PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Granite Point Mortgage Trust Inc. is an internally-managed REIT focused on originating and managing senior floating-rate commercial mortgage loans, with a $3.8 billion portfolio as of December 31, 2021 - The company is an internally-managed real estate finance company specializing in originating, investing in, and managing **senior floating-rate commercial mortgage loans** and other debt-like commercial real estate investments[19](index=19&type=chunk) Portfolio Summary as of December 31, 2021 | Metric | Value | | :--- | :--- | | Number of Investments | 105 | | Total Principal Balance | $3.8 billion | | Future Funding Obligations | $0.4 billion | | Portfolio Composition (by carrying value) | 98.8% floating rate | | Weighted Avg. Stabilized LTV | 63.5% | | Weighted Avg. All-in Yield | L+4.07% | - The company finances operations through equity, debt, repurchase facilities, term financing, and CRE CLOs, with a **$2.1 billion** maximum borrowing capacity as of December 31, 2021[32](index=32&type=chunk)[33](index=33&type=chunk) - Operating as a REIT, the company must distribute substantially all net taxable income to stockholders to avoid federal income taxes and maintain Investment Company Act exclusion[21](index=21&type=chunk)[54](index=54&type=chunk) [Item 1A. Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, lending activities, financing, interest rate fluctuations, and the need to maintain REIT status - The COVID-19 pandemic poses significant risks to financial condition and loan portfolio value, leading to a **$42.4 million CECL reserve** as of December 31, 2021[62](index=62&type=chunk)[66](index=66&type=chunk) - Exposure to debt-oriented real estate investments carries risks of borrower defaults, property value deterioration, and intense competition from other lenders[66](index=66&type=chunk)[68](index=68&type=chunk) - Financing and hedging activities involve risks such as substantial debt, restrictive covenants, margin calls, and increased financing costs due to interest rate fluctuations[126](index=126&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - Structural risks include maintaining REIT qualification and Investment Company Act exemption, with failure to qualify as a REIT leading to significant corporate tax liability[151](index=151&type=chunk)[188](index=188&type=chunk) - The discontinuation of LIBOR and transition to SOFR poses risks, as **98.8% of loans** and **100% of financing arrangements** were LIBOR-indexed at year-end 2021, potentially increasing interest costs and creating mismatches[121](index=121&type=chunk)[122](index=122&type=chunk) [Item 1B. Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the Securities and Exchange Commission - No unresolved staff comments were reported[218](index=218&type=chunk) [Item 2. Properties](index=40&type=section&id=Item%202.%20Properties) The company does not own real property, operating from sub-leased headquarters in New York and leased facilities in Minnesota - The company's principal executive office is in New York, with additional leased office space in St. Louis Park, Minnesota[219](index=219&type=chunk) - The company does not own any real property[219](index=219&type=chunk) [Item 3. Legal Proceedings](index=40&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any material litigation or legal proceedings that would adversely affect its financial condition - The company is not currently party to any material litigation or legal proceedings[220](index=220&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable[221](index=221&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, with a policy to distribute taxable income as dividends and a share repurchase program active in 2021 - The company's common stock is traded on the NYSE under the symbol **"GPMT"**[224](index=224&type=chunk) - The dividend policy aims to distribute substantially all annual taxable income to comply with REIT provisions, subject to board discretion[226](index=226&type=chunk) - In 2021, the company repurchased **1,301,612 shares** of common stock at a weighted average price of **$13.65 per share**, totaling **$17.8 million**[233](index=233&type=chunk) - The share repurchase program was increased to **4,000,000 shares** in December 2021, with **2,698,388 shares** remaining authorized as of year-end[232](index=232&type=chunk)[233](index=233&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, the company achieved GAAP net income of $67.6 million, driven by CECL reserve release, active loan portfolio management, and a shift towards non-mark-to-market financing 2021 Key Financial Results | Metric | 2021 | 2020 | | :--- | :--- | :--- | | GAAP Net Income (loss) | $67.6 million | $(40.5) million | | GAAP EPS (basic) | $1.24 | $(0.73) | | Distributable Earnings | $54.3 million | $64.7 million | | Distributable EPS (basic) | $0.99 | $1.17 | | Book Value per Share | $16.70 | $16.92 | | Dividends Declared per Share | $1.00 | $0.65 | Loan Portfolio Activity (Year Ended Dec 31) | Activity (in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Loan originations | $673,638 | $125,169 | | Other loan fundings | $150,644 | $238,989 | | Loan repayments | $(960,330) | $(517,295) | | Loan write-offs | $(9,740) | $— | | **Total loan activity, net** | **$(135,609)** | **$(355,585)** | - The company significantly shifted to non-mark-to-market financing, comprising **73.2% of portfolio financing** by year-end 2021, primarily through **$1.4 billion** in CRE CLO issuances[245](index=245&type=chunk)[281](index=281&type=chunk) - The CECL reserve decreased by **$20.0 million** in 2021 to **$42.4 million**, due to high-risk loan repayments, improved forecasts, and a resolved loan write-off[275](index=275&type=chunk) - The company prepaid **$75.0 million** of senior secured term loans in December 2021, incurring an **$8.9 million** loss on early extinguishment of debt[335](index=335&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages credit, interest rate, and liquidity risks, amplified by COVID-19, through portfolio diversification, matching floating-rate assets and liabilities, and diversifying funding sources - Primary market risks include credit, interest rate, liquidity, and real estate market risks, all exacerbated by the COVID-19 pandemic[387](index=387&type=chunk)[388](index=388&type=chunk) - As of December 31, 2021, **98.8% of the loan portfolio** earned a floating rate, mitigating interest rate risk by matching with floating-rate liabilities[393](index=393&type=chunk) Interest Rate Sensitivity Analysis (as of Dec 31, 2021) | Change in Interest Rates | Change in Annualized Net Interest Income (in thousands) | | :--- | :--- | | +100 bps | $(15,313) | | +50 bps | $(8,316) | | -50 bps | $2,286 | | -100 bps | $2,286 | - Liquidity risk arises from financing longer-maturity assets with shorter-term borrowings, with potential for margin calls from collateral value decreases or financing disruptions[405](index=405&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=76&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2021, including balance sheets, income statements, and cash flows, with an unqualified auditor's opinion from Ernst & Young LLP Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Loans held-for-investment, net | $3,741,308 | $3,847,803 | | Total Assets | $3,988,518 | $4,219,648 | | Total Liabilities | $2,974,335 | $3,284,802 | | Total Stockholders' Equity | $1,013,058 | $933,846 | Consolidated Income Statement Highlights (in thousands) | Account | 2021 | 2020 | | :--- | :--- | :--- | | Total Interest Income | $198,288 | $237,713 | | Total Interest Expense | $105,580 | $112,935 | | Net Interest Income | $92,708 | $124,778 | | Benefit from (provision for) credit losses | $20,027 | $(53,710) | | Net Income (Loss) Attributable to Common Stockholders | $67,560 | $(40,539) | - Ernst & Young LLP issued an unqualified opinion on financial statements and internal control effectiveness, identifying the allowance for credit losses as a critical audit matter[413](index=413&type=chunk)[414](index=414&type=chunk)[420](index=420&type=chunk) - As of December 31, 2021, two loans were on nonaccrual status, with an unpaid principal balance of **$168.1 million** and a carrying value of **$145.4 million**[513](index=513&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures](index=118&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) The company reports no changes in or disagreements with its accountants regarding accounting principles or disclosures - No changes in or disagreements with accountants were reported[633](index=633&type=chunk) [Item 9A. Controls and Procedures](index=118&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021 - Management concluded that disclosure controls and procedures were effective as of December 31, 2021[634](index=634&type=chunk) - Management assessed internal control over financial reporting as effective based on the COSO 2013 framework as of December 31, 2021[636](index=636&type=chunk)[637](index=637&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended December 31, 2021[635](index=635&type=chunk) [Item 9B. Other Information](index=120&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - No other information was reported for this item[649](index=649&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=120&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - This item is not applicable[650](index=650&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=121&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 Proxy Statement - Information for this item is incorporated by reference from the 2022 Annual Meeting of Stockholders Proxy Statement[652](index=652&type=chunk) [Item 11. Executive Compensation](index=121&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation details, including Compensation Discussion and Analysis, are incorporated by reference from the 2022 Proxy Statement - Information for this item is incorporated by reference from the 2022 Annual Meeting of Stockholders Proxy Statement[653](index=653&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=121&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information for beneficial owners and management is incorporated by reference from the 2022 Proxy Statement - Information for this item is incorporated by reference from the 2022 Annual Meeting of Stockholders Proxy Statement[654](index=654&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=121&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Details on related party transactions and director independence are incorporated by reference from the 2022 Proxy Statement - Information for this item is incorporated by reference from the 2022 Annual Meeting of Stockholders Proxy Statement[655](index=655&type=chunk) [Item 14. Principal Accounting Fees and Services](index=121&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Principal accounting fees and services information is incorporated by reference from the 2022 Proxy Statement - Information for this item is incorporated by reference from the 2022 Annual Meeting of Stockholders Proxy Statement[656](index=656&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=122&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed with the Form 10-K, including consolidated financial statements and the auditor's report - This section includes consolidated financial statements, the auditor's report, and Schedule IV - Mortgage Loans on Real Estate[659](index=659&type=chunk) - A detailed Exhibit Index provides a comprehensive list of all filed documents, including corporate governance and material contracts[660](index=660&type=chunk)[662](index=662&type=chunk) [Item 16. Form 10-K Summary](index=128&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for this Form 10-K - No summary has been provided for this Form 10-K[668](index=668&type=chunk)

GRANITE POINT MORTGAGE TRUST Investor Presentation | November 2021 Safe Harbor Statement This presentation contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not rely on these forward-looking ...

G R A N I T E P O I N T MORTGAGE TRUST Third Quarter 2021 Earnings Presentation November 9, 2021 Safe Harbor Statement This presentation contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not ...

Granite Point Mortgage Trust Inc. (NYSE:GPMT) Q3 2021 Earnings Conference Call November 9, 2021 10:00 AM ET Company Participants Chris Petta – Investor Relations Jack Taylor – President and Chief Executive Officer Steve Alpart – Chief Investment Officer and Co-Head of Originations Marcin Urbaszek – Chief Financial Officer Conference Call Participants Josh Bolton – Credit Suisse Chris Muller – JMP Securities Operator Good morning. My name is Grant, and I will be your conference facilitator. At this time, I w ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38124 GRANITE POINT MORTGAGE TRUST INC. (Exact name of registrant as specified in its charter) Maryland 61-1843143 (State or other jur ...

G R A N I T E P O I N T MORTGAGE TRUST Second Quarter 2021 Earnings Presentation August 10, 2021 Safe Harbor Statement This presentation contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not ...

Granite Point Mortgage Trust Inc. (NYSE:GPMT) Q2 2021 Earnings Conference Call August 10, 2021 10:00 AM ET Company Participants Chris Petta - Investor Relations Jack Taylor - President and Chief Executive Officer Marcin Urbaszek - Chief Financial Officer Steve Alpart - Chief Investment Officer and Co-Head of Originations Peter Morral - Chief Development Officer and Co-Head of Originations Steve Plust - Chief Operating Officer Conference Call Participants Doug Harter - Credit Suisse Steve Delaney - JMP Secur ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for Granite Point Mortgage Trust Inc [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited financial statements for Q2 2021 show a decrease in total assets, a return to net income, and a slight increase in total equity [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets reflect changes in assets, liabilities, and equity, notably a reduction in loans and a shift in financing | | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | **Total Assets** | **$3,854.5** | **$4,219.6** | | Loans held-for-investment, net | $3,577.6 | $3,847.8 | | Cash and cash equivalents | $237.0 | $261.4 | | **Total Liabilities** | **$2,907.2** | **$3,284.8** | | Repurchase facilities | $717.2 | $1,708.9 | | Securitized debt obligations | $1,446.6 | $927.1 | | **Total Equity** | **$946.3** | **$933.8** | - Total assets decreased primarily due to a reduction in the net loan portfolio. On the liability side, borrowings under repurchase facilities were significantly reduced from **$1.71 billion** to **$717.2 million**, while securitized debt obligations increased from **$927.1 million** to **$1.45 billion**, reflecting a shift in financing strategy[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(loss)) The statements show a return to profitability in Q2 2021, driven by a benefit from credit losses and reduced expenses | (in millions) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net interest income | $22.8 | $34.4 | | Benefit from (provision for) credit losses | $0.2 | $(14.2) | | Total expenses | $8.7 | $15.0 | | **Net income (loss)** | **$14.3** | **$(1.7)** | | **Net income (loss) attributable to common stockholders** | **$14.2** | **$(1.8)** | | **Basic earnings (loss) per share** | **$0.26** | **$(0.03)** | | **Diluted earnings (loss) per share** | **$0.24** | **$(0.03)** | - The company returned to profitability in Q2 2021 compared to a loss in Q2 2020, primarily driven by a **$14.4 million** positive swing in the provision for credit losses and a **$6.3 million** reduction in total expenses, which more than offset an **$11.6 million** decrease in net interest income[13](index=13&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased due to net income, partially offset by dividends and share repurchases - For the six months ended June 30, 2021, total stockholders' equity increased by **$12.4 million**, with key changes including net income of **$42.3 million**, offset by common dividends declared of **$27.9 million** and common stock repurchases of **$4.3 million**[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows reflect significant loan repayments, new originations, and a shift in financing activities | (in millions) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30.7 | $32.3 | | Net cash provided by (used in) investing activities | $295.8 | $(131.8) | | Net cash used in financing activities | $(416.7) | $(0.8) | | **Net decrease in cash, cash equivalents and restricted cash** | **$(90.2)** | **$(100.3)** | - For the first six months of 2021, significant cash inflows from loan repayments (**$524.6 million**) were offset by loan originations (**$228.8 million**)[19](index=19&type=chunk) - Major financing activities included net repayments on repurchase facilities of nearly **$1 billion**, proceeds from new securitized debt of **$685.8 million**, and proceeds from a new term financing facility of **$349.3 million**[19](index=19&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical context on the company's operations as a REIT and significant accounting estimates - The company is an internally managed real estate finance company operating as a REIT, having transitioned from being externally managed on December 31, 2020[22](index=22&type=chunk)[24](index=24&type=chunk) - The financial statements are prepared under GAAP and include significant estimates, particularly for the allowance for credit losses, with uncertainty heightened by the COVID-19 pandemic[28](index=28&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2021 financial performance, portfolio changes, financing strategy shifts, and credit quality trends [Second Quarter 2021 Activity](index=31&type=section&id=Second%20Quarter%202021%20Activity) This section highlights key operational and financial achievements and transactions during Q2 2021 - Key operational and financial activities for Q2 2021 included: - GAAP net income of **$13.7 million**, or **$0.25** per basic share[146](index=146&type=chunk) - Distributable Earnings of **$15.7 million**, or **$0.29** per basic share[148](index=148&type=chunk) - Originated seven new loans with total commitments of **$203.8 million**[148](index=148&type=chunk) - Received **$423.0 million** in loan repayments and principal amortization[148](index=148&type=chunk) - Issued a new **$824 million** CRE CLO (GPMT 2021-FL3)[148](index=148&type=chunk) - Extended maturities on two repurchase financing facilities[148](index=148&type=chunk) - Repurchased **300,891** shares of common stock for **$4.3 million**[148](index=148&type=chunk) [Key Financial Measures and Indicators](index=33&type=section&id=Key%20Financial%20Measures%20and%20Indicators) This section presents core financial metrics including GAAP net income, Distributable Earnings, and book value per share | (in millions) | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | GAAP net income attributable to common stockholders | $14.2 | $42.2 | | (Benefit from) provision for credit losses | $(0.2) | $(9.3) | | Non-cash equity compensation | $1.6 | $3.5 | | **Distributable Earnings** | **$15.7** | **$36.4** | | **Distributable Earnings per basic share** | **$0.29** | **$0.66** | - Book value per common share increased to **$17.27** as of June 30, 2021, from **$16.92** at December 31, 2020[157](index=157&type=chunk) - This book value includes an estimated allowance for credit losses of **$62.9 million**, or **$1.15** per common share[157](index=157&type=chunk) [Portfolio Overview and Credit Quality](index=36&type=section&id=Portfolio%20Overview%20and%20Credit%20Quality) This section details the loan portfolio composition, risk ratings, and specific credit quality concerns | Portfolio Summary | As of June 30, 2021 | | :--- | :--- | | Number of loans | 99 | | Total loan commitments | $4.1 billion | | Unpaid principal balance | $3.6 billion | | Weighted-average all-in yield | L+4.13% | | Stabilized LTV at origination | 63.5% | - The weighted average risk rating of the loan portfolio was **2.8**, an increase from **2.7** at March 31, 2021[160](index=160&type=chunk) - Three loans with a total unpaid principal balance of **$237.1 million** were downgraded to a risk rating of "**5**" (Loss Likely)[179](index=179&type=chunk) - Three loans were placed on nonaccrual status during the quarter: a hospitality asset in Minneapolis, a retail asset in Pasadena, and an office property in Washington D.C[181](index=181&type=chunk)[182](index=182&type=chunk) - The company recorded specific allowances for credit loss on these collateral-dependent loans totaling **$32.1 million**[184](index=184&type=chunk) [Portfolio and Corporate Financing](index=44&type=section&id=Portfolio%20and%20Corporate%20Financing) This section outlines the company's financing structure, including a shift towards non-mark-to-market sources - Approximately **70%** of the company's portfolio loan-level financing was from non-mark-to-market sources as of June 30, 2021, including CRE CLOs, a term financing facility, and an asset-specific financing facility[185](index=185&type=chunk) | Financing Type | June 30, 2021 (in millions) | December 31, 2020 (in millions) | | :--- | :--- | :--- | | CRE CLOs | $1,446.6 | $927.1 | | Term financing facility | $142.4 | $— | | Asset-specific financing facility | $82.8 | $123.1 | | Secured repurchase agreements | $717.2 | $1,708.9 | | **Total portfolio financing** | **$2,389.0** | **$2,759.1** | - The company was in compliance with all financial covenants as of June 30, 2021, including minimum unrestricted cash, tangible net worth, leverage ratios, and interest coverage[208](index=208&type=chunk) [Results of Operations](index=55&type=section&id=Results%20of%20Operations) This section analyzes the drivers of net interest income, expenses, and the provision for