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 June 30, 2025 and December 31, 2024:


(in thousands)	June 30, 2025		December 31, 2024
Restricted cash balances held by trading counterparties:
For securities trading activity	$	600	$	950
For derivatives trading activity	37,080		43,398
For servicing activities	58,165		49,900
As restricted collateral for borrowings	44,569		218,715
Total restricted cash balances held by trading counterparties	140,414		312,963
Restricted cash balance pursuant to letter of credit on office lease	67		65
Total	$	140,481	$	313,028

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Company’s consolidated balance sheets as of June 30, 2025 and December 31, 2024 that sum to the total of the same such amounts shown in the consolidated statements of cash flows:


(in thousands)	June 30, 2025		December 31, 2024
Cash and cash equivalents	$	657,816	$	504,613
Restricted cash	140,481		313,028
Total cash, cash equivalents and restricted cash	$	798,297	$	817,641