Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 269

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 269
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. During the three and six months ended June 30, 2024, we recognized a provision for income taxes of $14.2 million and $26.2 million, respectively, which was primarily due to net income from MSR servicing activities and net gains recognized on MSR, partially offset by operating expenses incurred in our TRSs.

Other Comprehensive Income (Loss)

The following table provides a summary of the components of other comprehensive income (loss) during the three and six months ended June 30, 2025 and 2024:

Three Months EndedSix Months EndedJune 30,June 30,(in thousands)2025202420252024Unrealized gains (losses) on available-for-sale securities$33,113 $(53,466)$143,333 $(163,124)Realized losses on sales of available-for-sale securities reclassified to loss on investment securities17,360 9,393 64,312 15,973 Other comprehensive income (loss)$50,473 $(44,073)$207,645 $(147,151)

With our accounting treatment for AFS securities, unrealized fluctuations in the market values of AFS securities, excluding certain AFS securities for which we have elected the fair value option and securities with an allowance for credit losses, are recorded directly to stockholders’ equity through other comprehensive income (loss). Additionally, we reclassify unrealized gains and losses on AFS securities in accumulated other comprehensive loss to net (loss) income upon the recognition of any realized gains and losses on sales as individual securities are sold. Fluctuations in other comprehensive income (loss) are driven by changes in fair value assumptions and the reclassification of unrealized gains and losses to realized gains and losses upon sale.

Financial Condition

The following table presents significant components of our balance sheet as of June 30, 2025 and December 31, 2024:

(in thousands)June 30,2025December 31,2024Balance Sheet Data:Available-for-sale securities$8,320,757 $7,371,711 Mortgage servicing rights$3,015,643 $2,994,271 Total assets$12,959,138 $12,204,319 Repurchase agreements$8,782,622 $7,805,057 Revolving credit facilities$1,011,871 $1,020,171 Senior notes$110,867 $— Convertible senior notes$260