Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 38

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 38
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5December 31,2024Within 30 days$2,359,326 $2,377,824 30 to 59 days2,358,124 2,316,237 60 to 89 days2,160,573 1,307,145 90 to 119 days789,250 759,177 120 to 364 days1,304,568 366,706 One to three years1,092,871 1,960,400 Three to five years— — Five to ten years110,867 — Total$10,175,579 $9,087,489 

For the three months ended June 30, 2025, our restricted and unrestricted cash balance increased approximately $100.6 million to $798.3 million at June 30, 2025. The cash movements can be summarized by the following:

•Cash flows from operating activities. For the three months ended June 30, 2025, operating activities increased our cash balances by approximately $99.1 million, primarily driven by our financial results for the quarter. 

•Cash flows from investing activities. For the three months ended June 30, 2025, investing activities increased our cash balances by approximately $829.2 million, driven by net sales of and principal payments received on AFS securities and an increase in amounts due to counterparties, partially offset by purchases of MSR and net payments for derivative instruments and reverse repurchase agreements.

•Cash flows from financing activities. For the three months ended June 30, 2025, financing activities decreased our cash balance by approximately $827.8 million, primarily driven by net paydowns on our revolving credit facilities and the payment of dividends, partially offset by proceeds from the issuance of senior notes and net increases in revolving credit facility and warehouse line of credit financing.

Inflation

Our assets and liabilities are financial in nature. As a result, changes in interest rates and other factors impact our performance far more than does inflation, although inflation rates can often have a meaningful influence over the direction of interest rates. Our financial statements are prepared in accordance with U.S. GAAP and dividends are based upon net ordinary income and capital gains as calculated for tax purposes; in each case, our results of operations and reported assets, liabilities and equity are measured with reference to historical cost or fair value without considering inflation.

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