Two Harbors Swings to Q2 Profit, Merger with CrossCountry Set to Close August 3
TWO sits 38% above its 52-week low of $8.78.
Summary
Two Harbors reported a swing to profitability in Q2 with comprehensive income of $47.9 million, reversing a prior loss, driven by derivative gains that offset fair value declines. Earnings available for distribution fell to $0.28 per share from $0.34 in Q1, partly due to $13.6 million in merger-related costs. Shareholders have approved the all-cash merger with CrossCountry Mortgage, now expected to close on August 3, 2026, at $12.00 per share. Following the close, the company will redeem its Series A, B, and C preferred stock at $25.00 each plus accrued dividends, and has declared a stub period dividend of $0.12196 per share for Q3. The merger's near-term completion removes a major overhang, and the earnings improvement signals operational resilience despite portfolio adjustments.
At the time of this announcement, TWO was trading at $12.09 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $8.78 to $14.17. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.