Granite Point Mortgage Trust(GPMT) - 2025 Q2 - Quarterly Report

Form 10-Q Filing Information Index Cautionary Note Regarding Forward-Looking Statements This section provides a cautionary note on forward-looking statements, emphasizing that actual results may differ due to various risks and uncertainties - Forward-looking statements are subject to numerous risks and uncertainties, and actual results may differ materially from expectations[10] - Key factors affecting actual results include general political, economic, and competitive conditions, prolonged economic slowdowns, inflationary trends, reduced demand for office/retail space, borrower defaults, financing availability, interest rate volatility, and changes in governmental regulations[12] PART I - FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) This section presents the unaudited condensed consolidated financial statements of Granite Point Mortgage Trust Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of comprehensive (loss) income, stockholders' equity, and cash flows, along with accompanying notes Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Loans held-for-investment, net | $1,671,311 | $1,897,648 | | Cash and cash equivalents | $85,102 | $87,788 | | Restricted cash | $10,799 | $26,682 | | Real estate owned, net | $98,704 | $42,815 | | Total Assets | $1,918,085 | $2,115,115 | | LIABILITIES (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Repurchase facilities | $474,400 | $597,874 | | Securitized debt obligations | $743,544 | $788,313 | | Secured credit facility | $86,774 | $86,774 | | Total Liabilities | $1,333,756 | $1,495,898 | | Total Equity | $584,329 | $619,217 | - Total Assets decreased by $197.03 million from $2.12 billion at December 31, 2024, to $1.92 billion at June 30, 2025[17] - Loans held-for-investment, net, decreased by $226.34 million, from $1.90 billion to $1.67 billion[17] - Real estate owned, net, increased significantly by $55.89 million, from $42.82 million to $98.70 million[17] Condensed Consolidated Statements of Comprehensive (Loss) Income Condensed Consolidated Statements of Comprehensive (Loss) Income (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $33,803 | $48,479 | $68,947 | $102,534 | | Total interest expense | $25,758 | $40,348 | $52,862 | $81,880 | | Net interest income | $8,045 | $8,131 | $16,085 | $20,654 | | Provision for credit losses | $(10,984) | $(60,756) | $(14,754) | $(136,308) | | Total expenses | $14,479 | $10,769 | $28,788 | $23,006 | | Net (loss) income | $(13,363) | $(63,068) | $(20,378) | $(137,191) | | Net (loss) income attributable to common stockholders | $(16,964) | $(66,668) | $(27,579) | $(144,391) | | Basic (loss) earnings per weighted average common share | $(0.35) | $(1.31) | $(0.57) | $(2.84) | - Net (loss) income attributable to common stockholders improved significantly for the three months ended June 30, 2025, to $(16.96) million from $(66.67) million in the prior year, and for the six months ended June 30, 2025, to $(27.58) million from $(144.39) million[19] - Basic (loss) earnings per weighted average common share improved to $(0.35) for Q2 2025 from $(1.31) for Q2 2024, and to $(0.57) for H1 2025 from $(2.84) for H1 2024[19] - Provision for credit losses decreased substantially from $(60.76) million to $(10.98) million for the three months ended June 30, 2025, and from $(136.31) million to $(14.75) million for the six months ended June 30, 2025[19] Condensed Consolidated Statements of Stockholders' Equity Changes in Stockholders' Equity (in thousands) | (in thousands) | Balance, December 31, 2024 | Net income (loss) | Preferred dividends declared | Common dividends declared | Repurchase of common stock | Non-cash equity award compensation | Balance, June 30, 2025 | | :--------------- | :------------------------- | :---------------- | :--------------------------- | :------------------------ | :------------------------- | :------------------------------- | :--------------------- | | Total Stockholders' Equity | $619,092 | $(13,363) | $(3,601) | $(2,592) | $(3,137) | $2,228 | $584,204 | - Total Stockholders' Equity decreased from $619.09 million at December 31, 2024, to $584.20 million at June 30, 2025[21] - Common stock repurchases amounted to $(3.14) million for the three months ended June 30, 2025[21] - Net loss for the three months ended June 30, 2025, was $(13.36) million[21] Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $(4,974) | $2,638 | | Net cash provided by investing activities | $175,702 | $62,830 | | Net cash used in financing activities | $(189,297) | $(165,888) | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(18,569) | $(100,420) | | Cash, cash equivalents, and restricted cash at end of period | $95,901 | $98,796 | - Net cash used in operating activities was $(4.97) million for the six months ended June 30, 2025, a decrease from $2.64 million provided in the prior year[23] - Net cash provided by investing activities significantly increased to $175.70 million for the six months ended June 30, 2025, from $62.83 million in the prior year, primarily due to higher proceeds from loan repayments[23] - Net cash used in financing activities increased to $(189.30) million for the six months ended June 30, 2025, from $(165.89) million in the prior year, mainly due to principal payments on repurchase facilities and securitized debt obligations[23](