Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 102

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 102
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IT and TRSs for the years ended December 31, 2024 and 2023:

Year Ended December 31, 2024(in millions)TRSREITConsolidatedGAAP net income (loss), pre-tax$183.6 $161.2 $344.8 State taxes(10.1)— (10.1)Adjusted GAAP net income (loss), pre-tax173.5 161.2 334.7 Permanent differencesDividends from TRSs— 96.9 96.9 State deferred tax expense6.8 — 6.8 Other permanent differences— 6.8 6.8 Temporary differencesNet accretion of OID and market discount(68.2)40.4 (27.8)Net unrealized gains and losses(6.5)(215.1)(221.6)Net realized gains and losses on sales of RMBS— 3.1 3.1 Net realized gains and losses on sales of MSR11.5 (4.9)6.6 Credit loss impairment— 0.3 0.3 Other temporary differences(0.1)(6.5)(6.6)Capital loss carryforward deferral— 89.5 89.5 Net operating loss carryforward utilization(71.8)— (71.8)Estimated taxable income45.2 171.7 216.9 Dividend paid deduction— (171.7)(171.7)Estimated taxable income post-dividend paid deduction$45.2 $— $45.2 

Year Ended December 31, 2023(in millions)TRSREITConsolidatedGAAP net income (loss), pre-tax$99.0 $(182.4)$(83.4)State taxes(2.5)(0.4)(2.9)Adjusted GAAP net income (loss), pre-tax96.5 (182.8)(86.3)Permanent differencesDividends from TRSs— 65.0 65.0 State deferred tax benefit(2.1)— (2.1)Other permanent differences(0.8)4.0 3.2 Temporary differencesNet accretion of OID and market discount(67.7)33.5 (34.2)Net unrealized gains and losses53.2 48.6