Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Investor Presentation (August 2005)
26 slides from Adamas Trust's investor presentation, Aug 26, 2005
Slide 1: New York Mortgage Trust, Inc. Investor Presentation August 2005
New York Mortgage Trust, Inc. Investor Presentation August 2005
Slide 2: Safe Harbor Statement - Private Securities Litigation Reform Act of 1995
Safe Harbor Statement - Private Securities Litigation Reform Act of 1995 Forward Looking Information This presentation may include forward-looking statements. These forward-looking statements include comments with respect to our objectives and strategies, and the results of our operations and our bu
Slide 3: Why New York Mortgage Trust?
Why New York Mortgage Trust? Residential Mortgage REIT w/Self-Originated Portfolio Strategy Self-originated portfolio loans = lower cost, higher yielding assets High credit quality ARM loans = low credit risk Disciplined interest rate hedging = minimized book value & earnings volatility Rapidly Grow
Slide 4: Straightforward Corporate Structure
Straightforward Corporate Structure NTR: Real Estate Investment Trust Mortgage Loans & Securitized Loan Portfolio Mortgage Loans & Securitized Loan Portfolio (Taxable REIT Subsidiary) Originations 3rd Party Investors Fixed and Non-Portfolio ARMs Sold Servicing Released; Cash Sales Prime ARM Loans He
Slide 5: Recent Developments
Recent Developments Securitized $662 Million in 2005 (45% of Current Portfolio) Record Loan Origination Volume Q2 2005 $940 million (40% increase from Q1 2005) Current retail annual run-rate $4 billion (250% of 2003) Launched New Wholesale Initiative (July 2005) Projected $1 to $1.5 billion producti
Slide 6: Origination Capabilities
3. Mortgage-Backed Portfolio 1. Introduction 4. NYMT Recap 5. Appendix / Additional Info 2. Origination Capabilities New York Mortgage Trust, Inc. 2. Origination Capabilities
Slide 7: Consistent Originations Growth
Consistent Originations Growth 2002 2003 2004 2005e Current Run Rate 2006e (incl Wholesale) Purchase Originations 469 803 1089 1957 2240 2464 Refinance Originations 408 797 756 1643 1760 1936 Wholesale 1200 (Dollars in millions) Retail: $4 billion run rate. Referral based = less reliance on "refi bo
Slide 8: Expanding Geographic Coverage
Expanding Geographic Coverage Branch Locations: Arizona Colorado Connecticut (7%) Delaware District of Colombia Florida Massachusetts (19%) Maryland New Hampshire New York (38%) New Jersey (9%) Pennsylvania Rhode Island Virginia (% indicate top 4 states production.) Licensed / Authorized to Lend 800
Slide 9: Origination Growth Consistently Outpaces Market
Origination Growth Consistently Outpaces Market Origination Growth Versus Peers 10 Origination $Volume Growth: 6 Months Ending 6/30/05 versus 6/30/04 Peer Group Comprised of Active Prime Mortgage REITs.
