Company: TWO-PC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001465740-25-000140
Chunk: 139

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 139
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,417 $85,366 7.0:1.0 June 30, 2024$9,893,287 $9,973,593 $9,973,593 4.5:1.0 $4,950,762 $— 6.8:1.0 

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(1)Defined as total borrowings under repurchase agreements (excluding those collateralized by U.S. Treasuries), revolving credit facilities, warehouse lines of credit, term notes payable, senior notes and convertible senior notes, plus implied debt on net TBA cost basis and net payable (receivable) for unsettled RMBS, divided by total equity.

Equity

The following table provides details of changes in our stockholders’ equity from March 31, 2025 to June 30, 2025:

(in millions, except per share amounts)Book ValueCommon Shares OutstandingCommon Book Value Per ShareCommon stockholders’ equity at March 31, 2025$1,525.0 104.0 $14.66 Net loss(259.1)Other comprehensive income50.5 Comprehensive loss(208.6)Dividends on preferred stock(13.2)Comprehensive loss attributable to common stockholders(221.8)Dividends on common stock(41.0)Other1.9 0.1 Balance before capital transactions1,264.1 104.1 Issuance of common stock, net of offering costs0.1 — Common stockholders’ equity at June 30, 2025$1,264.2 104.1 $12.14 Total preferred stock liquidation preference621.8 Total stockholders’ equity at June 30, 2025$1,886.0 

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Liquidity and Capital Resources

Our liquidity and capital resources are managed and forecasted on a daily basis. We believe this helps ensure that we have sufficient liquidity to absorb market events that could negatively impact collateral valuations and result in margin calls. We also believe that it gives us the flexibility to manage our portfolio to take advantage of market opportunities. 

Our principal sources of cash consist of borrowings under repurchase agreements, revolving credit facilities, warehouse lines of credit, senior notes, convertible senior notes, payments of principal and interest we receive on our target assets, cash generated from our operating results, and proceeds from capital market transactions. We typically use cash