x
|
ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the Fiscal Year Ended December 31, 2008
|
|
o
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the Transition Period From ____________ to
____________
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|
Maryland
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47-0934168
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
|
(I.R.S.
Employer
Identification
No.)
|
Title
of Each Class
|
Name of Each Exchange on Which Registered
|
|
Common
Stock, par value $0.01 per share
|
NASDAQ
Stock Market
|
Document
|
Where
Incorporated
|
|
1.
Portions of the Registrant's Definitive Proxy Statement relating to
its 2009 Annual Meeting of Stockholders scheduled for June 9,
2009 to be filed with the Securities and Exchange Commission by no later
than April 30, 2009.
|
Part
III, Items 10-14
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1
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||
16
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||
35
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||
35
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||
35
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||
35
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||
35
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||
39
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||
40
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||
67
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||
71
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||
71
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||
72
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||
72
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||
73
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||
73
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||
73
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||
73
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||
73
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||
74
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·
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invest in high-credit
quality Agency and non-Agency RMBS, including ARM securities,
CMO Floaters, and high-credit quality mortgage
loans;
|
|
·
|
finance our portfolio by entering
into repurchase agreements, or issuing collateral debt obligations
relating to our
securitizations;
|
|
·
|
generally operate as a long-term
portfolio investor; and
|
|
·
|
generate earnings from the return
on our RMBS and spread income from our securitized mortgage loan
portfolio.
|
|
·
|
Category I investments are
mortgage-backed securities that are either rated within one of the two
highest rating categories by either Moody’s Investor Services or Standard
and Poor’s, or have their repayment guaranteed by Freddie Mac, Fannie Mae
or Ginnie Mae;
|
|
·
|
Category II investments are all
residential mortgage-related securities that do not fall within Category
I; and
|
|
·
|
Category III investments are all
commercial mortgage-backed securities and non-mortgage-related securities,
including, without limitation, subordinated debentures or equity interests
in a collateralized loan obligation, high yield corporate bonds and equity
securities.
|
|
·
|
no investment shall be made which
would cause us to fail to qualify as a
REIT;
|
|
·
|
no investment shall be made which
would cause us or our subsidiaries to register as an investment company
under the Investment Company Act of
1940;
|
|
·
|
the purchase and sale of Category
I investments, subject to the limitations described
above;
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|
·
|
the purchase and sale of agency
debt;
|
|
·
|
the purchase and sale of U.S.
Treasury securities;
|
|
·
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the purchase and sale of
overnight investments;
|
|
·
|
the purchase and sale of money
market funds;
|
|
·
|
hedging arrangements
using:
|
|
·
interest rate swaps and Eurodollar
contracts;
|
|
· caps,
floors and collars;
|
|
·
financial futures; and
|
|
·
options on any of the above; and
|
|
·
|
the incurrence of indebtedness
using:
|
|
·
repurchase agreements; and
|
|
·
term repurchase
agreements.
|
Type
|
Description
|
|
Base
Advisory Fee
|
A
base advisory fee of 1.50% per annum of the “equity capital” of the
Managed Subsidiaries is payable by us to HCS in cash, quarterly in
arrears.
Equity
capital of the Managed Subsidiaries is defined as, for any fiscal quarter,
the greater of (i) the net asset value of the investments of the Managed
Subsidiaries as of the end of the fiscal quarter, excluding any
investments made prior to the date of the advisory agreement and any
assets contributed by us to the Managed Subsidiaries for the purpose of
facilitating compliance with our exclusion from regulation under the
Investment Company Act, or (ii) the sum of $20,000,000 plus 50% of the net
proceeds to us or our subsidiaries of any offering of common or preferred
stock completed by us during the term of the advisory
agreement.
|
|
Incentive
Compensation
|
The
advisory agreement calls for incentive compensation to be paid by us to
HCS under certain circumstances. If earned, incentive compensation is paid
quarterly in arrears in cash; provided, however,
that a portion of the incentive compensation may be paid in shares of our
common stock.
For
the first three fiscal quarters of each fiscal year, 25% of the core
earnings of the Managed Subsidiaries attributable to the investments that
are managed by HCS that exceed a hurdle rate equal to the greater of (i)
2.00% or (ii) 0.50% plus one-fourth of the ten year treasury rate for such
quarter.
For
the fourth fiscal quarter of each fiscal year, the difference between (i)
25% of the GAAP (as defined in Item 7 below) net income of the
Managed Subsidiaries attributable to the investments that are managed by
HCS that exceeds a hurdle rate equal to the greater of (a) 8.00% and (b)
2.00% plus the ten year treasury rate for such fiscal year, and (ii) the
amount of incentive compensation paid for the first three fiscal quarters
of such fiscal year.
|
|
Termination
Fee
|
If
we terminate the advisory agreement for cause, no termination fee is
payable. Otherwise, if we terminate the advisory agreement or elect not to
renew it, we will pay a cash termination fee equal to the sum of (i) the
average annual base advisory fee and (ii) the average annual incentive
compensation earned during the 24-month period immediately preceding the
date of termination.
|
|
·
|
our
business strategy;
|
|
·
|
future
performance, developments, market forecasts or projected
dividends;
|
|
·
|
projected
acquisitions or joint ventures; and
|
|
·
|
projected
capital expenditures.
