Two Harbors Investment Corp. (NYSE: TWO), a real estate investment trust that invests in residential mortgage-backed securities (RMBS), residential mortgage loans, mortgage servicing rights (MSR) and other financial assets, today announced its financial results for the quarter ended June 30, 2014.
- Book value was $11.09 per diluted common share, representing a 6.0% (1) total return on book value, after accounting for a dividend of $0.26 per share, bringing the total return on book value for the first half of 2014 to 9.9%. (2)
- Delivered Comprehensive Income of $230.8 million, a return on average equity of 23.0%, or $0.63 per diluted weighted average common share.
- Reported Core Earnings of $89.7 million, or $0.24 per diluted weighted average common share. (3)
- Generated an aggregate portfolio yield of 4.6% for the quarter ended June 30, 2014, consistent with the quarter ended March 31, 2014.
- Advanced residential mortgage loan conduit significantly, with inventory and purchase commitments totaling over $1 billion as of June 30, 2014.
“We enjoyed strong performance throughout our business in the quarter, which resulted in a total return on book value of 6.0%,” stated Thomas Siering, Two Harbors’ President and Chief Executive Officer. “We acquired both bulk and flow MSR and made excellent progress on our mortgage loan conduit. We believe that both of these platforms will create tangible franchise value for the benefit of our stockholders.”
(1) Return on book value for the quarter ended June 30, 2014 is defined as the increase in book value per diluted share from March 31, 2014 to June 30, 2014 of $0.38, plus the dividend declared of $0.26 per share, divided by March 31, 2014 diluted book value of $10.71 per share.