Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

v3.8.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Interest income:      
Available-for-sale securities $ 631,853 $ 414,050 $ 458,515
Trading securities 0 0 8,676
Residential mortgage loans held-for-investment in securitization trusts 102,886 133,993 95,740
Residential mortgage loans held-for-sale 1,704 23,037 28,966
Other 8,646 4,000 982
Total interest income 745,089 575,080 592,879
Interest expense:      
Repurchase agreements 210,430 88,850 72,653
Collateralized borrowings in securitization trusts 82,573 97,729 57,216
Federal Home Loan Bank advances 36,911 26,101 11,921
Revolving credit facilities 2,341 604 0
Convertible senior notes 17,933 0 0
Total interest expense 350,188 213,284 141,790
Net interest income 394,901 361,796 451,089
Other-than-temporary impairments:      
Total other-than-temporary impairment losses (789) (1,822) (535)
Other income:      
(Loss) gain on investment securities (34,695) (107,374) 363,379
(Loss) gain on interest rate swap and swaption agreements (9,753) 45,371 (210,621)
(Loss) gain on other derivative instruments (70,159) 99,379 (5,049)
Servicing income 209,065 143,579 127,398
Loss on servicing asset (91,033) (83,531) (99,584)
Gain on residential mortgage loans held-for-sale 2,383 16,085 14,285
Other income (loss) 27,758 (6,121) (21,971)
Total other income 33,566 107,388 167,837
Expenses:      
Management fees 40,472 39,261 49,116
Servicing expenses 35,289 32,119 28,028
Securitization deal costs 0 6,152 8,971
Other operating expenses 54,160 56,605 56,764
Restructuring charges 0 2,990 0
Total expenses 129,921 137,127 142,879
Income from continuing operations before income taxes 297,757 330,235 475,512
(Benefit from) provision for income taxes (10,482) 12,314 (16,560)
Net income from continuing operations 308,239 317,921 492,072
Income from discontinued operations, net of tax 44,146 35,357 138
Net income 352,385 353,278 492,210
Income from discontinued operations attributable to noncontrolling interest 3,814 0 0
Net income attributable to Two Harbors Investment Corp. 348,571 353,278 492,210
Dividends on preferred stock 25,122 0 0
Net income attributable to common stockholders $ 323,449 $ 353,278 $ 492,210
Basic earnings per weighted average common share:      
Basic earnings from continuing operations per weighted average common share (in usd per share) $ 1.62 $ 1.83 $ 2.70
Basic earnings from discontinued operations per weighted average common share (in usd per share) 0.23 0.20 0.00
Basic earnings per weighted average common share (in usd per share) 1.85 2.03 2.70
Diluted earnings per weighted average common share:      
Diluted earnings from continuing operations per weighted average common share (in usd per share) 1.60 1.83 2.70
Diluted earnings from discontinued operations per weighted average common share (in usd per share) 0.21 0.20 0.00
Diluted earnings per weighted average common share (in usd per share) $ 1.81 $ 2.03 $ 2.70
Weighted average basic common shares outstanding (in shares) 174,433,999 174,036,852 182,623,869
Weighted average diluted common shares outstanding (in shares) 188,133,341 174,036,852 182,623,869
Comprehensive income (loss):      
Net income $ 352,385 $ 353,278 $ 492,210
Other comprehensive income (loss), net of tax:      
Unrealized gain (loss) on available-for-sale securities 135,586 (159,834) (496,728)
Other comprehensive income (loss) 135,586 (159,834) (496,728)
Comprehensive income (loss) 487,971 193,444 (4,518)
Comprehensive income attributable to noncontrolling interest 3,814 0 0
Comprehensive income (loss) attributable to Two Harbors Investment Corp. 484,157 193,444 (4,518)
Dividends on preferred stock 25,122 0 0
Comprehensive income (loss) attributable to common stockholders $ 459,035 $ 193,444 $ (4,518)