TPG Mortgage Investment Trust, Inc.

Good day and thank you for standing by. Welcome to the AG Mortgage Trust third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After management's remarks, there will be a question and answer session. In order to ask a question during the session, please press star 1 on your telephone keypad. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I'd now like to turn the call over to Jenny Neslin, General Counsel for the company. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to the third quarter 2023 earnings call for AG Mortgage Investment Trust. With me on the call today are T.J. Durkin, our CEO and President, Nick Smith, our Chief Investment Officer, and Anthony Rossiello, 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 risks, 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 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, 2022, our quarterly report on Form 10-Q for the quarter ended June 30, 2023, and our subsequent reports filed from time to time 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 reconciliation 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 Q3 2023 earnings presentation on the homepage. Again, welcome to the call, and thank you for joining us today. With that, I'd like to turn the call over to TJ.

Thank you, Jenny. Good afternoon, everyone. The third quarter continued to be a challenging one for both fixed income and mortgage markets. but I'm extremely happy with how MID performed and what was a busy quarter for the team. I think the team did a great job of protecting book value again, as we have over the past few quarters. With a modest drop in adjusted book value of just 14 cents from $11.52 per share in June to $11.38, before factoring in one-time transaction-related expenses of $7.6 million, driving adjusted book value to an even $11 per share as of quarter end. During the quarter, MIT generated $0.10 of AD and paid its $0.18 dividend. We are reporting a $0.33 loss, again, mainly driven by one-time transaction expenses, as well as the valuation adjustment on our column, which Anthony will walk through in more detail. As we discussed in prior calls, our prudent and disciplined securitization strategy is beginning to evidence itself in our earnings power. The EAD improvement quarter over quarter reflects a combination of higher NIM off of our investment portfolio and related hedging strategy, as well as improving fundamentals of our CONE. During the third quarter, we remained disciplined, completing two securitizations, which lowered our economic leverage to 1.2 times from 1.6 times. and have ample liquidity of almost $119 million to end the quarter. As I stated last quarter, we continue to see an environment with higher ROEs based on some competition retreating and opportunities that we believe are just beginning to present themselves given the lingering effects of the destruction amongst the regional bank balance sheets. Finally, to address the WMC merger, we are happy to report our shareholders' vote today was successful in approving the merger. Meanwhile, as you may be aware, WMC adjourned its shareholders meeting due to a lack of quorum and is still in process of obtaining the required shareholder approval. The WMC board continues to unanimously recommend that WMC stockholders approve the transaction, and we will continue to work with them towards successfully completing the merger. The transaction is still expected to close during the fourth quarter. Now, as we head into the fourth quarter in 2024, I believe we have taken material actions to help improve the profitability of MIT for the future through the strategic merger with WMC to gain scale efficiencies, along with our focus on improving ARK Homes' volumes and profitability through management changes, which we believe is now complete with ARK Homes' recent addition of Brian Devlin as its new incoming president and will become ARK's home CEO. With more than two decades of diverse mortgage industry experience, Brian's extensive background in product development, capital markets, and the non-agency space positions him as the ideal leader to steer ARK Home during its next phase of growth. The ARK Home team is very excited for what lies ahead. I'll now turn it over to Nick to discuss our investment activities and ARK Home in more detail.