 Ben Collateral Portfolio Bens loan portfolio had exposure to 120 professionally managed alternative investment funds.DALLAS, Aug. 17, 2020 GLOBE NEWSWIRE -- Today, GWG Holdings, Inc. Nasdaq: GWGH, an innovative financial services firm based in Dallas, announced its financial and operating results for the second quarter ended June 30, 2020. The results reflect consolidated accounting and financial reporting of GWGH and The Beneficient Company Group, L.P. and its consolidated subsidiaries collectively, Beneficient. GWGH and Beneficient are referred to collectively as the Company. Recent Corporate Developments Despite the uncertainty surrounding the novel coronavirus pandemic COVID-19, and although a substantial majority of our employees continue to work remotely, we have maintained our operations at or near normal levels. The Company continues to raise capital, receive interest income and insurance policy benefits, pay interest income and dividends and otherwise meet its ongoing obligations. A survey of advisors conducted by GWGH in June found high satisfaction in its communication about the Companys products and services during these uncertain times. GWGH closed its publicly registered 1 billion L Bond offering in July 2020 and began raising capital under a new 2 billion L Bond offering. Effective June 29, 2020, the Company was again included in the Russell 2000 Index of small-cap U.S. stocks, an important bellwether for the U.S. economy. The Company hired key sales executives Michele Drummond as Vice President of National Accounts in the western half of the U.S. and Ben Hilgers as Regional Vice President for Florida and Puerto Rico. Beneficient launched a liquidity platform for an untapped market of mid-to-high-net-worth individuals, small-to-midsized institutional investors and family offices that own alternative assets. Beneficients product will enable these investors to access simple, rapid and cost-effective liquidity solutions. Beneficients trust charter applications are pending approval by the Texas Department of Banking. Beneficient has closed a limited number of transactions to date but intends to significantly expand its operations if and when the trust charters are issued. On July 6, 2020, GWGH filed documents with the SEC seeking authority to have the option to effect an exchange of its equity securities for securities issued by GWGH or one or more of its subsidiaries. The Company believes this proposed change is a potential avenue to create additional organizational efficiencies for the Company while at the same time enabling it to grow the consolidated balance sheet in a prudent and sustainable manner, and in turn create additional potential value for its shareholders. Effective July 15, 2020, GWGH entered into a Preferred Series C Unit Purchase Agreement with Beneficient that will allow GWGH to make additional capital contributions to Beneficient as Beneficient continues to expand its operations. On July 29, 2020, GWGH, represented by its Special Committee, approved a transaction by which GWGH agreed to convert its promissory note with certain LiquidTrust borrowers and any related accrued interest, into a 75.0 million capital account of Preferred C interests in BCH. The outstanding balance of the promissory note on June 30, 2020, with accrued and unpaid interest thereon, was 69.4 million. On August 13, 2020, GWG DLP Funding V, LLC DLP V, a wholly owned subsidiary of GWG Life, LLC, and Beneficient Capital Company, LLC BCC, a wholly owned subsidiary of Beneficient, together with BCCs senior lender entered into a credit agreement amending and restating the terms and conditions regarding Beneficients current credit agreement, which had approximately 124.5 million in senior debt outstanding. The Second Amended and Restated Credit Agreement provides for, among other things, DLP Vs assumption of the senior debt following the occurrences of certain conditions, including Beneficients receipt of the trust charters currently pending before the Texas Department of Banking.Second Quarter 2020 Financial and Operating Highlights Reported second quarter 2020 net loss of 18.1 million, compared to a net loss of 25.6 million in the second quarter of 2019: GWGHs investment in Beneficient was accounted for as an equity method investment prior to the change-of-control on December 31, 2019, and the second quarter of 2020 includes the consolidated results of Beneficient. Reported total assets of 3.7 billion as of both June 30, 2020, and March 31, 2020. Reported continued strong life insurance portfolio performance: Realized 39.9 million of face amount of policy benefits from 29 life insurance policies during the second quarter of 