Bose George

Harsh Hemnani

Trevor Cranston

Eric Hagen

Douglas Harter

Merrill Ross

Richard Shane

Doug Harter

Jason Stewart

Rich Shane

Francesco Labetti

Jake Katsikas

Jason Weaver

Kenneth Lee

Mikhail Goberman

- Two Harbors Investment (TWO) settled litigation with its former external manager in Q3 2025, making a one-time payment of **$375 million**.  **[0001465740_2210369_1]**  This resulted in a **$175.1 million** litigation settlement expense, or **$1.68 per weighted average common share**.  **[0001465740_2210369_3]** 
- For Q3 2025, the company reported a total economic return of **-6.3%** (including the settlement expense) and **+7.6%** (excluding the expense).  **[0001465740_2210369_1]** 
- The company sold **$19.1 billion UPB of MSR** in Q3 2025 and anticipates another approximately **$10 billion UPB** to settle by the end of October.  **[0001465740_2210369_1]**  These sales were servicing-retained, contributing to RoundPoint's third-party sub-servicing business, which will total roughly **$40 billion**.  **[0001465740_2210369_1]** 
- Two Harbors plans to redeem the full **$262 million UPB** of its outstanding convertible notes maturing in January 2026.  **[0001465740_2210369_1]**  Following the settlement payment and MSR sales, the company ended Q3 2025 with **$770.5 million** cash on its balance sheet.  **[0001465740_2210369_3]** 
- As of the Friday prior to October 28, 2025, the company's book value had increased by approximately **1%** quarter-to-date.  **[0001465740_2210369_7]**

Two Harbors Investment Reports Q3 2025 Results, Details Litigation Settlement and Portfolio Adjustments

- TWO settled litigation with its former external manager for a one-time payment of **$375 million**, resulting in a **$175.1 million** litigation settlement expense or **$1.68 per weighted average common share** in Q3 2025.  **[0001465740_2208043_1]** **[0001465740_2208043_3]** 
- The company reported a total economic return of **negative 6.3%** for Q3 2025, which would have been a **positive 7.6%** excluding the litigation settlement expense.  **[0001465740_2208043_1]** 
- Portfolio adjustments included the sale of **$19.1 billion UPB** of MSR in Q3, with an additional **$10 billion UPB** to settle by the end of October, and a reduction of the RMBS portfolio to **$10.9 billion** from **$11.4 billion**.  **[0001465740_2208043_1]** 
- The sub-servicing business is expanding, with new client additions bringing combined sub-servicing UPB to approximately **$40 billion**.  **[0001465740_2208043_1]** **[0001465740_2208043_2]** 
- TWO plans to redeem **$261.9 million** of outstanding convertible notes maturing in January 2026 and ended Q3 with **$770.5 million** cash on balance sheet.  **[0001465740_2208043_1]** **[0001465740_2208043_3]**

TWO Reports Q3 2025 Results, Settles Litigation, and Adjusts Portfolio

- TWO reported a **comprehensive loss of $(80.2) million**, or **$(0.77) per common share**, for Q3 2025, resulting in a **(6.3)% quarterly economic return on book value**.  **[0001465740_2206681:10]** 
- Excluding a **$175.1 million litigation settlement expense**, comprehensive income would have been **$94.9 million**, or **$0.91 per common share**, with a **7.6% quarterly economic return on book value**.  **[0001465740_2206681:10]** 
- Book value per common share decreased to **$11.04** as of September 30, 2025, from **$12.14** as of June 30, 2025.  **[0001465740_2206681:10]** **[0001465740_2206681:21]** 
- The company declared a common stock dividend of **$0.34 per share** for Q3 2025.  **[0001465740_2206681:10]** **[0001465740_2206681:21]** 
- The MSR portfolio saw significant activity, including the sale of **$19.1 billion UPB of MSR** and a decrease in MSR fair value to **$2,627 million** as of September 30, 2025.  **[0001465740_2206681:17]** **[0001465740_2206681:26]**

