Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 239

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 239
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 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 $199,816 Mortgage loans held-for-sale145 3 198 4 Other8,095 16,739 19,006 33,916 Total interest income117,082 115,953 228,464 233,736 Interest expense:Repurchase agreements110,288 113,714 217,366 232,430 Revolving credit facilities20,343 29,906 40,469 60,153 Warehouse lines of credit129 — 184 — Term notes payable— 6,008 — 12,426 Senior notes1,496 — 1,496 — Convertible senior notes4,445 4,579 8,900 9,198 Total interest expense136,701 154,207 268,415 314,207 Net interest expense$(19,619)$(38,254)$(39,951)$(80,471)

Note 18. Income Taxes

For the six months ended June 30, 2025 and 2024, the Company qualified to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes its net taxable income to stockholders, and does not engage in prohibited transactions. The Company intends to distribute 100% of its REIT taxable income and comply with all requirements to continue to qualify as a REIT. The majority of states also recognize the Company’s REIT status. The Company’s TRSs file separate tax returns and are fully taxed as standalone U.S. C corporations. It is assumed that the Company will retain its REIT status and will incur no REIT level taxation as