false--12-31Q220190001703644P9MP3YP1Y20.010.01450000000450000000436211745485320543621174548532050.05038020.04884960000.010.0150000000500000001000100010001000P3YP1Y3930200034850000 0001703644 2019-01-01 2019-06-30 0001703644 exch:XNYS 2019-01-01 2019-06-30 0001703644 2019-08-02 0001703644 2018-12-31 0001703644 2019-06-30 0001703644 2019-04-01 2019-06-30 0001703644 2018-04-01 2018-06-30 0001703644 2018-01-01 2018-06-30 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2017-12-31 0001703644 us-gaap:CommonStockMember 2018-06-30 0001703644 2018-01-01 2018-03-31 0001703644 us-gaap:CommonStockMember 2018-03-31 0001703644 us-gaap:RetainedEarningsMember 2018-12-31 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-06-30 0001703644 2019-01-01 2019-03-31 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-12-31 0001703644 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001703644 us-gaap:CommonStockMember 2018-12-31 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-04-01 2018-06-30 0001703644 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0001703644 us-gaap:RetainedEarningsMember 2018-06-30 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001703644 us-gaap:RetainedEarningsMember 2018-03-31 0001703644 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001703644 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-03-31 0001703644 2017-12-31 0001703644 2018-06-30 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-01-01 2018-03-31 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001703644 2018-03-31 0001703644 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001703644 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-04-01 2019-06-30 0001703644 2019-03-31 0001703644 us-gaap:RetainedEarningsMember 2019-03-31 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-03-31 0001703644 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001703644 us-gaap:RetainedEarningsMember 2017-12-31 0001703644 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001703644 us-gaap:CommonStockMember 2017-12-31 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001703644 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001703644 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001703644 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001703644 us-gaap:CommonStockMember 2019-06-30 0001703644 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001703644 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001703644 us-gaap:CommonStockMember 2019-03-31 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2018-06-30 0001703644 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001703644 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2019-01-01 2019-03-31 0001703644 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001703644 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001703644 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001703644 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001703644 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001703644 us-gaap:RetainedEarningsMember 2019-06-30 0001703644 us-gaap:PreferredStockMember 2017-06-28 2017-06-28 0001703644 2017-06-28 0001703644 us-gaap:CommonStockMember 2017-06-28 2017-06-28 0001703644 2017-11-01 2017-11-01 0001703644 us-gaap:BorrowingsMember 2018-12-31 0001703644 us-gaap:LiabilitiesTotalMember 2018-12-31 0001703644 us-gaap:AccruedIncomeReceivableMember 2018-12-31 0001703644 us-gaap:LoansReceivableMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember 2018-12-31 0001703644 us-gaap:AccruedLiabilitiesMember 2018-12-31 0001703644 us-gaap:OtherAssetsMember 2019-06-30 0001703644 us-gaap:OtherLiabilitiesMember 2018-12-31 0001703644 us-gaap:LiabilitiesTotalMember 2019-06-30 0001703644 us-gaap:OtherAssetsMember 2018-12-31 0001703644 gpmt:RestrictedCashAndCashEquivalentsMember 2019-06-30 0001703644 us-gaap:AccruedIncomeReceivableMember 2019-06-30 0001703644 gpmt:RestrictedCashAndCashEquivalentsMember 2018-12-31 0001703644 us-gaap:AccruedLiabilitiesMember 2019-06-30 0001703644 us-gaap:AssetsTotalMember 2019-06-30 0001703644 us-gaap:BorrowingsMember 2019-06-30 0001703644 us-gaap:OtherLiabilitiesMember 2019-06-30 0001703644 us-gaap:AssetsTotalMember 2018-12-31 0001703644 gpmt:RiskRating5Member 2018-12-31 0001703644 gpmt:RiskRating4Member 2018-12-31 0001703644 gpmt:RiskRating3Member 2018-12-31 0001703644 gpmt:RiskRating3Member 2019-06-30 0001703644 gpmt:RiskRating5Member 2019-06-30 0001703644 gpmt:RiskRating4Member 2019-06-30 0001703644 gpmt:RiskRating2Member 2019-06-30 0001703644 gpmt:RiskRating2Member 2018-12-31 0001703644 gpmt:RiskRating1Member 2019-06-30 0001703644 gpmt:RiskRating1Member 2018-12-31 0001703644 srt:HotelMember 2018-12-31 0001703644 srt:RetailSiteMember 2019-06-30 0001703644 srt:OfficeBuildingMember 2019-06-30 0001703644 srt:OtherPropertyMember 2019-06-30 0001703644 srt:IndustrialPropertyMember 2018-12-31 0001703644 srt:HotelMember 2019-06-30 0001703644 srt:RetailSiteMember 2018-12-31 0001703644 srt:IndustrialPropertyMember 2019-06-30 0001703644 srt:MultifamilyMember 2018-12-31 0001703644 srt:OfficeBuildingMember 2018-12-31 0001703644 srt:MultifamilyMember 2019-06-30 0001703644 us-gaap:FirstMortgageMember 2019-06-30 0001703644 us-gaap:JuniorLoansMember 2019-01-01 2019-06-30 0001703644 us-gaap:SecondMortgageMember 2019-06-30 0001703644 us-gaap:JuniorLoansMember 2019-06-30 0001703644 us-gaap:SecondMortgageMember 2019-01-01 2019-06-30 0001703644 us-gaap:FirstMortgageMember 2019-01-01 2019-06-30 0001703644 gpmt:UnitedStatesSoutheasternRegionMember 2018-12-31 0001703644 gpmt:UnitedStatesWesternRegionMember 2019-06-30 0001703644 gpmt:UnitedStatesMidwesternRegionMember 2018-12-31 0001703644 gpmt:UnitedStatesSouthwesternRegionMember 2018-12-31 0001703644 gpmt:UnitedStatesNortheasternRegionMember 2019-06-30 0001703644 gpmt:UnitedStatesWesternRegionMember 2018-12-31 0001703644 gpmt:UnitedStatesSouthwesternRegionMember 2019-06-30 0001703644 gpmt:UnitedStatesSoutheasternRegionMember 2019-06-30 0001703644 gpmt:UnitedStatesNortheasternRegionMember 2018-12-31 0001703644 gpmt:UnitedStatesMidwesternRegionMember 2019-06-30 0001703644 us-gaap:JuniorLoansMember 2018-12-31 0001703644 us-gaap:SecondMortgageMember 2018-12-31 0001703644 us-gaap:FirstMortgageMember 2018-01-01 2018-12-31 0001703644 us-gaap:SecondMortgageMember 2018-01-01 2018-12-31 0001703644 us-gaap:JuniorLoansMember 2018-01-01 2018-12-31 0001703644 us-gaap:FirstMortgageMember 2018-12-31 0001703644 2018-01-01 2018-12-31 0001703644 us-gaap:AvailableforsaleSecuritiesMember 2018-12-31 0001703644 us-gaap:HeldtomaturitySecuritiesMember 2018-12-31 0001703644 us-gaap:AvailableforsaleSecuritiesMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember 2018-12-31 0001703644 us-gaap:HeldtomaturitySecuritiesMember 2019-06-30 0001703644 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001703644 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001703644 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001703644 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001703644 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001703644 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001703644 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001703644 us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0001703644 gpmt:MaturityuptoOneYearMember 2019-06-30 0001703644 gpmt:MaturityuptoOneYearMember 2018-12-31 0001703644 