Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 140

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 140
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 differ from these estimates. The measurement period adjustments made during the three months ended December 31, 2023 are set forth below. No measurement period adjustments were made subsequent to December 31, 2023.(in thousands)Acquisition Date Amounts RecognizedSubsequent Measurement Period AdjustmentsAcquisition Date Amounts Recognized, as adjustedTotal Consideration$44,732 $(188)$44,544 Assets:Cash and cash equivalents$50,366 $— $50,366 Intangible assets786 13 799 Other assets29,148 — 29,148 Total Assets Acquired$80,300 $13 $80,313 Liabilities:Accrued expenses$4,483 $— $4,483 Other liabilities58,739 — 58,739 Total Liabilities Assumed$63,222 $— $63,222 Net Assets$17,078 $13 $17,091 Goodwill$27,654 $(201)$27,453 As a result of the RoundPoint acquisition, the Company identified intangible assets in the form of mortgage servicing and origination state licenses, insurance state licenses, GSE servicing approvals and trade names. The Company recorded the intangible assets at fair value at the acquisition date and amortizes the value of finite-lived intangibles into expense over the expected useful life. Trade names, with a total acquisition date fair value of $0.2 million, are amortized straight-line over a finite life of six months based on the Company’s determination of the time to change a trade name. The Company determined the licenses and approvals, with a total acquisition date fair value of $0.6 million, have indefinite useful lives and are periodically evaluated for impairment given there are no legal, regulatory, contractual, competitive or economic factors that would limit their useful lives.The total goodwill of $27.5 million was calculated as the excess of the total consideration transferred over the net assets acquired and primarily includes the existence of an assembled workforce, synergies and benefits expected to result from combining operations with RoundPoint and adding in-house servicing. The full amount of goodwill for tax purposes of $27.5 million is expected to be deductible. The Company will assess the goodwill annually during the fourth quarter and in interim periods whenever events or circumstances make it more-likely-than-not that an impairment may have occurred.

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Table of ContentsTWO HARBORS INVESTMENT COR