Granite Point Mortgage Trust Inc (NYSE:GPMT) Q4 2019 Earnings Conference Call - Final Transcript

Mar 03, 2020 • 10:00 am ET

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Granite Point Mortgage Trust Inc (NYSE:GPMT) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Kate, and I will be the conference facilitator. At this time, I would like to welcome everyone to Granite Point Mortgage Trust's Fourth Quarter 2019 Financial Results Conference Call. All participants will be in listen-only mode. After the speakers' remarks, there will be a question-and-answer Period.

I would now like to turn over the call to Chris Petta with Investor Relations for Granite Point.

Executive
Chris Petta

Thank you, and good morning everyone. Thank you for joining our call to discuss Granite Point's fourth quarter 2019 financial results. With me on the call this morning are Jack Taylor, our President and CEO; Marcin Urbaszek, our CFO; Steve Alpart, our CIO; and Steve Plust, our COO.

After my introductory comments, Jack will review our business activities and a brief recap of market conditions; Steve Alpart will discuss our fourth quarter originations, our portfolio and pipeline; and Marcin will highlight key items from our financial results.

The press release and financial tables associated with today's call as well as our Form 10-Q were filed yesterday with the SEC. If you do not have a copy, you may find them on our website or on the SEC's website at sec.gov. In our earnings release and slides, which are now posted in the Investor Relations section of our website, we have provided a reconciliation of GAAP to non-GAAP financial measures. We urge you to review this information in conjunction with today's call. I would also like to mention that this call is being webcast and may be accessed on our website in the same location.

Before I turn the call over to Jack, I would like to remind you that remarks made by management during this conference call and the supporting slides may include forward-looking statements. Forward-looking statements reflects our views regarding future events and are typically associated with the use of words such as anticipate, expect, estimate, and believe or other such words. We caution investors not to rely unduly on forward-looking statements. They imply risks and uncertainties and actual results may differ materially from expectations. We urge you to carefully consider the risks described in our filings with the SEC, which may be obtained on the SEC's website at sec.gov. We do not undertake any obligation to update or correct any forward-looking statements if later events prove them to be inaccurate.

I will now turn the call over to Jack.

Executive
John A. Taylor

Thank you, Chris, and good morning, everyone. We would like to welcome you all, and thank you for joining our fourth quarter and full year 2019 earnings call. 2019 was a very successful year for Granite Point. We had strong growth across the board as we capitalized on attractive market opportunities. We grew our direct loan originations to a record $2 billion of total commitments, which was 27% higher than the prior year, while maintaining our emphasis on credit underwriting and loan structuring.

Our portfolio's outstanding principal balance increased to $4.3 billion or 33% higher than year-end 2018. Our total portfolio