MITT - Earnings call 2 2023 | AG Mortgage Investment Trust, Inc.

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Operator

Good day and thank you for standing by. Welcome to the AG Mortgage Investment Trust Second Quarter 2023 Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to Jenny Neslin, General Counsel for the company. Please go ahead. Thank you.

Jenny Neslin

everyone. morning, Good the Mortgage to XXXX Call Earnings And Trust. Second AG Investment for welcome Quarter With call on me the today are T.J. and Rosiello, Officer. Durkin, Officer; CEO President; our Smith, our Chief and Anthony our Financial Chief Nick Investment

regarding today's headings Before we that are statements made and contain our note forward-looking are begin, subject statements filings, Cautionary to statements. forward-looking under today's and SEC call uncertainties, outlined and discussed Any which Factors the forward-looking during management's may information analysis. please Statement in the call certain including Risk risks in discussion

statements, from The the company's and our actual time to ended from these contained including are results we to obligated filed statements. Except SEC. forward-looking time Form or events reports regarding of the or subsequent review recently by encourage may revise as update to in as not read otherwise. law, required year differ XX-K to forward-looking most XX, SEC new the information, filings, materially and whether our December intend you or XXXX a statements future our We do disclosure filed result for not with any

filings today, most refer to measures. refer we to call to comparable reconciliations certain financial our non-GAAP the During GAAP will measures. SEC for the Please

QX We website www.agmit.com website, and will was this earnings that slide also our on turn reference link presentation page. to our click the the posted morning. for the to XXXX earnings the presentation the presentation, To home view on

Asset over Corporation thank this With are a remarks. of our taking proposed or be turn the as call, status to discuss after the note Capital result, to like to our that us on that, today. T.J. we call at we joining the for will prepared Western Again, with terms Further, you going welcome I'd not not And comment to please time. transaction Q&A and or Mortgage

Thomas Durkin

stem crisis was the of debt second the And of entered we've Jenny. was in I'm heels on banking crisis markets in in taken further headed. the the regional policy morning, markets March. seen quarter everyone. to the turbulence actions of early And good the quarter regional contained. from We The you, banking sure the market the the Thank the then June, broad-based deposit to subsequently, suspension runs ceiling determine with but largely second improve. where

serve on by $XX.XX the book said, per interest for Book hard the quarter, Despite of longer our the grew to to and to yield market ample challenges, adjusted liquidity to million challenge. back maintained continued throughout to protect our curve leaving and rise share and X.X% basis, higher That value of turns while economic mortgage $XX leverage. X.X value. $XX.XX an rates these inverted the forefront respectively only bringing origination unadjusted continues work we and

mid of paid $X.XX were had During share dividend. of $X.XX earnings per its the generating $X.XX quarter, EAD and

strategy Home. flat discussed for we've higher earnings investment were hedging as a strategy the our disciplined in in well prior to of The July. As reflects early power. calls, Based NIM and EAD quarter-over-quarter values combination prudent portfolio book and in fundamentals our is securitization of our on improving preliminary the improvement evidence of as approximately read, beginning Arc month related our

liquidity in $XX targeting that million reducing and in exposure further in our securitization, we're XXXX ROEs the to strong advantage this the for legacy the RPLs bringing residential saw During the to namely took loan of to We to sell looking second insurance whole players, this originated The deploy newly at quarter, month, sale of out a pending available there. expected generate to loans of balance intent companies are gain sell we opportunity both today. without who additional is demand RPL legacy from and settle securitize. loans higher sheet exposure approximately

in As the detail. last together, in more opportunities Arc effects focused balance quarters. to we forward that we to innings presenting on some Nick We both believe Home see now per in the regional performance I with ROEs competition are to on results to believe and an turn I'll look disruption are looking environment positive early in amongst our all it Putting activities I are and bank with our importantly, positioned we sheets. lindering retreating given this share well we build to very for you based drive and both of year-to-date, on the forward. continue this GAAP stated higher EAD momentum metrics the pleased continuing progress coming and the over quarter, discuss to higher of investment themselves remain updating MITT's on

Nicholas Smith

Thanks, T.J.

across volatility the normalized interest that rate in into of and sold raising we markets took higher credit created liquidity and quarters. credit-sensitive As can coming deployed ROEs increased advantage equity be the loans,

to We newly before originated third of quarter. the issue built X strong of the securitizations expect also a end loans and pipeline

