Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 102

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 1
Chunk 102
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 credit facilities, warehouse facilities and convertible senior notes as of March 31, 2025 and December 31, 2024:

(in thousands)March 31,2025December 31, 2024Within 30 days$3,858,514 $2,377,824 30 to 59 days1,108,798 2,316,237 60 to 89 days905,336 1,307,145 90 to 119 days915,695 759,177 120 to 364 days2,576,049 366,706 One to three years1,578,171 1,960,400 Total$10,942,563 $9,087,489 

For the three months ended March 31, 2025, our restricted and unrestricted cash balance decreased approximately $119.9 million to $697.7 million at March 31, 2025. The cash movements can be summarized by the following:

•Cash flows from operating activities. For the three months ended March 31, 2025, operating activities increased our cash balances by approximately $111.9 million, primarily driven by our financial results for the quarter. 

•Cash flows from investing activities. For the three months ended March 31, 2025, investing activities decreased our cash balances by approximately $2.0 billion, primarily driven by net purchases of AFS securities and MSR, an increase in amounts due from counterparties, which was largely the result of unsettled RMBS sales at March 31, 2025 and net payments for derivative instruments, partially offset by principal payments received on AFS securities and net proceeds from reverse repurchase agreements.

•Cash flows from financing activities. For the three months ended March 31, 2025, financing activities increased our cash balance by approximately $1.8 billion, primarily driven by increases in repurchase agreement and warehouse facility financing, partially offset by net paydowns on our revolving credit facilities and the payment of dividends.

Inflation

Our assets and liabilities are financial in nature. As a result, changes in interest rates and other factors impact our performance far more than does inflation, although inflation rates can often have a meaningful influence over the direction of interest rates. Our financial statements are prepared in accordance with U.S. GAAP and dividends are based upon net ordinary income and capital gains as calculated for tax purposes; in each case, our results of operations and reported assets, liabilities and equity are measured with reference to