Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 190

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 190
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 years9,604 — 9,604 ≥ 3 and < 5 years34,328 115 34,443 ≥ 5 and < 10 years8,273,101 3,058 8,276,159 ≥ 10 years— 276 276 Total$8,317,308 $3,449 $8,320,757 

10

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

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 in the allowance for credit losses on Agency and non-Agency AFS securities for the three and six months ended June 30, 2025 and 2024:Three Months EndedSix Months EndedJune 30, 2025June 30, 2025(in thousands)AgencyNon-AgencyTotalAgencyNon-AgencyTotalAllowance for credit losses at beginning of period$(2,273)$(407)$(2,680)$(2,386)$(480)$(2,866)Additions on securities for which credit losses were not previously recorded(3)— (3)(34)— (34)Decrease (increase) on securities with previously recorded credit losses58 61 119 (51)107 56 Write-offs324 5 329 577 32 609 Allowance for credit losses at end of period$(1,894)$(341)$(2,235)$(1,894)$(341)$(2,235)Three Months EndedSix Months EndedJune 30, 2024June 30, 2024(in thousands)AgencyNon-AgencyTotalAgencyNon-AgencyTotalAllowance for credit losses at beginning of period$(3,217)$(390)$(3,607)$(3,619)$(324)$(3,943)Additions on securities for which credit losses were not previously recorded(3)(12)(15)(40)(29)(69)Increase on securities with previously recorded credit losses(100)(56)(156)(76)(106)(182)Write-offs427 11 438 842 12 854 Allowance for credit losses at end of period$(2,