Company: MITN
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001514281-25-000026
Chunk: 128

Company: AG Mortgage Investment Trust, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 7
Chunk 128
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Net weighted average (pay)/receive rate1.01 %1.73 %(0.72)%

Net realized gain/(loss)

The following table presents a summary of Net realized gain/(loss) for the years ended December 31, 2024 and 2023 (in thousands). The realized loss during the year ended December 31, 2024 was primarily driven by losses from unwinding pay-fix, receive-variable interest rate swaps which were held at unrealized losses. This was offset by realized gains on sales of residential mortgage loans and real estate securities. 

Years EndedDecember 31, 2024December 31, 2023Sales of residential mortgage loans and loans transferred to or sold from Other assets$5,254 $(12,079)Sales of real estate securities12,710 (1,558)Settlement of derivatives and other instruments(20,882)21,334 Total Net realized gain/(loss)$(2,918)$7,697 

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Net unrealized gain/(loss)

The following table presents a summary of Net unrealized gain/(loss) for the years ended December 31, 2024 and 2023 (in thousands). During the year ended December 31, 2024, there were unrealized gains on our residential mortgage loans and interest rate swaps offset by unrealized losses on our securitized debt.

Years Ended December 31, 2024December 31, 2023Residential mortgage loans$41,840 $111,714 Commercial loans268 95 Real estate securities(865)3,475 Securitized debt(35,028)(89,369)Derivatives10,741 (24,465)Total Net unrealized gain/(loss)$16,956 $1,450 

Bargain purchase gain

Per ASC 805, "Business Combinations," a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred is less than the fair value of the identifiable net asset acquired. In connection with the WMC acquisition in 2023, we recorded a bargain purchase gain of $30.2 million, which represents the amount by which the fair value of the net assets we acquired in the acquisition of $81.4 million exceeded the fair value of the shares of MITT common stock issued as consideration of $51.2 million. As a result of macroeconomic factors and interest rate volatility, the price per share of common