Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 92

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 92
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The following table provides a summary of the total net gains (losses) recognized on other derivative instruments we hold for purposes of both hedging and non-hedging activities, principally TBAs, futures, options on futures, and inverse interest-only securities during the three and nine months ended September 30, 2025 and 2024:

Three Months EndedNine Months EndedSeptember 30,September 30,(in thousands)2025202420252024TBAs$69,324 $84,073 $88,045 $(2,438)Futures(9,697)(119,553)(64,612)16,061 Options on futures(161)— (285)(127)Inverse interest-only securities5,130 2,758 11,639 631 Gain (loss) on other derivative instruments$64,596 $(32,722)$34,787 $14,127 

For further details regarding our use of derivative instruments and related activity, refer to Note 9 - Derivative Instruments and Hedging Activities to the consolidated financial statements, included in this Quarterly Report on Form 10-Q.

Gain On Mortgage Loans Held-For-Sale

The following table provides a summary of the total net realized and unrealized gains (losses) recognized on mortgage loans held-for-sale and the related derivative instruments used to manage exposure to market risks primarily associated with fluctuations in interest rate risks related to our origination pipeline during the three and nine months ended September 30, 2025 and 2024:

Three Months EndedNine Months EndedSeptember 30,September 30,(in thousands)2025202420252024Mortgage loans held-for-sale$1,312 $420 $2,606 $417 TBAs(163)— (245)— Interest rate lock commitments447 478 930 478 Forward mortgage loan sale commitments— 29 (143)29 Gain on mortgage loans held-for-sale$1,596 $927 $3,148 $924 

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.

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Operating Expenses

The following table presents the components of operating expenses for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended