you. Thank
for our everyone, investor quarter us call. joining you, first for XXXX Thank
started, point apologize like the we now. Portland I'd Before get ] waning to The season disclosure right forward-looking is [ voice. safe for out statements. my I for allergy in harbor X, Page
note Before of March expected we a as and before introduction. we we want things X of details QX discussed you started, give I the call. predominantly couple A XXXX to get on the into to little was get as though.
as cash would continued by In the refinancing loans reinstatements expect. velocity quarter, quarter you March. and continued well. loan however, the into mortgages, XXXX delinquent particularly borrowers, first to slower Prepayments performance increase on from continued pace homes and as loan second This flow borrowers from their in of sales the from of
payment The accelerating for to application in increased our discount loans structures, and loans JV GAAP UPB the regular of our of because CECL. at accretion our purchase of performance in by a income discount of expectations previous purchased at time of mortgage excess the has mortgage required modeled loans acquisition,
and This interest reduces GAAP on income forward thereafter. equity then return
well the securities of flow $XX cash amount and far. the approximately increase significant as out first well post-CECL in quarter, At unencumbered particularly has had in However, in March as I'll we million increased yields bit. so loans, later velocity the point as We've quarter in in of second the a March, XX, GAAP the even cash table. a which seen this
X business On overview. Page
we these for analysis geographic reperformance. have to has a probability continuing ability resolution, our performance prepayment and us long-standing loans guides of of material loan probabilities through loans science the that long-term metrics acquire the data to and enabled and/or mortgage believe relationships characteristics market managers and Our source
XXXX. first in We've only XXXX, X acquired however, of different XXX in quarter transactions, loans the transactions since
equity balance the basis, not of a our We of do own our our and sheet. X XX.X% we on at mark-to-market interest manager ownership
result, of our almost in does from would our reflect material Great As the the in Ajax book manager. not result XX.X% our a our value gain capital interest XX% GAAP Internalizing of management recording interest. market a value
affiliated our managers' advantage non-regular and paying non-performing service for for a provides Additionally, analytics. loop timelines in our strategic resolution Gregory data Funding loan feedback and and processes
In increases our we the structures XX.X% certainly the portfolio manager, of very volatile with We've our low by teams AAA-rated group basis consistent the that performance, the have essential. servicer up this our for greater our or our loans than environment, delinquent having from in XX% and at benefit loan our Like analytics property especially well. at prepayment seen economic to at interest working manager as XX permit in the loans, is significant to in the sales of today's interest with time XX% days securitization. and of closely with be a servicer delinquent more now a borrowers
X% to from either. sheet In our and We warrants an XX%. servicer on ownership for X.X%, the equity of in our additional increased balance January, mark-to-market direct also the our parent we interest in we servicer our own don't
rolling and MSR out servicer ventures ventures part joint evaluating programs equity currently as data well. Our private is round technology-driven strategic a of new through joint some as
was leverage. year-end corporate leverage At XX, low X.Xx. have still March We our
veterinary veterinary invests that large with clinic conjunction Gaea properties triple own asset-based Gaea We Corp. in quarter was equity net practice in leverage specific Estate in properties and currently a lease, REIT in equity primarily private X.Xx. a national several markets, multifamily repositioning Our interest a X is XX% aggregators. Real freestanding
quarter public additional any a company. on and expect ultimately Gaea We round not balance 'XX to of Gaea reflect a an statement per at our We cost income Gaea value, our but the completed sheet to and first carrying additional lower interest market. become equity markup. to do currently premium in sheet balance our of carry equity raise
environment and create current estate of commercial real for optionality Gaea. opportunities loan bank Our runs significant
the quarter. Page from On just Net application income of quarter. was million including CECL, million of and X, in $X.X securities, interest loans interest some the highlights for $X.X income from the approximately first
lower. million Our X gross There interest reasons income, was $XX.X why the income CECL million. GAAP application interest are including is from the $X.X gross of
First, first average versus we balance assets on interest-earning had million the quarter sheet in quarter 'XX. lower approximately the fourth $XX of
performing. more become delinquent expected loans Second, than significantly we're to to continuing have
loans flow loans buy which delinquent this a longer duration, can increase expected lowers extend yield. they cash period. become provide more performance at a discount, we over but As performing, Since in
However, house delinquency in as duration yields. environment, a declining LTV loans hedge in recession and material shortens price low increases provide significantly a and increased corresponding
flows basis interest the of designed The with par cash We write is was CECL established third when pools if reason design than a new for the so flows. of the acquire contractual came an pools greater after loan the reserve income loans, accelerating is debt. loans cash that of lower for of capture NPV a CECL. we banks with CECL primarily NPV under allowance our expected
subsequent yields If the interest in allowance And reverse future to loans flows cash we discount those of recognition allowance reduces allocated increase into the cash of required purchase and is immediate accretion. to expected net our This part periods, flows change in are the related in on income. the increases discount.