gpmt:MaturityOverOneYearMember 2019-06-30 0001703644 gpmt:MaturityOverOneYearMember 2018-12-31 0001703644 us-gaap:IndividuallyImmaterialCounterpartiesMember 2018-12-31 0001703644 gpmt:RepurchaseAgreementCounterpartyMorganStanleyBankMember 2019-06-30 0001703644 us-gaap:IndividuallyImmaterialCounterpartiesMember 2019-06-30 0001703644 gpmt:RepurchaseAgreementCounterpartyJPMorganChaseBankMember 2019-06-30 0001703644 gpmt:RepurchaseAgreementCounterpartyGoldmanSachsBankMember 2019-01-01 2019-06-30 0001703644 gpmt:RepurchaseAgreementCounterpartyJPMorganChaseBankMember 2018-01-01 2018-12-31 0001703644 gpmt:RepurchaseAgreementCounterpartyGoldmanSachsBankMember 2018-12-31 0001703644 gpmt:RepurchaseAgreementCounterpartyMorganStanleyBankMember 2018-12-31 0001703644 gpmt:RepurchaseAgreementCounterpartyJPMorganChaseBankMember 2018-12-31 0001703644 gpmt:RepurchaseAgreementCounterpartyMorganStanleyBankMember 2019-01-01 2019-06-30 0001703644 us-gaap:IndividuallyImmaterialCounterpartiesMember 2019-01-01 2019-06-30 0001703644 gpmt:RepurchaseAgreementCounterpartyGoldmanSachsBankMember 2019-06-30 0001703644 gpmt:RepurchaseAgreementCounterpartyMorganStanleyBankMember 2018-01-01 2018-12-31 0001703644 gpmt:RepurchaseAgreementCounterpartyGoldmanSachsBankMember 2018-01-01 2018-12-31 0001703644 gpmt:RepurchaseAgreementCounterpartyJPMorganChaseBankMember 2019-01-01 2019-06-30 0001703644 us-gaap:IndividuallyImmaterialCounterpartiesMember 2018-01-01 2018-12-31 0001703644 gpmt:Maturity60To89DaysMember 2018-12-31 0001703644 us-gaap:LoansReceivableMember us-gaap:MaturityUpTo30DaysMember 2018-12-31 0001703644 gpmt:Maturity120To364DaysMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember gpmt:MaturityOverOneYearMember 2018-12-31 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:MaturityOverOneYearMember 2019-06-30 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:Maturity120To364DaysMember 2018-12-31 0001703644 us-gaap:LoansReceivableMember us-gaap:MaturityUpTo30DaysMember 2019-06-30 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember 2018-12-31 0001703644 gpmt:Maturity30To59DaysMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember gpmt:Maturity120To364DaysMember 2018-12-31 0001703644 us-gaap:LoansReceivableMember 2019-06-30 0001703644 gpmt:Maturity120To364DaysMember 2018-12-31 0001703644 us-gaap:LoansReceivableMember gpmt:Maturity90To119DaysMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember gpmt:Maturity30To59DaysMember 2018-12-31 0001703644 gpmt:Maturity90To119DaysMember 2019-06-30 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember 2019-06-30 0001703644 gpmt:Maturity60To89DaysMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember gpmt:Maturity90To119DaysMember 2018-12-31 0001703644 us-gaap:LoansReceivableMember gpmt:Maturity120To364DaysMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember gpmt:Maturity60To89DaysMember 2018-12-31 0001703644 us-gaap:MaturityUpTo30DaysMember 2018-12-31 0001703644 us-gaap:LoansReceivableMember 2018-12-31 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:MaturityUpTo30DaysMember 2019-06-30 0001703644 gpmt:Maturity90To119DaysMember 2018-12-31 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember us-gaap:MaturityUpTo30DaysMember 2018-12-31 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:Maturity60To89DaysMember 2019-06-30 0001703644 us-gaap:MaturityUpTo30DaysMember 2019-06-30 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:Maturity90To119DaysMember 2018-12-31 0001703644 gpmt:Maturity30To59DaysMember 2018-12-31 0001703644 us-gaap:LoansReceivableMember gpmt:Maturity30To59DaysMember 2019-06-30 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:Maturity60To89DaysMember 2018-12-31 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:Maturity120To364DaysMember 2019-06-30 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:Maturity90To119DaysMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember gpmt:MaturityOverOneYearMember 2019-06-30 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:Maturity30To59DaysMember 2018-12-31 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:MaturityOverOneYearMember 2018-12-31 0001703644 us-gaap:CommercialMortgageBackedSecuritiesMember gpmt:Maturity30To59DaysMember 2019-06-30 0001703644 us-gaap:LoansReceivableMember gpmt:Maturity60To89DaysMember 2019-06-30 0001703644 gpmt:RestrictedCashAndCashEquivalentsMember 2019-06-30 0001703644 us-gaap:HeldtomaturitySecuritiesMember 2019-06-30 0001703644 gpmt:RestrictedCashAndCashEquivalentsMember 2018-12-31 0001703644 us-gaap:HeldtomaturitySecuritiesMember 2018-12-31 0001703644 us-gaap:AvailableforsaleSecuritiesMember 2018-12-31 0001703644 us-gaap:AvailableforsaleSecuritiesMember 2019-06-30 0001703644 gpmt:Maturity30To59DaysMember 2019-06-30 0001703644 gpmt:Maturity90To119DaysMember 2018-12-31 0001703644 us-gaap:MaturityUpTo30DaysMember 2018-12-31 0001703644 gpmt:Maturity90To119DaysMember 2019-06-30 0001703644 gpmt:Maturity60To89DaysMember 2018-12-31 0001703644 gpmt:MaturityOverOneYearMember 2019-06-30 0001703644 gpmt:Maturity120To364DaysMember 2018-12-31 0001703644 gpmt:Maturity60To89DaysMember 2019-06-30 0001703644 gpmt:Maturity120To364DaysMember 2019-06-30 0001703644 us-gaap:MaturityUpTo30DaysMember 2019-06-30 0001703644 gpmt:Maturity30To59DaysMember 2018-12-31 0001703644 us-gaap:SecuredDebtMember 2019-06-30 0001703644 us-gaap:RevolvingCreditFacilityMember 2018-12-31 0001703644 gpmt:ConvertibleDebt2017IssuanceMember us-gaap:ConvertibleDebtMember us-gaap:PrivatePlacementMember 2019-06-30 0001703644 gpmt:ConvertibleDebt2017IssuanceMember 2017-01-01 2017-12-31 0001703644 gpmt:ConvertibleDebt2017IssuanceMember us-gaap:ConvertibleDebtMember us-gaap:OverAllotmentOptionMember 2019-06-30 0001703644 gpmt:ConvertibleDebt2018IssuanceMember us-gaap:ConvertibleDebtMember 2019-06-30 0001703644 gpmt:ConvertibleDebt2017IssuanceMember us-gaap:ConvertibleDebtMember 2019-06-30 0001703644 gpmt:ConvertibleDebt2018IssuanceMember us-gaap:ConvertibleDebtMember us-gaap:PrivatePlacementMember 2019-06-30 0001703644 gpmt:ConvertibleDebt2018IssuanceMember 2018-01-01 2018-12-31 0001703644 gpmt:ConvertibleDebt2017IssuanceMember 2019-01-01 2019-06-30 0001703644 gpmt:ConvertibleDebt2018IssuanceMember 2019-01-01 2019-06-30 0001703644 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001703644 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001703644 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001703644 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001703644 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001703644 us-gaap:CommonStockMember 2018-10-01 2018-12-31 0001703644 us-gaap:CommonStockMember 2019-02-05 2019-03-06 0001703644 gpmt:AttheMarketOfferingMember 2019-01-01 2019-06-30 0001703644 us-gaap:CommonStockMember 2019-06-30 0001703644 2019-02-05 2019-03-06 0001703644 2017-06-28 2017-06-28 0001703644 gpmt:AttheMarketOfferingMember 2019-04-01 2019-06-30 0001703644 us-gaap:CommonStockMember 2017-06-28 0001703644 us-gaap:CommonStockMember us-gaap:OverAllotmentOptionMember 2019-02-05 2019-03-06 0001703644 us-gaap:OverAllotmentOptionMember 2019-02-05 2019-03-06 0001703644 gpmt:KeyEmployeesMember 2018-01-01 2018-06-30 0001703644 srt:DirectorMember 2018-01-01 2018-06-30 0001703644 srt:DirectorMember 2019-01-01 2019-06-30 0001703644 gpmt:KeyEmployeesMember 2019-01-01 2019-06-30 xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares gpmt:loan
 
 
 
 
 
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: June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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 Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
3 Bryant Park, Suite 2400A
 
 
New York,
New York
 
10036
(Address of Principal Executive Offices)
 
(Zip Code)
(212) 364-3200
(Registrant’s Telephone Number, Including Area Code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each Class:
 
Trading Symbol(s)
 
Name of Exchange on Which Registered:
Common Stock, par value $0.01 per share
 
GPMT
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
As of August 2, 2019, there were 54,853,205 shares of outstanding common stock, par value $0.01 per share, issued and outstanding.
 
 
 
 
 


Table of Contents



GRANITE POINT MORTGAGE TRUST INC.
INDEX

 
 
Page
 
PART I - FINANCIAL INFORMATION
 
 
 
 
 
 
 
PART II - OTHER INFORMATION
 


i

Table of Contents



PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
GRANITE POINT MORTGAGE TRUST INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
June 30,
2019
 
December 31,
2018
ASSETS
(unaudited)
 
 
Loans held-for-investment
$
3,560,117

 
$
3,167,913

Available-for-sale securities, at fair value
12,830

 
12,606

Held-to-maturity securities
22,020

 
26,696

Cash and cash equivalents
92,838

 
91,700

Restricted cash
76,149

 
31,723

Accrued interest receivable
9,924

 
10,268

Deferred debt issuance costs
6,099

 
3,924

Prepaid expenses
1,170

 
1,055

Other assets
23,189

 
15,996

Total Assets (1)
$
3,804,336

 
$
3,361,881

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Liabilities
 
 
 
Repurchase agreements
$
1,254,027

 
$
1,500,543

Securitized debt obligations
1,133,294

 
654,263

Asset-specific financings
75,060

 

