AG Mortgage Investment Trust suffers losses in latest financial report

Highlights include its investment portfolio increasing by approximately $4 million to $4.1 billion as of June 30. Purchased non-agency loans and agency-eligible loans with an unpaid principal balance totaled $347.1 million and have a current pipeline of $492.5 million.

AG Mortgage also executed a rated non-agency loan securitization of $524.8 million of unpaid principal balance and a rated agency-eligible loan transaction of $425.5 million of UPB during the quarter.

“We see no deterioration in credit performance in the residential mortgage whole loans and securities we own,” Roberts said. “On a further positive note, our current originations reflect fully the move in credit spreads as of today based on what our team is observing in the securitization market. Our goal remains to increase originations over time, subject to our ability to match coupons with financing costs. In the second quarter, we fully utilized our common stock repurchase program and repurchased 1.4 million shares for an average price of $7.70 per share.

“This helped offset our book value decline by about $0.29 per share. Our board has authorized a new common stock repurchase program of $15 million. We paid a dividend of $0.21 per common share for the second quarter, consistent with the past four quarters. Our dividend policy will continue to be guided by our view of earnings on a go-forward basis over a multi-quarter period.

“In other words, our dividend policy is not based on looking in the rearview mirror. Going forward, we will continue to execute our business plan. We strongly believe in our origination to securitization strategy. Our infrastructure has given us the ability to continue growing our portfolio into higher-yielding assets in both our home and other origination partners, supporting our ability to remain active in the securitization market and to deliver attractive long-term returns to our shareholders.”

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