Granite Point Mortgage reports Q2 EPS ($1.31) with items, consensus (21c)

Q2 EPS loss includes a ($60.8M), or $(1.19) per basic share, provision for credit losses. Book value per common share was $9.84 as of June 30, inclusive of ($5.27) per common share of total CECL reserve. “We have made meaningful progress addressing our nonearning assets over the last few months,” said Jack Taylor, President and CEO. “We anticipate executing on significant additional nonaccrual resolutions and realizing more loan repayments through the rest of the year. The reduction in our book value this quarter resulted from an increase in our allowance for loan losses, as we progress towards more resolutions in the context of greater transaction activity in the market. While we continue to reposition the portfolio to take advantage of future investment opportunities, we aim to drive economic returns for the Company through our flexible capital allocation strategy. As such, we repurchased 0.5 million common shares during the quarter generating book value accretion and intend to remain opportunistic with respect to future buybacks.”