Revolving credit facilities

 
75,000

Convertible senior notes
268,857

 
268,138

Accrued interest payable
6,204

 
6,394

Unearned interest income
584

 
510

Dividends payable
23,064

 
18,346

Other liabilities
14,510

 
10,156

Total Liabilities (1)
2,775,600

 
2,533,350

10% cumulative redeemable preferred stock, par value $0.01 per share; 50,000,000 shares authorized and 1,000 and 1,000 shares issued and outstanding, respectively
1,000

 
1,000

Stockholders’ Equity
 
 
 
Common stock, par value $0.01 per share; 450,000,000 shares authorized and 54,853,205 and 43,621,174 shares issued and outstanding, respectively
549

 
436

Additional paid-in capital
1,046,025

 
836,288

Accumulated other comprehensive income (loss)
32

 
(192
)
Cumulative earnings
127,008

 
91,875

Cumulative distributions to stockholders
(145,878
)
 
(100,876
)
Total Stockholders’ Equity
1,027,736

 
827,531

Total Liabilities and Stockholders’ Equity
$
3,804,336

 
$
3,361,881

____________________
(1)
The condensed consolidated balance sheets include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of these VIEs, and liabilities of the consolidated VIEs for which creditors do not have recourse to Granite Point Mortgage Trust Inc. At June 30, 2019 and December 31, 2018, assets of the VIEs totaled $1,482,292 and $829,147, and liabilities of the VIEs totaled $1,134,493 and $654,952, respectively. See Note 3 - Variable Interest Entities for additional information.
The accompanying notes are an integral part of these condensed consolidated financial statements.

1

Table of Contents



GRANITE POINT MORTGAGE TRUST INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
(in thousands, except share data)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Interest income:

 
 
Loans held-for-investment
$
58,133

 
$
42,359

 
$
114,798

 
$
81,152

Available-for-sale securities
311

 
285

 
619

 
557

Held-to-maturity securities
613

 
836

 
1,274

 
1,721

Cash and cash equivalents
907

 
29

 
1,418

 
56

Total interest income
59,964

 
43,509

 
118,109

 
83,486

Interest expense:
 
 
 
 
 
 
 
Repurchase agreements
13,529

 
14,934

 
30,518

 
31,128

Securitized debt obligations
13,554

 
3,875

 
23,413

 
3,875

Convertible senior notes
4,491

 
2,206

 
8,956

 
4,385

Asset-specific financings
598

 

 
598

 

Revolving credit facilities
165

 
220

 
860

 
220

Total interest expense
32,337

 
21,235

 
64,345

 
39,608

Net interest income
27,627

 
22,274

 
53,764

 
43,878

Other income:
 
 
 
 
 
 
 
Fee income
202

 
564

 
1,115

 
1,446

Total other income
202

 
564

 
1,115

 
1,446

Expenses:
 
 
 
 
 
 
 
Management fees
3,763

 
3,114

 
7,212

 
6,323

Incentive fees

 

 
244

 

Servicing expenses
885

 
494

 
1,658

 
952

General and administrative expenses
5,006

 
4,005

 
10,622

 
8,237

Total expenses
9,654

 
7,613

 
19,736

 
15,512

Income before income taxes
18,175

 
15,225

 
35,143

 
29,812

Benefit from income taxes
(2
)
 
(2
)
 
(3
)
 
(1
)
Net income
18,177

 
15,227

 
35,146

 
29,813

Dividends on preferred stock
25

 
25

 
50

 
50

Net income attributable to common stockholders
$
18,152

 
$
15,202

 
$
35,096

 
$
29,763

Basic earnings per weighted average common share
$
0.34

 
$
0.35

 
$
0.68

 
$
0.69

Diluted earnings per weighted average common share
$
0.33

 
$
0.34

 
$
0.68

 
$
0.67

Dividends declared per common share
$
0.42

 
$
0.40

 
$
0.84

 
$
0.78

Weighted average number of shares of common stock outstanding:
 
 
 
 
 
 
 
Basic
53,953,634

 
43,446,963

 
51,292,318

 
43,410,796

Diluted
67,624,395

 
50,634,463

 
51,292,318

 
50,598,296

Comprehensive income:
 
 
 
 
 
 
 
Net income attributable to common stockholders
$
18,152

 
$
15,202

 
$
35,096

 
$
29,763

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Unrealized gain (loss) on available-for-sale securities
32

 
(16
)
 
224

 

Other comprehensive income (loss)
32

 
(16
)
 
224

 

Comprehensive income attributable to common stockholders
$
18,184

 
$
15,186

 
$
35,320

 
$
29,763

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Table of Contents



GRANITE POINT MORTGAGE TRUST INC. 
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)
(in thousands, except share data)
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Additional Paid-in Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Cumulative Earnings
 
Cumulative Distributions to Stockholders
 
Total Stockholders’ Equity
Balance, December 31, 2017
43,235,103

 
$
432

 
$
829,704

 
$

 
$
28,800

 
$
(30,315
)
 
$
828,621

Net income

 

 

 

 
14,586

 

 
14,586

Other comprehensive income before reclassifications

 

 

 
16

 

 

 
16

Amounts reclassified from accumulated other comprehensive income

 

 

 

 

 

 

Net other comprehensive income

 

 

 
16

 

 

 
16

Common dividends declared

 

 

 

 

 
(16,506
)
 
(16,506
)
Preferred dividends declared

 

 

 

 

 
(25
)
 
(25
)
Non-cash equity award compensation
201,956

 
2

 
662

 

 

 

 
664

Balance, March 31, 2018
43,437,059

 
434

 
830,366

 
16

 
43,386

 
(46,846
)
 
827,356

Net income

 

 

 

 
15,227

 

 
15,227

Other comprehensive loss before reclassifications

 

 

 
(16
)
 

 

 
(16
)
Amounts reclassified from accumulated other comprehensive income

 

 

 

 

 

 

Net other comprehensive loss

 

 

 
(16
)
 

 

 
(16
)
Common dividends declared

 

 

 

 

 
(17,383
)
 
(17,383
)
Preferred dividends declared

 

 

 

