Granite Point Mortgage Trust (GPMT) 10-Q10 May 182018 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2018	May 09, 2018
Entity Information [Line Items]
Entity Registrant Name	GRANITE POINT MORTGAGE TRUST INC.
Entity Central Index Key	1,703,644
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		43,437,059

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Mar. 31, 2018	Dec. 31, 2017
ASSETS
Loans held-for-investment		$ 2,364,647	$ 2,304,266
Available-for-sale securities, at fair value		12,814	12,798
Held-to-maturity securities		37,376	42,169
Cash and cash equivalents		72,070	107,765
Restricted cash		4,998	2,953
Accrued interest receivable		7,641	7,105
Deferred debt issuance costs		7,468	8,872
Prepaid expenses		198	390
Other assets		13,507	12,812
Total Assets	[1]	2,520,719	2,499,130
Liabilities
Repurchase agreements		1,524,456	1,521,608
Convertible senior notes		139,745	121,314
Accrued interest payable		5,280	3,119
Unearned interest income		57	197
Dividends payable		16,588	16,454
Other liabilities		6,237	6,817
Total Liabilities	[1]	1,692,363	1,669,509
10% cumulative redeemable preferred stock, par value $0.01 per share; 50,000,000 shares authorized and 1,000 and 1,000 shares issued and outstanding, respectively		1,000	1,000
Stockholders' Equity
Common stock, par value $0.01 per share; 450,000,000 shares authorized and 43,437,059 and 43,235,103 shares issued and outstanding, respectively		434	432
Additional paid-in capital		830,366	829,704
Accumulated other comprehensive income		16	0
Cumulative earnings		43,386	28,800
Cumulative distributions to stockholders		46,846	30,315
Total Stockholders’ Equity		827,356	828,621
Total Liabilities and Stockholders’ Equity		$ 2,520,719	$ 2,499,130

[1]	The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs. At March 31, 2018 and December 31, 2017, assets of the VIEs totaled $0 and $46,068, respectively. See Note 3 - Variable Interest Entities for additional information.

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
10% cumulative redeemable preferred stock par value per share (in usd per share)	$ 0.01	$ 0.01
10% cumulative redeemable preferred shares authorized (in shares)	50,000,000	50,000,000
10% cumulative redeemable preferred shares issued (in shares)	1,000	1,000
10% cumulative redeemable preferred shares outstanding (in shares)	1,000	1,000
Common stock par value per share (in usd per share)	$ 0.01	$ 0.01
Common shares authorized (in shares)	450,000,000	450,000,000
Common shares issued (in shares)	43,437,059	43,235,103
Common shares outstanding (in shares)	43,437,059	43,235,103
Assets of consolidated Variable Interest Entities	$ 0	$ 46,068

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest income:
Loans held-for-investment	$ 38,793	$ 22,638
Available-for-sale securities	272	246
Held-to-maturity securities	885	932
Cash and cash equivalents	27	2
Total interest income	39,977	23,818
Interest expense:
Repurchase agreements	16,194	4,756
Convertible senior notes	2,179	0
Note payable to affiliate	0	1,350
Total interest expense	18,373	6,106
Net interest income	21,604	17,712
Other income:
Fee income	882	0
Total other income	882	0
Expenses:
Management fees	3,209	1,662
Servicing expenses	458	322
Other operating expenses	4,232	2,273
Total expenses	7,899	4,257
Income before income taxes	14,587	13,455
Provision for income taxes	1	1
Net income	14,586	13,454
Dividends on preferred stock	25	0
Net income attributable to common stockholders	$ 14,561	$ 13,454
Basic earnings per weighted average common share (in usd per share)	$ 0.34	$ 0
Diluted earnings per weighted average common share (in usd per share)	$ 0.33	$ 0
Weighted average basic common shares outstanding (in shares)	43,374,228	0
Weighted average diluted common shares outstanding (in shares)	50,467,978	0
Comprehensive income:
Net income attributable to common stockholders	$ 14,561	$ 13,454
Other comprehensive income, net of tax:
Unrealized gain (loss) on available-for-sale securities	16	80
Other comprehensive income	16	80
Comprehensive income attributable to common stockholders	$ 14,577	$ 13,534

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Cumulative Earnings	Cumulative Distributions to Stockholders
Common shares outstanding at beginning of period (in shares) at Dec. 31, 2016	0	0
Stockholders’ equity at beginning of period at Dec. 31, 2016	$ 427,991	$ 0	$ 392,608	$ (112)	$ 35,495	$ 0
Net income	13,454				13,454
Other comprehensive (loss) income before reclassifications	80			80
Amounts reclassified from accumulated other comprehensive income, net of tax	0			0
Net other comprehensive (loss) income	$ 80			80
Non-cash equity award compensation (in shares)	0
Common shares outstanding at end of period (in shares) at Mar. 31, 2017	0	0
Stockholders’ equity at end of period at Mar. 31, 2017	$ 441,525	$ 0	392,608	(32)	48,949	0
Common shares outstanding at beginning of period (in shares) at Dec. 31, 2017	43,235,103	43,235,103
Stockholders’ equity at beginning of period at Dec. 31, 2017	$ 828,621	$ 432	829,704	0	28,800	(30,315)
Net income	14,586				14,586
Other comprehensive (loss) income before reclassifications	16			16
Amounts reclassified from accumulated other comprehensive income, net of tax	0			0
Net other comprehensive (loss) income	16			16
Common dividends declared	(16,506)					(16,506)
Preferred dividends declared	$ (25)					(25)
Non-cash equity award compensation (in shares)	201,956	201,956
Non-cash equity award compensation	$ 664	$ 2	662
Common shares outstanding at end of period (in shares) at Mar. 31, 2018	43,437,059	43,437,059
Stockholders’ equity at end of period at Mar. 31, 2018	$ 827,356	$ 434	$ 830,366	$ 16	$ 43,386	$ (46,846)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows From Operating Activities:
Net income	$ 14,586	$ 13,454
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of discounts and net deferred fees on loans held-for-investment	(2,707)	(2,424)
Amortization of deferred debt issuance costs	184	552
Equity based compensation	664	0
Depreciation of fixed assets	1	0
Net change in assets and liabilities:
Increase in accrued interest receivable	(536)	(742)
Decrease in prepaid expenses	192	0
Increase in other assets	(696)	(724)
Increase in accrued interest payable	2,161	322
Decrease in unearned interest income	(140)	(143)
Increase in other payables to affiliates	0	4,055
Decrease in other liabilities	(580)	(135)
Net cash provided by operating activities	13,129	14,215
Cash Flows From Investing Activities:
Originations, acquisitions and additional fundings of loans held-for-investment, net of deferred fees	(154,101)	(137,445)
Proceeds from repayment of loans held-for-investment	96,427	1,194
Principal payments on held-to-maturity securities	4,793	2,615
Increase in due from counterparties	0	(207)
Net cash used in investing activities	(52,881)	(133,843)
Cash Flows From Financing Activities:
Proceeds from repurchase agreements	140,731	193,027
Principal payments on repurchase agreements	(137,883)	(107,973)
Proceeds from convertible senior notes	18,247	0
Proceeds from note payable to affiliate	0	17,338
Repayment of note payable to affiliate	0	(1,300)
Decrease (increase) in deferred debt issuance costs	1,404	(866)
Dividends paid on preferred stock	(25)	0
Dividends paid on common stock	(16,372)	0
Net cash provided by financing activities	6,102	100,226
Net decrease in cash, cash equivalents and restricted cash	(33,650)	(19,402)
Cash, cash equivalents and restricted cash at beginning of period	110,718	56,279
Cash, cash equivalents and restricted cash at end of period	77,068	36,877
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	16,212	5,783
Cash paid for taxes	1	3
Noncash Activity:
Dividends payable	$ 16,588	$ 0

Organization and Operations

Organization and Operations	3 Months Ended
Organization and Operations	Mar. 31, 2018
Organization and Operations [Abstract]
Organization and Operations	Organization and Operations Granite Point Mortgage Trust Inc., or the Company, is a Maryland corporation that focuses primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. The Company is externally managed by Pine River Capital Management L.P., or PRCM. The Company’s common stock is listed on the New York Stock Exchange, or NYSE, under the symbol “GPMT”. The Company was incorporated on April 7, 2017 and commenced operations as a publicly traded company on June 28, 2017, upon completion of an initial public offering, or the IPO. Concurrently with the closing of the IPO, the Company completed a formation transaction, or the Formation Transaction, pursuant to which the Company acquired the equity interests in TH Commercial Holdings LLC, or the Predecessor, from Two Harbors Investment Corp., or Two Harbors, a publicly traded hybrid mortgage real estate investment trust (NYSE: TWO). In exchange, the Company issued 33,071,000 shares of its common stock, representing approximately 76.5% of its outstanding common stock after the IPO, and 1,000 shares of its 10% cumulative redeemable preferred stock to Two Harbors. Upon the completion of the Formation Transaction, the Predecessor became the Company’s wholly owned indirect subsidiary. On November 1, 2017, Two Harbors distributed to its common stockholders the 33,071,000 shares of the Company’s common stock it had acquired in connection with the Formation Transaction, allowing the Company’s market capitalization to be fully floating. The Company has elected to be treated as a real estate investment trust, or REIT, as defined under the Internal Revenue Code of 1986, as amended, or the Code, for U.S. federal income tax purposes. As long as the Company continues to comply with a number of requirements under federal tax law and maintains its qualification as a REIT, the Company generally will not be subject to U.S. federal income taxes to the extent that the Company distributes its taxable income to its stockholders on an annual basis and does not engage in prohibited transactions. However, certain activities that the Company may perform may cause it to earn income which will not be qualifying income for REIT purposes. The Company has designated one of its subsidiaries as a taxable REIT subsidiary, or TRS, as defined in the Code, to engage in such activities.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
Basis of Presentation and Significant Accounting Policies	Mar. 31, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Consolidation and Basis of Presentation The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at March 31, 2018 and results of operations for all periods presented have been made. The results of operations for the three months ended March 31, 2018 should not be construed as indicative of the results to be expected for future periods or the full year. The condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. All trust entities in which the Company holds investments that are considered VIEs for financial reporting purposes were reviewed for consolidation under the applicable consolidation guidance. Whenever the Company has both the power to direct the activities of a trust that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant, the Company consolidates the trust. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of allowances for loan losses and impairments and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates ( e.g. , valuation changes to the underlying collateral of loans due to changes in capitalization rates, leasing, credit worthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, overall economic conditions, the broader commercial real estate market, local geographic sub-markets or other factors) will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ from its estimates and the differences may be material. Significant Accounting Policies Included in Note 2 to the Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 is a summary of the Company’s significant accounting policies. Provided below is a summary of additional accounting policies that are significant to the Company’s consolidated financial condition and results of operations for the three months ended March 31, 2018 . Formation Transaction On June 28, 2017, the Company completed the Formation Transaction, through which the Company acquired the equity interests in the Predecessor from Two Harbors. In accordance with Accounting Standards Codification (ASC) 805, Business Combinations , the Predecessor is considered the acquiring or surviving entity, meaning the historical assets and liabilities of TH Commercial Holdings LLC included in the condensed consolidated balance sheets are recorded at the Predecessor’s historical carryover cost basis. As a result of the Formation Transaction, the Company is considered a continuation of the Predecessor’s business operations and its historical results of operations and cash flows are included in the Company’s condensed consolidated financial statements. In consideration for the contribution, Two Harbors received 33,071,000 shares of the Company’s common stock and 1,000 shares of cumulative redeemable preferred stock with an aggregate liquidation preference of $1,000 per share. Offsetting Assets and Liabilities Certain of the Company’s repurchase agreements are governed by underlying agreements that provide for a right of setoff in the event of default of either party to the agreement. Under certain of these agreements, the Company and the counterparty may be required to post cash collateral based upon the net underlying market value of the Company’s open positions with the counterparty. Under U.S. GAAP, if the Company has a valid right of setoff, it may offset the related asset and liability and report the net amount. The Company presents repurchase agreements subject to master netting arrangements or similar agreements on a gross basis. Regardless of whether or not the Company pledges or receives any cash collateral in accordance with its repurchase agreements, the Company does not offset financial assets and liabilities with the associated cash collateral on its condensed consolidated balance sheets. The following table presents information about the Company’s repurchase agreements that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, 2017 Gross amounts of repurchase agreements $ 1,524,456 $ 1,521,608 Gross amounts offset in the consolidated balance sheets — — Net amounts of repurchase agreements presented in the consolidated balance sheets 1,524,456 1,521,608 Gross amounts not offset against repurchase agreements in the consolidated balance sheets (1) : Financial instruments (1,524,456 ) (1,521,608 ) Cash collateral received (pledged) — — Net amount $ — $ — ____________________ (1) Amounts presented are limited in total to the net amount of liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to a master netting arrangement or similar agreement. These excess amounts are excluded from the table above, although separately reported within restricted cash or due from counterparties in the Company’s condensed consolidated balance sheets. Recently Issued and/or Adopted Accounting Standards Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU No. 2014-09, which is a comprehensive revenue recognition standard that supersedes virtually all existing revenue guidance under U.S. GAAP. The standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. As a result of the issuance of ASU No. 2015-14 in August 2015 deferring the effective date of ASU No. 2014-09 by one year, the ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017, with early adoption prohibited. The Company has evaluated the new guidance and determined that interest income and gains and losses on financial instruments are outside the scope of ASC 606, Revenues from Contracts with Customers . As a result, the adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, which changes the impairment model for most financial assets and certain other instruments. Allowances for credit losses on available-for-sale, or AFS, and held-to-maturity, or HTM, debt securities will be recognized, rather than direct reductions in the amortized cost of the investments. The new model also requires the estimation of lifetime expected credit losses and corresponding recognition of allowance for losses on trade and other receivables, HTM debt securities, loans, and other instruments held at amortized cost. The ASU requires certain recurring disclosures and is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2019, with early adoption permitted for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018. The Company is evaluating the adoption of this ASU to determine the impact it may have on its condensed consolidated financial statements, which at the date of adoption, is expected to increase the allowance for credit losses with a resulting negative adjustment to retained earnings.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
Variable Interest Entities	Mar. 31, 2018
Variable Interest Entities [Abstract]
Variable Interest Entities	Variable Interest Entities As of December 31, 2017, the Company was the sole certificate holder of a trust entity that holds a commercial mezzanine loan. The trust is considered a VIE for financial reporting purposes and, thus, was reviewed for consolidation under the applicable consolidation guidance. Because the Company had both the power to direct the activities of the trust that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidated the trust. The loan held by the trust was repaid during the three months ended March 31, 2018. As a result, the Company no longer consolidates the trust on its condensed consolidated financial statements. The following table presents a summary of the assets of the trust as consolidated on the Company’s condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, Loans held-for-investment $ — $ 45,890 Accrued interest receivable — 178 Total Assets $ — $ 46,068 The trust did not have any liabilities consolidated on the Company’s condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 . The Company is not required to consolidate VIEs for which it has concluded it does not have both the power to direct the activities of the VIEs that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant. The Company’s investments in these unconsolidated VIEs include CMBS, which are classified within available-for-sale securities, at fair value and held-to-maturity securities on the condensed consolidated balance sheets. As of March 31, 2018 and December 31, 2017 , the carrying value, which also represents the maximum exposure to loss, of all CMBS in unconsolidated VIEs was $50.2 million and $55.0 million , respectively.