TWO Reports Q3 2025 Comprehensive Loss Impacted by Litigation Settlement

- Two Harbors Investment settled litigation with its former external manager in August 2025, making a one-time payment of **$375 million**.  **[0001465740_2210257_1]**  This resulted in a **$175.1 million** litigation settlement expense, or **$1.68 per weighted average common share**, recorded in Q3 2025.  **[0001465740_2210257_1]** **[0001465740_2210257_3]** 
- For Q3 2025, the company experienced a total economic return of negative **6.3%** (or positive **7.6%** excluding the settlement expense) and a comprehensive loss of **$80.2 million**, or **$0.77 per share** (or comprehensive income of **$94.9 million**, or **$0.91 per share**, excluding the expense).  **[0001465740_2210257_1]** **[0001465740_2210257_3]** 
- The company adjusted its portfolio by selling agency securities, reducing the RMBS portfolio to **$10.9 billion**, and selling **$19.1 billion UPB of MSR** to address a lower capital base and higher structural leverage.  **[0001465740_2210257_1]** 
- Following MSR sales, RoundPoint will service approximately **$40 billion** for third-party clients, and the company plans to redeem **$262 million** in outstanding convertible notes when they mature in **January 2026**.  **[0001465740_2210257_1]** 
- Two Harbors Investment estimates a prospective quarterly static return per share of **$0.26 to $0.42**, with **68%** of capital allocated to servicing (projected **11% to 14%** static return) and the remainder to securities (projected **15% to 19%** static return).  **[0001465740_2210257_6]**

Two Harbors Investment announces Q3 2025 results and litigation settlement

- TWO Harbors Investment Corp. reported a **comprehensive loss of $(80.2) million**, or **$(0.77) per weighted average basic common share**, for Q3 2025, primarily due to a **$175.1 million litigation settlement expense**.  **[1465740_0001465740-25-000150_twoq3-2025earningspressrel.htm:0]** **[1465740_0001465740-25-000150_twoq3-2025earningspressrel.htm:1]** 
- Excluding this litigation settlement expense, the company generated **comprehensive income of $94.9 million**, or **$0.91 per weighted average basic common share**, and a **7.6% quarterly economic return on book value**.  **[1465740_0001465740-25-000150_twoq3-2025earningspressrel.htm:0]** 
- As of September 30, 2025, the **book value per common share was $11.04**, and a **common stock dividend of $0.34 per share** was declared for the quarter.  **[1465740_0001465740-25-000150_twoq3-2025earningspressrel.htm:0]** **[1465740_0001465740-25-000150_twoq3-2025earningspressrel.htm:1]** 
- The company's MSR portfolio had a weighted average gross coupon rate of **3.58%** and a 3-month CPR of **6.0%** as of September 30, 2025.  **[1465740_0001465740-25-000150_twoq3-2025earningspressrel.htm:0]**  Additionally, it settled **$698.2 million** in unpaid principal balance (UPB) of MSR and sold **$19.1 billion UPB of MSR** on a servicing-retained basis to a new subservicing client.  **[1465740_0001465740-25-000150_twoq3-2025earningspressrel.htm:0]**

TWO Harbors Investment Corp. Reports Q3 2025 Financial Results

- Two Harbors Investment Corp. reported a **book value of $11.04 per common share** and declared a **$0.34 per share** common stock dividend for the third quarter of 2025.  **[1465740_382194c4ea59462e9a000a5ce16e0994_0]** 
- The company incurred a **comprehensive loss of $(80.2) million**, or **$(0.77) per weighted average basic common share**, in Q3 2025, which included a **$175.1 million litigation settlement expense**.  **[1465740_382194c4ea59462e9a000a5ce16e0994_0]**  Excluding this expense, TWO generated a **7.6% quarterly economic return on book value** and **comprehensive income of $94.9 million**, or **$0.91 per weighted average basic common share**.  **[1465740_382194c4ea59462e9a000a5ce16e0994_0]** 
- As of September 30, 2025, the MSR portfolio had a weighted average gross coupon rate of **3.58%** and a 60+ day delinquency rate of **0.87%**.  **[1465740_382194c4ea59462e9a000a5ce16e0994_0]**  The company also expanded its subservicing business by selling approximately **$30 billion UPB of MSR** to a new client, with **$19.1 billion** settling in the quarter.  **[1465740_382194c4ea59462e9a000a5ce16e0994_0]**

Two Harbors Investment Corp. Reports Q3 2025 Financial Results

- Two Harbors Investment Corp. has launched a new at-the-market (ATM) equity offering program.  **[1465740_0001104659-25-091684_tm2526278d2_8k.htm:1]** 
- Under this program, the company may offer and sell up to **15,000,000 shares** of common stock through sales agents Citizens JMP Securities, LLC and BTIG, LLC.  **[1465740_0001104659-25-091684_tm2526278d2_8k.htm:1]** **[1465740_0001104659-25-091684_tm2526278d2_ex1-1.htm:1]** 
- The sales agents will receive compensation of up to **2% of the gross proceeds** from the sale of these shares.  **[1465740_0001104659-25-091684_tm2526278d2_8k.htm:1]** 
- The common stock offered has been approved for listing on the New York Stock Exchange (NYSE), subject to notice of issuance.  **[1465740_0001104659-25-091684_tm2526278d2_ex1-1.htm:11]** **[1465740_0001104659-25-091684_tm2526278d2_ex1-2.htm:11]**

TWO HARBORS INVESTMENT (TWO)