Company: MITN
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001514281-25-000026
Chunk: 127

Company: AG Mortgage Investment Trust, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 7
Chunk 127
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 ($ in millions).

54

Years EndedDecember 31, 2024December 31, 2023ChangeWeighted average amortized cost of our GAAP investment portfolio$6,874 $5,018 $1,856 Weighted average yield on our GAAP investment portfolio (1)5.94 %5.19 %0.75 %

(1)The weighted average yields are presented based on the amortized cost of the underlying loans.

Interest expense

Interest expense is inclusive of our financing cost related to our financing arrangements on our GAAP investment portfolio, securitized debt, Legacy WMC Convertible Notes, and Senior Unsecured Notes. 

Interest expense increased from December 31, 2023 to December 31, 2024 due to an increase in the GAAP financing balance outstanding resulting from the assumption of financing through the WMC acquisition in December 2023 along with the issuance of securitized debt and Senior Unsecured Notes during the year. Additionally, there was an increase in the weighted average financing rate. The following table presents a summary of the weighted average financing balance and the weighted average financing rate for the years ended December 31, 2024 and 2023 ($ in millions).

Years EndedDecember 31, 2024December 31, 2023ChangeWeighted average GAAP financing balance$6,418 $4,635 $1,783 Weighted average financing rate (1)5.34 %4.58 %0.76 %

(1)The weighted average financing rates are presented based on the amortized cost of the underlying securities. 

Net interest component of interest rate swaps

Net interest component of interest rate swaps represents the net interest income received or expense paid on our interest rate swaps.

We recorded income on the net interest component of interest rate swaps during the years ended December 31, 2024 and 2023 as a result of our swap portfolio being in a net receive position during the entire year. The following table presents a summary of our interest rate swap portfolio as of December 31, 2024 and 2023 ($ in millions).

December 31, 2024December 31, 2023ChangeInterest rate swap notional value$343 $503 $(160)Weighted average receive-variable rate4.49 %5.38 %(0.89)%Weighted average pay-fix rate3.48 %3.65 %(0.17)%