Impac Mortgage Holdings, Inc. Common Stock

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Impact Mortgage Holdings 4th Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. If you should need assistance during the call, press star then zero, and an operator will come back on the line to assist you. I'd now like to turn the conference over to Jo Jo Freon, General Counsel. Please go ahead.

Good afternoon, everyone, and thank you for joining Impact Mortgage Holdings' year-end 2022 earnings conference call. During this call, we will make projections or other forward-looking statements in regards to, but not limited to, GAAP and taxable earnings, cash flows, interest rate and market risk exposure, mortgage production, and general market conditions. I would like to refer you to the business risk factors in our most recently filed Form 10-K and Form 10-Qs, filed under the Securities and Exchange Act of 1934. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. This presentation, including any outlook and guidance, is effective as of the date given, and we expressly disclaim any duty to update the information herein. I would like to get started by introducing George Mandrosina, Chairman and CEO of Impact Mortgage Holdings. Thank you, Joe.

With me this afternoon are John Glockner, our principal accounting officer, and Justin Mozio, our chief administrative officer. On March 8th of last week, the company issued a business update discussing how it has proactively adjusted its strategy to navigate market and industry conditions, including a pivot in its business model and an aggressive expense reduction initiative. Events of the recent week evidenced an accelerating deterioration of market conditions and operating environment. The residential mortgage market has been challenged by adverse macroeconomic conditions, ushered in by rate and credit dislocation that commenced in the fourth quarter of 2021. Non-transitory inflation and Fed tightening, coupled with widening credit spreads, has reduced the addressable market for our product offerings. Despite competitor consolidation and closures, excess industry origination capacity remains, as evidenced by participants' pricing to decrease net margins in pursuit of market share. The company has no intention of engaging in systematic non-economic activities. The company has no visibility as to when these dislocations will abate and return the industry to normalized volumes and margins. The proactive initiatives that the company undertook in 2022 and early 23 how to align the stakeholders of the company's capital stack and reduce its overall operating expense load. These accomplishments continue the theme of eliminating complexity and reducing costs from the company's corporate and operating verticals, thus permitting the company to explore complementary strategic ventures, adjacent revenue opportunities, and attendant capital raise and corporate finance activities. John Glockner will now discuss the financial results for 2022. John?