“We continue to use our excess liquidity to repurchase our common stock. And during the quarter, we repurchased 923,000 shares at a weighted average price of $5.68, creating 2% of accretion for shareholders.”
Durkin added that the company remains focused on minimizing its warehouse risk and staying disciplined in terms of issuing securitizations throughout the year.
“We also believe that there could be opportunities to buy portfolios of loans from field banks or ones that need liquidity,” said Nicholas Smith, chief information officer of AG Mortgage. “In addition to these opportunities, we are finding attractive investments in home equity mortgages, conventional investment in second-home residential mortgages, and both qualified and non-qualified residential mortgages.”
AG Mortgage’s investment portfolio was $4.5 billion in Q1, compared to $4.2 billion in Q4 2022. It acquired $264.8 million of agency RMBS and $10.9 million of non-agency RMBS.
Arc Home, the company’s non-agency loan origination arm, originated $239.1 million of residential mortgage loans during the period. However, it reported an after-tax net loss of $5.2 million.