Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 263

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 263
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30, 2025, as compared to the same periods in 2024, was primarily due to the lower interest rate environment. We have one revolving credit facility in place to finance our servicing advance obligations, which are included in other assets on our consolidated balance sheets.

Late in the second quarter of 2024, RoundPoint began operating its in-house, direct-to-consumer originations platform. Prior to the launch of originations, our mortgage loans held-for-sale consisted of a small number of loans purchased from the collateral underlying our MSR, which were not pledged for any form of financing.

In May 2025, we issued $115.0 million of unsecured senior notes due in 2030, which pay interest quarterly at rate of 9.375% per annum. The cost of funds associated with our senior notes also includes amortization of deferred debt issuance costs.

The cost of funds associated with our convertible senior notes for the three and six months ended June 30, 2025, as compared to the same periods in 2024, was slightly lower due to the repurchase of $10.0 million principal amount late in the second quarter of 2024.

The following table presents the components of the yield earned on our AFS securities portfolio as a percentage of our average amortized cost of securities for the three and six months ended June 30, 2025 and 2024:

Three Months EndedSix Months EndedJune 30,June 30,2025202420252024Gross yield/stated coupon5.3 %4.9 %5.1 %4.9 %Net (premium amortization) discount accretion(0.3)%(0.1)%(0.2)%(0.2)%Net yield5.0 %4.8 %4.9 %4.7 %

Net Servicing Income

The following table presents the components of net servicing income for the three and six months ended June 30, 2025 and 2024:

Three Months EndedSix Months EndedJune 30,June 30,(in thousands)2025202420252024Servicing fee income$124,409 $139,361 $250,580 $273,681 Ancillary and other fee income5,201 4,435 10,295 8,292 Float income28,744 32,219 54,338 60,375 Total servicing income158,354 176