Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 64

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 1
Chunk 64
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 the case of RSUs, DERs are paid in cash within 60 days of the quarterly dividend payment date based on the number of unvested and outstanding RSUs held by the grantee on the applicable dividend record date. In the event that an RSU is forfeited, the related DERs which have not yet been paid shall be forfeited.Performance Share UnitsThe following table summarizes the activity related to PSUs for the three months ended March 31, 2025 and 2024:Three Months Ended March 31,20252024Target UnitsWeighted Average Grant Date Fair Market ValueTarget UnitsWeighted Average Grant Date Fair Market ValueOutstanding at Beginning of Period652,770 $19.58 485,822 $24.89 Granted390,662 13.29 292,000 16.19 Vested(90,051)(21.83)(60,777)(34.68)Forfeited(80,153)(21.00)(43,959)(34.68)Outstanding at End of Period873,228 $16.40 673,086 $19.60 The estimated fair value of PSUs on grant date is determined using a Monte Carlo simulation. PSUs vest promptly following the completion of a three year performance period, as long as such grantee complies with the terms and conditions of the applicable PSU award agreement. The number of underlying shares of common stock that vest and that the grantee becomes entitled to receive at the time of vesting will be determined based on the level of achievement of certain Company performance goals during the performance period and will generally range from 0% to 200% of the target number of PSUs granted. All PSUs entitle the grantee to DERs during the vesting period, which accrue in the form of additional PSUs reflecting the value of any dividends declared on the Company’s common stock during the vesting period. In the event that a PSU is forfeited, the related accrued DERs shall be forfeited. Non-Cash Equity Compensation ExpenseFor the three months ended March 31, 2025 and 2024, the Company recognized compensation related to RSUs and PSUs granted pursuant to the Equity Incentive Plan of $6.5 million and $6.1 million, respectively. As of March 31, 2025, the Company had $8.3 million of total unrecognized compensation cost related to unvested share-based compensation arrangements. This cost is