Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 237

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 8
Chunk 237
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 Incentive Plan of $1.5 million and $10.0 million, respectively. For the three and nine months ended September 30, 2024, the Company recognized compensation expense related to RSUs and PSUs granted pursuant to the Equity Incentive Plan of $1.6 million and $9.3 million, respectively. As of September 30, 2025, the Company had $5.9 million of total unrecognized compensation cost related to unvested share-based compensation arrangements. This cost is expected to be recognized over a weighted average period of 1.8 years.

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

Note 17. Interest Income and Interest Expense

The following table presents the components of the Company’s interest income and interest expense for the three and nine months ended September 30, 2025 and 2024:Three Months EndedNine Months EndedSeptember 30,September 30,2025202420252024Interest income:Available-for-sale securities$83,763 $101,067 $293,023 $300,883 Mortgage loans held-for-sale125 25 323 29 Other9,727 11,550 28,733 45,466 Total interest income93,615 112,642 322,079 346,378 Interest expense:Repurchase agreements89,891 123,552 307,257 355,982 Revolving credit facilities19,142 26,873 59,611 87,026 Warehouse lines of credit111 11 295 11 Term notes payable— — — 12,426 Senior notes2,884 — 4,380 — Convertible senior notes4,517 4,495 13,417 13,693 Other575 — 575 — Total interest expense117,120 154,931 385,535 469,138 Net interest expense$(23,505)$(42,289)$(63,456)$(122,760)

Note 18. Income Taxes

For the nine months ended September 30, 2025 and 2024, the Company qualified to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U