NEW YORK, Aug. 4 /PRNewswire-FirstCall/ -- New York Mortgage Trust, Inc. ("NYMT" or the "Company") today reported results for the three and six months ended June 30, 2009.
Summary of Second Quarter 2009: -- Consolidated net income of $2.5 million, or $0.27 per common share, for the quarter ended June 30, 2009, as compared to net income of $1.3 million, or $0.14 per common share for the quarter ended June 30, 2008. -- Declared second quarter dividend of $0.23 per common share that was paid on July 27, 2009. -- Book value as of June 30, 2009 of $4.89 per common share, an increase of 10% from book value as of March 31, 2009. -- Second quarter 2009 portfolio net interest margin was 361 basis points as compared to 252 basis points for the quarter ended March 31, 2009 and 143 basis points for the quarter ended June 30, 2008. -- Initiated non-Agency RMBS investment strategy focused on the investment of up to $25 million in previously rated AAA non-Agency RMBS; as of June 30, 2009, the Company had invested $4.6 million at an average price that equals approximately 58% of current par value. -- Leverage ratio as of June 30, 2009 was 3.0 to 1 as compared to 6.8 to 1 as of December 31, 2008. As of June 30, 2009, the Company had $15.8 million in cash and $56.3 million in unencumbered securities, including $35.7 million in Agency residential mortgage-backed securities ("RMBS"). Management Overview
Steven R. Mumma, Chief Executive Officer, President and Chief Financial Officer of the Company, commented on the Company's 2009 second quarter results. "The Company continues to build on its successful first quarter results, having completed its disposition of Agency CMO floaters in April 2009 and reinvesting a portion of the excess capital in non-levered assets that we expect will produce higher yields. We believe this strategy will better able the Company to perform on a more consistent basis over the coming months and quarters. The Company is encouraged by the improvement in its net portfolio margin to 361 basis points during the 2009 second quarter and expects, based on current market conditions, further improvement in margins as it continues its strategy of investing in higher yielding asset classes. The overall environment for the mortgage REIT space remained very favorable during the second quarter, with improved prices, lower borrowing costs and more stable funding sources, all of which contributed to the Company's earnings and book value growth. We look forward to continuing to build out our non-Agency RMBS strategy during the 2009 third quarter.
Results from Operations
For the quarter ended June 30, 2009, the Company reported earnings per common share of $0.27 or consolidated net income of $2.5 million, as compared to net income of $1.3 million for the quarter ended June 30, 2008, or $0.14 per common share. The Company's net interest income improved to $4.2 million for the quarter ended June 30, 2009 as compared to $2.5 million for the same period in the previous year. The average net interest margin for the Company's investment portfolio increased to 361 basis points for the quarter ended June 30, 2009 as compared to 252 basis points for the quarter ended March 31, 2009. The 2009 second quarter margin increase reflects the impact of the sale of the Company's Agency collateralized mortgage obligation floating rate securities ("Agency CMO floaters"), which was initiated in March 2009 and completed in April 2009. The Company deployed a portion of the capital resulting from the sale of the Agency CMO floaters into higher yielding non-levered assets classes, including an $9.0 million investment on March 31, 2009 in notes issued by a collateralized loan obligation ("CLO") and a $4.6 million investment in non-Agency RMBS during the second quarter.
Book value per common share was $4.89 as of June 30, 2009, a 10% increase from the March 31, 2009 book value of $4.45.
Portfolio Results
The following table summarizes the Company's investment portfolio at June 30, 2009, classified by relevant categories:
(dollar amounts in thousands) Current Par Carrying Value Value Coupon Yield ----------- -------- ------- ------ Agency RMBS $228,177 $238,709 5.15% 3.04% Non-Agency RMBS 33,550 21,228 2.65% 16.56% Collateralized Loan Obligations 45,950 8,988 4.08% 29.08% Loans Held in Securitization Trusts 313,900 313,955 5.41% 5.37% ------- ------- Total/Weighted Average $621,577 $582,880 5.07% 5.19% ======== ========
As of June 30, 2009, the Company had $188.2 million of repurchase agreements funding the Agency RMBS portfolio with an average interest rate of 0.53% and average haircut of 6.5%. The Company does not have any outstanding financing against its non-Agency RMBS portfolio or the collateralized loan obligations.
