Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 102

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 102
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 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 and six months ended June 30, 2025, the Company recognized compensation expense related to RSUs and PSUs granted pursuant to the Equity Incentive Plan of $1.9 million and $8.5 million, respectively. For the three and six months ended June 30, 2024, the Company recognized compensation expense related to RSUs and PSUs granted pursuant to the Equity Incentive Plan of $1.6 million and $7.7 million, respectively. As of June 30, 2025, the Company had $7.4 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 2.0 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 six months ended June 30, 2025 and 2024:Three Months EndedSix Months EndedJune 30,June 30,2025202420252024Interest income:Available-for-sale securities$108,842 $99,211 $209,260 $199,816 Mortgage loans held-for-sale145 3 198 4 Other8,095 16,739 19,006 33,916 Total interest income117,082 115,953 228,464 233,736 Interest expense:Repurchase agreements110,288 113,714 217,366 232,430 Revolving credit facilities20,343 29,906 40,469 60,153 Warehouse lines of credit129 — 184 — Term notes payable— 6,008 — 12,426 Senior notes1,