 

 
(25
)
 
(25
)
Non-cash equity award compensation
19,175

 
1

 
1,202

 

 

 

 
1,203

Balance, June 30, 2018
43,456,234

 
$
435

 
$
831,568

 
$

 
$
58,613

 
$
(64,254
)
 
$
826,362

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2018
43,621,174

 
$
436

 
$
836,288

 
$
(192
)
 
$
91,875

 
$
(100,876
)
 
$
827,531

Cumulative effect of adoption of new accounting principle

 

 
13

 

 
(13
)
 

 

Adjusted balance, January 1, 2019
43,621,174

 
436

 
836,301

 
(192
)
 
91,862

 
(100,876
)
 
827,531

Net income

 

 

 

 
16,969

 

 
16,969

Other comprehensive income before reclassifications

 

 

 
192

 

 

 
192

Amounts reclassified from accumulated other comprehensive income

 

 

 

 

 

 

Net other comprehensive income

 

 

 
192

 

 

 
192

Issuance of common stock, net of offering costs
8,291,829

 
83

 
157,145

 

 

 

 
157,228

Common dividends declared

 

 

 

 

 
(21,913
)
 
(21,913
)
Preferred dividends declared

 

 

 

 

 
(25
)
 
(25
)
Non-cash equity award compensation
258,918

 
3

 
1,146

 

 

 

 
1,149

Balance, March 31, 2019
52,171,921

 
522

 
994,592

 

 
108,831

 
(122,814
)
 
981,131

Net income

 

 

 

 
18,177

 

 
18,177

Other comprehensive income before reclassifications

 

 

 
32

 

 

 
32

Amounts reclassified from accumulated other comprehensive income

 

 

 

 

 

 

Net other comprehensive income

 

 

 
32

 

 

 
32

Issuance of common stock, net of offering costs
2,663,095

 
27

 
50,150

 

 

 

 
50,177

Common dividends declared

 

 

 

 

 
(23,039
)
 
(23,039
)
Preferred dividends declared

 

 

 

 

 
(25
)
 
(25
)
Non-cash equity award compensation
18,189

 

 
1,283

 

 

 

 
1,283

Balance, June 30, 2019
54,853,205

 
$
549

 
$
1,046,025

 
$
32

 
$
127,008

 
$
(145,878
)
 
$
1,027,736

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Table of Contents



GRANITE POINT MORTGAGE TRUST INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)
 
Six Months Ended
 
June 30,
 
2019
 
2018
Cash Flows From Operating Activities:
 
Net income
$
35,146

 
$
29,813

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Accretion of discounts and net deferred fees on loans held-for-investment
(7,943
)
 
(5,893
)
Amortization of deferred debt issuance costs on convertible senior notes and securitized debt obligations
3,882

 
1,102

Equity based compensation
2,432

 
1,867

Depreciation of fixed assets
107

 
3

Net change in assets and liabilities:
 
 
 
Decrease (increase) in accrued interest receivable
344

 
(450
)
(Increase) decrease in prepaid expenses
(115
)
 
143

Increase in other assets
(7,300
)
 
(1,511
)
(Decrease) increase in accrued interest payable
(190
)
 
161

Increase in unearned interest income
74

 
413

Increase in other liabilities
4,354

 
1,374

Net cash provided by operating activities
30,791

 
27,022

Cash Flows From Investing Activities:
 
 
 
Originations, acquisitions and additional fundings of loans held-for-investment, net of deferred fees
(687,998
)
 
(594,126
)
Proceeds from repayment of loans held-for-investment
303,737

 
420,679

Principal payments on held-to-maturity securities
4,676

 
8,510

Net cash used in investing activities
(379,585
)
 
(164,937
)
Cash Flows From Financing Activities:
 
 
 
Proceeds from repurchase agreements
500,127

 
561,357

Principal payments on repurchase agreements
(746,643
)
 
(1,063,956
)
Proceeds from issuance of securitized debt obligations
646,868

 
651,374

Principal payments on securitized debt obligations
(171,000
)
 

Proceeds from convertible senior notes

 
18,247

Proceeds from asset-specific financings
75,060

 

Proceeds from revolving credit facilities
48,697

 
49,394

Repayment of revolving credit facilities
(123,697
)
 
(49,394
)
(Increase) decrease in deferred debt issuance costs
(2,175
)
 
1,922

Proceeds from issuance of common stock, net of offering costs
207,405

 

Dividends paid on preferred stock
(50
)
 
(50
)
Dividends paid on common stock
(40,234
)
 
(32,935
)
Net cash provided by financing activities
394,358

 
135,959

Net increase (decrease) in cash, cash equivalents and restricted cash
45,564

 
(1,956
)
Cash, cash equivalents and restricted cash at beginning of period
123,423

 
110,718

Cash, cash equivalents and restricted cash at end of period
$
168,987

 
$
108,762

Supplemental Disclosure of Cash Flow Information:
 
 
 
Cash paid for interest
$
64,534

 
$
39,447

Cash paid (received) for taxes, net
$

 
$
(5
)
Noncash Activities:
 
 
 
Dividends declared but not paid at end of period
$
23,064

 
$
17,408

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Table of Contents



GRANITE POINT MORTGAGE TRUST INC.
Notes to the Condensed Consolidated Financial Statements (unaudited)

