Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 145

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 145
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271,901 Interest-only840,723 58,567 — 58,567 (3,619)907 (4,757)51,098 Total Agency9,262,456 213,738 (130,932)8,504,539 (3,619)23,584 (201,505)8,322,999 Non-Agency569,897 4,199 (19)4,844 (324)173 (543)4,150 Total$9,832,353 $217,937 $(130,951)$8,509,383 $(3,943)$23,757 $(202,048)$8,327,149 The following table presents the Company’s AFS securities according to their estimated weighted average life classifications as of December 31, 2024:December 31, 2024(in thousands) Agency Non-Agency Total< 1 year$270 $— $270 ≥ 1 and < 3 years11,387 — 11,387 ≥ 3 and < 5 years29,908 5 29,913 ≥ 5 and < 10 years7,326,412 3,430 7,329,842 ≥ 10 years— 299 299 Total$7,367,977 $3,734 $7,371,711 

77

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

Measurement of Allowances for Credit Losses on AFS Securities The Company uses a discounted cash flow method to estimate and recognize an allowance for credit losses on both Agency and non-Agency AFS securities that are not accounted for under the fair value option. The following tables present the changes for the years ended December 31, 2024, 2023 and 2022 in the allowance for credit losses on Agency and non-Agency AFS securities:Year EndedDecember 31, 2024(in thousands)AgencyNon-AgencyTotalAllowance for credit losses at beginning of period$(3,619)$(324)$(3,943)Additions on securities for which credit losses were not previously recorded(50)(81)(131)Decrease (increase) on securities with previously recorded credit losses(24)(104)(128)Write-offs1,307 29 1,336 Allow