Two Harbors Investment Corp. Files Q3 2024 10-Q

TL;DR

TWO HARBORS FILES Q3 10-Q - FINANCIALS OUT NOW

AI Summary

Two Harbors Investment Corp. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial position, including its common and preferred stock series (A, B, and C). The company is incorporated in Maryland and its fiscal year ends on December 31.

Why It Matters

This filing provides investors with a detailed look at Two Harbors' financial health and operational status as of the end of the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial information, not indicating immediate significant risks.

Key Numbers

• 103,650,126 — Shares (Total shares outstanding as of the reporting period.)
• 2024-09-30 — Reporting Date (End of the fiscal quarter reported.)
• 2023-12-31 — Previous Year End (Comparison point for financial year-end.)

Key Players & Entities

• TWO HARBORS INVESTMENT CORP. (company) — Filer
• 1601 UTICA AVENUE SOUTH (address) — Business and Mail Address
• ST. LOUIS PARK, MN (location) — Business and Mail City/State
• 20240930 (date) — Period of Report
• 20241029 (date) — Filing Date

FAQ

Key Financial Figures

• $0.01 — ch Registered: Common Stock, par value $0.01 per share TWO New York Stock Exchange

Filing Documents

• two-20240930.htm (10-Q) — 3713KB
• twoexh9302024311.htm (EX-31.1) — 11KB
• twoexh9302024312.htm (EX-31.2) — 10KB
• twoexh9302024321.htm (EX-32.1) — 6KB
• twoexh9302024322.htm (EX-32.2) — 6KB
• 0001465740-24-000196.txt ( ) — 18256KB
• two-20240930.xsd (EX-101.SCH) — 100KB
• two-20240930_cal.xml (EX-101.CAL) — 161KB
• two-20240930_def.xml (EX-101.DEF) — 520KB
• two-20240930_lab.xml (EX-101.LAB) — 1085KB
• two-20240930_pre.xml (EX-101.PRE) — 873KB
• two-20240930_htm.xml (XML) — 3863KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023 1 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 2 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 3 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 5 Notes to the Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 50 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 72 Item 4.

Controls and Procedures

Controls and Procedures 76

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 77 Item 1A.

Risk Factors

Risk Factors 77 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 78 Item 3. Defaults Upon Senior Securities 78 Item 4. Mine Safety Disclosures 79 Item 5. Other Information 79 Item 6. Exhibits 79 Index of Exhibits 80

Signatures

Signatures 82 i Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements TWO HARBORS INVESTMENT CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) September 30, 2024 December 31, 2023 ASSETS (unaudited) Available-for-sale securities, at fair value (amortized cost $ 8,563,998 and $ 8,509,383 , respectively; allowance for credit losses $ 2,962 and $ 3,943 , respectively) $ 8,506,102 $ 8,327,149 Mortgage servicing rights, at fair value 2,884,304 3,052,016 Mortgage loans held-for-sale, at fair value 3,344 332 Cash and cash equivalents 522,581 729,732 Restricted cash 89,125 65,101 Accrued interest receivable 36,561 35,339 Due from counterparties 298,283 323,224 Derivative assets, at fair value 12,572 85,291 Reverse repurchase agreements 359,180 284,091 Other assets 175,790 236,525 Total Assets (1) $ 12,887,842 $ 13,138,800 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Repurchase agreements $ 8,763,400 $ 8,020,207 Revolving credit facilities 999,171 1,329,171 Warehouse facilities 3,017 — Term notes payable — 295,271 Convertible senior notes 259,815 268,582 Derivative liabilities, at fair value 16,764 21,506 Due to counterparties 386,141 574,735 Dividends payable 58,730 58,731 Accrued interest payable 76,868 141,773 Commitments and contingencies (see Note 18) — — Other liabilities 154,562 225,434 Total Liabilities (1) 10,718,468 10,935,410 Stockholders' Equity: Preferred stock, par value $ 0.01 per share; 100,000,000 shares authorized and 24,870,817 and 25,356,426 shares issued and outstanding, respectively ($ 621,770 and $ 633,911 liquidation preference, respectively) 601,467 613,213 Common stock, par value $ 0.01 per share; 175,000,000 shares authorized and 103,650,126 and 103,206,457 shares issued and outstanding, respectively 1,037 1,032 Additional paid-in capital 5,934,920 5,925,424 Accumulated other comprehensive loss ( 53,959 ) ( 176,429 ) Cumulative earnings 1,372,056 1,349,973 Cumulative distributions to stockholders ( 5,686,147 )

View Full Filing

View this 10-Q filing on SEC EDGAR