Loans Held-for-Investment

Loans Held-for-Investment	3 Months Ended
Loans Held-for-Investment	Mar. 31, 2018
Loans Held-for-Investment [Abstract]
Loans Held-for-Investment	Loans Held-for-Investment The Company originates and acquires commercial real estate debt and related instruments generally to be held as long-term investments. These assets are classified as loans held-for-investment on the condensed consolidated balance sheets. Additionally, at December 31, 2017 the Company was the sole certificate holder of a trust entity that held a commercial mezzanine loan. The underlying loan held by the trust was consolidated on the Company’s condensed consolidated balance sheet and classified as loans held-for-investment. See Note 3 - Variable Interest Entities for additional information regarding consolidation of the trust. Loans held-for-investment are reported at cost, net of any unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless the assets are deemed impaired. The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of March 31, 2018 and December 31, 2017 : March 31, (dollars in thousands) First Mortgages Mezzanine Loans B-Notes Total Unpaid principal balance $ 2,326,351 $ 42,764 $ 14,795 $ 2,383,910 Unamortized (discount) premium (164 ) — — (164 ) Unamortized net deferred origination fees (19,221 ) 122 — (19,099 ) Carrying value $ 2,306,966 $ 42,886 $ 14,795 $ 2,364,647 Unfunded commitments $ 313,591 $ 1,580 $ — $ 315,171 Number of loans 56 4 1 61 Weighted average coupon 6.2 % 11.5 % 8.0 % 6.3 % Weighted average years to maturity (1) 2.1 1.8 8.8 2.2 December 31, (dollars in thousands) First Mortgages Mezzanine Loans B-Notes Total Unpaid principal balance $ 2,220,361 $ 88,945 $ 14,845 $ 2,324,151 Unamortized (discount) premium (169 ) (9 ) — (178 ) Unamortized net deferred origination fees (19,752 ) 45 — (19,707 ) Carrying value $ 2,200,440 $ 88,981 $ 14,845 $ 2,304,266 Unfunded commitments $ 337,623 $ 1,580 $ — $ 339,203 Number of loans 53 5 1 59 Weighted average coupon 5.9 % 9.7 % 8.0 % 6.0 % Weighted average years to maturity (1) 2.3 2.0 9.1 2.4 ____________________ (1) Based on contractual maturity date. Certain loans are subject to contractual extension options which may be subject to conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities in connection with loan modifications. (dollars in thousands) March 31, December 31, Property Type Carrying Value % of Commercial Portfolio Carrying Value % of Commercial Portfolio Office $ 1,308,343 55.4 % $ 1,223,642 53.1 % Multifamily 318,908 13.5 % 356,016 15.4 % Hotel 275,477 11.6 % 274,416 11.9 % Retail 258,801 10.9 % 254,786 11.1 % Industrial 203,118 8.6 % 195,406 8.5 % Total $ 2,364,647 100.0 % $ 2,304,266 100.0 % (dollars in thousands) March 31, December 31, Geographic Location Carrying Value % of Commercial Portfolio Carrying Value % of Commercial Portfolio Northeast $ 918,493 38.9 % $ 896,361 38.9 % West 527,570 22.3 % 509,088 22.1 % Southwest 492,563 20.8 % 454,088 19.7 % Southeast 363,449 15.4 % 346,623 15.0 % Midwest 62,572 2.6 % 98,106 4.3 % Total $ 2,364,647 100.0 % $ 2,304,266 100.0 % At March 31, 2018 and December 31, 2017 , the Company pledged loans held-for-investment with a carrying value of $2.3 billion and $2.2 billion , respectively, as collateral for repurchase agreements. See Note 10 - Repurchase Agreements. The following table summarizes activity related to loans held-for-investment for the three months ended March 31, 2018 and 2017 . Three Months Ended (in thousands) 2018 2017 Balance at beginning of period $ 2,304,266 $ 1,364,291 Originations, acquisitions and additional fundings 156,186 139,384 Repayments (96,427 ) (1,194 ) Net discount accretion (premium amortization) 14 1 Increase in net deferred origination fees (2,085 ) (1,939 ) Amortization of net deferred origination fees 2,693 2,423 Allowance for loan losses — — Balance at end of period $ 2,364,647 $ 1,502,966 The Company evaluates each loan for impairment at least quarterly by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Risk factors include property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, loan structure and exit plan, loan-to-value ratio, project sponsorship, and other factors deemed necessary. Risk ratings are defined as follows: 1 – Lower Risk 2 – Average Risk 3 – Acceptable Risk 4 – Higher Risk: A loan that has exhibited material deterioration in cash flows and/or other credit factors, which, if negative trends continue, could be indicative of future loss. 5 – Impaired/Loss Likely: A loan that has a significantly increased probability of default or principal loss. The following table presents the number of loans, unpaid principal balance and carrying value (amortized cost) by risk rating for loans held-for-investment as of March 31, 2018 and December 31, 2017 : (dollars in thousands) March 31, December 31, Risk Rating Number of Loans Unpaid Principal Balance Carrying Value Number of Loans Unpaid Principal Balance Carrying Value 1 7 $ 445,220 $ 443,774 6 $ 414,695 $ 413,314 2 51 1,868,871 1,851,057 50 1,840,638 1,822,134 3 3 69,819 69,816 3 68,818 68,818 4 — — — — — — 5 — — — — — — Total 61 $ 2,383,910 $ 2,364,647 59 $ 2,324,151 $ 2,304,266 The Company has not recorded any allowances for losses as it is not deemed probable that the Company will not be able to collect all amounts due pursuant to the contractual terms of the loans.

Available-for-Sale Securities,

Available-for-Sale Securities, at Fair Value	3 Months Ended
Available-for-Sale Securities, at Fair Value	Mar. 31, 2018
Available-for-sale Securities [Abstract]
Available-for-Sale Securities, at Fair Value	Available-for-Sale Securities, at Fair Value The following table presents the face value and carrying value (which approximates fair value) of AFS securities as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, Face value $ 12,798 $ 12,798 Gross unrealized gains 16 — Gross unrealized losses — — Carrying value $ 12,814 $ 12,798 On March 31, 2018 , all of the Company’s AFS securities had an estimated weighted average life remaining of approximately 0.5 years. At March 31, 2018 and December 31, 2017 , the Company pledged AFS securities with a carrying value of $12.8 million and $12.8 million , respectively, as collateral for repurchase agreements. See Note 10 - Repurchase Agreements . At March 31, 2018 , the Company’s AFS securities had a carrying value greater than its face value. At December 31, 2017 , the Company’s AFS securities had a carrying value equal to their face value. Evaluating AFS Securities for Other-Than-Temporary Impairments In evaluating AFS securities for other-than-temporary impairments, or OTTI, the Company determines whether there has been a significant adverse quarterly change in the cash flow expectations for a security. The Company compares the amortized cost of each security in an unrealized loss position against the present value of expected future cash flows of the security. The Company also considers whether there has been a significant adverse change in the regulatory and/or economic environment as part of this analysis. If the amortized cost of the security is greater than the present value of expected future cash flows using the original yield as the discount rate, an other-than-temporary credit impairment has occurred. If the Company does not intend to sell and will not be more likely than not required to sell the security, the credit loss is recognized in earnings and the balance of the unrealized loss is recognized in other comprehensive income . If the Company intends to sell the security or will be more likely than not required to sell the security, the full unrealized loss is recognized in earnings. The Company did not record any other-than-temporary credit impairments during the three months ended March 31, 2018 and 2017 as expected cash flows were greater than amortized cost for all AFS securities held. Gross Realized Gains and Losses Gains and losses from the sale of AFS securities are recorded as realized gains (losses) in the Company’s condensed consolidated statements of comprehensive income . The Company did not sell any AFS securities during the three months ended March 31, 2018 and 2017 .

