Adamas Trust, Inc. · NASDAQ:ADAM
Adamas Trust — New York Mortgage Trust — Q4 2020 Earnings Presentation
36 slides from Adamas Trust's earnings presentation, Feb 25, 2021
Slide 1: 2020 Fourth Quarter Financial Summary
New York Mortgage Trust 2020 Fourth Quarter Financial Summary
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on our beliefs, assumptions and expectations of our future performance, tak
Slide 3: To Our Stockholders: Management Update
To Our Stockholders Management Update "The Company had a solid fourth quarter, delivering $0.19 GAAP earnings per share and $0.22 in comprehensive earnings per share. As of December 31, 2020, the Company’s book value per share was $4.71, up 3% from the prior quarter, resulting in an economic return
Slide 4: Table of Contents
Table of Contents Company Overview Financial Summary Market & Strategy Update Quarterly Comparative Financial Information Appendix Glossary End Notes Capital Allocation Reconciliation of Net Interest Income
Slide 5: Company Overview
Company Overview
Slide 6: NYMT Overview
NYMT Overview New York Mortgage Trust, Inc. (NASDAQ: NYMT) is a real estate investment trust Capital Allocation (“REIT”) for U.S. federal income tax purposes in the business of acquiring, investing in, financing and managing primarily mortgage-related single-family and multi-family Single-Family Mul
Slide 7: Key Developments
Key Developments Fourth Quarter 2020 Key Developments NYMT emerged from an unprecedented year with a stronger balance sheet and lower leverage, delivering a 5% economic return to our stockholders in the fourth quarter. ◦ Earnings per share $0.19 Financial ◦ Comprehensive earnings per share $0.22 Per
Slide 8: Financial Summary
Financial Summary Fourth Quarter 2020
Slide 9: Financial Snapshot
Financial Snapshot Earnings Per Share Dividend Per Share Net Interest Margin Basic Comprehensive Q4 Dividend $0.19 $0.22 $0.10 Earnings & Book Value Price to Book Economic Return on Book Value 2.90% 2.92% 2.43% 2.18% 2.30% Market Price Book Value Price/Book 3 Months Ended $3.69 $4.71 0.78 5.0% 4Q 20
Slide 10: Fourth Quarter and Full Year Summary
Fourth Quarter and Full Year Summary Dollar amounts in millions, except per share data 4Q 2020 FY 2020 Equity Capital Market Raised Total Raised Capital $ — $ 512.0 Accretive Capital from Common Equity Raises $ — $ 20.0 Investment Activity Purchases $ 489.6 $ 1,236.3 Sales $ (7.9) $ (2,472.3) Net In
Slide 11: Financial Results
Financial Results Fourth Quarter Profit & Loss Dollar amounts in millions, except per share data 3% Book Value Accretion in Fourth Quarter Net Interest Income $ 26.0 Non-Interest Income 67.3 Total Net Interest Income & Non-Interest $5.78 93.3 Income $4.71 $4.58 $4.35 $3.89 General & Administrative E
Slide 12: Market & Strategy Update
Market & Strategy Update
Slide 13: NYMT Earnings Growth Strategy
NYMT Earnings Growth Strategy Pipeline Strategy For Sustainable Earnings Growth Portfolio Acquisitions within Core Loan Strategies (Dollar amounts in millions) Focus NYMT focused on loan portfolio opportunities in $351 markets where the Company sees a competitive advantage and competition is less du
Slide 14: NYMT Continues to Enhance Capital Structure
NYMT Continues to Enhance Capital Structure 5% Economic Return Generated in the Fourth Quarter Quarterly Portfolio Financing Exposure (Dollar amounts in millions) 1.4x Strategy Shift Continued to primarily focus on investments away from cusip securities that have potential to generate attractive $11
Slide 15: Single-Family Portfolio Overview
Single-Family Portfolio Overview Total Investment Portfolio Total Capital Dollar amounts in millions 79% 71% Asset Value Net Equity Portfolio Loan Key Characteristics Core Strategy Sub-Sector Leverage Current Environment % $ % $ Ratio Avg. FICO Avg. LTV Avg. Coupon 75% 4.86% • Limited impact from CO
Slide 16: Single-Family Opportunity Highlights
Single-Family Opportunity Highlights 2% Active COVID-19 Assistance Plan Loans Fourth Quarter Update (Dollar amounts in millions) Type Count Balance 12/31/20 09/30/20 8/31/20 7/31/20 6/30/20 5/31/20 COVID-19 Assistance Plans ◦ 2% of the residential loan portfolio is currently under a RPL 6,453 $1,002
Slide 17: Multi-Family Portfolio Overview
Multi-Family Portfolio Overview Total Investment Portfolio Total Capital Dollar amounts in millions 17% 25% Asset Value Loan Key Characteristics Core Strategy Sub-Sector Current Environment % $ Avg. DSCR Avg. LTV Avg. Coupon • COVID-19 impacted loans not material to Multi-Family 2.0x 81% 11.54% port
Slide 18: Multi-Family Opportunity Highlights
Multi-Family Opportunity Highlights Fourth Quarter Update Loan Portfolio Characteristics as of 12/31/2020 (Dollar amounts in millions) Property Operating Update State (Top 10) Count Balance % Total Coupon LTV DSCR ◦ Zero NY Exposure – Portfolio located primarily in the South and Southeast of the U.S
Slide 19: NYMT Outlook for 2021
