Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 267

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 267
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30,(in thousands)2025202420252024TBAs$(10,757)$(27,331)$18,721 $(86,511)Futures(25,152)26,678 (54,915)135,614 Options on futures(105)— (124)(127)Inverse interest-only securities4,757 (97)6,509 (2,127)(Loss) gain on other derivative instruments$(31,257)$(750)$(29,809)$46,849 

For further details regarding our use of derivative instruments and related activity, refer to Note 9 - Derivative Instruments and Hedging Activities to the consolidated financial statements, included in this Quarterly Report on Form 10-Q.

59

Gain (Loss) On Mortgage Loans Held-For-Sale

The following table provides a summary of the total net realized and unrealized gains (losses) recognized on mortgage loans held-for-sale and the related derivative instruments used to manage exposure to market risks primarily associated with fluctuations in interest rate risks related to our origination pipeline during the three and six months ended June 30, 2025 and 2024:

Three Months EndedSix Months EndedJune 30,June 30,(in thousands)2025202420252024Mortgage loans held-for-sale$769 $— $1,294 $(3)TBAs(82)— (82)— Interest rate lock commitments171 — 483 — Forward mortgage loan sale commitments25 — (143)— Gain (loss) on mortgage loans held-for-sale$883 $— $1,552 $(3)

Late in the second quarter of 2024, RoundPoint began operating its in-house, direct-to-consumer originations platform. Prior to the launch of originations, our mortgage loans held-for-sale consisted of a small number of loans purchased from the collateral underlying our MSR.

Operating Expenses

The following table presents the components of operating expenses for the three and six months ended June 30, 2025 and 2024:

Three Months EndedSix Months EndedJune 30,June 30,(dollars in thousands)2025202420252024Compensation and benefits:Non-cash equity compensation expenses$1,932$1,643$8,455$7,726All other compensation and benefits19,53719,60139,60340,047Total compensation and benefits$21,469$21,244$48,058