Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Investor Presentation (October 2005)
25 slides from Adamas Trust's investor presentation, Oct 31, 2005
Slide 1: New York Mortgage Trust, Inc. Investor Presentation October 2005
New York Mortgage Trust, Inc. Investor Presentation October 2005 www.nymtrust.com www.nymc.com
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: Straightforward Corporate Structure
Straightforward Corporate Structure NTR: Real Estate Investment Trust Mortgage Loans & Securitized Loan Portfolio Mortgage Loans & Securitized Loan Portfolio 3rd Party Investors Fixed and Non-Portfolio ARMs Sold Servicing Released; Cash Sales Prime ARM Loans Held in Portfolio ' Transferred at Cost a
Slide 4: 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 = minimized credit risk Rapidly Growing Mortgage Origination Subsidiary (TRS) $4 billion current annual origi
Slide 5: Recent Developments
Recent Developments Record Loan Origination Volume $1 billion in Q3 2005 (229% of Q3 2004) Launched New Wholesale Initiative (July 2005) Projected $1 to $1.5 billion production for 2006 Transitioning Portfolio from acquired MBS to Originated Loans $1.5 billion portfolio will be substantially self-or
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: Origination Growth Consistently Outpaces Market
Origination Growth Consistently Outpaces Market 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05e 4Q05e NYMC 0 0.14 0.7 0.94 1.29 0.6 0.33 1.42 0.95 1.97 2.16 3.42 3.71 3.93 Industry 0 0.3 0.03 0.53 0.55 -0.18 -0.27 0.04 -0.2 -0.21 -0.23 0.01 0.08 -0.14 Origination Growth Consistentl
Slide 8: Expanding Geographic Coverage
Expanding Geographic Coverage Branch Locations: Arizona Colorado Connecticut (7%) Delaware District of Colombia Florida Massachusetts (20%) Maryland New Hampshire New York (36%) New Jersey (9%) Pennsylvania Rhode Island Virginia (% indicates top 4 states production.) Licensed / Authorized to Lend 80
Slide 9: Origination Growth Versus Peers
Origination Growth Consistently Outpaces Market Origination Growth Versus Peers 19 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 Disciplined Mortgage Company & Originations Growth Same store origination growth (approximate 25% since June 2004 IPO) No cost and low cost, low risk strategic branch acquisitions SIB branches: Cost $0 ($400 million origination volume) GRL branches: All-in cost $4.9M* ($1.4 bill
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 » 8 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 3.25% Purchased 5/1 Originated 5/1 AAA MBS Loans Yield 5.27% 5.52% * Cost of funds (Incl Hedges) - -4.38% - -4.38% Net spread 0.89% 1.14% Leverage (debt / equity) 12.0x 12.0x Leverage return 10.68% 13.68% Equity return 5.27% 5.52% Pre G&A Return 15.95% 19.20% In
Slide 14: Portfolio Economics
Portfolio Economics Data as of 8/25/05
Slide 15: Strong Portfolio Credit Characteristics
Average FICO: 734 Average LTV: 69% Average Balance: $479,000 % Full Doc Loans: 61% % Owner Occupied: 85% % Purchase Loans: 62% % Interest Only: 74% Highest Concentration: NY 26% Average borrower income: $287,000 Average liquid reserves: 105 months PITI Strong Portfolio Credit Characteristics Discipl
Slide 16: 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 17: Attractive Relative Valuation
Attractive Relative Valuation AMH HMB MHL NTR 1.31 1.28 1.11 1.05 Book Value as of 6/30/05. Market Price as of 10/20/05. Source Bloomberg
Slide 18: 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 = minimized credit risk Rapidly Growing Mortgage Origination Subsidiary (TRS) $4 billion current annual origi
Slide 19: 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 20: Originated Loan Summary
Originated Loan Summary Total Originations: Average Loan Balance (all production): Weighted Average Loan to Value: Weighted Average Middle FICO: Percent Purchase: Percent Hybrid/Adjustable Rate: Weighted Average Sales Price Over Par: Weighted Average Coupon: Portfolio $800 mil $479,000 69% 734 62.3%
Slide 21: Balance Sheet
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 22: 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 23: 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
Slide 24: Strategic Independent Board
Strategic Independent Board Thomas K. White Fannie Mae, Senior Vice President Bear Stearns, Investment Banker National Council of State Housing Agencies, EVP David R. Bock The World Bank, Director of Operations Lehman Brothers, Managing Director Mary Dwyer Pembroke Freddie Mac, Director Senate Banki
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