Note 1. Organization and Operations
Granite Point Mortgage Trust Inc., or the Company, is a Maryland corporation that focuses primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. The Company is externally managed by Pine River Capital Management L.P., or the Manager. The Company’s common stock is listed on the New York Stock Exchange, or NYSE, under the symbol “GPMT”.
The Company was incorporated on April 7, 2017 and commenced operations as a publicly traded company on June 28, 2017, upon completion of an initial public offering, or the IPO. Concurrently with the closing of the IPO, the Company completed a formation transaction, or the Formation Transaction, pursuant to which the Company acquired the equity interests in TH Commercial Holdings LLC, or the Predecessor, from Two Harbors Investment Corp., or Two Harbors, a publicly traded hybrid mortgage real estate investment trust (NYSE: TWO). In exchange, the Company issued 33,071,000 shares of its common stock, representing approximately 76.5% of its outstanding common stock after the IPO, and 1,000 shares of its 10% cumulative redeemable preferred stock to Two Harbors. Upon the completion of the Formation Transaction, the Predecessor became the Company’s wholly owned indirect subsidiary. On November 1, 2017, Two Harbors distributed to its common stockholders the 33,071,000 shares of the Company’s common stock it had acquired in connection with the Formation Transaction, allowing the Company’s market capitalization to be fully floating.
The Company has elected to be treated as a real estate investment trust, or REIT, as defined under the Internal Revenue Code of 1986, as amended, or the Code, for U.S. federal income tax purposes. As long as the Company continues to comply with a number of requirements under federal tax law and maintains its qualification as a REIT, the Company generally will not be subject to U.S. federal income taxes to the extent that the Company distributes its taxable income to its stockholders on an annual basis and does not engage in prohibited transactions. However, certain activities that the Company may perform may cause it to earn income which will not be qualifying income for REIT purposes. The Company has designated one of its subsidiaries as a taxable REIT subsidiary, or TRS, as defined in the Code, to engage in such activities.

Note 2. Basis of Presentation and Significant Accounting Policies
Consolidation and Basis of Presentation
The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted according to such SEC rules and regulations. However, management believes that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at June 30, 2019 and results of operations for all periods presented have been made. The results of operations for the three and six months ended June 30, 2019 should not be construed as indicative of the results to be expected for future periods or the full year.
The condensed consolidated financial statements of the Company include the accounts of all subsidiaries; inter-company accounts and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation.
All entities in which the Company holds investments that are considered VIEs for financial reporting purposes were reviewed for consolidation under the applicable consolidation guidance. Whenever the Company has both the power to direct the activities of an entity that most significantly impact the entity’s performance, and the obligation to absorb losses or the right to receive benefits of the entity that could be significant, the Company consolidates the entity.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make a number of significant estimates. These include estimates of fair value of certain assets and liabilities, amount and timing of allowances for loan losses and impairments and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported period. It is likely that changes in these estimates (e.g., valuation changes to the underlying collateral of loans due to changes in capitalization rates, leasing, credit worthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, overall economic conditions, the broader commercial real estate market, local geographic sub-markets or other factors) will occur in the near term. The Company’s estimates are inherently subjective in nature and actual results could differ from its estimates and the differences may be material.

5

Table of Contents

GRANITE POINT MORTGAGE TRUST INC.
Notes to the Condensed Consolidated Financial Statements (unaudited)

Significant Accounting Policies
Included in Note 2 to the Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 is a summary of the Company’s significant accounting policies. Provided below is a summary of additional accounting policies that are significant to the Company’s consolidated financial condition and results of operations for the three and six months ended June 30, 2019.
Asset-Specific Financings
The Company finances certain of its loans held-for-investment through the use of an asset-specific financing facility. Borrowings under the asset-specific financing facility generally bear interest rates of a specified margin over one-month LIBOR. The asset-specific financings are treated as collateralized financing transactions and are carried at their contractual amounts, as specified in the respective agreements.
Recently Issued and/or Adopted Accounting Standards
Lease Classification and Accounting
In February 2016, the FASB issued ASU No. 2016-02, which requires lessees to recognize on their balance sheets both a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. The ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018, with early adoption permitted. The Company’s adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures.
Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued ASU No. 2016-13, which changes the impairment model for most financial assets and certain other instruments. Allowances for credit losses on available-for-sale, or AFS, and held-to-maturity, or HTM, debt securities will be recognized, rather than direct reductions in the amortized cost of the investments. The new model also requires the estimation of lifetime expected credit losses and corresponding recognition of allowance for losses on trade and other receivables, HTM debt securities, loans, and other instruments held at amortized cost. The ASU requires certain recurring disclosures and is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2019, with early adoption permitted for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018. The Company is evaluating the adoption of this ASU to determine the impact it may have on its condensed consolidated financial statements, which at the date of adoption, is expected to increase the allowance for credit losses with a resulting negative adjustment to retained earnings.
Accounting for Share-Based Payments to Nonemployees
In June 2018, the FASB issued ASU No. 2018-07 to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. Under the guidance, equity-classified nonemployee awards will be measured on and fixed at the grant date, rather than measured at fair value at each reporting date until the date at which the nonemployee’s performance is complete. The ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2018, with early adoption permitted. The Company’s adoption of this ASU was applied by recording a cumulative-effect adjustment to retained earnings as of January 1, 2019, which did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures.
SEC Disclosure Update and Simplification
In August 2018, the SEC adopted a final rule that amends certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other SEC disclosure requirements, U.S. GAAP, or changes in the information environment. However, the guidance also added requirements for entities to include in their interim financial statements a reconciliation of changes in stockholders’ equity for each period for which an income statement is required (both year-to-date and quarterly periods). The final rule is effective for all filings made on or after November 5, 2018. However, the SEC staff said it would not object to a registrant waiting to comply with the new interim disclosure requirement until the filing of its Form 10-Q for the quarter that begins after the effective date. As a result, the Company adopted the new interim disclosure requirement in connection with the Form 10-Q filing for the first quarter of 2019. The Company’s adoption of this final rule did not have a material impact on the Company’s financial condition, results of operations or financial statement disclosures.


