per weighted average basic common share, representing a return on average common equity of 13.8%.(1)
• Reported book value of $13.11 per common share, representing a (8.3%) total quarterly return on book value.(2)

“2018 was a transformative year for our company. We acquired CYS, generated strong Core Earnings and a competitive dividend yield, drove our expenses lower, and achieved substantial scale and operating efficiencies in our MSR platform,” stated Thomas Siering, Two Harbors’ President and Chief Executive Officer. “Heading into 2019, we believe that there are attractive opportunities to drive returns in our Rates and Credit strategies and we remain keenly focused on risk management and hedging.”

For earnings history and earnings-related data on Two Harbors Investment (TWO) click here.

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