Two Harbors Investment Corp. Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2013

The following table presents a reconciliation of the common shares outstanding from December 31, 2010 through December 31, 2013:



	Number of common shares
Common shares outstanding, December 31, 2010	40,501,212
Issuance of common stock	100,075,746
Issuance of restricted stock ⁽¹⁾	19,750
Common shares outstanding, December 31, 2011	140,596,708
Issuance of common stock	158,184,529
Issuance of restricted stock ⁽¹⁾	32,021
Common shares outstanding, December 31, 2012	298,813,258
Issuance of common stock	67,511,609
Issuance of restricted stock ⁽¹⁾	1,061,001
Repurchase of common stock	(2,450,700	)
Common shares outstanding, December 31, 2013	364,935,168

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(1)	Represents shares of restricted stock granted under the restated 2009 equity incentive plan, of which 1,024,459 restricted shares remained subject to vesting requirements at December 31, 2013.

The following table presents cash dividends declared by the Company on its common stock for the years ended December 31, 2013, 2012 and 2011:

Accumulated other comprehensive income at December 31, 2013 and December 31, 2012 was as follows:



(in thousands)	December 31, 2013			December 31, 2012
Available-for-sale securities, at fair value
Unrealized gains	$	697,779		$	724,696
Unrealized losses	(253,044		)	(28,238		)
Accumulated other comprehensive income	$	444,735		$	696,458

The following table summarizes reclassifications out of accumulated other comprehensive income for the years ended December 31, 2013, 2012 and 2011:



(in thousands)	Affected Line Item in the Consolidated Statements of Comprehensive Income	Amount Reclassified out of Accumulated Other Comprehensive Income
		Year Ended December 31,
		2013		2012			2011
Other-than-temporary-impairments on AFS securities	Total other-than-temporary impairment losses	$	1,662	$	10,952		$	5,102
Realized losses (gains) on sales of AFS securities	(Loss) gain on investment securities	44,780		(123,534		)	(3,516		)
		$	46,442	$	(112,582	)	$	1,586