Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 140

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 140
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 to repay principal and interest on our borrowings, to purchase our target assets, to make dividend payments on our capital stock, and to fund our operations. To the extent that we raise additional equity capital through capital market transactions, we anticipate using cash proceeds from such transactions to purchase our target assets and for other general corporate purposes. Such general corporate purposes may include the refinancing or repayment of debt, the repurchase or redemption of common and preferred equity securities, and other capital expenditures.

As of June 30, 2025, we held $657.8 million in cash and cash equivalents available to support our operations; $11.4 billion of AFS securities, MSR, mortgage loans held-for-sale and derivative assets held at fair value; and $10.2 billion of outstanding debt in the form of repurchase agreements, borrowings under revolving credit facilities, warehouse lines of credit, senior notes and convertible senior notes. During the three and six months ended June 30, 2025, the 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, increased from 5.1:1.0 to 5.4:1.0 and from 4.3:1.0 to 5.4:1.0, respectively, which was predominantly driven by a decrease in total stockholders’ equity as a result of comprehensive losses incurred and dividends declared during the three and six months ended June 30, 2025. During the three and six months ended June 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 6.2:1.0 to 7.0:1.0 and from 6.5:1.0 to 7.0:1.0, respectively.

As of June 30, 2025, we held approximately $5.3 million of unpledged Agency RMBS and $3.1 million of unpledged non-Agency securities. As a result, we had an overall estimated unused borrowing capacity on unpledged securities of approximately $6.3 million. As of June 30,