2020, compared to 23.0 million from 19 life insurance policies during the second quarter of 2019. Ended the quarter with a life insurance portfolio of 2.0 billion in face amount of policy benefits consisting of 1,102 policies. Reported continued success raising capital through the L Bond investment product with 93.5 million of L Bond sales in the second quarter of 2020. Total liquidity cash, restricted cash, policy benefits receivable and fees receivable increased to 219.7 million on June 30, 2020, compared to 188.7 million on March 31, 2020.This past quarter marked a significant milestone as Beneficient launched a first-of-its-kind liquidity platform to serve the large, growing and untapped market of mid-to-high-net-worth individuals, small-to-midsized institutional investors and family offices seeking simple, rapid and cost-effective liquidity solutions for their alternatives assets, said Murray Holland, GWGHs Chief Executive Officer. The fact that our investment sales have been consistently strong during this period, while so many have operated under stay-at-home orders and other restrictions, demonstrates the confidence we have earned from a very active network of advisors and places us in a robust position for the future.1. Financial Operating Highlights Thousands except per share information Q2 2020 Q2 2019 YTD 2020 YTD 2019 Revenue 68,789 24,010 102,346 49,227 Expenses 68,720 45,941 192,770 83,845 Income Tax Benefit 8,550 23,057 Income Loss from Equity Method Investments 1,318 600 2,848 1,327 Net Income Loss, including Income Loss from Equity Method Investment 7,301 21,331 70,215 35,945 Loss Income Attributable to Noncontrolling Interests 21,723 10,361 Preferred Stock Dividends 3,714 4,278 7,666 8,574 Net Loss Attributable to Common Shareholders 18,136 25,609 67,520 44,519 Per Share Data: Net Loss1 0.59 0.78 2.21 1.35 Capital Raised from L Bonds 93,519 45,241 202,572 171,227 Liquidity2 219,692 82,461 219,692 82,461 Life Insurance Portfolio3 1,960,826 2,088,445 1,960,826 2,088,445 Life Insurance Acquired3 12,955 93,166 Face Value of Matured Policies 39,889 22,998 65,391 53,457 TTM Benefits Premiums4 205.1 138.6 205.1 138.6 1. Per diluted common share outstanding 2. Includes cash, restricted cash, policy benefits receivable and fees receivable as of the end of the period presented 3. Face amount of policy benefits as of the end of the period presented. 4. The ratio of policy benefits realized to premiums paid on a trailing twelve month TTM basis.2. Revenue and Expense Discussion Second Quarter 2020 vs. Second Quarter 2019: Total revenue was 68.8 million in the current period, compared to 24.0 million in the prior period primarily due to: 36.3 million of other income recognized by Beneficient in the second quarter of 2020 as a result of the forfeiture of vested equity-based compensation related to one former director of Beneficient. 11.3 million of interest income added as a result of the consolidation of Beneficient. 4.8 million of trust services revenues added as a result of the consolidation of Beneficient. The aforementioned increases were partially offset by 5.1 million lower net gain on life insurance policies due to no gain on policy acquisitions, higher premiums paid and maturities of policies with a higher cumulative cost basis Total expenses were 68.7 million in the current period, compared to 45.9 million in the prior period primarily due to: 8.7 million higher interest expense due to higher average outstanding balances of L Bonds, senior credit facility and Beneficient debt. Higher employee compensation and benefits 5.0 million, legal and professional fees 2.9 million and other expenses 6.2 million primarily due to the consolidation of Beneficient. Other expenses include Beneficients provision for loan losses of 7.2 million for the second quarter 2020.Six Months Ended June 30, 2020 vs. Six Months Ended June 30, 2019: Total revenue was 102.3 million in the current period, compared to 49.2 million in the prior period primarily due to: 36.3 million of other income recognized by Beneficient in the second quarter of 2020 as a result of the forfeiture of vested equity-based compensation related to one former director of Beneficient. 23.5 million of interest income added as a result of the consolidation of Beneficient. 9.9 million of trust services revenues added as a result of the consolidation of Beneficient. The aforementioned increases were partially offset by 12.2 million lower net gain on life insurance policies due to no gain on policy acquisitions, higher premiums paid and maturities of policies with a higher cumulative cost basis. Total expenses were 192.8 million in the current period, compared to 83. 