6

Table of Contents

GRANITE POINT MORTGAGE TRUST INC.
Notes to the Condensed Consolidated Financial Statements (unaudited)

Note 3. Variable Interest Entities
The Company finances pools of its commercial real estate loans through collateralized loan obligations, or CLOs, which are considered VIEs for financial reporting purposes and, thus, are reviewed for consolidation under the applicable consolidation guidance. Because the Company has both the power to direct the activities of the CLOs that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant, the Company consolidates the CLOs.
The following table presents a summary of the assets and liabilities of all variable interest entities consolidated on the Company’s condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018:
(in thousands)
June 30,
2019
 
December 31,
2018
Loans held-for-investment
$
1,402,209

 
$
795,259

Restricted cash
69,478

 
26,136

Accrued interest receivable
4,039

 
2,622

Other assets
6,566

 
5,130

Total Assets
$
1,482,292

 
$
829,147

Securitized debt obligations
$
1,133,294

 
$
654,263

Accrued interest payable
1,122

 
689

Other liabilities
77

 

Total Liabilities
$
1,134,493

 
$
654,952



The Company is not required to consolidate VIEs for which it has concluded it does not have both the power to direct the activities of the VIEs that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant. The Company’s investments in these unconsolidated VIEs include CMBS, which are classified within available-for-sale securities, at fair value, and held-to-maturity securities on the condensed consolidated balance sheets. As of June 30, 2019 and December 31, 2018, the carrying value, which also represents the maximum exposure to loss, of all CMBS in unconsolidated VIEs was $34.8 million and $39.3 million, respectively.

Note 4. Loans Held-for-Investment
The Company originates and acquires commercial real estate debt and related instruments generally to be held as long-term investments. These assets are classified as loans held-for-investment on the condensed consolidated balance sheets. Interest income on loans held-for-investment is recognized at the loan coupon rate. Any premiums or discounts, loan fees,
contractual exit fees and origination costs are amortized or accreted into interest income over the lives of the loans using the
effective interest method. Loans are considered past due when they are 30 days past their contractual due date. Interest income
recognition is suspended when loans are placed on nonaccrual status. Generally, commercial mortgage loans are placed on
nonaccrual status when delinquent for more than 90 days or when determined not to be probable of full collection. Interest
accrued, but not collected, at the date loans are placed on nonaccrual is reversed and subsequently recognized only to the extent
it is received in cash or until it qualifies for return to accrual status. However, where there is doubt regarding the ultimate
collectability of loan principal, all cash received is applied to reduce the carrying value of such loans. Commercial mortgage
loans are restored to accrual status only when contractually current or the collection of future payments is reasonably assured.
The Company also finances pools of its commercial real estate loans through CLOs, which are considered to be VIEs for financial reporting purposes and, thus, are reviewed for consolidation under the applicable consolidation guidance. Because the Company has both the power to direct the activities of the CLOs that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant, the Company consolidates the CLOs and classifies the underlying loans as loans held-for-investment. Loans held-for-investment are reported at cost, net of any unamortized acquisition premiums or discounts, loan fees and origination costs as applicable.

7

Table of Contents

GRANITE POINT MORTGAGE TRUST INC.
Notes to the Condensed Consolidated Financial Statements (unaudited)

The following tables summarize the Company’s loans held-for-investment by asset type, property type and geographic location as of June 30, 2019 and December 31, 2018:
 
June 30,
2019
(dollars in thousands)
Senior
    Loans (1)
 
Mezzanine Loans
 
B-Notes
 
Total
Unpaid principal balance
$
3,556,949

 
$
14,095

 
$
14,551

 
$
3,585,595

Unamortized (discount) premium
(131
)
 

 

 
(131
)
Unamortized net deferred origination fees
(25,347
)
 

 

 
(25,347
)
Carrying value
$
3,531,471

 
$
14,095

 
$
14,551

 
$
3,560,117

Unfunded commitments
$
588,697

 
$

 
$

 
$
588,697

Number of loans
103

 
2

 
1

 
106

Weighted average coupon
6.2
%
 
12.0
%
 
8.0
%
 
6.2
%
Weighted average years to maturity (2)
1.8

 
2.7

 
7.6

 
1.8


 
December 31,
2018
(dollars in thousands)
Senior
    Loans (1)
 
Mezzanine Loans
 
B-Notes
 
Total
Unpaid principal balance
$
3,147,310

 
$
31,679

 
$
14,652

 
$
3,193,641

Unamortized (discount) premium
(151
)
 

 

 
(151
)
Unamortized net deferred origination fees
(25,577
)
 

 

 
(25,577
)
Carrying value
$
3,121,582

 
$
31,679

 
$
14,652

 
$
3,167,913

Unfunded commitments
$
626,155

 
$

 
$

 
$
626,155

Number of loans
88

 
3

 
1

 
92

Weighted average coupon
6.4
%
 
11.4
%
 
8.0
%
 
6.5
%
Weighted average years to maturity (2)
2.0

 
1.9

 
8.1

 
2.0

____________________
(1)
Loans primarily secured by a first priority lien on commercial real property and related personal property and also includes, when applicable, any companion subordinate loans.
(2)
Based on contractual maturity date. Certain loans are subject to contractual extension options with such conditions stipulated in the applicable loan documents. Actual maturities may differ from contractual maturities stated herein as certain borrowers may have the right to prepay with or without paying a prepayment fee. The Company may also extend contractual maturities in connection with loan modifications.

(dollars in thousands)
 
June 30,
2019
 
December 31,
2018
Property Type
 
Carrying Value
 
% of Loan Portfolio
 
Carrying Value
 
% of Loan Portfolio
Office
 
$
1,519,351

 
42.7
%
 
$
1,495,128

 
47.2
%
Multifamily
 
806,553

 
22.7
%
 
569,259

 
18.0
%
Hotel
 
566,259

 
15.9
%
 
427,611

 
13.5
%
Retail
 
369,869

 
10.4
%
 
324,447

 
10.2
%
Industrial
 
264,356

 
7.4
%
 
351,468

 
11.1
%
Other
 
33,729

 
0.9
%
 

 
%
Total
 
$
3,560,117

 
100.0
%
 
$
3,167,913

 
100.0
%


8

Table of Contents

GRANITE POINT MORTGAGE TRUST INC.
Notes to the Condensed Consolidated Financial Statements (unaudited)

(dollars in thousands)
 
