Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 275

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 8
Chunk 275
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 in total stockholders’ equity as a result of comprehensive losses incurred and dividends declared during the three and nine months ended September 30, 2025. During the three and nine months ended September 30, 2025, our economic debt-to-equity ratio funding our Agency and non-Agency investment securities, MSR and related servicing advances and mortgage loans held-for-sale, which includes unsecured borrowings under senior notes and convertible senior notes, implied debt on net TBA cost basis and net payable (receivable) for unsettled RMBS, increased from 7.0:1.0 to 7.2:1.0 and from 6.5:1.0 to 7.2:1.0, respectively.

As of September 30, 2025, we held approximately $10.6 million of unpledged Agency RMBS and $3.3 million of unpledged non-Agency securities. As a result, we had an overall estimated unused borrowing capacity on unpledged securities of approximately $11.5 million. As of September 30, 2025, we held approximately $7.1 million of unpledged MSR and $1.7 million of unpledged servicing advances. Overall, on September 30, 2025, we had $127.1 million unused committed and $812.0 million unused uncommitted borrowing capacity on MSR financing facilities, and $77.5 million in unused committed borrowing capacity on servicing advance financing facilities. As of September 30, 2025, we held approximately $0.3 million of unpledged mortgage loans and had $26.5 million unused committed borrowing capacity on our warehouse lines of credit and $46.5 million unused uncommitted borrowing capacity on our loan repurchase agreement. Generally, unused borrowing capacity may be the result of our election not to utilize certain financing, as well as delays in the timing in which funding is provided, insufficient collateral or the inability to meet lenders’ eligibility requirements for specific types of asset classes. On a daily basis, we monitor and forecast our available, or excess, liquidity. Additionally, we frequently perform shock analyses against various market events to monitor the adequacy of our excess liquidity.

During the nine months ended September 30, 2025, we did not experience any material issues accessing our funding sources. We expect ongoing sources of financing to be primarily repurchase agreements, revolving credit facilities, warehouse lines of credit, senior notes, convertible senior notes and similar financing arrangements. We plan to