Outlook NYMT Outlook for 2021 For 2021, we will continue to focus on asset growth and prudent liability management to increase our profitability. Utilizing a Strong Balance Sheet to Capture Superior Market Opportunities ◦ Well positioned to take advantage of proprietary opportunities across the Sing
Slide 20: Quarterly Comparative Financial Information
Quarterly Comparative Financial Information
Slide 21: Portfolio Yields by Strategy
Portfolio Yields by Strategy Quarter over Quarter Comparison Portfolio Net Interest Margin (4Q’20 vs 3Q’20) Portfolio net interest margin for the fourth quarter was 2.30%, an increase from the third quarter primarily due to an increase in asset yield in our single-family portfolio. This increase is
Slide 22: Net Interest Income
Net Interest Income Quarter over Quarter Comparison Net Interest Income (4Q’20 vs 3Q’20) Net interest income was relatively flat for the quarter as compared to the previous quarter. The $1.0 million increase in interest income from the previous quarter is primarily due to increased investment in hig
Slide 23: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Realized Gains (Losses), net (4Q’20 vs 3Q’20) Net realized gains of $1.9 million in the fourth quarter, including $2.0 million realized gain activity on residential loans, is primarily a result of loan prepayment activity. Dollar Amounts in
Slide 24: Non-Interest Income (Loss)
Non-Interest Income (Loss) Quarter over Quarter Comparison Income from Equity Investments (4Q’20 vs 3Q’20) The net increase of $2.1 million in the fourth quarter is primarily related to the improvement in the fair valuation of our preferred equity investments accounted for as equity offset by a decr
Slide 25: Expense Analysis
Expense Analysis Quarter over Quarter Comparison General and Administrative Expenses (4Q’20 vs 3Q’20) Decrease in compensation expenses largely related to reduction in annual incentive compensation, as the Company did not achieve its annual quantitative performance targets. Dollar Amounts in Thousan
Slide 26: Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) (4Q’20 vs 3Q’20) Other comprehensive income in the fourth quarter is primarily due to continued improvement in credit spreads. Dollar Amounts in Thousands 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 NET INCOME (LOSS) ATTRIBUTABLE TO COMPANY'S COM
Slide 27: Book Value
Book Value Changes in Book Value The following table analyzes the changes in book value of our common stock for the quarter and year ended December 31, 2020. Quarter Ended December 31, 2020 Year Ended December 31, 2020 Amounts in Thousands, except per share Amount Shares Per Share Amount Shares Per
Slide 28: Annual Returns
Annual Returns Economic/Total Rate Economic Return: Change in Book Value for the period + Dividends declared for the period, divided by the beginning period Book Value. 2020 4Q'20 3Q'20 2Q'20 1Q'20 2019 2018 2017 Book Value Beginning $5.78 $4.58 $4.35 $3.89 $5.78 $5.65 $6.00 $6.13 Ending $4.71 $4.71
Slide 29: Appendix
Appendix
Slide 30: Glossary
Glossary The following defines certain of the commonly used terms in this presentation: "Accretive Capital" refers to the premium received on shares of common stock issued in our capital markets raises over the most recently reported book value prior to the respective capital raises, after deducting
Slide 31: Glossary
Glossary “Market Capitalization” is the outstanding shares of common stock and preferred stock multiplied by closing common stock and preferred stock market price as of the date indicated; "MF" refers to multi-family; "MTM" refers to mark-to-market; “Consolidated K-Series CDOs” refers to the debt th
Slide 32: End Notes
End Notes Slide 1 • Image(s) used under license from Shutterstock.com. Slide 14 Slide 3 • Repo includes MTM repurchase agreement financing. • Image(s) used under license from Shutterstock.com. • Non-MTM financing includes residential loan securitizations, non-Agency RMBS re- Slide 6 securitization a
Slide 33: End Notes
End Notes Slide 17 Slide 22 • Refer to Appendix - "Capital Allocation" for a detailed breakout of Total Investment • Refer to Appendix - “Reconciliation of Net Interest Income" for reconciliation of net Portfolio, Total Capital, and Net Equity. interest income for Single-Family and Multi-Family. • A
Slide 34: Capital Allocation
Capital Allocation At December 31, 2020 (Dollar amounts in thousands) Single-Family (1) Multi-Family Other Total Residential loans $3,049,166 $— $— $3,049,166 Consolidated SLST CDOs (1,054,335) — — (1,054,335) Multi-family loans — 163,593 — 163,593 Investment securities available for sale (2) 495,06
Slide 35: Reconciliation of Net Interest Income
Reconciliation of Net Interest Income Dollar amounts in thousands 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 Single-Family Interest income, residential loans $21,899 $19,808 $17,898 $22,177 $19,988 Interest income, Consolidated SLST 10,653 10,896 11,522 12,123 4,764 Interest income, investment securities availab
Slide 36: Thank You
Thank You From all of us at NYMT
New York Mortgage Trust — Q4 2020 Earnings Presentation on 6ix