Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 264

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 2
Chunk 264
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•Cash flows from investing activities. For the three months ended March 31, 2025, investing activities decreased our cash balances by approximately $2.0 billion, primarily driven by net purchases of AFS securities and MSR, an increase in amounts due from counterparties, which was largely the result of unsettled RMBS sales at March 31, 2025 and net payments for derivative instruments, partially offset by principal payments received on AFS securities and net proceeds from reverse repurchase agreements.

•Cash flows from financing activities. For the three months ended March 31, 2025, financing activities increased our cash balance by approximately $1.8 billion, primarily driven by increases in repurchase agreement and warehouse facility financing, partially offset by net paydowns on our revolving credit facilities and the payment of dividends.

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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