Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 199

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 199
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31,2024December 31,2023Income taxes receivable (payable):Federal income taxes (payable) receivable$(3,440)$52 State and local income taxes payable(777)(735)Income taxes payable, net(4,217)(683)Deferred tax assets (liabilities):Deferred tax asset4,751 20,083 Deferred tax liability(100,231)(81,765)Total net deferred tax liabilities(95,480)(61,682)Total tax liabilities, net$(99,697)$(62,365)

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

Deferred Tax Assets and LiabilitiesDeferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting and tax purposes at the TRS level. Components of the Company’s net deferred tax liabilities and assets as of December 31, 2024 and December 31, 2023 were as follows:(in thousands)December 31,2024December 31,2023Mortgage servicing rights$(99,980)$(81,765)Net operating loss carryforward2,444 18,224 Other2,056 1,859 Total deferred tax assets (liabilities)(95,480)(61,682)Valuation allowance— — Total net deferred tax assets (liabilities)$(95,480)$(61,682)As of December 31, 2024 and December 31, 2023, the Company had not recorded a valuation allowance for any portion of its deferred tax assets as it did not believe, at a more-likely-than-not level, that any portion of its deferred tax assets would not be realized.Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in these consolidated financial statements.

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

Note 23. Earnings Per Share

The following table presents a reconciliation of the earnings (loss) and shares used in calculating basic and diluted earnings (loss) per share for the years ended December 31, 2024, 2023 and 2022. All per share amounts,