Two Harbors Investment Corp. Q2 2024 Earnings Report

TL;DR

**TWO HARBORS Q2 EARNINGS: $8.5M NET INCOME, $0.01 EPS. ASSETS $103.6M, LIABILITIES $8.4M.**

AI Summary

Two Harbors Investment Corp. reported its financial results for the quarter ended June 30, 2024. The company's total assets were $103,622,787, with total liabilities of $8,359,346. Net income for the period was $8,509,383, and earnings per share were $0.01. The company held $100,000,000 in cash and cash equivalents.

Why It Matters

This filing provides insight into the financial health and performance of Two Harbors Investment Corp., a real estate investment trust, which can influence investor decisions and market perception.

Risk Assessment

Risk Level: medium — As a real estate investment trust, the company is subject to market fluctuations and interest rate sensitivity.

Key Numbers

• $103.6B — Total Assets (Represents the total value of the company's assets as of June 30, 2024.)
• $8.4B — Total Liabilities (Indicates the company's total debt and other obligations as of June 30, 2024.)
• $8.5B — Net Income (Shows the company's profitability for the quarter ended June 30, 2024.)
• $0.01 — Earnings Per Share (Represents the portion of a company's profit allocated to each outstanding share of common stock for the quarter ended June 30, 2024.)
• $100.0B — Cash and Cash Equivalents (Highlights the company's liquid assets available as of June 30, 2024.)

Key Players & Entities

• Two Harbors Investment Corp. (company) — Filer
• June 30, 2024 (date) — Reporting period end date
• $103,622,787 (dollar_amount) — Total assets
• $8,359,346 (dollar_amount) — Total liabilities
• $8,509,383 (dollar_amount) — Net income
• $0.01 (dollar_amount) — Earnings per share
• $100,000,000 (dollar_amount) — Cash and cash equivalents

FAQ

Key Financial Figures

• $0.01 — ch Registered: Common Stock, par value $0.01 per share TWO New York Stock Exchange

Filing Documents

• two-20240630.htm (10-Q) — 3416KB
• twoexh6302024311.htm (EX-31.1) — 11KB
• twoexh6302024312.htm (EX-31.2) — 10KB
• twoexh6302024321.htm (EX-32.1) — 6KB
• twoexh6302024322.htm (EX-32.2) — 6KB
• 0001465740-24-000162.txt ( ) — 16525KB
• two-20240630.xsd (EX-101.SCH) — 92KB
• two-20240630_cal.xml (EX-101.CAL) — 95KB
• two-20240630_def.xml (EX-101.DEF) — 494KB
• two-20240630_lab.xml (EX-101.LAB) — 1009KB
• two-20240630_pre.xml (EX-101.PRE) — 804KB
• two-20240630_htm.xml (XML) — 3421KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets at June 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2024 and 2023 2 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 5 Notes to the Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 66 Item 4.

Controls and Procedures

Controls and Procedures 69

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 70 Item 1A.

Risk Factors

Risk Factors 70 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 70 Item 3. Defaults Upon Senior Securities 71 Item 4. Mine Safety Disclosures 71 Item 5. Other Information 71 Item 6. Exhibits 71 Index of Exhibits 72

Signatures

Signatures 74 i Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements TWO HARBORS INVESTMENT CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) June 30, 2024 December 31, 2023 ASSETS (unaudited) Available-for-sale securities, at fair value (amortized cost $ 8,359,346 and $ 8,509,383 , respectively; allowance for credit losses $ 3,340 and $ 3,943 , respectively) $ 8,029,955 $ 8,327,149 Mortgage servicing rights, at fair value 3,065,415 3,052,016 Cash and cash equivalents 624,199 729,732 Restricted cash 162,623 65,101 Accrued interest receivable 35,993 35,339 Due from counterparties 372,192 323,224 Derivative assets, at fair value 13,519 85,291 Reverse repurchase agreements 349,660 284,091 Other assets 196,161 236,857 Total Assets (1) $ 12,849,717 $ 13,138,800 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Repurchase agreements $ 8,434,910 $ 8,020,207 Revolving credit facilities 1,279,271 1,329,171 Term notes payable — 295,271 Convertible senior notes 259,412 268,582 Derivative liabilities, at fair value 14,264 21,506 Due to counterparties 352,117 574,735 Dividends payable 58,729 58,731 Accrued interest payable 85,680 141,773 Commitments and contingencies (see Note 16) — — Other liabilities 170,037 225,434 Total Liabilities (1) 10,654,420 10,935,410 Stockholders' Equity: Preferred stock, par value $ 0.01 per share; 100,000,000 shares authorized and 24,870,817 and 25,356,426 shares issued and outstanding, respectively ($ 621,770 and $ 633,911 liquidation preference, respectively) 601,467 613,213 Common stock, par value $ 0.01 per share; 175,000,000 shares authorized and 103,622,239 and 103,206,457 shares issued and outstanding, respectively 1,036 1,032 Additional paid-in capital 5,933,250 5,925,424 Accumulated other comprehensive loss ( 323,580 ) ( 176,429 ) Cumulative earnings 1,610,541 1,349,973 Cumulative distributions to stockholders ( 5,627,417 ) ( 5,509,823 ) Total Stockholders' Equity 2,195,297 2,203,390 Total Liabilities and

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