Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 195

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 8
Chunk 195
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-market adjustments334 37 Total mortgage loans held-for-sale$12,635 $2,334 The following table presents a reconciliation of the Company’s mortgage loans held-for-sale for the three and nine months ended September 30, 2025 and 2024:Three Months EndedNine Months EndedSeptember 30,September 30,(in thousands)2025202420252024Balance at beginning of period$9,888 $278 $2,334 $332 Originations and purchases of mortgage loans49,753 22,394 127,292 22,445 Sales and principal collections(47,113)(19,378)(117,288)(19,479)Unrealized gains (losses) on mortgage loans107 50 297 46 Balance at end of period$12,635 $3,344 $12,635 $3,344 The Company is subject to credit risk associated with its originated mortgage loans during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be minimal as it holds the loans for a short period of time and the market for these loans continues to be highly liquid.

15

Table of ContentsTWO HARBORS INVESTMENT CORP.Notes to the Consolidated Financial Statements (unaudited)

The Company utilizes repurchase agreements and warehouse lines of credit to finance its mortgage loans held-for-sale. At September 30, 2025, the Company had pledged mortgage loans held-for-sale with a carrying value of $12.4 million as collateral for its repurchase agreements and warehouse line of credit. At December 31, 2024, the Company had pledged mortgage loans held-for-sale with a carrying value of $2.1 million as collateral for its warehouse line of credit. See Note 13 - Financing.

Note 8. 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 with counterparties for securities and derivatives trading activity, servicing activities and collateral for the Company’s borrowings in restricted accounts. The Company has also placed cash in a restricted account pursuant to a letter of credit on an office space lease.The following table presents the Company’s restricted cash balances as of September 30, 2025 and December 31, 2024:(in thousands)September 30,2025