Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Investor Presentation (November 2005)
29 slides from Adamas Trust's investor presentation, Nov 23, 2005
Slide 1: New York Mortgage Trust, Inc. Supplemental Disclosure November 2005
New York Mortgage Trust, Inc. Supplemental Disclosure November 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: Management Ownership
Management Ownership NTR AHM BMM MHL NLY SFO LUM ANH TMA HMB KFN MFA Ownership 0.18321 0.10388 0.0828 0.06553 0.02288 0.0197 0.01918 0.01911 0.0179 0.01394 0.01306 0.0059 Source: Bloomberg Date: 11/15/05
Slide 5: 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 6: Recent Developments
Recent Developments Record Loan Origination Volume $1 billion in Q3 2005 (241% 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 7: 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 8: Origination Growth
Origination Growth 2002 2003 2004 2005e Current Run Rate 2006e (incl Wholesale) Purchase Originations 469 803 1089 1957 2279.2 2500 Refinance Originations 408 797 756 1643 1729.6 1900 Wholesale 1200 New Wholesale Refinance Purchase $ in millions IPO June 2004
Slide 9: Origination Growth v. Industry
Origination Growth v. Industry 3Q02 3Q03 3Q04 3Q05 NYMC 0 0.1353 0.6983 0.9403 1.2852 0.5968 0.3322 1.4154 0.9521 1.9727 2.1602 3.4159 3.7096 3.7133 Industry 0 0.3049 0.0258 0.5336 0.5491 -0.1835 -0.1899 0.0659 -0.1654 -0.1279 -0.199 -0.0052 0.0026 -0.2093 Origination Growth Outpaces Industry - Acce
Slide 10: Geographic Diversity
Geographic Diversity Licensed / Authorized to Lend (39 states & DC) 850+ Employees 63 Office Locations Branches in 13 States
Slide 11: Origination Growth v. Peers
Origination Growth v. Peers Peer group of active prime mortgage REITs 6 months ending 2Q05 v. 2Q04 Source: National Mortgage News HMB MHL AHM NTR 102%
Slide 12: 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 13: 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 14: Portfolio Strategy
Portfolio Strategy Self-Originated, Low Cost Loans High Credit Quality ARMs Managed Interest Rate Risk ARM Portfolio
Slide 15: Portfolio Strategy
Portfolio Strategy 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 ARMs = low credit risk Agency & AAA Rated Securities High FICO (Avg 734) & Low LTV (Avg 69%) Loans underwr
Slide 16: 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 17: Portfolio Economics
Portfolio Economics Data as of 9/30/05
Slide 18: High Credit Quality Portfolio
High Credit Quality Portfolio As of October 31, 2005
Slide 19: 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 20: Attractive Valuation
Attractive Valuation Source: Form 10-Q; market price as of 11/17/05 Peer group of active prime mortgage REITs HMB MHL AHM NTR 1.6x 1.2x 1.2x 1.0x Market Price to Tangible Book
Slide 21: 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 22: 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 23: 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 24: 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% 1
Slide 25: Balance Sheet 3Q05
Balance Sheet 3Q05 ($000) Cash $ 11,302 Investment securities & related accounts 797,079 Securitized mortgage loans 589,354 Mortgage loans held for investment 140,412 Mortgage loans held for sale & related accounts 272,086 Other assets 44,766 Total Assets $ 1,854,999 Financing arrangements $ 1,681,6
Slide 26: Income Statement
Income Statement 1Q05 ($000) REIT TRS Consolidated Interest income $ 45,911 $ 10,573 $ 56,484 Gain on sale of mortgage loans - 21,634 21,634 Brokered loan fees - 7,180 7,180 Other income 2,208 195 2,403 Total Revenue $ 48,119 $ 39,582 $ 87,701 Interest expense 34,001 7,284 41,285 Salaries, payroll 1
Slide 27: 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 28: 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
Slide 29: Slide 29
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