Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 141

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 2
Chunk 141
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, included in this Quarterly Report on Form 10-Q.

Gain On Mortgage Loans Held-For-Sale

The following table provides a summary of the total net realized and unrealized gains (losses) recognized on mortgage loans held-for-sale and the related derivative instruments used to manage exposure to market risks primarily associated with fluctuations in interest rate risks related to our origination pipeline during the three and nine months ended September 30, 2025 and 2024:

Three Months EndedNine Months EndedSeptember 30,September 30,(in thousands)2025202420252024Mortgage loans held-for-sale$1,312 $420 $2,606 $417 TBAs(163)— (245)— Interest rate lock commitments447 478 930 478 Forward mortgage loan sale commitments— 29 (143)29 Gain on mortgage loans held-for-sale$1,596 $927 $3,148 $924 

Late in the second quarter of 2024, RoundPoint began operating its in-house, direct-to-consumer originations platform. Prior to the launch of originations, our mortgage loans held-for-sale consisted of a small number of loans purchased from the collateral underlying our MSR.

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Operating Expenses

The following table presents the components of operating expenses for the three and nine months ended September 30, 2025 and 2024:

Three Months EndedNine Months EndedSeptember 30,September 30,(dollars in thousands)2025202420252024Compensation and benefits:Non-cash equity compensation expenses$1,544$1,610$9,999$9,336All other compensation and benefits19,76318,57059,36658,617Total compensation and benefits$21,307$20,180$69,365$67,953Other operating expenses:Certain operating expenses (1)$4,066$101$6,926$675All other operating expenses18,98518,30457,93756,481Total other operating expenses$23,051$18,405$64,863$57,156Annualized operating expense ratio9.7 %7.0 %8.9 %7.5 %Annualized operating expense ratio, excluding non-cash equity compensation and certain operating expenses (1)8.5 %6.7 %7.8 %6.9 %

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(1)Certain operating expenses predominantly consists of expenses incurred in