Slide 10: NYMC Growth Strategy
NYMC Growth Strategy Growth Objectives To increase loan originations for portfolio & gain on sale To diversify origination channels & enhance geographic footprint To increase TRS profitability for dividend, book value accretion or both Disciplined Successful Growth Strategy Growth via no/low cost, l
Slide 11: Mortgage-Backed Portfolio
3. Mortgage-Backed Portfolio 1. Introduction 4. NYMT Recap 5. Appendix / Additional Info 2. Origination Capabilities New York Mortgage Trust, Inc. 3. Mortgage-Backed Portfolio
Slide 12: Portfolio Strategy
Portfolio Strategy Managed Interest Rate Risk Conservative interest rate management Initial fixed period of 5 years or less Hedges, primarily swaps and caps; no speculation Net duration gap » 6 months High Credit Quality ARM Portfolio High credit quality ARMs = low credit risk Agency & AAA Rated Sec
Slide 13: Originated Loans Drive Higher Returns
Originated Loans Drive Higher Returns Originated 5/1 Purchased 5/1 Loans Agency MBS Yield 5.20% * 4.95% Cost of funds (Incl Hedges) - -4.05% - -4.05% Net spread 1.15% 0.90% Leverage (debt / equity) 12.0x 12.0x Leverage return 13.80% 10.80% Equity return 5.20% 4.95% Pre G&A Return 19.00% 15.75% Incre
Slide 14: Strong Portfolio Credit Characteristics
Average FICO: 731 Average LTV: 69% Average Balance: $485,000 % Full Doc Loans: 59% % Owner Occupied: 87% % Purchase Loans: 75% % Interest Only: 71% Highest State Concentration: 31% NY Strong Portfolio Credit Characteristics Disciplined loan selection approach & experienced in-house underwriting lead
Slide 15: Proven Effective Hedging Strategy
Effective Hedging - Evaluate OCI Most Recent 4 Quarters of OCI as a Percentage of Equity Source: Quarterly Form 10-Q filed with SEC Origination Growth Consistently Outpaces Market Proven Effective Hedging Strategy 16 Proven effective hedging: OCI as a percent of equity should be as close to zero and
Slide 16: Portfolio Economics
Portfolio Economics Data as of 8/25/05
Slide 17: NYMT Recap
3. Mortgage-Backed Portfolio 1. Introduction 4. Financial Analysis 5. Appendix / Additional Info 2. Origination Capabilities New York Mortgage Trust, Inc. 4. NYMT Recap
Slide 18: Attractive Relative Valuation
Attractive Relative Valuation AMH HMB MHL NTR 1.61 1.44 1.41 1.3 Book Value as of 6/30/05. Market Price as of 8/25/05. Source Bloomberg.
Slide 19: Why New York Mortgage Trust?
Why New York Mortgage Trust? Residential Mortgage REIT w/Self-Originated Portfolio Strategy Self-originated portfolio loans = lower cost, higher yielding assets High credit quality ARM loans = low credit risk Disciplined interest rate hedging = minimized book value & earnings volatility Rapidly Grow
Slide 20: Appendix / Additional Info
3. Mortgage-Backed Portfolio 1. Introduction 4. Financial Analysis 5. Management & Board 2. Origination Capabilities New York Mortgage Trust, Inc. 5. Appendix / Additional Info
Slide 21: Financial Transparency
Financial Transparency Retained Loans Transferred to REIT at GAAP Cost Basis MBS are all Classified as "Held for Sale" Securitized Loans Classified "Held to Maturity" No Eurodollar or Structure Repo Financing Transactions
Slide 22: Originated Loan Summary
Originated Loan Summary Total Originations: (in millions) Average Loan Balance (portfolio): Average Loan Balance (all production): Weighted Average Loan to Value: Weighted Average Middle Non-FHA FICO: Weighted Average Middle FICO: Percent Purchase: Percent Hybrid/Adjustable Rate: Weighted Average Sa
Slide 23: Balance Sheet 2Q05
Balance Sheet 2Q05 ($000) Cash $ 3,931 Investment securities & related accounts 1,004,860 Securitized mortgage loans 382,570 Mortgage loans held for investment 233,853 Mortgage loans held for sale & related accounts 296,052 Other assets 38,629 Total Assets $ 1,959,895 Financing arrangements $ 1,793,
Slide 24: Income Statement
Income Statement 1Q05 ($000) REIT TRS Consolidated Interest income $ 30,686 $ 6,100 $ 36,786 Gain on sale of mortgage loans - 12,649 12,649 Brokered loan fees - 4,534 4,534 Other income 922 103 1,025 Total Revenue $ 31,608 $ 23,386 $ 54,994 Interest expense 21,885 4,336 26,221 Salaries, payroll 1,47
Slide 25: Experienced Management Team
Experienced Management Team Steven B. Schnall Chairman, Co-CEO, President Founder, President and CEO of NYMC 15 years experience in mortgage banking David A. Akre Vice-Chairman, Co-CEO VP at Thornburg Mortgage - 6 years - whole loan trading, capital markets, ALCO GE Capital Mortgage - 7 years - pipe
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