ARMOUR Residential REIT, Inc. (NYSE:ARR) Q1 2023 Results Conference Call April 27, 2023 8:00 AM ET

Company Participants

Jim Mountain - Chief Financial Officer

Scott Ulm - Co-Chief Executive Officer, Head of Risk Management and Co-Vice Chairman

Jeff Zimmer - Co-Chief Executive Officer, President and Co-Vice Chairman

Mark Gruber - Chief Investment Officer

Conference Call Participants

Trevor Cranston - JMP Securities

Doug Harter - Credit Suisse

Christopher Nolan - Ladenburg Thalman

Matthew Howlett - B. Riley

Operator

Good morning, and welcome to ARMOUR Residential REIT's First Quarter 2023 earnings conference call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Jim Mountain, Chief Financial Officer. Please go ahead.

Jim Mountain

Thank you, Andrew, and thank you all for joining our call to discuss ARMOUR's first quarter 2023 results. This morning, I'm joined by ARMOUR's Co-CEOs, Scott Ulm and Jeff Zimmer; and by Mark Gruber, our CIO.

By now, everyone has access to ARMOUR's earnings release, which can be found on ARMOUR's website, www.armourreit.com. This conference call includes forward-looking statements, which are intended to be subject to the safe harbor protection provided by the Private Securities Litigation Reform Act of 1995. The Risk Factors section of ARMOUR's public reports filed with the Securities and Exchange Commission, described certain factors beyond ARMOUR's control that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements.

Those periodic filings can be found on ARMOUR's SEC -- on the SEC's website at www.sec.gov. All of today's forward-looking statements are subject to change without notice. We disclaim any obligation to update them unless required to do so by law. Also, today's discussion refers to certain non-GAAP measures. These measures are reconciled to comparable GAAP measures in our earnings release. An online replay of this conference call will be available on ARMOUR's website shortly and will continue for 1 year.

ARMOUR's Q1 comprehensive loss related to common stockholders was $22.8 million, which includes $31.4 million of GAAP net loss. Net interest income was $12 million, and net interest margin for the quarter was 1.97%. Distributable earnings available to common stockholders was $49.3 million or $0.27 per common share. This non-GAAP measure is defined as net interest income plus TBA drop income adjusted for the net coupon effective interest rate swaps and then minus our net operating expenses.

ARMOUR Capital Management is continuing to waive a portion of their management fees. They waived million $1.65 million for Q1, which offsets operating expenses. The waiver will continue until further notice. ARMOUR paid monthly common dividends of $0.10 per share for January, $0.10 for February and $0.08 for March for a total of $0.28 for the quarter.