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

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Sep. 30, 2011

The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share, or EPS, for the three and nine months ended September 30, 2011 and 2010:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share data)	2011		2010		2011		2010
Numerator:
Net income to common stockholders for basic and diluted earnings per share	$	54,609	$	9,880	$	76,002	$	19,295
Denominator:
Weighted average common shares	130,548,732		26,067,590		84,695,559		20,654,958
Weighted average restricted stock shares	58,834		58,622		56,295		36,503
Basic and diluted weighted average shares outstanding	130,607,566		26,126,212		84,751,854		20,691,461
Basic and Diluted Earnings Per Share:	$	0.42	$	0.38	$	0.90	$	0.93

For the three and nine months ended September 30, 2011 and 2010, the Company has assumed that no warrants would be exercised as the weighted average market value per share of the Company's common stock was below the strike price of the warrants and the warrants would be anti-dilutive.