discount accelerated We loans full. when pay in accretion also
to up A though, in is CECL, joint from income portion of of little shows ventures interest due GAAP assets income the from of application the income a not item Despite to securities, increased reinstatement, interest from and our mind, that on interest-earning in prepayment month increased in keep loans. yield March. particularly
waterfall. servicing are out For these venture securities interests, joint fees securities paid of the for
income income So which loans, joint is interest interest ventures of unlike servicing of net fees. fees, our servicing from gross is from
purchase joint direct ventures lower loan than offsetting GAAP loans income investments, decrease will a amount. As faster amount be will of our directly venture of result, corresponding the and GAAP fees, if investments our growing have outside we by by expense the the since servicing joint interest servicing been than
interest income important at is UPB our the At This 'XX. XX of to at part for by March of XX at the we portfolio XX% at XX% time loans. of portfolio. XX, An payments payment performance least XX.X% and purchased last loan of XX, made December XX our the loan June discussing of 'XX XX.X% compares the
RPL that over Our present income in first quarter, -- X the purchases. value had materially months unallocated the CECL the prepayment purchase of the And relative prices expected increases in patterns previous the reserves. to additional related NPL purchases reserves maintain Previous these of under recognition decreases to helps XX of housing in and $X.X of recaptures and leads we've reserve last million each increased quarters. payment loan in
because loans loans of can And While regularly become the produce at average, can extend portfolio income. purchase the and over on discounts, paying duration. interest the loan on total yield reduce this life they loans higher cash we flows percentage
that migrate pay therefore, result have status to monthly regular shorter yields. not do typically in Loans materially higher durations and
We and loans and for regularly paying are increasing. continuing even both from that seeing property is nonregularly paying sales prepayments
fourth funds repurchase for agreements securitization SOFR. quarter Our getting venture in this remaining than rate the agreements quarter some related the securities higher in repurchase floating weighted cost first and joint comes of of ready the and most basis by from points, on increases average approximately XX was loans
a be floating rated significant QX. We through reduced rate securitizations expect of percentage funding in will
percentage cost a The are late higher other we that funds average debt August which the in becomes weighted we funds. reason of of delevered because as average cost outstanding, increases total of weighted issued is up debt the unsecured our
was a attributable $X.X in in to To or income several this on dividends presentation easier of table our Operating it income have share. the share. impact that first was share. of quarter. stockholders income make as per as million $X.XX a common note ties Taxable to earnings GAAP little a negative $X.X XX-K. earnings Page of had items $X.XX follow, was preferred that Net XX or operating on an million $X.XX net to There we negative well per are
primary yield first, based duration, as income loan. the for first of per quarter in significant contractual the on is income in loans GAAP performing in taxable more extends which duration increase decreased yield income duration taxable loans, performance monthly X Taxable even than delinquent reasons:
loan maturity, comes the to income prepays. loan in the has unless years XX taxable years remaining XX equal So installments over
saw nonperforming prepayments increase tax higher which on we performing Taxable loans. affected typically by Second, on not have a reserve prepayment loans, relative recapture. is to the CECL-related income basis
because from payments So and when it discount larger payments, receive borrowers income. cash creates than purchase taxable contractual of actually capture we
the of by the a of decline of quarter in in delinquent This seen investments our loss result our sales on loans. property We manager a first shares affiliates recorded increase performing owned versus as significant the in $XXX,XXX for quarter. the the common first of we've flow-through in is loans price where mark-to-market
significant management on XX% loss its recorded Our fee us portion call. debt senior reflected our December events X in one was discussed section book in of $X.X changes shares the $X flows manager ownership subsequent of in based of a in those A in in our at joint market percentage. as earnings of transactions venture we million securities to interest Class of in income March value February our through shares declined XX. Other already from we our receives as million sale and value this
market that each partners structures, a the and loans buy tranche. multi-tranche venture Class rata priced retain of structures yield lowest tranche coupon vertical time. our is In we pro The each at including is our at of joint into we senior slice and A and and equity the securities, usually coupon securitization
capital and bond it returns. senior repurchase coupon to A low senior and agreement had had the This security carry the Class sense higher A sell redeploy Class funding, negative thereby a from made for and
manager Book that is close at positive details to a with and adjustment X and in a significantly in do of value primarily from March securities. Page on mark-to-market Book table not not on GAAP presentation decreased book XX value value servicer market this our $XX.XX venture balance values their debt the are an X, XX. a would per reflect but interest change ownership was our dividends and our loss sheet, by value. We our in mark-to-market that. above their There basis have joint book offset share paid
