Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 165

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 8
Chunk 165
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 qualify as a REIT. The majority of states also recognize the Company’s REIT status. The Company’s TRSs file separate tax returns and are fully taxed as standalone U.S. C corporations. It is assumed that the Company will retain its REIT status and will incur no REIT level taxation as it intends to comply with the REIT regulations and annual distribution requirements.During the three months ended March 31, 2025, the Company recognized a provision for income taxes of $0.4 million, which was primarily due to net income from MSR servicing and mortgage loan origination activities, partially offset by net losses recognized on MSR and operating expenses incurred in the Company’s TRSs. During the three months ended March 31, 2024, the Company recognized a provision for income taxes of $12.0 million, which was primarily due to net income from MSR servicing activity and net gains recognized on MSR, partially offset by operating expenses incurred in the Company’s TRSs.Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in these consolidated financial statements.

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Table of ContentsTWO HARBORS INVESTMENT CORP.Notes to the Consolidated Financial Statements (unaudited)

Note 22. Earnings Per Share

The following table presents a reconciliation of the (loss) earnings and shares used in calculating basic and diluted (loss) earnings per share for the three months ended March 31, 2025 and 2024:Three Months EndedMarch 31,(in thousands, except share data)20252024Basic (Loss) Earnings Per Share:Net (loss) income$(79,055)$203,588 Dividends on preferred stock(13,186)(11,784)Gain on repurchase and retirement of preferred stock— 644 Dividends and undistributed earnings allocated to participating restricted stock units(404)(1,441)Net (loss) income attributable to common stockholders, basic$(92,645)$191,007 Basic weighted average common shares103,976,437 103,401,940 Basic (loss) earnings per weighted average common share$(0.89)$1.85 Diluted (Loss) Earnings Per Share:Net (loss) income attributable to common stockholders, basic$(