Broadmark Realty Capital Inc. (BRMK) Q2 2022 Results Conference Call August 8, 2022 5:00 PM ET

Company Participants

Nevin Boparai - General Counsel

Brian Ward - CEO

David Schneider - CFO

Conference Call Participants

Steve Delaney - JMP Securities

Crispin Love - Piper Sandler

Stephen Laws - Raymond James

Eric Hagen - BTIG

Matthew Howlett - B. Riley

Operator

Greetings. Welcome to Broadmark Realty Capital Second Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to Nevin Boparai, General Counsel. Thank you. You may begin.

Nevin Boparai

Good afternoon. Thank you for joining us today for Broadmark Realty Capital's second quarter 2022 earnings conference call. In addition to the press release issued this afternoon, we have filed a supplemental package with additional detail on our results, which is available in the Investors section on our website at www.broadmark.com.

As a reminder, remarks made on today's conference call may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today. We do not undertake any obligation to update our forward-looking statements in light of new information or future events. For a more detailed discussion of the factors that may affect the Company's results, please refer to our earnings release for this quarter and to our most recent SEC filings.

During this call, we will also be discussing certain non-GAAP financial measures. More information about these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are contained in our earnings release and SEC filings.

This afternoon's conference call is hosted by Broadmark's Chief Executive Officer, Brian Ward; and Chief Financial Officer, David Schneider. Management will make some prepared comments, after which we will open up the call to your questions.

Now, I will turn the call over to Brian.

Brian Ward

Thank you, Nevin, and welcome to our second quarter 2022 earnings call.

This afternoon, I'll begin with some remarks on the macro environment and briefly highlight our second quarter performance, and then turn the call over to David to provide additional detail on our financial results, investment activity and portfolio. We will then open up the call for your questions.

2022 has presented unique and perhaps unprecedented challenges to the economy and financial markets. Spiraling supply-side inflation in the first half of the year caused the Federal Reserve to begin a rate hike cycle that continued into July, within the target Fed fund’s range of 250 basis points since January. Mortgage rates rose in response, reaching over 6% in June before falling over the past few weeks. The recent drop in interest and mortgage rates, while welcome news, is most likely due to recession fears, which are now front and center with two consecutive quarters of negative real GDP growth on the books.