credit losses - Net interest income decreased to **$22.8 million** in Q2 2021 from **$34.4 million** in Q2 2020, primarily due to a smaller average loan portfolio and a significant decline in short-term interest rates[225](index=225&type=chunk)[218](index=218&type=chunk) - Total expenses decreased to **$8.7 million** in Q2 2021 from **$15.0 million** in Q2 2020, driven by the elimination of the **$4.0 million** external base management fee following the company's internalization, and lower advisory and legal fees[231](index=231&type=chunk)[235](index=235&type=chunk) - The company recorded a benefit from provision for credit losses of **$0.2 million** in Q2 2021, compared to a provision of **$14.2 million** in Q2 2020, reflecting moderately improved macroeconomic expectations and portfolio changes, offset by an increased allowance on certain collateral-dependent loans[236](index=236&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's available liquidity, capital structure, and primary cash needs | Source of Liquidity | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $237.0 | | Delayed draw on senior secured term loan facilities | $75.0 | | **Total** | **$312.0** | - The total debt-to-equity ratio (net of cash) decreased to **2.8:1.0** at June 30, 2021, from **3.0:1.0** at March 31, 2021[243](index=243&type=chunk) - Primary liquidity needs include interest and principal payments on **$2.9 billion** of borrowings, **$441.0 million** of unfunded loan commitments, and dividend distributions[254](index=254&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company discusses its exposure to credit, interest rate, and liquidity risks, including the impact of COVID-19 and LIBOR transition - The company faces significant credit risk from the COVID-19 pandemic's impact on property operations, particularly for its hotel and retail collateral, leading to an increase in loan modification requests and non-performing loans[275](index=275&type=chunk)[277](index=277&type=chunk) | Change in Interest Rates | Change in Annualized Net Interest Income (in millions) | | :--- | :--- | | +100 bps | $(20.1) | | +50 bps | $(10.6) | | -50 bps | $2.1 | | -100 bps | $2.1 | - The company is preparing for the discontinuation of LIBOR, with approximately **98.1%** of its loans and **100%** of its asset-level borrowings indexed to LIBOR as of June 30, 2021[286](index=286&type=chunk)[287](index=287&type=chunk) - The company is working with lenders and borrowers to amend agreements to include robust fallback language[287](index=287&type=chunk) [Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[296](index=296&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[297](index=297&type=chunk) [PART II - OTHER INFORMATION](index=70&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional information on legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any litigation or legal proceedings that would be expected to have a material adverse effect on its financial condition or results of operations - As of the filing date, the company is not party to any material litigation or legal proceedings[300](index=300&type=chunk) [Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) There are no new risk factors presented in this report. The company refers to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020 - The report refers to the risk factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2020, for information on factors that could affect its financial results[301](index=301&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 318,159 common shares at an average price of $14.20 during Q2 2021, with shares remaining for future repurchase | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | April 2021 | — | — | — | | May 2021 | — | — | — | | June 2021 | 318,159 | $14.20 | 300,891 | | **Total Q2 2021** | **318,159** | **$14.20** | **300,891** | - As of June 30, 2021, **1,699,109** shares remained available for repurchase under the company's authorized plan[301](index=301&type=chunk) [Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[302](index=302&type=chunk) [Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, indentures related to debt offerings, amendments to financing agreements, and officer certifications - Key exhibits filed include amendments to master repurchase agreements with Morgan Stanley Bank and Wells Fargo Bank, and various agreements related to the GPMT 2021-FL3 CRE CLO transaction[307](index=307&type=chunk)

G R A N I T E P O I N T MORTGAGE TRUST First Quarter 2021 Earnings Presentation May 7, 2021 Safe Harbor Statement This presentation contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not rely ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended March 31, 2021 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38124 GRANITE POINT MORTGAGE TRUST INC. FORM 10-Q (Exact name of registrant as specified in its charter) Maryland 61-1843143 3 Bryant Park, Suite 24 ...