Held-to-Maturity Securities

Held-to-Maturity Securities	3 Months Ended
Held-to-Maturity Securities	Mar. 31, 2018
Held-to-maturity Securities [Abstract]
Held-to-Maturity Securities	Held-to-Maturity Securities The following table presents the face value and carrying value of HTM securities by collateral type as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, Face value $ 37,376 $ 42,169 Unamortized premium (discount) — — Carrying value $ 37,376 $ 42,169 On March 31, 2018 , all of the Company’s HTM securities had an estimated weighted average life remaining of approximately 0.5 years . At March 31, 2018 and December 31, 2017 , the Company pledged HTM securities with a carrying value of $37.4 million and $42.2 million , respectively, as collateral for repurchase agreements. See Note 10 - Repurchase Agreements . Evaluating HTM Securities for Other-Than-Temporary Impairments In evaluating HTM securities for OTTI, the Company determines whether there has been a significant adverse quarterly change in the cash flow expectations for a security. The Company compares the amortized cost of each security against the present value of expected future cash flows of the security. The Company also considers whether there has been a significant adverse change in the regulatory and/or economic environment as part of this analysis. If the amortized cost of the security is greater than the present value of expected future cash flows using the original yield as the discount rate, an other-than-temporary credit impairment has occurred and the credit loss is recognized in earnings. The Company did not record any other-than-temporary credit impairments during the three months ended March 31, 2018 and 2017 , as expected cash flows were greater than amortized cost for all HTM securities held.

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	3 Months Ended
Cash, Cash Equivalents and Restricted Cash	Mar. 31, 2018
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in bank accounts and cash held in money market funds on an overnight basis. The Company is required to maintain certain cash balances in restricted accounts as collateral for the Company’s repurchase agreements and with counterparties to support activities related to securities. As of March 31, 2018 and December 31, 2017 , the Company had $5.0 million and $3.0 million , respectively, in restricted cash held as collateral for repurchase agreements and by counterparties to support activities related to securities. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Company’s condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 that sum to the total of the same such amounts shown in the statements of cash flows: (in thousands) March 31, December 31, Cash and cash equivalents $ 72,070 $ 107,765 Restricted cash 4,998 2,953 Total cash, cash equivalents and restricted cash $ 77,068 $ 110,718

Accrued Interest Receivable

Accrued Interest Receivable	3 Months Ended
Accrued Interest Receivable	Mar. 31, 2018
Accrued Interest Receivable [Abstract]
Accrued Interest Receivable	Accrued Interest Receivable The following table presents the Company’s accrued interest receivable by collateral type as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, Loans held-for-investment $ 7,429 $ 6,880 Available-for-sale securities 53 51 Held-to-maturity securities 159 174 Total $ 7,641 $ 7,105

Fair Value

Fair Value	3 Months Ended
Fair Value	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value	Fair Value Fair Value Measurements ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices available in active markets ( i.e. , observable inputs) and the lowest priority to data lacking transparency ( i.e. , unobservable inputs). Additionally, ASC 820 requires an entity to consider all aspects of nonperformance risk, including the entity’s own credit standing, when measuring fair value of a liability. ASC 820 establishes a three-level hierarchy to be used when measuring and disclosing fair value. An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Following is a description of the three levels: Level 1 Inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date under current market conditions. Additionally, the entity must have the ability to access the active market and the quoted prices cannot be adjusted by the entity. Level 2 Inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full-term of the assets or liabilities. Level 3 Unobservable inputs are supported by little or no market activity. The unobservable inputs represent the assumptions that market participants would use to price the assets and liabilities, including risk. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies, or similar techniques that require significant judgment or estimation. Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models and significant assumptions utilized. Available-for-sale securities . The Company holds AFS securities that are carried at fair value on the condensed consolidated balance sheet and are comprised of CMBS. In determining the fair value of the Company’s CMBS AFS, management judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers or broker quotes received using the bid price, which are both deemed indicative of market activity, and other applicable market data. The third-party pricing providers and brokers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset period, issuer, prepayment speeds, credit enhancements and expected life of the security. If observable market prices are not available or insufficient to determine fair value due principally to illiquidity in the marketplace, then fair value is based upon internally developed models that are primarily based on observable market-based inputs but also include unobservable market data inputs (including prepayment speeds, delinquency levels, and credit losses). The Company classified its CMBS AFS as Level 2 fair value assets at March 31, 2018 and December 31, 2017 . Recurring Fair Value The following tables display the Company’s assets measured at fair value on a recurring basis. The Company does not hold any liabilities measured at fair value on its condensed consolidated balance sheets. Recurring Fair Value Measurements March 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Assets Available-for-sale securities $ — $ 12,814 $ — $ 12,814 Total assets $ — $ 12,814 $ — $ 12,814 Recurring Fair Value Measurements December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Assets Available-for-sale securities $ — $ 12,798 $ — $ 12,798 Total assets $ — $ 12,798 $ — $ 12,798 The Company may be required to measure certain assets or liabilities at fair value from time to time. These periodic fair value measures typically result from application of certain impairment measures under U.S. GAAP. These items would constitute nonrecurring fair value measures under ASC 820. As of March 31, 2018 and December 31, 2017 , the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis in the periods presented. Transfers between Levels are deemed to take place on the first day of the reporting period in which the transfer has taken place. The Company did not incur transfers between Levels for the three months ended March 31, 2018 and 2017 . Fair Value of Financial Instruments In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the condensed consolidated balance sheets, for which fair value can be estimated. The following describes the Company’s methods for estimating the fair value for financial instruments. Descriptions are not provided for those items that have zero balances as of the current balance sheet date. • Loans held-for-investment are carried at cost, net of any unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless deemed impaired. The Company estimates the fair value of its loans held-for-investment by assessing any changes in market interest rates, shifts in credit profiles and actual operating results for mezzanine loans and first mortgages, taking into consideration such factors as underlying property type, property competitive position within its market, market and submarket fundamentals, tenant mix, nature of business plan, sponsorship, extent of leverage and other loan terms. The Company categorizes the fair value measurement of these assets as Level 3. • AFS securities are recurring fair value measurements; carrying value equals fair value. See discussion of valuation methods and assumptions within the Fair Value Measurements section of this footnote. • HTM securities, which are comprised of CMBS, are carried at cost, net of any unamortized acquisition premiums or discounts, unless deemed other-than-temporarily impaired. In determining the fair value of the Company’s CMBS HTM, management judgment may be used to arrive at fair value that considers prices obtained from third-party pricing providers or broker quotes received using the bid price, which are both deemed indicative of market activity, and other applicable market data. The third-party pricing providers and brokers use pricing models that generally incorporate such factors as coupons, primary and secondary mortgage rates, rate reset period, issuer, prepayment speeds, credit enhancements and expected life of the security. The Company categorizes the fair value measurement of these assets as Level 2. • Cash and cash equivalents and restricted cash have a carrying value which approximates fair value because of the short maturities of these instruments. The Company categorizes the fair value measurement of these assets as Level 1. • The carrying value of repurchase agreements that mature in less than one year generally approximates fair value due to the short maturities. As of March 31, 2018 , the Company held $1.5 billion of repurchase agreements that are considered long-term. The Company’s long-term repurchase agreements have floating rates based on an index plus a spread and the credit spread is typically consistent with those demanded in the market. Accordingly, the interest rates on these borrowings are at market and thus carrying value approximates fair value. The Company categorizes the fair value measurement of these liabilities as Level 2. • Convertible senior notes are carried at their unpaid principal balance, net of any unamortized deferred issuance costs. The Company estimates the fair value of its convertible senior notes using the market transaction price nearest to March 31, 2018 . The Company categorizes the fair value measurement of these assets as Level 2. The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at March 31, 2018 and December 31, 2017 . March 31, 2018 December 31, 2017 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Assets Loans held-for-investment $ 2,364,647 $ 2,390,054 $ 2,304,266 $ 2,322,259 Available-for-sale securities $ 12,814 $ 12,814 $ 12,798 $ 12,798 Held-to-maturity securities $ 37,376 $ 37,881 $ 42,169 $ 42,797 Cash and cash equivalents $ 72,070 $ 72,070 $ 107,765 $ 107,765 Restricted cash $ 4,998 $ 4,998 $ 2,953 $ 2,953 Liabilities Repurchase agreements $ 1,524,456 $ 1,524,456 $ 1,521,608 $ 1,521,608 Convertible senior notes $ 139,745 $ 141,745 $ 121,314 $ 125,750

Repurchase Agreements

Repurchase Agreements	3 Months Ended
Repurchase Agreements	Mar. 31, 2018
Disclosure of Repurchase Agreements [Abstract]
Repurchase Agreements	Repurchase Agreements As of March 31, 2018 and December 31, 2017 , the Company had outstanding $1.5 billion and $1.5 billion of repurchase agreements with a weighted average borrowing rate of 4.07% and 3.78% and weighted average remaining maturities of 1.6 and 1.8 years, respectively. At March 31, 2018 and December 31, 2017 , the repurchase agreement balances were as follows: (in thousands) March 31, December 31, Short-term $ 33,672 $ 56,546 Long-term 1,490,784 1,465,062 Total $ 1,524,456 $ 1,521,608 At March 31, 2018 and December 31, 2017 , the repurchase agreements had the following characteristics and remaining maturities: March 31, 2018 December 31, 2017 Collateral Type Collateral Type (dollars in thousands) Commercial Loans CMBS (1) Total Amount Outstanding Commercial Loans CMBS (1) Total Amount Outstanding Within 30 days $ — $ — $ — $ 22,032 $ — $ 22,032 30 to 59 days — 33,672 33,672 — 34,514 34,514 60 to 89 days — — — — — — 90 to 119 days — — — — — — 120 to 364 days — — — — — — One year and over 1,490,784 — 1,490,784 1,465,062 — 1,465,062 Total $ 1,490,784 $ 33,672 $ 1,524,456 $ 1,487,094 $ 34,514 $ 1,521,608 Weighted average borrowing rate 4.07 % 4.17 % 4.07 % 3.78 % 3.77 % 3.78 % ____________________ (1) Includes both AFS securities and HTM securities sold under agreements to repurchase. The following table summarizes assets at carrying values that are pledged or restricted as collateral for the future payment obligations of repurchase agreements: (in thousands) March 31, December 31, Loans held-for-investment $ 2,260,515 $ 2,202,049 Available-for-sale securities, at fair value 12,814 12,798 Held-to-maturity securities 37,376 42,169 Restricted cash 2,613 565 Total $ 2,313,318 $ 2,257,581 Although the transactions under repurchase agreements represent committed borrowings until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets due to credit or market events, depending on the agreement, would require the Company to fund margin calls or repurchase the underlying collateral. The following table summarizes certain characteristics of the Company’s repurchase agreements and counterparty concentration at March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 (dollars in thousands) Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Morgan Stanley Bank $ 479,210 $ 276,388 33 % 2.25 $ 425,539 $ 250,543 30 % 2.49 Wells Fargo Bank 396,986 128,094 15 % 1.24 424,882 128,644 16 % 1.49 JPMorgan Chase Bank 284,562 228,737 28 % 1.11 285,457 215,068 26 % 1.32 Goldman Sachs Bank 252,734 94,259 11 % 1.09 252,734 86,091 10 % 1.33 All other counterparties (2) 110,964 64,239 8 % 2.25 132,996 59,645 7 % 2.08 Total $ 1,524,456 $ 791,717 $ 1,521,608 $ 739,991 ____________________ (1) Represents the net carrying value of the loans held-for-investment, AFS securities and HTM securities sold under agreements to repurchase, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (2) Represents amounts outstanding with one other counterparty and two other counterparties as of March 31, 2018 and December 31, 2017 , respectively. The Company does not anticipate any defaults by its repurchase agreement counterparties. There can be no assurance, however, that any such default or defaults will not occur.

