Company: TWO-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001465740-25-000083
Chunk: 152

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 152
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es) on mortgage loans23 — 9 Balance at end of period$2,334 $332 $283 The Company is subject to credit risk associated with its originated mortgage loans during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be minimal as it holds the loans for a short period of time and the market for these loans continues to be highly liquid.The Company has one warehouse facility to finance its mortgage loans held-for-sale. At December 31, 2024, the Company had pledged mortgage loans held-for-sale with a carrying value of $2.1 million as collateral for this warehouse facility. See Note 15 - Warehouse Facilities.

Note 8. Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include cash held in bank accounts and cash held in money market funds on an overnight basis.The Company is required to maintain certain cash balances with counterparties for securities and derivatives trading activity, servicing activities and collateral for the Company’s borrowings in restricted accounts. The Company has also placed cash in a restricted account pursuant to a letter of credit on an office space lease.The following table presents the Company’s restricted cash balances as of December 31, 2024 and December 31, 2023:(in thousands)December 31,2024December 31,2023Restricted cash balances held by trading counterparties:For securities trading activity$950 $450 For derivatives trading activity43,398 1,669 For servicing activities49,900 50,345 As restricted collateral for borrowings218,715 12,575 Total restricted cash balances held by trading counterparties312,963 65,039 Restricted cash balance pursuant to letter of credit on office lease65 62 Total$313,028 $65,101 

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Table of ContentsTWO HARBORS INVESTMENT CORP.Notes to the Consolidated Financial Statements

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Company’s consolidated balance sheets as of December 31, 2024 and December 31, 2023 that sum to the total of the same such amounts shown in the consolidated statements of cash flows:(in thousands)December 31,2024December 31,2023Cash and cash equivalents$504,613 $729,732 Restricted cash313,028 65,101 Total cash, cash equivalents and restricted cash$817,