TPG Mortgage Investment Trust, Inc.

Welcome to the AG Mortgage Investment Trust Third Quarter 2021 Earnings Conference Call. My name is John. I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you do have a question, press star then 1 on your touch-tone phone. Please note the conference is being recorded. And now I'll turn the call over to Jenny Neslin.

Thank you, John. Good morning, everyone, and welcome to the third quarter 2021 earnings call for AG Mortgage Investment Trust. With me on the call today are David Roberts, our Chairman and CEO, T.J. Durkin, our President, Nick Smith, our Chief Investment Officer, and Anthony Rosiello, our Chief Financial Officer. Before we begin, please note that the information discussed in today's call may contain forward-looking statements. Any forward-looking statements made during today's call are subject to certain risks and uncertainties which are outlined in our SEC filings, including under the headings cautionary statement regarding forward-looking statements, risk factors, and management's discussion and analysis. The company's actual results may differ materially from these statements. We encourage you to read the disclosure regarding forward-looking statements contained in our SEC filings. including our most recently filed Form 10-K for the year ended December 31, 2020, and our subsequent periodic reports filed with the SEC. Except as required by law, we are not obligated and do not intend to update or to review or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. During the call today, we will refer to certain non-GAAP financial measures. Please refer to our SEC filings for reconciliations to the most comparable GAAP measures. We will also reference the earnings presentation that was posted to our website this morning. To view the slide presentation, turn to our website, www.agmit.com, and click on the link for the third quarter 2021 earnings presentation on the homepage in the investor presentation section. Again, welcome to the call, and thank you for joining us today. With that, I'd like to turn the call over to David.

Thanks, Jenny, and good morning to everyone. I'm pleased to report that we had a terrific third quarter as we continued to execute on our transition to a pure play residential credit mortgage REIT. As part of our new focused mission, we substantially completed the exit of our legacy assets at prices and terms that were better than or in line with our expectations. These transactions contributed to a material increase in our book value per share. As of September 30th, our book value per share was $16.92, and our adjusted book value per share was $16.45. Both figures represent a net increase of 12% from June 30th. These successful sales and resolutions of our legacy assets provide us with significant liquidity. We have been using a portion of that liquidity to execute on and expand our go-forward business plan of originating and securitizing non-agency loans. We continue to believe that we have a competitive advantage in executing that plan, an advantage based on our proprietary origination engine of ArcHome, combined with the broad resource resources and expertise of Angelo Gordon's structured credit group. As TJ and Nick will discuss, our origination and securitization activities year to date have been comfortably within our projected range of a 14 to 18 percent return on equity. We have also been pleased with the volume and quality of our originations, as well as the continued rollout of new origination programs and new origination channels, all of which will help propel our growth over the long term. As we shift our lower yielding investments and excess liquidity into these very attractive returns, we have continued to make progress towards realizing the full earnings potential of our go-forward strategy. For the third quarter, our earnings were heavily influenced by the exit of our legacy assets. Our third quarter gap earnings per share was $1.87, and our core earnings per share was $0.96. As we did on our second quarter earnings call, we'd like to point out that core earnings does not capture certain important elements of our originate and securitize go-forward business plan and Anthony will highlight that later in the call. For the third quarter, we maintained our dividend of 21 cents per share. Future dividend decisions, which of course are always subject to Board approval, will be influenced by our expectations and projections of the continued execution of our rotation into our go-forward strategy and the resulting positive effect we believe that we'll have. I will now turn the call over to TJ.