Convertible Senior Notes

Convertible Senior Notes	3 Months Ended
Convertible Senior Notes	Mar. 31, 2018
Convertible Senior Notes [Abstract]
Convertible Senior Notes	Convertible Senior Notes On December 12, 2017, the Company closed a private placement of $125.0 million aggregate principal amount of convertible senior notes due 2022. On January 10, 2018, an additional $18.8 million in notes were issued by the Company in connection with the exercise of the initial purchaser’s option. The net proceeds from the offering were approximately $139.5 million after deducting underwriting discounts and estimated offering expenses payable by the Company. The notes are unsecured, pay interest semiannually at a rate of 5.625% per annum and are convertible at the option of the holder into shares of the Company’s common stock. The notes will mature in December 2022 , unless earlier converted or repurchased in accordance with their terms. The Company does not have the right to redeem the notes prior to maturity, but may be required to repurchase the notes from holders under certain circumstances. As of March 31, 2018 , the notes had a conversion rate of 50.0000 shares of common stock per $1,000 principal amount of the notes . The outstanding amount due on the convertible senior notes as of March 31, 2018 and December 31, 2017 was $139.7 million and $121.3 million , respectively, net of deferred issuance costs.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The following represent the material commitments and contingencies of the Company as of March 31, 2018 : Management agreement. Upon the closing the IPO on June 28, 2017, the Company entered into a management agreement with PRCM. The Company pays PRCM a base management fee equal to 1.5% of the Company’s equity on an annualized basis, as defined in the management agreement. For purposes of calculating the management fee, equity means the sum of the net proceeds received by the Company from all issuances of its equity securities, plus its cumulative “core earnings” at the end of the most recently completed calendar quarter, less any distributions to stockholders, any amount that the Company has paid to repurchase its stock, and any incentive fees earned by PRCM, but excluding the incentive fee earned in the current quarter. As a result, equity for purposes of calculating the management fee may differ from the amount of stockholders’ equity shown in the Company’s financial statements. Beginning in the fourth quarter of 2018, incentive fees, if earned, will be payable to PRCM, as defined in the management agreement. The incentive fee will be the excess of (1) the product of (a) 20% and (b) the result of (i) the Company’s “core earnings” for the previous 12 -month period, minus (ii) the product of (A) the Company’s equity in the previous 12 -month period, and (B) 8% per annum, less (2) the sum of any incentive fees paid to PRCM with respect to the first three calendar quarters of such previous 12 -month period; provided, however, that no incentive fees are payable with respect to any calendar quarter unless “core earnings” for the 12 most recently completed calendar quarters in the aggregate is greater than zero . For purposes of calculating base management and incentive fees, “core earnings” means net income (loss) attributable to common stockholders, excluding non-cash equity compensation expense, incentive fees earned by PRCM, depreciation and amortization, any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable period (regardless of whether such items are included in other comprehensive income or loss or in net income), and one-time events pursuant to changes in U.S. GAAP and certain material non-cash income or expense items, in each case after discussions between PRCM and the Company’s independent directors and approved by a majority of the Company’s independent directors. The initial term of the management agreement expires on June 28, 2020, and thereafter will automatically renew for successive one -year terms annually until terminated in accordance with the terms of the agreement. Upon termination of the management agreement by the Company without cause or by PRCM due to the Company’s material breach of the management agreement, the Company is required to pay a termination fee equal to three times the sum of the average annual base management fee and average annual incentive compensation, in each case earned by PRCM during the 24 -month period immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination. Employment contracts. The Company does not directly employ any personnel. Instead, the Company relies on the resources of PRCM and its affiliates to conduct the Company’s operations. Legal and regulatory. From time to time, the Company may be subject to liability under laws and government regulations and various claims and legal actions arising in the ordinary course of business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and therefore no accrual is required as of March 31, 2018 . Unfunded commitments on loans held-for-investment. Certain of the Company’s commercial mortgage loan agreements contain provisions for future fundings to borrowers, generally to finance lease-related or capital expenditures. As of March 31, 2018 and December 31, 2017 , the Company had unfunded commitments of $315.2 million and $339.2 million on loans held-for-investment with expirations dates within the next three years.

Preferred Stock

Preferred Stock	3 Months Ended
Preferred Stock	Mar. 31, 2018
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred Stock	Preferred Stock In connection with the Formation Transaction, the Company issued 1,000 shares of its 10% cumulative redeemable preferred stock to Two Harbors, which immediately sold such preferred stock to an unaffiliated third-party investor. The preferred stock ranks senior to the rights of holders of the Company’s common stock, but junior to all other classes or series of preferred stock that may be issued. The holders of the preferred stock are entitled to receive, when, as and if authorized and declared by the Company, cumulative cash dividends at the rate of 10% per annum of the $1,000 liquidation preference per share of the preferred stock. Such dividends accrue on a daily basis and are cumulative from and including the initial issue date of the preferred stock. The Company has the option at any time after five years from the initial issue date to redeem the preferred stock at a redemption price of $1,000 per share, plus any accrued and unpaid dividends. At any time after six years from the initial issue date, the Company will, at the request of any preferred stockholder, repurchase the holder’s preferred stock at a price of $1,000 per share, plus any accrued and unpaid dividends.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2018
Stockholders' Equity Attributable to Parent [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock On June 28, 2017, the Company completed an IPO of 10,000,000 shares of its common stock at a price of $19.50 per share, for gross proceeds of $195.0 million . Net proceeds to the Company were approximately $181.9 million , after accounting for issuance costs of approximately $13.1 million . Concurrently with the closing of the IPO, the Company issued 33,071,000 shares of its common stock to Two Harbors in exchange for the equity interests in the Predecessor, which became the Company’s wholly owned indirect subsidiary as a result of the transaction. On November 1, 2017, Two Harbors distributed to its common stockholders the 33,071,000 shares of the Company’s common stock it had acquired in connection with the Formation Transaction, allowing the Company’s market capitalization to be fully floating. As of March 31, 2018 , the Company had 43,437,059 shares of common stock outstanding. The following table presents a reconciliation of the common shares outstanding for the three months ended March 31, 2018 and 2017 : Number of common shares Common shares outstanding, December 31, 2016 — Issuance of common stock — Issuance of restricted stock (1) — Common shares outstanding, March 31, 2017 — Common shares outstanding, December 31, 2017 43,235,103 Issuance of common stock — Issuance of restricted stock (1) 201,956 Common shares outstanding, March 31, 2018 43,437,059 ____________________ (1) Represents shares of restricted stock granted under the 2017 Equity Incentive Plan, of which 351,956 restricted shares remained subject to vesting requirements at March 31, 2018 . Distributions to Stockholders The following table presents cash dividends declared by the Company on its common stock since its IPO and Formation Transaction: Declaration Date Record Date Payment Date Cash Dividend Per Share March 15, 2018 March 29, 2018 April 18, 2018 $ 0.38 December 18, 2017 December 29, 2017 January 18, 2018 $ 0.38 September 18, 2017 September 29, 2017 October 18, 2017 $ 0.32 Accumulated Other Comprehensive Income Accumulated other comprehensive income at March 31, 2018 and December 31, 2017 was as follows: (in thousands) March 31, December 31, Available-for-sale securities Unrealized gains $ 16 $ — Unrealized losses — — Accumulated other comprehensive income $ 16 $ — Reclassifications out of Accumulated Other Comprehensive Income The Company did not record any reclassifications out of accumulated other comprehensive income during the three months ended March 31, 2018 and 2017 .

Equity Incentive Plan

Equity Incentive Plan	3 Months Ended
Equity Incentive Plan	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Incentive Plan	Equity Incentive Plan The Company’s Plan provides incentive compensation to attract and retain qualified directors, officers, advisors, consultants and other personnel, including certain personnel of PRCM and its affiliates. The Plan is administered by the compensation committee of the Company’s board of directors. The compensation committee has the full authority to administer and interpret the Plan, to authorize the granting of awards, to determine the eligibility of directors, officers, advisors, consultants and other personnel, including personnel of PRCM and its affiliates, to receive an award, to determine the number of shares of common stock to be covered by each award (subject to the individual participant limitations provided in the Plan), to determine the terms, provisions and conditions of each award (which may not be inconsistent with the terms of the Plan), to prescribe the form of instruments evidencing awards and to take any other actions and make all other determinations that it deems necessary or appropriate in connection with the Plan or the administration or interpretation thereof. In connection with this authority, the compensation committee may, among other things, establish performance goals that must be met in order for awards to be granted or to vest, or for the restrictions on any such awards to lapse. The Company’s Plan provides for grants of restricted common stock, phantom shares, dividend equivalent rights and other equity-based awards, subject to a ceiling of 3,242,306 shares available for issuance under the Plan. The Plan allows for the Company’s board of directors to expand the types of awards available under the Plan to include long-term incentive plan units in the future. If an award granted under the Plan expires or terminates, the shares subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. Unless earlier terminated by the Company’s board of directors, no new award may be granted under the Plan after the tenth anniversary of the date that such Plan was initially approved by the Company’s board of directors. No award may be granted under the Plan to any person who, assuming payment of all awards held by such person, would own or be deemed to own more than 9.8% of the outstanding shares of the Company’s common stock. During the three months ended March 31, 2018 , the Company granted 201,956 shares of restricted common stock to key employees of PRCM and its affiliates pursuant to the terms of the Plan and the associated award agreements. The estimated fair value of these awards was $17.33 per share on January 29, 2018, the grant date, based on the closing market price of the Company’s common stock on the NYSE on such date. However, as the cost of these awards is measured at fair value at each reporting date based on the price of the Company’s stock as of period end in accordance with ASC 505, Equity , or ASC 505, the fair value of these awards as of March 31, 2018 was $16.54 per share based on the closing market price of the Company’s common stock on the NYSE on such date. The shares underlying the grants vest in three equal annual installments commencing on the first anniversary of the grant date, as long as the grantee complies with the terms and conditions of his or her applicable restricted stock award agreement. No shares were granted to the employees of PRCM and its affiliates during the three months ended March 31, 2017 . The following table summarizes the activity related to restricted common stock for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 Shares Weighted Average Grant Date Fair Market Value Shares Weighted Average Grant Date Fair Market Value Outstanding at Beginning of Period 150,000 $ 19.50 — $ — Granted 201,956 17.33 — — Vested — — — — Forfeited — — — — Outstanding at End of Period 351,956 $ 18.25 — $ — For the three months ended March 31, 2018 , the Company recognized compensation related to restricted common stock of $0.7 million .

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The recently enacted tax law informally known as the Tax Cuts and Jobs Act, or the TCJA, significantly changes the U.S. federal income tax laws applicable to businesses and their owners, including REITs and their stockholders. These changes include, among other things, lowering the federal income tax rate applicable to corporations from 35% to 21% and repealing the corporate alternative minimum tax. The Company has completed its determination of the accounting implications of the TCJA on its tax accruals, and there is no impact recorded to the financial statements. Technical corrections or other amendments to the TCJA or administrative guidance interpreting the TCJA may be forthcoming at any time. While we do not anticipate a material effect on our operations, we continue to analyze and monitor the application of the TCJA to our businesses, our peers and the economic environment. The Company intends to elect to be taxed as a REIT under the Code for U.S. federal income tax purposes. As long as the Company qualifies as a REIT, the Company generally will not be subject to U.S. federal income taxes on its taxable income to the extent it annually distributes its net taxable income to stockholders, and does not engage in prohibited transactions. The Company intends to distribute 100% of its REIT taxable income and comply with all requirements to continue to qualify as a REIT. The majority of states also recognize the Company’s REIT status. The Company’s TRS files a separate tax return and is fully taxed as a standalone U.S. C-corporation. It is assumed that the Company will retain its REIT status and will incur no REIT level taxation as it intends to comply with the REIT regulations and annual distribution requirements. The following table summarizes the tax provision recorded at the taxable subsidiary level for the three months ended March 31, 2018 and 2017 : Three Months Ended (in thousands) 2018 2017 Current tax (benefit) provision: Federal $ (1 ) $ (2 ) State 2 3 Total current tax provision 1 1 Deferred tax benefit — — Total provision for income taxes $ 1 $ 1 Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s condensed consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in these condensed consolidated financial statements.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The Company has calculated earnings per share only for the period common stock was outstanding, referred to as the post-formation period. The Company has defined the post-formation period to be the period beginning on June 28, 2017, the date the Company commenced operations as a publicly traded company, and thereafter. Earnings per share is calculated by dividing the net income for the post-formation period by the weighted average number of shares outstanding during the post-formation period. The following table presents a reconciliation of the earnings and shares used in calculating basic and diluted earnings per share for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, (in thousands, except share data) 2018 2017 Numerator: Net income attributable to common stockholders - basic $ 14,561 $ — Interest expense attributable to convertible notes (1) 2,171 — Net income attributable to common stockholders - diluted $ 16,732 $ — Denominator: Weighted average common shares outstanding 43,085,103 — Weighted average restricted stock shares 289,125 — Basic weighted average shares outstanding 43,374,228 — Effect of dilutive shares issued in an assumed conversion of the convertible senior notes 7,093,750 — Diluted weighted average shares outstanding 50,467,978 — Earnings Per Share Basic $ 0.34 $ — Diluted $ 0.33 $ — ____________________ (1) Includes a nondiscretionary adjustment for the assumed change in the management fee calculation.

