TWO HARBORS INVESTMENT CORP.

Listed Company

TWO-PCCIK 0001465740NYSELarge AcceleratedReal Estate Investment TrustsMarylandFY ends Dec 31

Period

FY 2025

Revenue

—

Net Income

$-454.30M

Total Assets

—

Equity

—

Shares Out

105.05M

Op. Cash Flow

$88.92M

Business

Two Harbors Investment Corp. is an internally-managed REIT that invests in, finances and manages mortgage servicing rights (MSR) and Agency residential mortgage-backed securities (Agency RMBS) and operates mortgage servicing through its RoundPoint Mortgage Servicing LLC platform. It offers investment exposure to Agency RMBS, MSR, related hedging transactions, non-Agency securities and originations via an in-house origination platform. Its business is organized around MSR ownership and subservicing, Agency RMBS portfolio management, securitization and financing activities. It operates and distributes services primarily within the U.S. mortgage market through institutional financing, repurchase facilities and servicing channels.

Summary from filing dated 2025-02-18

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Interest income	412	450	480	296	169
Interest expense	491	608	643	258	—
Net interest expense	−79	−158	−163	37	79
Servicing income	627	682	686	604	468
Servicing costs	13	20	95	94	86
Net servicing income	614	662	590	510	382
Loss on investment securities	−96	−40	−70	−604	122
Loss on servicing asset	−242	−63	−112	425	−115
(Loss) gain on derivative instruments	−91	107	−219	—	—
Gain on mortgage loans held-for-sale	5	1	0	9,000	—
Other (loss) income	5	1	5	−14,000	−4
Total other (loss) income	−420	7	−396	−140	−206
Compensation and benefits	95	90	53	41	35
Other operating expenses	90	76	62	42	29
Litigation settlement expense	375	0	0	—	—
Total expenses	560	166	115	83	64
(Loss) income before income taxes	−445	345	−83	324	191
Provision for income taxes	9	47	23	104	4
Net (loss) income	−454	298	−106	220	187
Dividends on preferred stock	−53	−47	−49	−54	−58
Gain on repurchase and retirement of preferred stock	0	600,000	3	20	0
Net (loss) income attributable to common stockholders	−507	252	−152	187	129
Basic (loss) earnings per weighted average common share (in usd per share)	−4.88	2.41	−1.6	2.15	1.72
Diluted (loss) earnings per weighted average common share (in usd per share)	−4.88	2.37	−1.6	2.13	1.72
Unrealized gain (loss) on available-for-sale securities	320	−144	102	−465	−455
Other comprehensive income (loss)	320	−144	102	−465	−455
Comprehensive (loss) income	−134	154	−4	−245	−268
Comprehensive (loss) income attributable to common stockholders	−187	108	−50	−278	−326

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Available-for-sale securities, at fair value (amortized cost $6,516,016 and $7,697,027, respectively; allowance for credit losses $1,609 and $2,866, respectively)	6,514	7,372	8,327	7,779	7,162
Mortgage servicing rights, at fair value	2,400	3,000	3,052	2,985	2,192
Mortgage loans held-for-sale, at fair value	14	2	332,000	—	—
Cash and cash equivalents	842	505	730	683	1,154
Restricted cash	220	313	65	443	935
Accrued interest receivable	29	33	35	36	26
Due from counterparties	379	386	323	253	168
Derivative assets, at fair value	88	10	85	26	80
Reverse repurchase agreements	157	356	284	1,067	135
Other assets	194	232	237	193	263
Total Assets	10,859	12,204	13,139	13,466	12,114
Repurchase agreements	7,256	7,805	8,000	8,600	7,700
Revolving credit facilities	919	1,000	1,300	1,100	421
Warehouse lines of credit	9	2	0	—	—
Senior notes	111	0	—	—	—
Convertible senior notes	262	260	269	283	425
Derivative liabilities, at fair value	4	25	22	34	54
Due to counterparties	216	649	575	542	197
Dividends payable	49	59	59	65	72
Accrued interest payable	82	86	142	94	18
Other liabilities	163	176	225	146	130
Total Liabilities	9,071	10,082	10,935	11,283	9,370
Commitments and contingencies (see Note 14)	—	—	0	0	0
Preferred stock, par value $0.01 per share; 100,000,000 shares authorized and 24,870,817 shares issued and outstanding ($621,770 liquidation preference)	601	601	613	631	703
Common stock, par value $0.01 per share; 175,000,000 shares authorized and 104,806,311 and 103,680,321 shares issued and outstanding, respectively	1	1	1	864,000	860,000
Additional paid-in capital	5,948	5,937	5,925	5,646	5,628
Accumulated other comprehensive loss	−87,000	−321	−176	−279	186
Cumulative earnings	1,194	1,649	1,350	1,453	1,213
Cumulative distributions to stockholders	−5,957	−5,745	−5,510	−5,269	−4,987
Total Stockholders Equity	1,788	2,123	2,203	2,184	2,744
Total Liabilities and Stockholders Equity	10,859	12,204	13,139	13,466	12,114

