Two Harbors Investment Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Equity (Tables)

Equity (Tables)

9 Months Ended

Sep. 30, 2017

Distributions to Preferred Stockholders

The following table presents cash dividends declared by the Company on its preferred stock during the three and nine months ended September 30, 2017:



Declaration Date	Record Date	Payment Date	Cash Dividend Per Preferred Share
Series A Preferred Stock:
September 14, 2017	October 12, 2017	October 27, 2017	$	0.50781
June 15, 2017	July 12, 2017	July 27, 2017	$	0.75043
Series B Preferred Stock:
September 14, 2017	October 12, 2017	October 27, 2017	$	0.51892

Common Stock

Reverse Stock Split

On September 14, 2017, the Company’s board of directors approved a one-for-two reverse stock split of its outstanding shares of common stock. The reverse stock split was effected on November 1, 2017 at 5:01 p.m. Eastern Time, following the special dividend of Granite Point common stock. At the effective time, every two issued and outstanding shares of the Company’s common stock were converted into one share of common stock. No fractional shares were issued in connection with the reverse stock split; instead, each stockholder holding fractional shares was entitled to receive, in lieu of such fractional shares, cash in an amount determined on the basis of the volume weighted average price of the Company’s common stock on the NYSE on November 1, 2017. In connection with the reverse stock split, the number of authorized shares of the Company’s common stock was also reduced on a one-for-two basis, from 900 million to 450 million. The par value of each share of common stock remained unchanged. 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.

Distributions to Common Stockholders

The following table presents cash dividends declared by the Company on its common stock during the three months ended September 30, 2017, and the four immediately preceding quarters:



Declaration Date	Record Date	Payment Date	Cash Dividend Per Common Share
September 14, 2017	September 29, 2017	October 27, 2017	$	0.52
June 15, 2017	June 30, 2017	July 27, 2017	$	0.52
March 14, 2017	March 31, 2017	April 27, 2017	$	0.50
December 15, 2016	December 30, 2016	January 27, 2017	$	0.48
September 15, 2016	September 30, 2016	October 20, 2016	$	0.46

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income at September 30, 2017 and December 31, 2016 was as follows:



(in thousands)	September 30, 2017			December 31, 2016
Available-for-sale securities
Unrealized gains	$	508,607		$	393,555
Unrealized losses	(85,565		)	(194,328		)
Accumulated other comprehensive income	$	423,042		$	199,227

Reclassification out of Accumulated Other Comprehensive Income

The following table summarizes reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2017 and 2016:



	Affected Line Item in the Condensed Consolidated Statements of Comprehensive Income	Amount Reclassified out of Accumulated Other Comprehensive Income
(in thousands)		Three Months Ended September 30,					Nine Months Ended September 30,
		2017		2016			2017		2016
Other-than-temporary impairments on AFS securities	Total other-than-temporary impairment losses	$	—	$	1,015		$	429	$	1,822
Realized gains on sales of certain AFS securities, net of tax	Gain (loss) on investment securities	4,220		(30,396		)	7,386		(54,652		)
Total		$	4,220	$	(29,381	)	$	7,815	$	(52,830	)