Related Party Transactions

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The following summary provides disclosure of the material transactions with affiliates of the Company. The Company does not have any employees and is externally managed by PRCM under the terms of a management agreement entered into in connection with closing of the IPO and Formation Transaction on June 28, 2017. Under the management agreement, PRCM and its affiliates provide the Company with the personnel and resources necessary to operate the Company’s business. In exchange, the Company pays PRCM a base management fee that is equal to 1.5% of the Company’s equity on an annualized basis as well as an incentive fee, which will be payable, if earned, beginning in the fourth quarter of 2018, in accordance with the terms of the management agreement. For purposes of calculating the management fee, equity is adjusted to exclude any common stock repurchases as well as any unrealized gains, losses or other items that do not affect realized net income (loss), among other adjustments, in accordance with the management agreement. The Company incurred $3.2 million as a management fee to PRCM for the three months ended March 31, 2018 . See further discussion of the base management fee and incentive fee calculations in Note 12 - Commitments and Contingencies . Prior to the IPO and Formation Transaction, the Predecessor was allocated its proportionate share of management fees incurred by Two Harbors under the management agreement that Two Harbors has with PRCM Advisers. Under its management agreement with PRCM Advisers, Two Harbors pays PRCM Advisers a base management fee equal to 1.5% of its adjusted equity on an annualized basis. The Predecessor was allocated management fees incurred by Two Harbors of $1.7 million for the three months ended March 31, 2017 . During the three months ended March 31, 2018 , the Company reimbursed PRCM for certain direct and allocated costs incurred by PRCM on behalf of the Company. These direct and allocated costs totaled approximately $1.4 million . In addition, during the three months ended March 31, 2017 , certain direct and allocated operating expenses were paid by Two Harbors to PRCM Advisers and other third-party vendors and included in the Company’s condensed consolidated statements of comprehensive income . These direct and allocated costs totaled approximately $2.3 million for the three months ended March 31, 2017 . Expenses during the period may have been different had the Predecessor not been a subsidiary of Two Harbors during those periods. The Company has contractual relationships with the majority of its third-party vendors and pays those vendors directly. The Company will continue to have certain costs allocated to it by PRCM under the management agreement for compensation, data services, technology and certain office lease payments. The Company recognized $0.7 million of compensation during the three months ended March 31, 2018 related to restricted common stock issued to employees of PRCM and the Company’s independent directors pursuant to the Plan. See Note 15 - Equity Incentive Plan for additional information. During the three months ended March 31, 2017 , the Company financed certain of its loans held-for-investment through a revolving note payable to TH Insurance Holdings Company LLC, or TH Insurance, a captive insurance company and indirect subsidiary of Two Harbors and a member of the Federal Home Loan Bank of Des Moines, or the FHLB. In exchange for the note with TH Insurance, the Company received an allocated portion of TH Insurance’s advances from the FHLB and pledged to the FHLB a portion of its loans held-for-investment as collateral for TH Insurance’s advances. The affiliate note payable reflected terms consistent with TH Insurance’s FHLB advances. During 2017, the note payable to TH Insurance was in effect to assist with cash management and operational processes as the investments in the Company’s portfolio pledged to the FHLB were released and transitioned to its repurchase facilities. The affiliate note payable matured on October 27, 2017 and was repaid in full. The terms of these transactions may have been different had they been transacted with an unrelated third-party.

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On May 9, 2018, the Company announced the closing of GPMT 2018-FL1, an $826 million collateralized loan obligation, or CLO, securitization transaction, which finances interest in 25 of the Company’s senior floating-rate investments. The CLO has an initial advance rate of approximately 80% and a weighted average interest rate at issuance of LIBOR + 1.27% . The net proceeds from the CLO issuance will be used to repay a portion of the outstanding balances on the Company’s repurchase facilities, to re-invest in our target assets and for other general corporate purposes. Events subsequent to March 31, 2018 , were evaluated through the date these financial statements were issued and no additional events were identified requiring further disclosure in these condensed consolidated financial statements.

Basis of Presentation and Sig26

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Consolidation and Basis of Presentation	Consolidation and Basis of Presentation The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at March 31, 2018 and results of operations for all periods presented have been made. The results of operations for the three months ended March 31, 2018 should not be construed as indicative of the results to be expected for future periods or the full year. The condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. All trust entities in which the Company holds investments that are considered VIEs for financial reporting purposes were reviewed for consolidation under the applicable consolidation guidance. Whenever the Company has both the power to direct the activities of a trust that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant, the Company consolidates the trust.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of allowances for loan losses and impairments and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates ( e.g. , valuation changes to the underlying collateral of loans due to changes in capitalization rates, leasing, credit worthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, overall economic conditions, the broader commercial real estate market, local geographic sub-markets or other factors) will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ from its estimates and the differences may be material.
Formation Transaction	Formation Transaction On June 28, 2017, the Company completed the Formation Transaction, through which the Company acquired the equity interests in the Predecessor from Two Harbors. In accordance with Accounting Standards Codification (ASC) 805, Business Combinations , the Predecessor is considered the acquiring or surviving entity, meaning the historical assets and liabilities of TH Commercial Holdings LLC included in the condensed consolidated balance sheets are recorded at the Predecessor’s historical carryover cost basis. As a result of the Formation Transaction, the Company is considered a continuation of the Predecessor’s business operations and its historical results of operations and cash flows are included in the Company’s condensed consolidated financial statements. In consideration for the contribution, Two Harbors received 33,071,000 shares of the Company’s common stock and 1,000 shares of cumulative redeemable preferred stock with an aggregate liquidation preference of $1,000 per share.
Offsetting Assets and Liabilities	Offsetting Assets and Liabilities Certain of the Company’s repurchase agreements are governed by underlying agreements that provide for a right of setoff in the event of default of either party to the agreement. Under certain of these agreements, the Company and the counterparty may be required to post cash collateral based upon the net underlying market value of the Company’s open positions with the counterparty. Under U.S. GAAP, if the Company has a valid right of setoff, it may offset the related asset and liability and report the net amount. The Company presents repurchase agreements subject to master netting arrangements or similar agreements on a gross basis. Regardless of whether or not the Company pledges or receives any cash collateral in accordance with its repurchase agreements, the Company does not offset financial assets and liabilities with the associated cash collateral on its condensed consolidated balance sheets. The following table presents information about the Company’s repurchase agreements that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, 2017 Gross amounts of repurchase agreements $ 1,524,456 $ 1,521,608 Gross amounts offset in the consolidated balance sheets — — Net amounts of repurchase agreements presented in the consolidated balance sheets 1,524,456 1,521,608 Gross amounts not offset against repurchase agreements in the consolidated balance sheets (1) : Financial instruments (1,524,456 ) (1,521,608 ) Cash collateral received (pledged) — — Net amount $ — $ — ____________________ (1) Amounts presented are limited in total to the net amount of liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to a master netting arrangement or similar agreement. These excess amounts are excluded from the table above, although separately reported within restricted cash or due from counterparties in the Company’s condensed consolidated balance sheets.
Recently Issued and/or Adopted Accounting Standards	Recently Issued and/or Adopted Accounting Standards Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU No. 2014-09, which is a comprehensive revenue recognition standard that supersedes virtually all existing revenue guidance under U.S. GAAP. The standard’s core principle is that an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. As a result of the issuance of ASU No. 2015-14 in August 2015 deferring the effective date of ASU No. 2014-09 by one year, the ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017, with early adoption prohibited. The Company has evaluated the new guidance and determined that interest income and gains and losses on financial instruments are outside the scope of ASC 606, Revenues from Contracts with Customers . As a result, the adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, which changes the impairment model for most financial assets and certain other instruments. Allowances for credit losses on available-for-sale, or AFS, and held-to-maturity, or HTM, debt securities will be recognized, rather than direct reductions in the amortized cost of the investments. The new model also requires the estimation of lifetime expected credit losses and corresponding recognition of allowance for losses on trade and other receivables, HTM debt securities, loans, and other instruments held at amortized cost. The ASU requires certain recurring disclosures and is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2019, with early adoption permitted for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018. The Company is evaluating the adoption of this ASU to determine the impact it may have on its condensed consolidated financial statements, which at the date of adoption, is expected to increase the allowance for credit losses with a resulting negative adjustment to retained earnings.

Basis of Presentation and Sig27

Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Basis of Presentation and Significant Accounting Policies [Abstract]
Offsetting Liabilities	The following table presents information about the Company’s repurchase agreements that are subject to master netting arrangements or similar agreements and can potentially be offset on the Company’s condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, 2017 Gross amounts of repurchase agreements $ 1,524,456 $ 1,521,608 Gross amounts offset in the consolidated balance sheets — — Net amounts of repurchase agreements presented in the consolidated balance sheets 1,524,456 1,521,608 Gross amounts not offset against repurchase agreements in the consolidated balance sheets (1) : Financial instruments (1,524,456 ) (1,521,608 ) Cash collateral received (pledged) — — Net amount $ — $ — ____________________ (1) Amounts presented are limited in total to the net amount of liabilities presented in the condensed consolidated balance sheets by instrument. Excess cash collateral or financial assets that are pledged to counterparties may exceed the financial liabilities subject to a master netting arrangement or similar agreement. These excess amounts are excluded from the table above, although separately reported within restricted cash or due from counterparties in the Company’s condensed consolidated balance sheets.