rated X% rules through Mortgage refinanced XXXXA structure. joint of a required as we XXXXA. XXXX our XX% securities -E, by and the Ajax February, retention and AAA venture In We AA joint the vertical -H risk is of structure. unrated B-rated securities retained Trust ventures of and the equity into Loan -G
we'll We At March cash approximately XX, had $XX equivalent $XX of of and And also average March in daily we first and cash balance approximately loans, securitizations had amount approximately we we the Page million. At discuss unencumbered joint detail more of for XXXX, an have XX, this unencumbered cash. QX quarter. XX. million ventures on in of and $XX our had from cash million and significant of securities collections mortgage
their at This Approximately is XX.X% of from June of compared by fraction NPLs XX.X%. small our time XX XX of XX made buying more a least portfolio increased RPLs loan payments for December to This of months. and last XX at significantly the acquisition. at UPB despite and the XX.X% XX last
interest flow, This loan current cash the extension and the income in increases quarter. of duration but life reduces yield
Page purchased approximately consecutive lead a As payment property to portfolio X primarily has than flow at go XX% loan sales underlying RPLs XX. earlier. if prepay migration, reperform represent March at NPLs default, a cash on our to and and less and average. analytics this property our that year We than of delinquent early related XX% RPLs positive prepayment represented suggest payments, purchased certain ] lowest specifications that X, well. more comp level made Purchased [ loans or -- They current rather we purchased
XX, prices We loans. seen loans. paying Since residential typically loan increase for buy materially, lower well-seasoned LTV but residential for especially loans November also regular we nonperforming have
see stronger in For performance portfolio. our to expected residential loans, than we continue
the interest in point. expect of increase loans. credit tightening availability we increase potential slowing, default given some an nonperforming material However, And and an and and subperforming for in therefore, would at rates, increase economic the delinquency in
and in absolute we to thing One aggressive regular in result, we more equity, payments. price expect we will maintain a develop. acquisitions borrowers appreciation properties the a and that significant hesitant home more have be increase and seen better their set made determined to attached financially been is loan residential opportunity of dollars as have engaged therefore, resulting to As material
first Historically, mortgages borrowers pay auto and of we financial cards paying HELOCs and credit mortgage have times seen before frequently loans in stress.
the significant result first are increases However, opposite as and of increased a in for their mortgages. for equity loans, loans their absolute and for now dollars of auto we credit seeing cards delinquency older
and well, nonperforming will later thereafter. as sub-performing loans fared and opportunities as this we commercial not are get We have significant estate loans markets real we opportunities. there beginning estate year calendar believe real in and Commercial many of into to see be
and calls, system. As Fed as XXXX fourth on of we risk mentioned market one earnings third quarter material quarter the we breaking the the see the
is We higher on have months with of have percentages in and preview and less bank midsized and They performance. having a sub-midsized commercial exposure. effect seen loan their portfolio a portfolios last few talked this about of frequently real liquidity estate the loan
beginning are for We these expect see that and to set will sale institutions CRE opportunity loans from grow.
this expect resulting as that also stimulate well. We consolidation bank will
billion MSR increments We large from develop. non-agency like as From we agency UPB being same $X up these billion-plus offerings would well sub-X us and of and banks MSRs venture that opportunities sale they have larger partners as seeing find as originators. joint put to in banks, for are commercial
look take X these however, MSR is not these MSRs X to now small predictable current to bids are As offerings the banks. One these are they sales months trading below thing banks marked as as MSR at many liquidity, value are to sell. for marketing note, of actually
beneficial. also is and significant to owning be and as MSR having interest there Gregory be in it going XX.X% economic set servicer a think opportunity We will
are MSR We in administers with joint on structures. discussions several institutional venture
buy own quarter. X, did many loans we not we in Page first lower the On but LTV loans
and Our purchase property current overall XX% is of of RPL UPB. price approximately value XX%
has been become of of lower important geographic with have in target always This environment. and certain threshold focused more dollars locations. We in recessionary loans even LTVs levels with absolute a equity on
X. Page versus of increased quarter NPL Since we RPLs. On quarter average, fourth XXXX, on purchases the our can have and NPLs, third duration significantly RPLs. shorter than
our sheet, XX% purchase XX% balance our arrears of value. the property XX% owning balance, of overall UPB, is on NPLs and price For including of
and portfolio, reinstatement equity higher As loan-to-value NPL average dollars for reperformance we of on seen the have low a on NPLs. result of our significant and absolute our
age a materially. duration natural earlier, at yields increases resulting And hedge low corresponding values. and dollars RPLs as both to in increases purchasing XX% housing declines shorten NPLs, quite recession mentioned As and absolute provides for price and delinquencies, significant property our I discounts equity LTV loans that credit of to
our Page XX%. segment loans On our the XX, March X. At represent our at markets. approximately of in approximately largest portfolio were to continues of XX% California target loan
of in However, and nearly first of XXXX, XX% prepayments spent California XXXX all quarter XXXX.
