Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 83

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 83
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.04 at September 30, 2025, a decrease from $12.14 per common share at June 30, 2025, and a decrease from $14.47 per common share at December 31, 2024. The decline in book value for both the three and nine months ended September 30, 2025 was primarily driven by the litigation settlement expense of $175.1 million and $375.0 million, respectively, that was recorded in connection with the resolution of our litigation with PRCM Advisers LLC, net mark-to-market losses on MSR and dividends declared, partially offset by servicing income and net mark-to-market gains recognized on investment securities. For further details regarding the litigation settlement recognized, refer to Note 14 - Commitments and Contingencies to the consolidated financial statements, included in this Quarterly Report on Form 10-Q. Our comprehensive loss attributable to common stockholders was $80.2 million and $237.1 million for the three and nine months ended September 30, 2025, respectively, as compared to comprehensive income attributable to common stockholders of $19.4 million and $109.2 million for the three and nine months ended September 30, 2024, respectively.

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The following table presents the components of our comprehensive (loss) income for the three and nine months ended September 30, 2025 and 2024:

(in thousands, except per share amounts)Three Months EndedNine Months EndedIncome Statement Data:September 30,September 30,2025202420252024(unaudited)(unaudited)Net interest expense:Interest income$93,615 $112,642 $322,079 $346,378 Interest expense117,120 154,931 385,535 469,138 Net interest expense(23,505)(42,289)(63,456)(122,760)Net servicing income:Servicing income166,448 171,732 481,661 514,080 Servicing costs3,762 3,900 9,345 15,494 Net servicing income162,686 167,832 472,316 498,586 Other income (loss):(Loss) gain on investment securities(16,187)1,383 (81,746)(32,029)Loss on servicing asset(104,896)(133,349)(177,019)(145,194)Gain (loss) on interest rate swap and sw