Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 258

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 258
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2025, a decrease from $14.66 per common share at March 31, 2025, and a decrease from $14.47 per common share at December 31, 2024. The decline in book value for both the three and six months ended June 30, 2025 was primarily driven by the loss contingency accrual of $199.9 million that was recorded in connection with our ongoing litigation with PRCM Advisers, net mark-to-market losses on MSR and derivative instruments and dividends declared, partially offset by net interest and servicing income and net mark-to-market gains recognized on investment securities. For further details regarding the loss contingency accrual recognized, refer to Note 14 - Commitments and Contingencies to the consolidated financial statements, included in this Quarterly Report on Form 10-Q. Our comprehensive loss attributable to common stockholders was $221.8 million and $156.9 million for the three and six months ended June 30, 2025, respectively, as compared to comprehensive income attributable to common stockholders of $0.5 million and $89.8 million for the three and six months ended June 30, 2024, respectively.

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The following table presents the components of our comprehensive (loss) income for the three and six months ended June 30, 2025 and 2024:

(in thousands, except per share amounts)Three Months EndedSix Months EndedIncome Statement Data:June 30,June 30,2025202420252024(unaudited)(unaudited)Net interest expense:Interest income$117,082 $115,953 $228,464 $233,736 Interest expense136,701 154,207 268,415 314,207 Net interest expense(19,619)(38,254)(39,951)(80,471)Net servicing income:Servicing income158,354 176,015 315,213 342,348 Servicing costs2,386 4,475 5,583 11,594 Net servicing income155,968 171,540 309,630 330,754 Other (loss) income:Loss on investment securities(32,830)(22,437)(65,559)(33,412)Loss on servicing asset(35,902)(22,857)(72,123)(11,845)(Loss) gain on interest rate swap and swaption agreements(52,950)22,012 (151,