Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 186

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 186
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31, 2024, the Company’s consolidated financial statements do not recognize a contingency liability or disclose a range of reasonably possible loss under ASC 450 because management does not believe that a loss or expense related to the Federal Complaint is probable or reasonably estimable. The specific factors that limit the Company’s ability to reasonably estimate a loss or expense related to the Federal Complaint are that the matter is not sufficiently advanced and the outcome of litigation is uncertain. If and when management believes losses associated with the Federal Complaint are a probable future event that may result in a loss or expense to the Company and the loss or expense is reasonably estimable, the Company will recognize a contingency liability and resulting loss in such period.Based on information currently available, management is not aware of any other legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and therefore no accrual is required as of December 31, 2024.

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

Note 19. Stockholders’ Equity

Redeemable Preferred StockThe following is a summary of the Company’s series of cumulative redeemable preferred stock issued and outstanding as of December 31, 2024. In the event of a voluntary or involuntary liquidation, dissolution or winding up of the Company, each series of preferred stock will rank on parity with one another and rank senior to the Company’s common stock with respect to the payment of the dividends and the distribution of assets. (dollars in thousands)Class of StockIssuance DateShares Issued and OutstandingCarrying ValueContractual RateRedemption Eligible Date (1)Fixed to Floating Rate Conversion Date (2) Floating Annual Rate (3)Series AMarch 14, 20175,050,221 $121,971 8.125 %April 27, 2027April 27, 20273M Rate + 5.660%Series BJuly 19, 201710,159,200 245,670 7.625 %July 27, 2027July 27, 20273M Rate + 5.352%Series CNovember 27, 20179,661,396 233,826 7.250 %January 27, 2025January 27, 20253M Rate + 5.011%Total24,870,817 $601,467 ____________________(1)Subject to the