Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 36

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 36
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Represents unused capacity amounts to which commitment fees are charged.

(3)The revolving period of this facility ceases on March 8, 2026, at which time the facility starts a 12-month amortization period.

(4)These repurchase facilities are secured by the related VFNs issued by TH MSR Issuer Trust and collateralized by portions of our MSR portfolio.

We are subject to a variety of financial covenants under our lending agreements. The following represent the most restrictive financial covenants across our lending agreements as of June 30, 2025:

•Total indebtedness to tangible net worth must be less than 8.0:1.0. As of June 30, 2025, our total indebtedness to tangible net worth, as defined, was 5.7:1.0.

•Cash liquidity must be greater than $200.0 million. As of June 30, 2025, our liquidity, as defined, was $657.8 million.

•Net worth must be greater than the higher of $1.5 billion or 50% of the highest net worth during the 24 calendar months prior. As of June 30, 2025, 50% of the highest net worth during the 24 calendar months prior, as defined, was $1.1 billion and our net worth, as defined, was $1.9 billion.

We are also subject to additional financial covenants in connection with various other agreements we enter into in the normal course of our business. We intend to continue to operate in a manner which complies with all of our financial covenants.

The following table summarizes assets at carrying values that were pledged or restricted as collateral for the future payment obligations of repurchase agreements, revolving credit facilities and warehouse lines of credit at June 30, 2025 and December 31, 2024:

(in thousands)June 30,2025December 31,2024Available-for-sale securities, at fair value$8,207,842 $7,097,561 Mortgage servicing rights, at fair value2,934,340 2,989,106 Mortgage loans held-for-sale, at fair value9,493 2,059 Restricted cash44,569 218,715 Due from counterparties38,221 25,231 Derivative assets, at fair value65,676 5,031 Other assets92,043 118,686 Total