Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 161

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 8
Chunk 161
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 415 under the Securities Act of 1933, as amended, or the Securities Act. On July 30, 2024, the Company entered into an amendment to the equity distribution agreement, which increased the maximum number of shares of common stock available for sale under the agreement to 15,000,000. No shares were sold under the “at the market” equity distribution agreements during the three months ended March 31, 2025 or 2024.Accumulated Other Comprehensive LossAccumulated other comprehensive loss at March 31, 2025 and December 31, 2024 was as follows:(in thousands)March 31,2025December 31, 2024Available-for-sale securities:Unrealized gains$19,450 $3,328 Unrealized losses(182,802)(323,852)Accumulated other comprehensive loss$(163,352)$(320,524)

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

Reclassifications out of Accumulated Other Comprehensive LossThe Company reclassifies unrealized gains and losses on AFS securities in accumulated other comprehensive loss to net (loss) income upon the recognition of any realized gains and losses on sales as individual securities are sold. For the three months ended March 31, 2025 and 2024, the Company reclassified $47.0 million and $6.6 million in unrealized losses, respectively, on sold AFS securities from accumulated other comprehensive loss to loss on investment securities on the consolidated statements of comprehensive income (loss).

Note 19. Equity Incentive Plans

The Company’s 2021 Equity Incentive Plan, or the Equity Incentive Plan, provides incentive compensation to attract and retain qualified directors, officers, personnel and other parties who may provide significant services to the Company. The Equity Incentive Plan is administered by the compensation committee of the Company’s board of directors. The compensation committee has the full authority to administer and interpret the Equity Incentive Plan, to authorize the granting of awards, to determine the eligibility of potential recipients to receive an award, to determine the number of shares of common stock to be covered by each award (subject to the individual participant limitations provided in the Equity Incentive Plan), to determine the terms, provisions and conditions of each award (which may not be inconsistent with the terms of the Equity Incentive Plan), to prescribe the form of