Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 133

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 133
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 recorded directly to stockholders’ equity through other comprehensive income (loss). Additionally, we reclassify unrealized gains and losses on AFS securities in accumulated other comprehensive loss to net (loss) income upon the recognition of any realized gains and losses on sales as individual securities are sold. Fluctuations in other comprehensive income (loss) are driven by changes in fair value assumptions and the reclassification of unrealized gains and losses to realized gains and losses upon sale.

Financial Condition

The following table presents significant components of our balance sheet as of June 30, 2025 and December 31, 2024:

(in thousands)June 30,2025December 31,2024Balance Sheet Data:Available-for-sale securities$8,320,757 $7,371,711 Mortgage servicing rights$3,015,643 $2,994,271 Total assets$12,959,138 $12,204,319 Repurchase agreements$8,782,622 $7,805,057 Revolving credit facilities$1,011,871 $1,020,171 Senior notes$110,867 $— Convertible senior notes$260,944 $260,229 Total stockholders’ equity$1,886,026 $2,122,509 

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Available-for-Sale Securities, at Fair Value

The majority of our AFS investment securities portfolio is comprised of fixed rate Agency mortgage-backed securities backed by single-family and multi-family mortgage loans. We also hold $3.4 million in tranches of mortgage-backed and asset-backed P&I and interest-only non-Agency securities. All of our P&I Agency RMBS AFS are Fannie Mae or Freddie Mac mortgage pass-through certificates or collateralized mortgage obligations, or Ginnie Mae mortgage pass-through certificates, which are backed by the guarantee of the U.S. government. The majority of our Agency RMBS portfolio is comprised of whole pool certificates.

The table below summarizes certain characteristics of our Agency RMBS AFS at June 30, 2025:

June 30, 2025(dollars in thousands, except purchase price)Principal/ Current FaceNet (Discount) PremiumAmortized CostAllowance for Credit LossesUnrealized GainUnrealized LossCarrying ValueWeighted Average Coupon RateWeighted Average Purchase PriceP&I securities$8,378,925 $28,697 $8,407,622 $—