June 30,
2019
 
December 31,
2018
Geographic Location
 
Carrying Value
 
% of Loan Portfolio
 
Carrying Value
 
% of Loan Portfolio
Northeast
 
$
1,141,476

 
32.1
%
 
$
1,171,691

 
37.0
%
Southwest
 
881,363

 
24.8
%
 
681,108

 
21.5
%
West
 
703,512

 
19.8
%
 
694,223

 
21.9
%
Southeast
 
437,898

 
12.2
%
 
369,961

 
11.7
%
Midwest
 
395,868

 
11.1
%
 
250,930

 
7.9
%
Total
 
$
3,560,117

 
100.0
%
 
$
3,167,913

 
100.0
%

 
At June 30, 2019 and December 31, 2018, the Company pledged loans held-for-investment with a carrying value of $3.2 billion and $2.9 billion, respectively, as collateral for repurchase agreements, asset-specific financings, revolving credit facilities and securitized debt obligations. See Note 10 - Repurchase Agreements, Note 11 - Asset-specific Financings, Note 12 - Revolving Credit Facilities and Note 13 - Securitized Debt Obligations.
The following table summarizes activity related to loans held-for-investment for the three and six months ended June 30, 2019 and 2018.
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(in thousands)
2019
 
2018
 
2019
 
2018
Balance at beginning of period
$
3,292,989

 
$
2,364,647

 
$
3,167,913

 
$
2,304,266

Originations, acquisitions and additional fundings
415,997

 
445,944

 
695,691

 
602,130

Repayments
(148,417
)
 
(324,252
)
 
(303,737
)
 
(420,679
)
Net discount accretion (premium amortization)
7

 
4

 
20

 
18

Increase in net deferred origination fees
(4,573
)
 
(5,919
)
 
(7,693
)
 
(8,004
)
Amortization of net deferred origination fees
4,114

 
3,182

 
7,923

 
5,875

Allowance for loan losses

 

 

 

Balance at end of period
$
3,560,117

 
$
2,483,606

 
$
3,560,117

 
$
2,483,606



The Company evaluates each loan for impairment at least quarterly by assessing the risk factors of each loan and assigning a risk rating based on a variety of factors. Risk factors include property type, geographic and local market dynamics, physical condition, leasing and tenant profile, projected cash flow, loan structure and exit plan, loan-to-value ratio, project sponsorship, and other factors deemed necessary. Risk ratings are defined as follows:

1 –
Lower Risk
2 –
Average Risk
3 –
Acceptable Risk
4 –
Higher Risk: A loan that has exhibited material deterioration in cash flows and/or other credit factors, which, if negative trends continue, could be indicative of future loss.
5 –
Impaired/Loss Likely: A loan that has a significantly increased probability of default or principal loss.


9

Table of Contents

GRANITE POINT MORTGAGE TRUST INC.
Notes to the Condensed Consolidated Financial Statements (unaudited)

The following table presents the number of loans, unpaid principal balance and carrying value (amortized cost) by risk rating for loans held-for-investment as of June 30, 2019 and December 31, 2018:
(dollars in thousands)
 
June 30,
2019
 
December 31,
2018
Risk Rating
 
Number of Loans
 
Unpaid Principal Balance
 
Carrying Value
 
Number of Loans
 
Unpaid Principal Balance
 
Carrying Value
1
 
9

 
$
377,008

 
$
375,737

 
9

 
$
354,791

 
$
353,583

2
 
89

 
3,013,703

 
2,990,794

 
78

 
2,680,297

 
2,656,679

3
 
6

 
157,465

 
156,348

 
3

 
121,133

 
120,496

4
 
2

 
37,419

 
37,238

 
2

 
37,420

 
37,155

5
 

 

 

 

 

 

Total
 
106

 
$
3,585,595

 
$
3,560,117

 
92

 
$
3,193,641

 
$
3,167,913



The Company has not identified any impaired loans and it has not recorded any allowances for losses as it is not deemed probable that the Company will not be able to collect all amounts due pursuant to the contractual terms of the loans.

Note 5. Available-for-Sale Securities
The following table presents the face value and carrying value (which approximates fair value) of AFS securities as of June 30, 2019 and December 31, 2018:
(in thousands)
June 30,
2019
 
December 31,
2018
Face value
$
12,798

 
$
12,798

Gross unrealized gains
32

 

Gross unrealized losses

 
(192
)
Carrying value
$
12,830

 
$
12,606



On June 30, 2019, the Company’s AFS securities had contractual maturities of less than one year.
At June 30, 2019 and December 31, 2018, the Company pledged AFS securities with a carrying value of $12.8 million and $12.6 million, respectively, as collateral for repurchase agreements. See Note 10 - Repurchase Agreements.
At June 30, 2019, the Company’s AFS securities were in a unrealized gain position. At December 31, 2018, the Company’s AFS securities were in an unrealized loss position for less than twelve months.
Evaluating AFS Securities for Other-Than-Temporary Impairments
In evaluating AFS securities for other-than-temporary impairments, or OTTI, the Company determines whether there has been a significant adverse quarterly change in the cash flow expectations for a security. The Company compares the amortized cost of each security in an unrealized loss position against the present value of expected future cash flows of the security. The Company also considers whether there has been a significant adverse change in the regulatory and/or economic environment as part of this analysis. If the amortized cost of the security is greater than the present value of expected future cash flows using the original yield as the discount rate, an other-than-temporary credit impairment has occurred. If the Company does not intend to sell and will not be more likely than not required to sell the security, the credit loss is recognized in earnings and the balance of the unrealized loss is recognized in other comprehensive income (loss). If the Company intends to sell the security or will be more likely than not required to sell the security, the full unrealized loss is recognized in earnings. The Company did not record any other-than-temporary credit impairments during the three and six months ended June 30, 2019 and 2018 as expected cash flows were greater than amortized cost for all AFS securities held.


10

Table of Contents

GRANITE POINT MORTGAGE TRUST INC.
Notes to the Condensed Consolidated Financial Statements (unaudited)

Note 6. Held-to-Maturity Securities
The following table presents the face value and carrying value of HTM securities by collateral type as of June 30, 2019 and December 31, 2018: