Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 102

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 102
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 $8.4 billion of outstanding debt in the form of repurchase agreements and borrowings under revolving credit facilities, warehouse lines of credit, senior notes and convertible senior notes. During the three and nine months ended September 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, decreased from 5.4:1.0 to 4.8:1.0 and increased from 4.3:1.0 to 4.8:1.0, respectively. The decrease for the three months ended September 30, 2025 was primarily due to decreases in both Agency RMBS and MSR financing as a result of sales and portfolio runoff. The increase for the nine months ended September 30, 2025 was predominantly driven by a decrease in total stockholders’ equity as a result of comprehensive losses incurred and dividends declared during the three and nine months ended September 30, 2025. During the three and nine months ended September 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 7.0:1.0 to 7.2:1.0 and from 6.5:1.0 to 7.2:1.0, respectively.

As of September 30, 2025, we held approximately $10.6 million of unpledged Agency RMBS and $3.3 million of unpledged non-Agency securities. As a result, we had an overall estimated unused borrowing capacity on unpledged securities of approximately $11.5 million. As of September 30, 2025, we held approximately $7.1 million of unpledged MSR and $1.7 million of unpledged servicing advances. Overall, on September 30, 2025, we had $127.1 million unused committed and $812.0 million unused uncommitted borrowing capacity on MSR financing facilities, and $77.5 million in unused committed borrowing capacity on servicing advance financing facilities. As of September 30, 2025, we held approximately $0.3