Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 260

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 260
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784)(26,425)(23,568)Gain on repurchase and retirement of preferred stock— — — 644 Comprehensive (loss) income attributable to common stockholders$(221,807)$479 $(156,876)$89,849 

54

Results of Operations

Interest Income

Interest income increased slightly to $117.1 million for the three months ended June 30, 2025 from $116.0 million for the same period in 2024, primarily due to an increase in Agency RMBS portfolio size and related yields, partially offset by lower average cash and reverse repurchase agreement balances held throughout the period. Interest income decreased slightly to $228.5 million for the six months ended June 30, 2025 from $233.7 million for the same period in 2024, primarily due to lower average cash and reverse repurchase agreement balances held throughout the period, partially offset by an increase in Agency RMBS portfolio size and related yields.

Interest Expense

Interest expense decreased to $136.7 million and $268.4 million for the three and six months ended 2025, respectively, from $154.2 million and $314.2 million for the same periods in 2024, primarily due to a decrease in interest rates towards the end of the third quarter and throughout the fourth quarter of 2024, partially offset by an increase in average borrowings outstanding on the higher Agency RMBS portfolio.

55

Net Interest Income

The following tables present the components of interest income and average net asset yield earned by asset type, the components of interest expense and average cost of funds on borrowings incurred by collateral type, and net interest income and average net interest spread for the three and six months ended June 30, 2025 and 2024: 

Three Months Ended June 30, 2025Six Months Ended June 30, 2025(dollars in thousands)Average Balance (1)Interest Income/ExpenseNet Yield/Cost of FundsAverage Balance (1)Interest Income/ExpenseNet Yield/Cost of FundsInterest-earning assets:Available-for-sale securities$8,662,943 $108,842 5.0 %$8,491,953 $209,260 4.9 %Mortgage loans held-for-sale7,957 145 7.3 %5,664 198 7.0 %Reverse repurchase agreements128,120 1,401 4.4