As of June 30, 2009, the Company had $314.0 million of loans held in securitization trusts which were permanently financed with $302.3 million of collateralized debt obligations, resulting in a net equity investment of $11.7 million by the Company. The weighted average interest rate on the collateralized debt obligations was 0.70% as of June 30, 2009. As of June 30, 2009, the Company had approximately $13.0 million of loans held in securitization trusts that were greater than 60 days delinquent, for which, the Company had reserves totaling $1.9 million for potential losses on the loans. In addition, as of June 30, 2009, the loans held in securitization trusts included three real estate owned properties totaling approximately $1.2 million.
Portfolio Restructuring
As previously announced the Company sold a total of $193.8 million of Agency CMO floaters in March 2009 and April 2009, including approximately $34.3 million in April, realizing a net gain of $0.1 million and generating approximately $45.0 million in working capital. As discussed above, on March 31, 2009, the Company made a $9.0 million investment in discounted notes issued by Cratos CLO I, Ltd., a CLO, for which management estimates a risk adjusted return of approximately 25%. In addition, the Company is targeting an aggregate investment of up to $25.0 million in non-Agency RMBS on a non-levered basis with targeted risk adjusted returns in the 16%-20% range. As of June 30, 2009, the Company had invested $4.6 million in non-Agency RMBS at an average price that equals 58.17% of current par value for which management estimates a risk adjusted yield of 17%. To date, the Company has invested $23.8 million at an average price that equals 59.52% of current par value for which management estimates a risk adjusted yield of 18%.
Conference Call
On Wednesday, August 5, 2009, at 9:00 a.m. Eastern Time, New York Mortgage Trust's executive management is scheduled to host a conference call and audio webcast to discuss the Company's financial results for the second quarter ended June 30, 2009. The conference call dial-in number is (480) 629-9770. The replay will be available until Wednesday, August 12, 2009, and can be accessed by dialing (303) 590-3030 and entering passcode 4131353. A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis, at http://www.earnings.com/ or at the Investor Relations section of the Company's website at http://www.nymtrust.com/. Please allow extra time, prior to the call, to visit the site and download the necessary software to listen to the Internet broadcast. The online archive of the webcast will be available until October 14, 2009.
More detailed information regarding the Company's second quarter 2009 financial and operating results can be viewed on the Company's Quarterly Report on Form 10-Q, which is expected to be filed on or about August 7, 2009.
About New York Mortgage Trust
New York Mortgage Trust, Inc. is a real estate investment trust (REIT) that invests primarily in real estate-related assets, including mortgage-backed securities ("RMBS") issued by Fannie Mae or Freddie Mac (each an "Agency"), high credit quality residential adjustable rate mortgage ("ARM") loans, non-Agency RMBS, and to a lesser extent, in certain alternative real-estate related and financial assets. As a REIT, the Company is not subject to federal income tax, provided that it distributes at least 90% of its REIT income to stockholders.
Certain statements contained in this press release may be deemed to be forward-looking statements that predict or describe future events or trends. The matters described in these forward-looking statements are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company faces many risks that could cause its actual performance to differ materially from the results predicted by its forward-looking statements, including, without limitation, changes in business conditions and the general economy, a rise in interest rates or an unfavorable change in prepayment rates may cause a decline in the market value of the Company's assets, borrowings to finance the purchase of assets may not be available on favorable terms, the failure to identify suitable alternative assets under the Company's alternative investment strategy, failure to maintain the Company's qualification as a REIT for federal tax purposes or its exemption from the Investment Company Act of 1940, failure to effectively manage the risks associated with investing in mortgage loans, including changes in loan delinquencies and increasing prepayment rates, and a failure to effectively implement and manage the Company's hedging strategy. The reports that the Company files with the Securities and Exchange Commission contain a more detailed description of these and many other risks to which the Company is subject. Because of those risks, the Company's actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by its forward-looking statements. The information set forth in this news release represents management's current expectations and intentions. The Company assumes no responsibility to issue updates to the forward-looking matters discussed in this press release.
NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share amounts) (unaudited) June 30, December 31, 2009 2008 ------------ ------------ ASSETS Cash and cash equivalents $15,797 $9,387 Restricted cash 3,269 7,959 Investment securities - available for sale, at fair value (including pledged securities of $202,962 and $456,506, respectively) 268,925 477,416 Accounts and accrued interest receivable 2,765 3,095 Mortgage loans held in securitization trusts (net) 313,955 348,337 Derivative assets 18 22 Prepaid and other assets 2,158 1,230 Assets related to discontinued operation 4,608 5,854 -------- -------- Total Assets $611,495 $853,300 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Financing arrangements, portfolio investments $188,151 $402,329 Collateralized debt obligations 302,325 335,646 Derivative liabilities 3,053 4,194 Accounts payable and accrued expenses 5,252 3,997 Subordinated debentures (net) 44,755 44,618 Convertible preferred debentures (net) 19,776 19,702 Liabilities related to discontinued operation 2,614 3,566 -------- -------- Total liabilities 565,926 814,052 -------- -------- Commitments and Contingencies Stockholders' Equity: Common stock, $0.01 par value, 400,000,000 authorized, 9,320,094 and 9,320,094, shares issued and outstanding, respectively 93 93 Additional paid-in capital 146,969 150,790 Accumulated other comprehensive loss (2,980) (8,521) Accumulated deficit (98,513) (103,114) -------- -------- Total stockholders' equity 45,569 39,248 -------- -------- Total Liabilities and Stockholders' Equity $611,495 $853,300 ======== ======== NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share amounts) (unaudited) For the Three Months For the Six Months Ended June 30, Ended June 30, 2009 2008 2009 2008 --------- -------- -------- -------- REVENUE: Interest income-investment securities and loans held in securitization trusts $7,621 $10,755 $16,206 $24,008 Interest expense-investment securities and loans held in securitization trusts 2,047 6,791 5,177 17,305 ------ ------ ------ ------ Net interest income from investment securities and loans held in securitization trusts 5,574 3,964 11,029 6,703 Interest expense - subordinated debentures 808 896 1,632 1,855 Interest expense - convertible preferred debentures 608 569 1,145 1,075 ------ ------ ------ ------ Net interest income 4,158 2,499 8,252 3,773 OTHER EXPENSE: Provision for loan losses (259) (22) (888) (1,455) Impairment loss on investment securities - - (119) - Realized gain (loss) on securities and related hedges 141 (83) 264 (19,931) ------ ------ ------ ------ Total other expense (118) (105) (743) (21,386) EXPENSE: Salaries and benefits 472 417 1,013 730 Professional fees 357 346 698 698 Management fees 245 184 427 293 Insurance 95 300 187 392 Other 433 713 847 1,278 ------ ------ ------ ------ Total expenses 1,602 1,960 3,172 3,391 INCOME (LOSS) FROM CONTINUING OPERATIONS 2,438 434 4,337 (21,004) Income from discontinued operation - net of tax 109 829 264 1,009 ------ ------ ------ ------ NET INCOME (LOSS) $2,547 $1,263 $4,601 $(19,995) ====== ====== ====== ========= Basic income (loss) per common share $0.27 $0.14 $0.49 $(2.77) ===== ===== ===== ======= Diluted income (loss) per common share $0.27 $0.14 $0.49 $(2.77) ===== ===== ===== ======= Dividends declared per share common share $0.23 $0.16 $0.41 $0.28 ===== ===== ===== ===== Weighted average shares outstanding-basic 9,320 9,320 9,320 7,218 ===== ===== ===== ===== Weighted average shares outstanding-diluted 11,820 9,320 11,820 7,218 ====== ===== ====== =====
New York Mortgage Trust, Inc.
CONTACT: Steven R. Mumma, CEO and Chief Financial Officer,
+1-212-792-0109, smumma@nymtrust.com; or Joe Calabrese, General,
+1-212-827-3772, or Scott Eckstein, Analysts, +1-212-827-3776, both of
FINANCIAL RELATIONS BOARD
Web Site: http://www.nymtrust.com/
