MMA Capital Management, LLC (NASDAQ:MMAC) Q1 2020 Earnings Conference Call - Final Transcript

May 12, 2020 • 04:30 pm ET


MMA Capital Management, LLC (NASDAQ:MMAC) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the MMA Capital Holdings, Inc. 2020 First Quarter Financial Results and Business Update Conference Call. My name is Rocco, and I will be your coordinator for today. At this time, all participants are in a listen-only mode. We will facilitate a question-and-answer session at the end of this conference call. [Operator Instructions]

Please also note, this conference is being recorded. Some comments today will include forward-looking statements regarding future events and projections of financial performance of MMA Capital Holdings, which are based on current expectations. These comments are subject to significant risks and uncertainties, which include those identified in the company's filings with the Securities and Exchange Commission that could cause actual results to differ materially from those expressed in these forward-looking statements.

Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to update any of the information contained in the forward-looking statements.

I would now like to turn the call over to Mr. Michael Falcone, CEO of MMA Capital Holdings.

Michael Falcone

Thank you, Rocco. Good afternoon, everyone, and welcome. With me on the call today are Dave Bjarnason, our Chief Financial Officer; Gary Mentesana, our President and Chief Operating Officer; and Megan Sophocles, Senior Vice President and Treasurer.

The purpose of our call today is to review MMA Capital Holdings 2020 first quarter financial results and to provide an overall business update. Our first quarter report was filed with the SEC yesterday, and an updated investor presentation is available on our website.

For our call today I will begin my prepared remarks with a recap of the results for the quarter, including the impacts we saw in Q1 from COVID-19. Then I'll turn the call over to Gary and Dave for a more detailed review of our operations and financial performance. Finally, before we wrap up the prepared remarks and open the call for questions, I'll provide an update of the company's operating and capital plans for the near-term as we continue to navigate a period of great uncertainty for the US and global economies.

With respect to the financial results, we reported that the company ended the quarter with $277.7 million of common shareholders' equity or book value -- or adjusted book value, which represents book value, excluding the carrying value of the company's deferred tax assets was $218.3 million.

Book value decreased $3.5 million or $0.61 per share in the first quarter, while adjusted book value saw a $5.1 million or $0.90 per share decrease for the same period. As Dave will further discuss, such decreases were primarily driven by $7.5 million of net fair value losses that were recognized in conjunction with bond investments, derivatives and certain loans originated and held by our Solar Ventures.

As of quarter end, the net fair value losses were themselves, driven primarily by the impact of COVID-19 on interest rates, rather than credit quality, specifically an increase in