While spreads and hey quarter lagged securitizations. credit we stage potential on liquid markets the cohorts upside structured throughout of sell on tightened more for where on debt loan setting upcoming the mortgage the

to to of midsized regional continue banks ROEs early We and pulling signs attractive back. see

opportunities momentum Arc expect Although in the our even Throughout built as now the classes. quarters, lead nominal previous past asset in yields early the high traced the from quarter, Home to the on we still widely deploy equity close accepted to in year. narrative targeted be stages, this to to capital

changes operational made in a significant While benefits were there improved being to quarters outlined we in previous remains the market, difficult beginning from through origination and show progress efficiencies. volumes

Page additional provided we retained securities. presentation, X, outlining earnings quarter's information the non-agency on this In

non-QM yield by debt is in path providing each forward after these in curve options third discounts issue securitizations the of Extreme coupled on the to very potential this wide deep or the transaction. years. our previous anniversary pull historically a valuable quarters, of make we callable coming outlined As with inversion, spreads

are retained Pie to Mezzanine chart and deep these Subordinate the shows par. that securitizations, fair discounts Non-QM physicians XXXX of over securities market X/X from held at of value

of well. the Fed home cycle, much end continues and have approaches this resilient piping more projected been than prices to the mortgage credit As perform

these spreads significant supply credit quarter, the strong throughout supported with by In this flattened along line trend, technicals. fundamentals, with

Our remain or originally low [indiscernible] portfolio stabilized line prices nationally. to perform and home better than continues underwritten in as

financing this are beginning modest mid- tightening since cycle, costs the able the While will increased leverage. with on of turn call and I the deploy into Anthony. equity we have over teens liquidity rotate being constructive ROEs mark-to-market considerably excess in to to to now high current attractive

Anthony Rossiello

morning. Thank And you, Nick. good

This During our quarterly dividend, $XX.XX an prior shareholders. representing economic of per the X.X% coupled generated the of value value of for quarter, adjusted increase book increase, return book with recorded a second share, X.X% company from quarter. and per share $XX.XX our of

net is value this gains book earnings Our quarter accretive exceeded on performance to our and repurchases, available portfolio investment our accrued which for improvement distribution, share in common attributable dividend.

$X.XX net interest expenses to expenses. million of million During common $XXX,XXX quarter-over-quarter approximately and by due $X.X or interest to share. the available Net we of quarter, GAAP fully income, declined inclusive while approximately income shareholders $X.X transaction-related per diluted recognized less our hedge increased of

swap quarter, million more Although offset gains benchmark rates of portfolio, on during in than investment losses increased unrealized realized mark-to-market $X.X on portfolio earnings. our interest and resulting our the rate

as book of share shareholders. X.X% of repurchased capital our of book our deployed stock our million. quarter $X.X outstanding Year-to-date, utilize value approximately purchase quarter repurchase capital was to $XX.X our remaining program, repurchasing or end, XX% accretion of adjusted as of in approximately value. X% shares common our We million XXX,XXX the the repurchase our of total resulting to shares continue returning in we've our price was start and We million $X.X authorization of at

$X.X at by as was portfolio loan paydowns loan were investment quarter-over-quarter $XXX flat purchases million sales. of billion Our and offset

Our also X.X%. financing at through weighted relatively with financing consistent cost a funded of profile average of was securitization our XX%

Agency result, a X.X was RMBS to X.X X ratio end turns credit and leverage which to our economic As portfolio. our of portfolio turns, turn quarter related at our

with approximately borrowing In addition, ended to growth continued capacity billion support portfolio. the we in of our $X quarter

was interest exceeded the $X.XX by loss prior income, earned quarter. operating We Net and our $X.XX generated per $X.XX generating was available from of quarter. Net a Arc earnings earnings dividends, per than $X.XX higher offset which expenses of share, EAD contributed was inclusive or income per distribution for This share. Home. second preferred of portfolio share interest hedge interest $X.XX on for of

when mid. to contribution However, by impact EAD Home's to sold Arc improved quarter-over-quarter the of excluding gains $X.XX Arc loans recorded on by

back the capital ended quarter cash of of with we total the from securitizations call T.J. approximately mentioned Lastly, additional and to $XX million now generate the liquidity expect turn sales to earlier. I'll loan and

Thomas Durkin

Q&A to your mentioned look the at Anthony. of quarter. morning. be understanding, as speaking thank the we won't forward We again we everyone Jenny this And to this us again next want quarter. We joining call, for top appreciate and taking Thanks,

Operator

for you Thank teleconference. That concludes today's participation. your

now may You disconnect.

AG Mortgage Investment Trust (MITT) 7 Aug 232023 Q2 Earnings call transcript