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

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2011

A reconciliation of the common shares outstanding from inception through December 31, 2011 is as follows:



	Number of common shares
Common shares outstanding, January 1, 2009	32,811,257
Initial capital issuance from formation	—
Cancellation of Capitol Founders' shares	(6,562,257	)
Common shares converted to cash	(6,875,130	)
Common shares acquired by Capitol	(5,994,661	)
Issuance of restricted stock ⁽¹⁾	22,159
Common shares outstanding, December 31, 2009	13,401,368
Issuance of common stock	27,063,381
Issuance of restricted stock ⁽¹⁾	36,463
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

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(1)	Represents shares of restricted stock granted under the 2009 equity incentive plan, of which 51,447 restricted shares remain subject to vesting requirements.

The following table presents cash dividends declared by the Company on its common stock from October 28, 2009 through December 31, 2011:

Accumulated other comprehensive income (loss) at December 31, 2011 and December 31, 2010 was as follows:



(in thousands)	December 31, 2011			December 31, 2010
Available-for-sale securities, at fair value
Unrealized gains	$	120,745		$	30,811
Unrealized losses	(179,461		)	(8,192		)
Accumulated other comprehensive income (loss)	$	(58,716	)	$	22,619