Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 99

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 99
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 to the equity distribution agreement, which increased the maximum number of shares of common stock available for sale under the agreement to 15,000,000. No shares were sold under the “at the market” equity distribution agreements during the six months ended June 30, 2025 or 2024.Accumulated Other Comprehensive LossAccumulated other comprehensive loss at June 30, 2025 and December 31, 2024 was as follows:(in thousands)June 30,2025December 31,2024Available-for-sale securities:Unrealized gains$29,239 $3,328 Unrealized losses(142,118)(323,852)Accumulated other comprehensive loss$(112,879)$(320,524)

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

Reclassifications out of Accumulated Other Comprehensive LossThe Company reclassifies 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. For the three and six months ended June 30, 2025, the Company reclassified unrealized losses on sold AFS securities of $17.4 million and $64.3 million, respectively, from accumulated other comprehensive loss to loss on investment securities on the consolidated statements of comprehensive (loss) income. For the three and six months ended June 30, 2024, the Company reclassified unrealized losses on sold AFS securities of $9.4 million and $16.0 million, respectively, from accumulated other comprehensive loss to loss on investment securities on the consolidated statements of comprehensive (loss) income.

Note 16. Equity Incentive Plans

The Company’s 2021 Equity Incentive Plan, or the Equity Incentive Plan, provides incentive compensation to attract and retain qualified directors, officers, personnel and other parties who may provide significant services to the Company. The Equity Incentive Plan is administered by the compensation committee of the Company’s board of directors. The compensation committee has the full authority to administer and interpret the Equity Incentive Plan, to authorize the granting of awards, to determine the eligibility of potential recipients to receive an award, to determine the number of shares of common stock to be covered by each award (subject to the individual participant limitations provided in the Equity Incentive Plan), to determine the terms, provisions