Cherry Hill Mortgage Investment Corporation

to the Cherry Hill Mortgage Investment Corporation second quarter 2025 earnings call. I am Franz, and I'll be the operator assisting you today. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star one on your telephone keypad. If you would like to withdraw your question, Press star 1 again. Thank you. I would now like to turn the call over to Peter Suiza with ICR. Please go ahead.

We'd like to thank you for joining us today for Cherry Hill Mortgage Investment Corporation's second quarter 2025 conference call. In addition to this call, we have issued a press release that was distributed earlier this afternoon and posted that press release in second quarter 2025 investor presentation to the investor relations section of our website at www.chmir.com. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today. Examples of forward-looking statements include those related to interest income, financial guidance, IRs, feature expected cash flows, as well as prepayment and recapture rates, delinquencies, and non-GAAP financial measures, such as earnings available for distribution, or EAD, and comprehensive income. Forward-looking statements represent management's current estimates, and Cherry Hill assumes no obligation to update any forward-looking statements in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements contained in the company's files with the SEC and the definitions contained in the financial presentations available on the company's website. Today's conference call is hosted by Jay Lattin, President and CEO, Julian Evans, the Chief Investment Officer, and Apeksha Patel, the Interim Chief Financial Officer. Now, I would turn the call over to Jay.

Thanks, Peter, and welcome to our second quarter 2025 earnings call. The second quarter started out with an intense storm, but by the end of the quarter, skies were considerably clearer. The initial tariff announcements on April 2nd spooked markets. resulting in an instinctive flight to quality and causing the administration to quickly pause the majority of tariffs for 90 days to reach new agreements. As the quarter progressed, investors began discounting the worst-case scenarios initially feared. In fact, inflation remained low, the economy resilient, and tariff deals continued to be negotiated as we embark on a new normal. Despite the significant intra-quarter volatility, the 10-year ended the quarter at 4.23%, marginally higher quarter over quarter. The negative performance for those in the agency MBS sector was primarily driven by the mortgage basis underperforming both swap and treasury hedges, which Julian will elaborate on shortly. With the macro environment still in wait-and-see mode, All eyes are on the Fed to provide any signal to the end of their pause and return to the long-awaited rate cut cycle in September. We believe we are properly positioned for this event. For the second quarter, we generated gap net loss applicable to common stockholders of $0.03 per diluted share. Book value per common share finished the quarter at $3.34. compared to $3.58 on March 31st. On an NAV basis, which includes preferred stock, and prior to any ATM capital raised in the quarter, NAV was down approximately 6.2 million, or 2.7% relative to March 31st. Financial leverage at the end of the quarter remained relatively consistent at 5.3 times, as we continue to stay prudently levered During the quarter, we raised approximately $9 million of capital through our common ATM program and ended the quarter with $58 million of unrestricted cash on the balance sheet, maintaining a solid liquidity profile. During the quarter, we were pleased to enter into a strategic partnership and investment with Real Genius LLC, a Florida-based digital mortgage technology company. RealGenius has developed a proprietary direct-to-consumer platform offering an efficient, fully online mortgage experience, including instant pre-qualification, automated document process, and real-time loan tracking, all of which is supported by their custom-built point-of-sale system. Partnering with and investing in RealGenius is one of the clear benefits of our internalization. which allows us the flexibility to explore unique investment opportunities we believe are a creative to strategic growth. We're excited to support Real Genius as they look to accelerate their growth moving forward. Looking ahead, we continue to also monitor the economic environment closely, and as it further stabilizes, we will look to evaluate a more risk-on approach to our investment strategy while maintaining strong liquidity and prudent leverage. With that, I'll turn the call over to Julian, who will cover more details regarding our investment portfolio and its performance over the second quarter.