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
Variable Interest Entities (Tables)	Mar. 31, 2018
Variable Interest Entities [Abstract]
Schedule of Variable Interest Entities	The following table presents a summary of the assets of the trust as consolidated on the Company’s condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, Loans held-for-investment $ — $ 45,890 Accrued interest receivable — 178 Total Assets $ — $ 46,068

Loans Held-for-Investment (Tabl

Loans Held-for-Investment (Tables)	3 Months Ended
Loans Held-for-Investment (Tables)	Mar. 31, 2018
Loans Held-for-Investment [Abstract]
Schedule of Loans Held-for-Investment	The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of March 31, 2018 and December 31, 2017 : March 31, (dollars in thousands) First Mortgages Mezzanine Loans B-Notes Total Unpaid principal balance $ 2,326,351 $ 42,764 $ 14,795 $ 2,383,910 Unamortized (discount) premium (164 ) — — (164 ) Unamortized net deferred origination fees (19,221 ) 122 — (19,099 ) Carrying value $ 2,306,966 $ 42,886 $ 14,795 $ 2,364,647 Unfunded commitments $ 313,591 $ 1,580 $ — $ 315,171 Number of loans 56 4 1 61 Weighted average coupon 6.2 % 11.5 % 8.0 % 6.3 % Weighted average years to maturity (1) 2.1 1.8 8.8 2.2 December 31, (dollars in thousands) First Mortgages Mezzanine Loans B-Notes Total Unpaid principal balance $ 2,220,361 $ 88,945 $ 14,845 $ 2,324,151 Unamortized (discount) premium (169 ) (9 ) — (178 ) Unamortized net deferred origination fees (19,752 ) 45 — (19,707 ) Carrying value $ 2,200,440 $ 88,981 $ 14,845 $ 2,304,266 Unfunded commitments $ 337,623 $ 1,580 $ — $ 339,203 Number of loans 53 5 1 59 Weighted average coupon 5.9 % 9.7 % 8.0 % 6.0 % Weighted average years to maturity (1) 2.3 2.0 9.1 2.4 ____________________ (1) Based on contractual maturity date. Certain loans are subject to contractual extension options which may be subject to conditions as stipulated in the loan agreement. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment penalty. The Company may also extend contractual maturities in connection with loan modifications.
Schedule of Loans Held-for-Investment by Property Type	(dollars in thousands) March 31, December 31, Property Type Carrying Value % of Commercial Portfolio Carrying Value % of Commercial Portfolio Office $ 1,308,343 55.4 % $ 1,223,642 53.1 % Multifamily 318,908 13.5 % 356,016 15.4 % Hotel 275,477 11.6 % 274,416 11.9 % Retail 258,801 10.9 % 254,786 11.1 % Industrial 203,118 8.6 % 195,406 8.5 % Total $ 2,364,647 100.0 % $ 2,304,266 100.0 %
Schedule of Loans Held-for-Investment by Geographic Location	(dollars in thousands) March 31, December 31, Geographic Location Carrying Value % of Commercial Portfolio Carrying Value % of Commercial Portfolio Northeast $ 918,493 38.9 % $ 896,361 38.9 % West 527,570 22.3 % 509,088 22.1 % Southwest 492,563 20.8 % 454,088 19.7 % Southeast 363,449 15.4 % 346,623 15.0 % Midwest 62,572 2.6 % 98,106 4.3 % Total $ 2,364,647 100.0 % $ 2,304,266 100.0 %
Rollforward of Loans Held-for-Investment	The following table summarizes activity related to loans held-for-investment for the three months ended March 31, 2018 and 2017 . Three Months Ended (in thousands) 2018 2017 Balance at beginning of period $ 2,304,266 $ 1,364,291 Originations, acquisitions and additional fundings 156,186 139,384 Repayments (96,427 ) (1,194 ) Net discount accretion (premium amortization) 14 1 Increase in net deferred origination fees (2,085 ) (1,939 ) Amortization of net deferred origination fees 2,693 2,423 Allowance for loan losses — — Balance at end of period $ 2,364,647 $ 1,502,966
Schedule of Loans Held-for-Investment by Internal Risk Rating	The following table presents the number of loans, unpaid principal balance and carrying value (amortized cost) by risk rating for loans held-for-investment as of March 31, 2018 and December 31, 2017 : (dollars in thousands) March 31, December 31, Risk Rating Number of Loans Unpaid Principal Balance Carrying Value Number of Loans Unpaid Principal Balance Carrying Value 1 7 $ 445,220 $ 443,774 6 $ 414,695 $ 413,314 2 51 1,868,871 1,851,057 50 1,840,638 1,822,134 3 3 69,819 69,816 3 68,818 68,818 4 — — — — — — 5 — — — — — — Total 61 $ 2,383,910 $ 2,364,647 59 $ 2,324,151 $ 2,304,266

Available-for-Sale Securities30

Available-for-Sale Securities, at Fair Value (Tables)	3 Months Ended
Available-for-Sale Securities, at Fair Value (Tables)	Mar. 31, 2018
Available-for-sale Securities [Abstract]
Schedule of Available-for-sale Securities Reconciliation	The following table presents the face value and carrying value (which approximates fair value) of AFS securities as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, Face value $ 12,798 $ 12,798 Gross unrealized gains 16 — Gross unrealized losses — — Carrying value $ 12,814 $ 12,798

Held-to-Maturity Securities (Ta

Held-to-Maturity Securities (Tables)	3 Months Ended
Held-to-Maturity Securities (Tables)	Mar. 31, 2018
Held-to-maturity Securities [Abstract]
Held-to-maturity Securities	The following table presents the face value and carrying value of HTM securities by collateral type as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, Face value $ 37,376 $ 42,169 Unamortized premium (discount) — — Carrying value $ 37,376 $ 42,169

Cash, Cash Equivalents and Re32

Cash, Cash Equivalents and Restricted Cash (Tables)	3 Months Ended
Cash, Cash Equivalents and Restricted Cash (Tables)	Mar. 31, 2018
Cash, Cash Equivalents and Restricted Cash [Abstract]
Schedule of Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Company’s condensed consolidated balance sheets as of March 31, 2018 and December 31, 2017 that sum to the total of the same such amounts shown in the statements of cash flows: (in thousands) March 31, December 31, Cash and cash equivalents $ 72,070 $ 107,765 Restricted cash 4,998 2,953 Total cash, cash equivalents and restricted cash $ 77,068 $ 110,718

Accrued Interest Receivable (Ta

Accrued Interest Receivable (Tables)	3 Months Ended
Accrued Interest Receivable (Tables)	Mar. 31, 2018
Accrued Interest Receivable [Abstract]
Accrued Interest Receivable	The following table presents the Company’s accrued interest receivable by collateral type as of March 31, 2018 and December 31, 2017 : (in thousands) March 31, December 31, Loans held-for-investment $ 7,429 $ 6,880 Available-for-sale securities 53 51 Held-to-maturity securities 159 174 Total $ 7,641 $ 7,105

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
Fair Value (Tables)	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value, Measurement Inputs, Disclosure	The following tables display the Company’s assets measured at fair value on a recurring basis. The Company does not hold any liabilities measured at fair value on its condensed consolidated balance sheets. Recurring Fair Value Measurements March 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Assets Available-for-sale securities $ — $ 12,814 $ — $ 12,814 Total assets $ — $ 12,814 $ — $ 12,814 Recurring Fair Value Measurements December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Assets Available-for-sale securities $ — $ 12,798 $ — $ 12,798 Total assets $ — $ 12,798 $ — $ 12,798
Fair Value, by Balance Sheet Grouping	The following table presents the carrying values and estimated fair values of assets and liabilities that are required to be recorded or disclosed at fair value at March 31, 2018 and December 31, 2017 . March 31, 2018 December 31, 2017 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Assets Loans held-for-investment $ 2,364,647 $ 2,390,054 $ 2,304,266 $ 2,322,259 Available-for-sale securities $ 12,814 $ 12,814 $ 12,798 $ 12,798 Held-to-maturity securities $ 37,376 $ 37,881 $ 42,169 $ 42,797 Cash and cash equivalents $ 72,070 $ 72,070 $ 107,765 $ 107,765 Restricted cash $ 4,998 $ 4,998 $ 2,953 $ 2,953 Liabilities Repurchase agreements $ 1,524,456 $ 1,524,456 $ 1,521,608 $ 1,521,608 Convertible senior notes $ 139,745 $ 141,745 $ 121,314 $ 125,750

Repurchase Agreements (Tables)

Repurchase Agreements (Tables)	3 Months Ended
Repurchase Agreements (Tables)	Mar. 31, 2018
Disclosure of Repurchase Agreements [Abstract]
Schedule Of Repurchase Agreements By Term, Short Or Long	At March 31, 2018 and December 31, 2017 , the repurchase agreement balances were as follows: (in thousands) March 31, December 31, Short-term $ 33,672 $ 56,546 Long-term 1,490,784 1,465,062 Total $ 1,524,456 $ 1,521,608
Schedule of Repurchase Agreements by Maturity	At March 31, 2018 and December 31, 2017 , the repurchase agreements had the following characteristics and remaining maturities: March 31, 2018 December 31, 2017 Collateral Type Collateral Type (dollars in thousands) Commercial Loans CMBS (1) Total Amount Outstanding Commercial Loans CMBS (1) Total Amount Outstanding Within 30 days $ — $ — $ — $ 22,032 $ — $ 22,032 30 to 59 days — 33,672 33,672 — 34,514 34,514 60 to 89 days — — — — — — 90 to 119 days — — — — — — 120 to 364 days — — — — — — One year and over 1,490,784 — 1,490,784 1,465,062 — 1,465,062 Total $ 1,490,784 $ 33,672 $ 1,524,456 $ 1,487,094 $ 34,514 $ 1,521,608 Weighted average borrowing rate 4.07 % 4.17 % 4.07 % 3.78 % 3.77 % 3.78 % ____________________ (1) Includes both AFS securities and HTM securities sold under agreements to repurchase.
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets	The following table summarizes assets at carrying values that are pledged or restricted as collateral for the future payment obligations of repurchase agreements: (in thousands) March 31, December 31, Loans held-for-investment $ 2,260,515 $ 2,202,049 Available-for-sale securities, at fair value 12,814 12,798 Held-to-maturity securities 37,376 42,169 Restricted cash 2,613 565 Total $ 2,313,318 $ 2,257,581
Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity	The following table summarizes certain characteristics of the Company’s repurchase agreements and counterparty concentration at March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 (dollars in thousands) Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Amount Outstanding Net Counterparty Exposure (1) Percent of Equity Weighted Average Years to Maturity Morgan Stanley Bank $ 479,210 $ 276,388 33 % 2.25 $ 425,539 $ 250,543 30 % 2.49 Wells Fargo Bank 396,986 128,094 15 % 1.24 424,882 128,644 16 % 1.49 JPMorgan Chase Bank 284,562 228,737 28 % 1.11 285,457 215,068 26 % 1.32 Goldman Sachs Bank 252,734 94,259 11 % 1.09 252,734 86,091 10 % 1.33 All other counterparties (2) 110,964 64,239 8 % 2.25 132,996 59,645 7 % 2.08 Total $ 1,524,456 $ 791,717 $ 1,521,608 $ 739,991 ____________________ (1) Represents the net carrying value of the loans held-for-investment, AFS securities and HTM securities sold under agreements to repurchase, including accrued interest plus any cash on deposit to secure the repurchase obligation, less the amount of the repurchase liability, including accrued interest. (2) Represents amounts outstanding with one other counterparty and two other counterparties as of March 31, 2018 and December 31, 2017 , respectively.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
Stockholders' Equity (Tables)	Mar. 31, 2018
Stockholders' Equity Attributable to Parent [Abstract]
Rollforward of Common Stock	As of March 31, 2018 , the Company had 43,437,059 shares of common stock outstanding. The following table presents a reconciliation of the common shares outstanding for the three months ended March 31, 2018 and 2017 : Number of common shares Common shares outstanding, December 31, 2016 — Issuance of common stock — Issuance of restricted stock (1) — Common shares outstanding, March 31, 2017 — Common shares outstanding, December 31, 2017 43,235,103 Issuance of common stock — Issuance of restricted stock (1) 201,956 Common shares outstanding, March 31, 2018 43,437,059 ____________________ (1) Represents shares of restricted stock granted under the 2017 Equity Incentive Plan, of which 351,956 restricted shares remained subject to vesting requirements at March 31, 2018 .
Schedule of Dividends Declared	The following table presents cash dividends declared by the Company on its common stock since its IPO and Formation Transaction: Declaration Date Record Date Payment Date Cash Dividend Per Share March 15, 2018 March 29, 2018 April 18, 2018 $ 0.38 December 18, 2017 December 29, 2017 January 18, 2018 $ 0.38 September 18, 2017 September 29, 2017 October 18, 2017 $ 0.32
Schedule of Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income at March 31, 2018 and December 31, 2017 was as follows: (in thousands) March 31, December 31, Available-for-sale securities Unrealized gains $ 16 $ — Unrealized losses — — Accumulated other comprehensive income $ 16 $ —

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	3 Months Ended
Equity Incentive Plan (Tables)	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	The following table summarizes the activity related to restricted common stock for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, 2018 2017 Shares Weighted Average Grant Date Fair Market Value Shares Weighted Average Grant Date Fair Market Value Outstanding at Beginning of Period 150,000 $ 19.50 — $ — Granted 201,956 17.33 — — Vested — — — — Forfeited — — — — Outstanding at End of Period 351,956 $ 18.25 — $ —