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Amortization of premiums and discounts on investment securities, net	18	16	25	80	228
Amortization of deferred debt issuance costs on term notes payable, senior notes and convertible senior notes	2	2	3	3	3
(Reversal of) provision for credit losses on investment securities	−121,000	259,000	−545,000	3	10
Realized and unrealized losses on investment securities	96	40	71	601	−131
Realized and unrealized losses (gains) on derivative instruments	162	−147	177	—	—
Gains on mortgage loans held-for-sale	−5	−1	0	−9,000	−2
Gain on repurchase of term notes payable and convertible senior notes	0	−226,000	−5	0	0
Equity based compensation	13	11	11	12	11
Originations and purchases of mortgage loans held-for-sale	−221	−64	−80,000	−264,000	—
Proceeds from sales of mortgage loans held-for-sale	211	63	0	0	66
Proceeds from repayment of mortgage loans held-for-sale	1	145,000	31,000	30,000	8,000
Decrease in accrued interest receivable	4	2	679,000	−10	21
(Increase) decrease in deferred income taxes, net	−8	34	15	105	6
(Decrease) increase in accrued interest payable	−4	−56	48	76	−3
Change in other operating assets and liabilities, net	31	−58	−5	−20	10
Net cash provided by operating activities	89	201	344	623	424
Purchases of available-for-sale securities	−9,344	−2,135	−3,878	−10,663	−2,495
Proceeds from sales of available-for-sale securities	9,643	2,183	2,674	7,794	6,274
Principal payments on available-for-sale securities	763	707	662	1,103	3,148
Purchases of mortgage servicing rights, net of purchase price adjustments	−104	−114	−313	−630	−742
Proceeds from sales of mortgage servicing rights	439	110	134	—	—
Net (payments) proceeds on derivative instruments	−260	226	−248	—	—
Payments for reverse repurchase agreements	−3,114	−3,649	−2,488	−3,242	−1,175
Proceeds from reverse repurchase agreements	3,313	3,577	3,270	2,310	1,132
Acquisition of RoundPoint Mortgage Servicing LLC, net of cash acquired	0	−21	27	0	—
(Decrease) increase in due to counterparties, net	−426	11	−37	260	39
Net cash provided by (used in) investing activities	912	895	−196	−2,751	6,314
Proceeds from repurchase agreements	39,782	46,460	37,046	—	—
Principal payments on repurchase agreements	−40,331	−46,675	−37,629	—	—
Proceeds from revolving credit facilities	373	130	404	720	—
Principal payments on revolving credit facilities	−474	−439	−194	−22	—
Proceeds from warehouse lines of credit	175	50	0	0	297
Principal payments on warehouse lines of credit	−167	−48	0	0	−160
Repayment of term notes payable	0	−296	−101	0	0
Proceeds from issuance of senior notes	111	0	0	—	—
Repurchase of convertible senior notes	0	−10	−13	−144	−143
Repurchase and retirement of preferred stock	0	−11	−15	−51	−275
Proceeds from issuance of common stock, net of offering costs	279,000	244,000	276	7	451
Repurchase of common stock	0	0	−7	0	0
Payment of tax withholdings on equity awards	−2	0	0	—	—
Dividends paid on preferred stock	−52	−47	−49	−55	−64
Dividends paid on common stock	−171	−188	−198	−235	−193
Net cash used in financing activities	−756	−1,073	−479	1,166	−7,295
Net increase (decrease) in cash, cash equivalents and restricted cash	244	23	−332	−962	−558
Cash paid for interest	488	619	566	153	81
Cash paid for taxes, net	25	9	7	−2	−23

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