Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 201

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 8
Chunk 201
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 more difficult to finance, and to the extent that we use leverage to finance assets that become illiquid, we may lose that leverage or have it reduced. Assets tend to become less liquid during times of financial stress, which is often the time that liquidity is most needed. As a result, our ability to sell assets or vary our portfolio in response to changes in economic and other conditions may be limited by liquidity constraints, which could adversely affect our results of operations and financial condition. 

We cannot predict the timing and impact of future sales of our assets, if any. Because many of our assets are financed with repurchase agreements, revolving credit facilities and warehouse facilities, a significant portion of the proceeds from sales of our assets (if any), prepayments and scheduled amortization are used to repay balances under these financing sources.

The following table provides the maturities of our repurchase agreements, revolving credit facilities, warehouse facilities and convertible senior notes as of March 31, 2025 and December 31, 2024:

(in thousands)March 31,2025December 31, 2024Within 30 days$3,858,514 $2,377,824 30 to 59 days1,108,798 2,316,237 60 to 89 days905,336 1,307,145 90 to 119 days915,695 759,177 120 to 364 days2,576,049 366,706 One to three years1,578,171 1,960,400 Total$10,942,563 $9,087,489 

For the three months ended March 31, 2025, our restricted and unrestricted cash balance decreased approximately $119.9 million to $697.7 million at March 31, 2025. The cash movements can be summarized by the following:

•Cash flows from operating activities. For the three months ended March 31, 2025, operating activities increased our cash balances by approximately $111.9 million, primarily driven by our financial results for the quarter. 

•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