Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 124

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 124
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 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 %235,055 5,108 4.3 %Other6,694 13,898 Total interest income/net asset yield$8,799,020 $117,082 5.3 %$8,732,672 $228,464 5.2 %Interest-bearing liabilities:Borrowings collateralized by:Available-for-sale securities$8,262,110 $93,702 4.5 %$8,072,935 $184,836 4.6 %Agency Derivatives (2)26,948 329 4.9 %16,002 391 4.9 %Mortgage servicing rights and advances (3)1,861,010 36,600 7.9 %1,852,201 72,608 7.8 %Mortgage loans held-for-sale7,651 129 6.7 %5,398 184 6.8 %Unsecured borrowings:Senior notes58,467 1,496 10.2 %29,234 1,496 10.2 %Convertible senior notes260,827 4,445 6.8 %260,651 8,900 6.