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
Income Taxes (Tables)	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The following table summarizes the tax provision recorded at the taxable subsidiary level for the three months ended March 31, 2018 and 2017 : Three Months Ended (in thousands) 2018 2017 Current tax (benefit) provision: Federal $ (1 ) $ (2 ) State 2 3 Total current tax provision 1 1 Deferred tax benefit — — Total provision for income taxes $ 1 $ 1

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Mar. 31, 2018
Earnings Per Share [Abstract]
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 months ended March 31, 2018 and 2017 : Three Months Ended March 31, (in thousands, except share data) 2018 2017 Numerator: Net income attributable to common stockholders - basic $ 14,561 $ — Interest expense attributable to convertible notes (1) 2,171 — Net income attributable to common stockholders - diluted $ 16,732 $ — Denominator: Weighted average common shares outstanding 43,085,103 — Weighted average restricted stock shares 289,125 — Basic weighted average shares outstanding 43,374,228 — Effect of dilutive shares issued in an assumed conversion of the convertible senior notes 7,093,750 — Diluted weighted average shares outstanding 50,467,978 — Earnings Per Share Basic $ 0.34 $ — Diluted $ 0.33 $ —

Organization and Operations (De

Organization and Operations (Details) - shares	3 Months Ended	12 Months Ended
Organization and Operations (Details) - shares	Mar. 31, 2018	Dec. 31, 2017	Jun. 28, 2017
Class of Stock [Line Items]
Ownership percentage by Two Harbors Investment Corp.			76.50%
Preferred stock dividend rate	10.00%
Common Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)		33,071,000
Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)		1,000

Organization and Operations Two

Organization and Operations Two Harbors Investment Corp. Special Dividend (Details)	Nov. 01, 2017shares
Organization and Operations [Abstract]
Number of shares of the company's common stock distributed by Two Harbors Investment Corp. to its stockholders via special dividend (in shares)	33,071,000

Basis of Presentation and Sig42

Basis of Presentation and Significant Accounting Policies Formation Transaction (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2018
Class of Stock [Line Items]
Preferred stock liquidation preference (in usd per share)		$ 1,000
Common Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)	33,071,000
Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)	1,000

Basis of Presentation and Sig43

Basis of Presentation and Significant Accounting Policies Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Basis of Presentation and Significant Accounting Policies [Abstract]
Gross amount of recognized repurchase agreements	$ 1,524,456	$ 1,521,608
Gross amount of financial assets offset against repurchase agreements in the balance sheet	0	0
Repurchase agreements	1,524,456	1,521,608
Gross amount of financial assets not offset against repurchase agreements in the balance sheet	(1,524,456)	(1,521,608)
Gross amount of cash collateral pledged not offset against repurchase agreements in the balance sheet	0	0
Net amount of repurchase agreements after effects of amounts offset and not offset in the balance sheet	$ 0	$ 0

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	$ 0	$ 46,068
Assets of nonconsolidated Variable Interest Entities	50,190	54,967
Maximum exposure to loss of nonconsolidated Variable Interest Entities	50,190	54,967
Loans Held-for-Investment [Member]
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	0	45,890
Accrued Income Receivable [Member]
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	0	178
Assets, Total [Member]
Variable Interest Entity [Line Items]
Assets of consolidated Variable Interest Entities	$ 0	$ 46,068

Loans Held-for-Investment (Deta

Loans Held-for-Investment (Details) $ in Thousands	3 Months Ended	12 Months Ended
Loans Held-for-Investment (Details) $ in Thousands	Mar. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 2,383,910	$ 2,324,151
Unamortized (discount) premium	(164)	(178)
Unamortized net deferred origination fees	(19,099)	(19,707)
Loans held-for-investment	2,364,647	2,304,266	$ 1,502,966	$ 1,364,291
Unfunded commitments	$ 315,171	$ 339,203
Number of loans \| loan	61	59
Weighted average coupon	6.30%	6.00%
Weighted average years to maturity	2 years 2 months 12 days	2 years 4 months 15 days
First Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 2,326,351	$ 2,220,361
Unamortized (discount) premium	(164)	(169)
Unamortized net deferred origination fees	(19,221)	(19,752)
Loans held-for-investment	2,306,966	2,200,440
Unfunded commitments	$ 313,591	$ 337,623
Number of loans \| loan	56	53
Weighted average coupon	6.20%	5.90%
Weighted average years to maturity	2 years 1 month 6 days	2 years 4 months 4 days
Second Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 42,764	$ 88,945
Unamortized (discount) premium	0	(9)
Unamortized net deferred origination fees	122	45
Loans held-for-investment	42,886	88,981
Unfunded commitments	$ 1,580	$ 1,580
Number of loans \| loan	4	5
Weighted average coupon	11.50%	9.70%
Weighted average years to maturity	1 year 9 months 18 days	2 years 12 days
Junior Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid principal balance	$ 14,795	$ 14,845
Unamortized (discount) premium	0	0
Unamortized net deferred origination fees	0	0
Loans held-for-investment	14,795	14,845
Unfunded commitments	$ 0	$ 0
Number of loans \| loan	1	1
Weighted average coupon	8.00%	8.00%
Weighted average years to maturity	8 years 9 months 18 days	9 years 1 month 4 days

Loans Held-for-Investment by Pr

Loans Held-for-Investment by Property Type (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 2,364,647	$ 2,304,266	$ 1,502,966	$ 1,364,291
Percentage of total loans held-for-investment	100.00%	100.00%
Office Building [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 1,308,343	$ 1,223,642
Percentage of total loans held-for-investment	55.40%	53.10%
Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 318,908	$ 356,016
Percentage of total loans held-for-investment	13.50%	15.40%
Hotel [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 275,477	$ 274,416
Percentage of total loans held-for-investment	11.60%	11.90%
Retail Site [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 258,801	$ 254,786
Percentage of total loans held-for-investment	10.90%	11.10%
Industrial Property [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 203,118	$ 195,406
Percentage of total loans held-for-investment	8.60%	8.50%

Loans Held-for-Investment by Ge

Loans Held-for-Investment by Geographic Location (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 2,364,647	$ 2,304,266	$ 1,502,966	$ 1,364,291
Percentage of total loans held-for-investment	100.00%	100.00%
United States, Northeastern Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 918,493	$ 896,361
Percentage of total loans held-for-investment	38.90%	38.90%
United States, Western Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 527,570	$ 509,088
Percentage of total loans held-for-investment	22.30%	22.10%
United States, Southwestern Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 492,563	$ 454,088
Percentage of total loans held-for-investment	20.80%	19.70%
United States, Southeastern Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 363,449	$ 346,623
Percentage of total loans held-for-investment	15.40%	15.00%
United States, Midwestern Region [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment	$ 62,572	$ 98,106
Percentage of total loans held-for-investment	2.60%	4.30%

Rollforward of Loans Held-for-I

Rollforward of Loans Held-for-Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Loans Held-for-Investment [Abstract]
Loans held-for-investment pledged as collateral for borrowings	$ 2,260,515		$ 2,202,049
Loans Held-for-Investment [Roll Forward]
Loans held-for-investment at beginning of period	2,304,266	$ 1,364,291
Originations, acquisitions and additional fundings	156,186	139,384
Repayments	96,427	1,194
Net discount accretion (premium amortization)	14	1
Increase in net deferred origination fees	(2,085)	(1,939)
Accretion of discounts and net deferred fees on loans held-for-investment	2,693	2,423
Allowance for loan losses	0	0
Loans held-for-investment at end of period	$ 2,364,647	$ 1,502,966

Loans Held-for-Investment by In

Loans Held-for-Investment by Internal Risk Rating (Details) $ in Thousands	Mar. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans \| loan	61	59
Unpaid principal balance	$ 2,383,910	$ 2,324,151
Loans held-for-investment	$ 2,364,647	$ 2,304,266	$ 1,502,966	$ 1,364,291
Risk Rating 1 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans \| loan	7	6
Unpaid principal balance	$ 445,220	$ 414,695
Loans held-for-investment	$ 443,774	$ 413,314
Risk Rating 2 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans \| loan	51	50
Unpaid principal balance	$ 1,868,871	$ 1,840,638
Loans held-for-investment	$ 1,851,057	$ 1,822,134
Risk Rating 3 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans \| loan	3	3
Unpaid principal balance	$ 69,819	$ 68,818
Loans held-for-investment	$ 69,816	$ 68,818
Risk Rating 4 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans \| loan	0	0
Unpaid principal balance	$ 0	$ 0
Loans held-for-investment	$ 0	$ 0
Risk Rating 5 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans \| loan	0	0
Unpaid principal balance	$ 0	$ 0
Loans held-for-investment	$ 0	$ 0

Schedule of Available-for-sale

Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale Securities [Abstract]
Face value	$ 12,798	$ 12,798
Gross unrealized gains	16	0
Gross unrealized losses	0	0
Available-for-sale securities, at fair value	$ 12,814	12,798
Weighted average life remaining of available-for-sale securities	6 months
Available-for-sale securities pledged as collateral for borrowings	$ 12,814	$ 12,798

Held-to-Maturity Securities (De

Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Held-to-maturity Securities [Abstract]
Held-to-Maturity Securities, Face Value	$ 37,376	$ 42,169
Held-to-Maturity Securities, Unamortized Premium (Discount)	0	0
Held-to-maturity securities	$ 37,376	42,169
Held-to-Maturity Securities, Weighted Average Life Remaining	6 months
Held-to-maturity securities pledged as collateral for borrowings	$ 37,376	$ 42,169

Schedule of Total Cash, Cash Eq

Schedule of Total Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	$ 72,070	$ 107,765
Restricted cash	4,998	2,953
Cash, cash equivalents and restricted cash	$ 77,068	$ 110,718	$ 36,877	$ 56,279

Accrued Interest Receivable (De

Accrued Interest Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 7,641	$ 7,105
Loans Held-for-Investment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	7,429	6,880
Available-for-sale Securities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	53	51
Held-to-maturity Securities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 159	$ 174

Fair Value, Measurement Inputs,

Fair Value, Measurement Inputs, Disclosure (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	$ 12,814	$ 12,798
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	12,814	12,798
Total assets	12,814	12,798
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Total assets	0	0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	12,814	12,798
Total assets	12,814	12,798
Fair Value, Inputs, Level 3 [Member] \| Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, at fair value	0	0
Total assets	$ 0	$ 0

Fair Value of Financial Instrum

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Repurchase agreements	$ 1,524,456	$ 1,521,608
Maturity Over One Year [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Repurchase agreements	$ 1,490,784	$ 1,465,062

Fair Value by Balance Sheet Gro

Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Loans held-for-investment	$ 2,364,647	$ 2,304,266	$ 1,502,966	$ 1,364,291
Loans held-for-investment, at fair value	2,390,054	2,322,259
Available-for-sale securities, at fair value	12,814	12,798
Held-to-maturity securities	37,376	42,169
Held-to-maturity securities, at fair value	37,881	42,797
Cash and cash equivalents	72,070	107,765
Restricted cash	4,998	2,953
Repurchase agreements	1,524,456	1,521,608
Convertible senior notes	139,745	121,314
Convertible senior notes, at fair value	$ 141,745	$ 125,750

Repurchase Agreements (Details)

Repurchase Agreements (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Repurchase Agreements (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Disclosure of Repurchase Agreements [Abstract]
Repurchase agreements	$ 1,524,456	$ 1,521,608
Weighted average borrowing rate	4.07%	3.783%
Weighted average remaining maturity	1 year 6 months 29 days	1 year 9 months 6 days

Schedule of Repurchase Agreemen

Schedule of Repurchase Agreements by Term, Short or Long (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 1,524,456	$ 1,521,608
Maturity up to One Year [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	33,672	56,546
Maturity Over One Year [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 1,490,784	$ 1,465,062