primarily counties. and loans Diego are in Our Orange California mortgage Los Angeles, San
and represents [ Miami, Lauderdale Beach XX% Fort approximately approximately and XX% Florida our Palm portfolio are ] of counties of that.
markets, for single-family We in in continue homes for both and our to our price see demand buyers. homeowners targets rental potential range
monthly under X. On a XX% Approximately payments payments. last purchase. portfolio at the Page increase This is RPLs. least compared portfolio since At in performance to made least approximately Over last than given made QX rather loan time NPLs at of ago. of significant XX.X% XX, X made of consecutive the a of small fraction XX our months XX March the of X XX.X% primarily XX% have notable ago. least of as XX% purchased our we to that XX compares loan 'XX, The at year compared now to XX, more
for Much each of data with due predict dollars. a forward market likely borrowers price Gregory target this by is our personal appreciation determined delinquent and significantly Funding home as home to analytics markets working absolute appreciation to are dollars basis that of in on
point. reached get have statistical X consecutive to consecutive Historically, the consecutive our more than payments, XX% have that we been the payments purchase XX payments X seen time. typically when of loans turning they
Subsequent Events Page on XX.
million of value. UPB at UPB and XX% XX% RPLs approximately underlying price contract of property and We XX a have of under NPLs of
next the paid to $X.XX declared share expect these to be of May record We week. dividend per cash a holders in of to on XX on We XX. close May
impact of taxable We some significantly on rates, CECL exceed To yield likely on offsetting income. expect result impacted rate floating cash Fed the remaining on income income have raising loans effect GAAP extent GAAP yields continues exceeds that financing will taxable as will loans. CECL the as a the
will credit likely income resulting shortening However, tightening duration. and loan recession by taxable increase
pipeline replace expensive rate in have And the will more the thereby, income floating increase funding and, securitizations also. taxable likely we
investment opportunities well. result as recession risk risk [indiscernible] also as sector We a issues of see banking and
On interest little, our Average financial average due yields XX, to significant yields beneficial increased joint Page some metrics. primarily in so on and equity loan April. ventures cash flow also a in and loan far in March
fees. For yield on debt securities servicing is and yield that beneficial gross interests, and is of of servicing net fees remember loans
and how GAAP is a increased loans materially in securities purchased increased reperformance in at Since we delinquent expectations discount, excess interest presented extend XXXX, in 'XX and and are to our and can Debt loans of our relative interest yield. beneficial 'XX loans. duration reduce have of the JVs under
significant markets, on we excess home of loans of ongoing in in accelerated The absolute price dollars both reperformance And on yield to our discount. material loans. sales expectations, loans, prepayment the both reduces delinquent at for types buy of from and for appreciation which the home from led purchased equity target loans our average, a
continues asset underlying The our especially year-end dollar ended was February, than But low, steady. again is certain and with lower and loans for in by minimum it level increased X.Xx, and March been which quarter sale be in properties sector. April. 'XX. amounts to absolute borrowers demographics marginally at equity companies has January in with in debt the We was borrower lower it Leverage of first of and underlying it has delinquent with of geography,
percentage prepayment. as down higher SOFR pays of debt were of higher from rates notes in they issuance funding of debt loan total unsecured in agreement for Our August, total QX, debt cost and average asset repurchase our the result was since a base outstanding the primarily rising
total debt. March debt more our at than XX% securitized is rate of XX Fixed
of as percentage debt have debt continue We total increasing our to X the in rate expect pipeline. as securitizations a we fixed
So quarter in to well securitized levels far fourth recovery as a bond we relative 'XX, in as significant funds. senior rate those spreads have in seen the credit for
On Page XX.
repurchase mortgage agreement financing, bonds at debt expected lives X March million December years. related was loan and total ventures than senior $XXX million million non-mark-to-market, XX. with XX on our joint of in nonrecourse AX million, less approximately $XXX from Our at primarily Class $XXX was down was $XXX financing remaining
We also have significant assets. unencumbered
functional. securitization We rate debt floating now that rate of fixed relative debt continue more our amount declining expect significantly, the to are markets to
And with have. that, I'd be might happy any anybody answer questions to
