Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 24

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 24
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2025 and 2024:

Three Months EndedSix Months EndedJune 30,June 30,(in thousands)2025202420252024Mortgage loans held-for-sale$769 $— $1,294 $(3)TBAs(82)— (82)— Interest rate lock commitments171 — 483 — Forward mortgage loan sale commitments25 — (143)— Gain (loss) on mortgage loans held-for-sale$883 $— $1,552 $(3)

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.

Operating Expenses

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

Three Months EndedSix Months EndedJune 30,June 30,(dollars in thousands)2025202420252024Compensation and benefits:Non-cash equity compensation expenses$1,932$1,643$8,455$7,726All other compensation and benefits19,53719,60139,60340,047Total compensation and benefits$21,469$21,244$48,058$47,773Other operating expenses:Certain operating expenses (1)$2,754$(624)$2,860$574All other operating expenses18,55318,32338,95238,177Total other operating expenses$21,307$17,699$41,812$38,751Annualized operating expense ratio8.5 %7.0 %8.6 %7.8 %Annualized operating expense ratio, excluding non-cash equity compensation and certain operating expenses (1)7.6 %6.8 %7.5 %7.0 %

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(1)Certain operating expenses predominantly consists of expenses incurred in connection with the Company’s ongoing litigation with PRCM Advisers, as discussed within Note 14 to the consolidated financial statements, included under Item 1 of this Quarterly Report on Form 10-Q. 

The increase in total operating expenses during the three and six months ended June 30, 2025, as compared to the same periods in 2024, was primarily driven by higher expenses incurred in connection with the Company’s ongoing litigation with P