Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 244

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 2
Chunk 244
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 mirror those we make to the investor, or if we are unable to enforce the representations and warranties against the counterparty for a variety of reasons, including the financial condition or insolvency of the counterparty, we may not be able to seek indemnification from our counterparties for any losses attributable to the breach.

Summary of Results of Operations and Financial Condition

Our book value per common share for U.S. GAAP purposes was $14.66 at March 31, 2025, an increase from $14.47 per common share at December 31, 2024. The rise in book value for the three months ended March 31, 2025 was primarily driven by unrealized gains recognized on AFS securities and net servicing income earned, partially offset by dividends declared. Our comprehensive income attributable to common stockholders was $64.9 million for the three months ended March 31, 2025, as compared to $89.4 million for the three months ended March 31, 2024.

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The following table presents the components of our comprehensive income for the three months ended March 31, 2025 and 2024:

(in thousands, except per share amounts)Three Months EndedIncome Statement Data:March 31,20252024(unaudited)Net interest income (expense):Interest income$111,382 $117,783 Interest expense131,714 160,000 Net interest expense(20,332)(42,217)Net servicing income:Servicing income156,859 166,333 Servicing costs3,197 7,119 Net servicing income153,662 159,214 Other (loss) income:Loss on investment securities(32,729)(10,975)(Loss) gain on servicing asset(36,221)11,012 (Loss) gain on interest rate swap and swaption agreements(98,788)98,510 Gain on other derivative instruments1,448 47,599 Gain (loss) on mortgage loans held-for-sale669 (3)Other income761 — Total other (loss) income(164,860)146,143 Expenses:Compensation and benefits26,589 26,529 Other operating expenses20,505 21,052 Total expenses47,094 47,581 (Loss) income before income taxes(78,624)215,559 Provision for income taxes431 11,971 Net (loss) income(79