Schedule of Repurchase Agreem59

Schedule of Repurchase Agreements by Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 1,524,456	$ 1,521,608
Weighted average borrowing rate	4.07%	3.783%
Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 1,490,784	$ 1,487,094
Weighted average borrowing rate	4.07%	3.784%
Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 33,672	$ 34,514
Weighted average borrowing rate	4.17%	3.774%
Maturity up to 30 days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 0	$ 22,032
Maturity up to 30 days [Member] \| Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	22,032
Maturity up to 30 days [Member] \| Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 30 to 59 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	33,672	34,514
Maturity 30 to 59 Days [Member] \| Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 30 to 59 Days [Member] \| Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	33,672	34,514
Maturity 60 to 89 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 60 to 89 Days [Member] \| Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 60 to 89 Days [Member] \| Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 90 to 119 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 90 to 119 Days [Member] \| Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 90 to 119 Days [Member] \| Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 120 to 364 days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 120 to 364 days [Member] \| Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity 120 to 364 days [Member] \| Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	0	0
Maturity Over One Year [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	1,490,784	1,465,062
Maturity Over One Year [Member] \| Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	1,490,784	1,465,062
Maturity Over One Year [Member] \| Commercial Mortgage Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements	$ 0	$ 0

Schedule of Underlying Assets o

Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	$ 2,313,318	$ 2,257,581
Loans Held-for-Investment [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	2,260,515	2,202,049
Available-for-sale Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	12,814	12,798
Held-to-maturity Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	37,376	42,169
Restricted Cash and Cash Equivalents [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Assets pledged or restricted as collateral for repurchase agreements	$ 2,613	$ 565

Schedule of Repurchase Agreem61

Schedule of Repurchase Agreement Counterparties with Whom Repurchase Agreements Exceed 10 Percent of Stockholders' Equity (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 1,524,456	$ 1,521,608
Net counterparty exposure	791,717	739,991
Repurchase Agreement Counterparty, Morgan Stanley Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	479,210	425,539
Net counterparty exposure	$ 276,388	$ 250,543
Percent of equity	33.00%	30.00%
Weighted average years to maturity	2 years 3 months	2 years 5 months 28 days
Repurchase Agreement Counterparty, Wells Fargo Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 396,986	$ 424,882
Net counterparty exposure	$ 128,094	$ 128,644
Percent of equity	15.00%	16.00%
Weighted average years to maturity	1 year 2 months 27 days	1 year 5 months 27 days
Repurchase Agreement Counterparty, JPMorgan Chase Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 284,562	$ 285,457
Net counterparty exposure	$ 228,737	$ 215,068
Percent of equity	28.00%	26.00%
Weighted average years to maturity	1 year 1 month 10 days	1 year 3 months 27 days
Repurchase Agreement Counterparty, Goldman Sachs Bank [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 252,734	$ 252,734
Net counterparty exposure	$ 94,259	$ 86,091
Percent of equity	11.00%	10.00%
Weighted average years to maturity	1 year 1 month 2 days	1 year 4 months
Repurchase Agreement Counterparty, All Other Counterparties [Member]
Repurchase Agreement Counterparty [Line Items]
Repurchase agreements	$ 110,964	$ 132,996
Net counterparty exposure	$ 64,239	$ 59,645
Percent of equity	8.00%	7.00%
Weighted average years to maturity	2 years 3 months	2 years 1 month
Number of repurchase agreement counterparties with whom amount at risk is less than 10 percent of equity	1	2

Convertible Senior Notes (Detai

Convertible Senior Notes (Details) $ in Thousands	3 Months Ended	12 Months Ended
Convertible Senior Notes (Details) $ in Thousands	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Debt Instrument, Redemption [Line Items]
Proceeds from convertible senior notes		$ 139,522
Convertible senior notes maturity date	Dec. 1, 2022
Convertible senior notes conversion ratio	0.05
Convertible senior notes	$ 139,745	$ 121,314
Convertible Debt [Member]
Debt Instrument, Redemption [Line Items]
Convertible senior notes interest rate per annum	5.625%
Convertible Debt [Member] \| Private Placement [Member]
Debt Instrument, Redemption [Line Items]
Convertible senior notes aggregate principal amount	$ 125,000
Convertible Debt [Member] \| Over-Allotment Option [Member]
Debt Instrument, Redemption [Line Items]
Convertible senior notes aggregate principal amount	$ 18,750

Commitments and Contingencies M

Commitments and Contingencies Management Agreement (Details)	3 Months Ended
	Mar. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Percent per annum of equity used to calculate management fees	1.50%
Incentive fee calculation, core earnings multiplication factor	20.00%
Incentive fee calculation, rolling period	12 months
Incentive fee calculation, equity multiplication factor	8.00%
Incentive fee calculation, period incentive fee paid	9 months
Incentive fee, rolling period for threshold	3 years
Incentive fee, threshold amount of core earnings	$ 0
Management agreement, renewal term	1 year
Management agreement, termination fee factor	3
Management agreement, termination fee period	24 months

Commitments and Contingencies U

Commitments and Contingencies Unfunded Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Unfunded commitments	$ 315,171	$ 339,203

Preferred Stock (Details)

Preferred Stock (Details) - USD ($)	3 Months Ended	12 Months Ended
Preferred Stock (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Preferred stock dividend rate	10.00%
Preferred stock liquidation preference (in usd per share)	$ 1,000
Period after which the company may redeem preferred stock	5 years
Preferred stock, redemption price per share (in usd per share)	$ 1,000
Period after which the holder may redeem preferred stock	6 years
Preferred dividends declared	$ 25,000
Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)		1,000

Stockholders' Equity Common Sto

Stockholders' Equity Common Stock Rollforward (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 01, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Jun. 28, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Common stock issued during period (in shares)		0	0
Price per share of common stock issued during the period (in usd per share)					$ 19.50
Gross proceeds from issuance of common stock				$ 195,000
Issuance costs incurred in common stock offering				$ 13,125
Number of shares of the company's common stock distributed by Two Harbors Investment Corp. to its stockholders via special dividend (in shares)	33,071,000
Increase (Decrease) in Common Stock Outstanding [Roll Forward]
Common shares outstanding at beginning of period (in shares)		43,235,103	0	0
Common stock issued during period (in shares)		0	0
Restricted stock issued during period (in shares)		201,956	0
Common shares outstanding at end of period (in shares)		43,437,059	0	43,235,103
Number of nonvested restricted common shares outstanding (in shares)		351,956	0	150,000		0
Common Stock [Member]
Class of Stock [Line Items]
Number of shares issued in exchange for acquisition of TH Commercial Holdings LLC (in shares)				33,071,000
Increase (Decrease) in Common Stock Outstanding [Roll Forward]
Common shares outstanding at end of period (in shares)		43,437,059
IPO [Member]
Class of Stock [Line Items]
Proceeds from issuance of common stock, net of offering costs				$ 181,875
IPO [Member] \| Common Stock [Member]
Class of Stock [Line Items]
Common stock issued during period (in shares)				10,000,000
Increase (Decrease) in Common Stock Outstanding [Roll Forward]
Common stock issued during period (in shares)				10,000,000

Stockholders' Equity Schedule o

Stockholders' Equity Schedule of Common Dividends Declared (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Mar. 31, 2017
Class of Stock [Line Items]
Dividends declared per common share (in usd per share)	$ 0.38			$ 0
Common Stock [Member]
Class of Stock [Line Items]
Declaration Date	Mar. 15, 2018	Dec. 18, 2017	Sep. 18, 2017
Record Date	Mar. 29, 2018	Dec. 29, 2017	Sep. 29, 2017
Payment Date	Apr. 18, 2018	Jan. 18, 2018	Oct. 18, 2017
Dividends declared per common share (in usd per share)	$ 0.38	$ 0.38	$ 0.32

Stockholders' Equity Schedule68

Stockholders' Equity Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Stockholders' Equity Attributable to Parent [Abstract]
Unrealized gains	$ 16	$ 0
Unrealized losses	0	0
Accumulated other comprehensive income	$ 16	$ 0

Equity Incentive Plan (Details)

Equity Incentive Plan (Details) - $ / shares	3 Months Ended
Equity Incentive Plan (Details) - $ / shares	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted common shares reserved for issuance under equity incentive plan (in shares)	3,242,306
Number of restricted common shares granted during period under equity incentive plan (in shares)	201,956	0
Weighted average grant date fair value of restricted common shares granted during period under equity incentive plan (in usd per share)	$ 17.33	$ 0
Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted common shares granted during period under equity incentive plan (in shares)	201,956	0
Weighted average grant date fair value of restricted common shares granted during period under equity incentive plan (in usd per share)	$ 17.33	$ 0
Common stock share price (in usd per share)	$ 16.54
Award vesting period of restricted common shares granted during period under equity incentive plan	3 years

Schedule of Share-based Compens

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of nonvested restricted common shares outstanding at beginning of period (in shares)	150,000	0
Weighted average grant date fair value of nonvested restricted common shares outstanding at beginning of period (in usd per share)	$ 19.50	$ 0
Number of restricted common shares granted during period under equity incentive plan (in shares)	201,956	0
Weighted average grant date fair value of restricted common shares granted during period under equity incentive plan (in usd per share)	$ 17.33	$ 0
Number of restricted common shares vested during period (in shares)	0	0
Weighted average grant date fair value of restricted common shares vested during period (in usd per share)	$ 0	$ 0
Number of restricted common shares forfeited during period (in shares)	0	0
Weighted average grant date fair value of restricted common shares forfeited during period (in usd per share)	$ 0	$ 0
Number of nonvested restricted common shares outstanding at end of period (in shares)	351,956	0
Weighted average grant date fair value of nonvested restricted common shares outstanding at end of period (in usd per share)	$ 18.25	$ 0
Equity based compensation	$ 664	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal income tax rate applicable to corporations	21.00%		35.00%
Percentage of REIT taxable income the company currently intends to distribute	100.00%
Current federal tax benefit	$ (1)	$ (2)
Current state tax provision	2	3
Total current tax provision	1	1
Deferred tax benefit	0	0
Provision for income taxes	$ 1	$ 1

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income attributable to common stockholders	$ 14,561	$ 0
Interest expense attributable to convertible notes	2,171	0
Net income attributable to common stockholders - diluted	$ 16,732	$ 0
Weighted average common shares outstanding (in shares)	43,085,103	0
Weighted average restricted stock shares (in shares)	289,125	0
Basic weighted average shares outstanding (in shares)	43,374,228	0
Effect of dilutive shares issued in an assumed conversion of the convertible senior notes (in shares)	7,093,750	0
Diluted weighted average shares outstanding (in shares)	50,467,978	0
Basic earnings per weighted average common share (in usd per share)	$ 0.34	$ 0
Diluted earnings per weighted average common share (in usd per share)	$ 0.33	$ 0

Schedule of Related Party Trans

Schedule of Related Party Transactions, by Related Party (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Related Party Transaction [Line Items]
Percent per annum of equity used to calculate management fees	1.50%
Management fees	$ 3,209	$ 1,662
Equity based compensation	$ 664	$ 0
Pine River Capital Management L.P. [Member]
Related Party Transaction [Line Items]
Percent per annum of equity used to calculate management fees	1.50%
Management fees	$ 3,209
Direct and allocated costs incurred by manager	$ 1,371
PRCM Advisers LLC [Member]
Related Party Transaction [Line Items]
Percent per annum of equity used to calculate management fees		1.50%
Management fees		$ 1,662
Direct and allocated costs incurred by manager		$ 2,273

Subsequent Events Collateralize

Subsequent Events Collateralized Loan Obligation Securitization Transaction (Details) - Subsequent Event [Member] $ in Millions	May 09, 2018USD ($)loan
Subsequent Event [Line Items]
Principal amount of loans securitized \| $	$ 826
Number of loans securitized \| loan	25
Collateralized loan obligation advance rate	80.00%
Basis spread on variable interest rate	1.27%