Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 84

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 1
Chunk 84
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 million for the same period in 2025 due to a decrease in Agency RMBS portfolio size and lower average cash balances held throughout the period.

Interest Expense

Interest expense decreased from $160.0 million for the three months ended March 31, 2024 to $131.7 million for the same period in 2025 due to a decrease in interest rates throughout the first quarter of 2025, as well as lower borrowing balances on both AFS securities and MSR.

Net Interest Income

The following table presents the components of interest income and average net asset yield earned by asset type, the components of interest expense and average cost of funds on borrowings incurred by collateral type, and net interest income and average net interest spread for the three months ended March 31, 2025 and 2024: 

Three Months Ended March 31, 2025Three Months Ended March 31, 2024(dollars in thousands)Average Balance (1)Interest Income/ExpenseNet Yield/Cost of FundsAverage Balance (1)Interest Income/ExpenseNet Yield/Cost of FundsInterest-earning assets:Available-for-sale securities$8,321,221 $100,418 4.8 %$8,569,566 $100,605 4.7 %Mortgage loans held-for-sale3,371 53 6.3 %305 1 1.3 %Reverse repurchase agreements341,989 3,707 4.3 %345,997 4,659 5.4 %Other7,204 12,518 Total interest income/net asset yield$8,666,581 $111,382 5.1 %$8,915,868 $117,783 5.3 %Interest-bearing liabilities:Borrowings collateralized by:Available-for-sale securities$7,883,759 $91,134 4.6 %$7,986,939 $112,353 5.6 %Agency Derivatives (2)5,055 62 4.9 %8,393 130 6.2 %Mortgage servicing rights and advances (3)1,843,294 36,008 7.8 %1,889,112 42,892 9.1 %Mortgage loans held-for-sale3,144 55 7.0 %— — — %Unsecured borrow