New York Mortgage Trust, Inc. (NASDAQ:NYMT) Q2 2022 Earnings Conference Call August 3, 2022 9:00 AM ET
Company Participants
Jason T. Serrano - President & CEO
Kristine R. Nario-Eng - CFO
Conference Call Participants
Douglas Harter - Crédit Suisse
Christopher Nolan - Ladenburg Thalmann & Co.
Eric Hagen - BTIG
Stephen Laws - Raymond James
Matthew Howlett - B. Riley Securities
Operator
Good morning, ladies and gentlemen and thank you for standing by. Welcome to the New York Mortgage Trust Second Quarter 2022 Results Conference Call. [Operator Instructions]. This conference is being recorded on Wednesday, August 3, 2022. A press release and supplemental financial presentation with New York Mortgage Trust's second quarter 2022 results was released yesterday. Both the press release and supplemental financial presentation are available on the company's website at www.nymtrust.com. Additionally, we are hosting a live webcast of today's call, which you can access in the Events & Presentations section of the company's website.
At this time, management would like me to inform you that certain statements made during the conference call which are not historical may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although New York Mortgage Trust believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors and risks that could cause actual results to differ materially from expectations are detailed in yesterday's press release and from time to time in company's filings with the Securities and Exchange Commission. Now at this time, I would like to introduce Jason Serrano, CEO and President. Jason, please go ahead.
Jason T. Serrano
Thank you very much. Good morning. Thank you for taking the time to join our earnings call this morning. I am here joined with Kristine Nario, our CFO. We are excited to talk to you this morning about the developments in this market. We have seen the market actually transition to a buyer’s market for the first time in quite some time and the construction of our balance sheet will allow us to take advantage of these latest trends. But before we get into this let’s cover our second quarter highlights. In the quarter we incurred a loss of $0.22 per share. This was a function largely of an unrealized loss that we incurred on our balance sheet resulting in a negative 0.4% loss to our book value in the quarter. Now due to the increase of allocations is scratch and dent to, sorry, to a bridge loans over the course of the last 18 months as well as holding recourse leverage below one times we were able to limit losses given the extreme volatility we saw in the interest rate markets. Now after declaring a $0.10 dividend our quarterly economic return on undepreciated book value resulted in negative 2.5%.