TWO Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share (Tables)

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Earnings Per Share, Basic and Diluted

The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three and nine months ended September 30, 2017 and 2016. All per share amounts, common shares outstanding and restricted shares for all periods presented have been adjusted on a retroactive basis to reflect the reverse stock split.



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share data)	2017		2016		2017		2016
Numerator:
Net income	$	104,738	$	117,786	$	185,381	$	11,875
Net income attributable to noncontrolling interest	2,674		—		2,714		—
Net income attributable to Two Harbors Investment Corp.	102,064		117,786		182,667		11,875
Dividends on preferred stock	8,888		—		13,173		—
Net income attributable to common stockholders - basic	93,176		117,786		169,494		11,875
Interest expense attributable to convertible notes ⁽¹⁾	4,727		—		—		—
Net income attributable to common stockholders - diluted	97,903		117,786		169,494		11,875
Denominator:
Weighted average common shares outstanding	173,162,988		172,372,459		173,022,717		172,545,883
Weighted average restricted stock shares	1,325,308		1,441,154		1,392,515		1,563,234
Basic weighted average shares outstanding	174,488,296		173,813,613		174,415,232		174,109,117
Effect of dilutive shares issued in an assumed conversion	14,419,060		—		—		—
Diluted weighted average shares outstanding	188,907,356		173,813,613		174,415,232		174,109,117
Earnings Per Share
Basic	$	0.53	$	0.68	$	0.97	$	0.07
Diluted	$	0.52	$	0.68	$	0.97	$	0.07

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(1)	Includes a nondiscretionary adjustment for the assumed change in the management fee calculation.