TPG Mortgage Investment Trust, Inc.

Good day and thank you for standing by. Welcome to the AG Mortgage Investment Trust Inc. Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management remarks, there will be a question and answer session. In order to ask a question during the session, please press the star key followed by the number one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then zero. I'd now like to turn the call over to Jenny Neslin, General Counsel for the company. Please go ahead.

Thank you. Good morning, everyone, and welcome to the third quarter 2024 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 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 31st, 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 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 Q3 2024 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. I'm pleased to report our third quarter financials, which shows our continued execution of the core business strategy. Walking through MIT's financial position as of September 30th, we saw book value move higher from 1037 to 1058 while paying our 19 cent dividend and producing a healthy economic return on equity of 3.9% for the quarter, with it being too early to give an estimate of October book value. During the quarter, we earned $15.8 million of net interest income, $0.40 of earnings per share, and $0.17 of EAD per share. The level of EAD for this quarter is largely driven by model assumptions of increased future prepayment speeds on our loan portfolio given the large rate rally that occurred during the quarter. These prepayments have not been realized yet, and given both the non-agency emphasis of our portfolio and the reversal in rates that has occurred in October, These may be conservative in terms of EAD. With regards to the balance sheet, we reduced leverage back to 1.5 turns during the quarter. As previously discussed, we issued approximately $100 million of investment-grade unsecured bonds earlier this year in anticipation of the $86 million WMC convertible note maturity date on September 16th, which is now fully retired. which also came down as we sold temporary holdings of agency MBS to offset cash drag heading into the convertible note maturity. After accounting for this deleveraging, we ended the quarter with ample liquidity of approximately $120 million. MID had another active quarter issuing two agency eligible non-owner occupied securitizations totaling approximately $750 million. We are sourcing this collateral from both Arc Home and some of the largest mortgage originators in the country. This quarter's issuance further strengthened our market-leading position in this compelling space where we are seeing credit outperform even prime jumbo this year. Another area we are excited about is the home equity space. As borrowers look to tap their growing home equity amounts while preserving their low 30-year fixed-rate mortgage, we believe we are in the very early innings of this product becoming more mainstream for U.S. consumers, and Nick will go into further detail later in the call. Wrapping up, we normally stay away from macro and certainly politics, but given it's Election Day, I'll make a few brief comments. Housing supply and affordability remain hot topics that all politicians like to pontificate on. Unfortunately, we see no silver bullet to solve the affordability or supply constraints facing the nation. On the positive side, tight mortgage credit and resilient home prices are positive for Mitch Credit Book, and we believe the market is coalescing around this fact. With regards to the macro, as displayed by this quarter's book value performance, we believe MIT is fundamentally less exposed to interest rate volatility than the average mortgage rate. While a steeper, positively sloped yield curve would be supportive of earnings power, we believe MIT can still deliver strong results in this flat curve environment as we all wait to see how the Fed handles this soft landing economic scenario. I'll now turn the call over to Nick.