Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 279

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 8
Chunk 279
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 reduced. Assets tend to become less liquid during times of financial stress, which is often the time that liquidity is most needed. As a result, our ability to sell assets or vary our portfolio in response to changes in economic and other conditions may be limited by liquidity constraints, which could adversely affect our results of operations and financial condition. 

We cannot predict the timing and impact of future sales of our assets, if any. Because many of our assets are financed with repurchase agreements, revolving credit facilities and warehouse lines of credit, a significant portion of the proceeds from sales of our assets (if any), prepayments and scheduled amortization are used to repay balances under these financing sources.

The following table provides the maturities of our repurchase agreements, revolving credit facilities, warehouse lines of credit, senior notes and convertible senior notes as of September 30, 2025 and December 31, 2024:

(in thousands)September 30,2025December 31,2024Within 30 days$2,236,050 $2,377,824 30 to 59 days710,820 2,316,237 60 to 89 days11,956 1,307,145 90 to 119 days1,228,803 759,177 120 to 364 days3,089,343 366,706 One to three years1,042,871 1,960,400 Three to five years110,866 — Total$8,430,709 $9,087,489 

For the three months ended September 30, 2025, our restricted and unrestricted cash balance increased approximately $88.6 million to $886.9 million at September 30, 2025. The cash movements can be summarized by the following:

•Cash flows from operating activities. For the three months ended September 30, 2025, operating activities decreased our cash balances by approximately $239.2 million, primarily driven by our financial results for the quarter and the payment of the $375.0 million settlement related to the resolution of our litigation with PRCM Advisers. 

•Cash flows from investing activities. For the three months ended September 30, 2025, investing activities increased our cash balances by approximately $2.1 billion, driven by net sales of and principal payments received on AFS securities, net sales of MSR and net proceeds from reverse repurchase agreements, partially offset by a decrease in amounts due to counterparties and net