|
|
·
|
our
portfolio strategy and operating strategy may be changed or modified by
our management without advance notice to you or stockholder approval and
we may suffer losses as a result of such modifications or
changes;
|
|
·
|
market
changes in the terms and availability of repurchase agreements used to
finance our investment portfolio
activities;
|
|
·
|
reduced
demand for our securities in the mortgage securitization and secondary
markets;
|
|
·
|
interest
rate mismatches between our interest-earning
assets and our borrowings used to fund such
purchases;
|
|
·
|
changes
in interest rates and mortgage prepayment
rates;
|
|
·
|
changes
in the financial markets and economy generally,
including the continued or accelerated deterioration of the U.S.
economy;
|
|
·
|
effects
of interest rate caps on our adjustable-rate mortgage-backed
securities;
|
|
·
|
the
degree to which our hedging strategies may or may not protect us from
interest rate volatility;
|
|
·
|
potential
impacts of our leveraging policies on our net income and cash available
for distribution;
|
|
·
|
our
board's ability to change our operating policies and strategies without
notice to you or stockholder
approval;
|
|
·
|
our
ability to successfully implement and grow our alternative investment
strategy and
to identify suitable alternative
assets;
|
|
·
|
our
ability to manage, minimize or eliminate liabilities stemming from the
discontinued operations including, among other things, litigation,
repurchase obligations on the sales of mortgage loans and property
leases;
|
·
|
actions
taken by the U.S. and foreign governments, central banks and other
governmental and regulatory bodies for the purpose of stabilizing the
financial credit and housing markets, and economy generally, including
loan modification programs;
|
·
|
changes
to the nature of the guarantees provided by Fannie Mae and Freddie Mac;
and
|
|
·
|
the
other important factors identified, or incorporated by reference into this
report, including, but not limited to those under the captions
“Management's Discussion and Analysis of Financial Condition and Results
of Operations” and “Quantitative and Qualitative Disclosures about Market
Risk”, and those described in Part I, Item 1A – “Risk Factors,” and
the various other factors identified in any other documents filed by us
with the SEC.
|
|
·
|
We
have purchased RMBS, and may purchase in the future investment securities,
that have a higher interest rate than the market interest rate at the time
of purchase. In exchange for this higher interest rate, we are
required to pay a premium over the face amount of the security to acquire
the security. In accordance with accounting rules, we amortize this
premium over the anticipated term of the mortgage security. If principal
distributions are received faster than anticipated, we would be required
to expense the premium faster. We may not be able to reinvest the
principal distributions received on these investment securities in similar
new mortgage-related securities and, to the extent that we can do so, the
effective interest rates on the new mortgage-related securities will
likely be lower than the yields on the mortgages that were
prepaid.
|
|
·
|
We
also may acquire RMBS or other investment securities at a discount. If the
actual prepayment rates on a discount mortgage security are slower than
anticipated at the time of purchase, we would be required to recognize the
discount as income more slowly than anticipated. This would adversely
affect our profitability. Slower than expected prepayments also may
adversely affect the market value of a discount mortgage
security.
|
|
·
|
the
movement of interest rates;
|
|
·
|
the
availability of financing in the market;
and
|
|
·
|
the
value and liquidity of our mortgage-related
assets.
|
|
·
|
our
lenders do not make debt financing available to us at acceptable rates;
or
|
|
·
|
our
lenders require that we pledge additional collateral to cover our
borrowings, which we may be unable to
do.
|
|
·
|
interest
rate hedging can be expensive, particularly during periods of rising and
volatile interest rates;
|
|
·
|
available
interest rate hedges may not correspond directly with the interest rate
risk for which protection is
sought;
|
|
·
|
the
duration of the hedge may not match the duration of the related
liability;
|
|
·
|
the
amount of income that a REIT may earn from hedging transactions (other
than through taxable REIT subsidiaries (or TRSs)) to offset interest rate
losses is limited by U.S. federal tax provisions governing
REITs;
|
|
·
|
the
credit quality of the party owing money on the hedge may be downgraded to
such an extent that it impairs our ability to sell or assign our side of
the hedging transaction; and
|
|
·
|
the
party owing money in the hedging transaction may default on its obligation
to pay.
|
|
·
|
our
charter provides that, subject to the rights of one or more classes or
series of preferred stock to elect one or more directors, a director may
be removed with or without cause only by the affirmative vote of holders
of at least two-thirds of all votes entitled to be cast by our
stockholders generally in the election of
directors;
|
|
·
|
our
bylaws provide that only our Board of Directors shall have the
authority to amend our bylaws;
|
|
·
|
under
our charter, our Board of Directors has authority to issue
preferred stock from time to time, in one or more series and to establish
the terms, preferences and
rights of any such series, all without the approval of our
stockholders;
|
|
·
|
the
Maryland Business Combination Act;
and
|
|
·
|
the
Maryland Control Share Acquisition
Act.
|
|
·
|
sell
assets in adverse market
conditions,
|
|
·
|
borrow
on unfavorable terms or
|
|
·
|
distribute
amounts that would otherwise be invested in future acquisitions, capital
expenditures or repayment of debt in order to comply with the REIT
distribution requirements.
|
Common Stock Prices (1)
|
Cash Dividends
|
||||||||||||||||||
High
|
Low
|
Close
|
Declared
|
Paid or
Payable
|
Amount
per Share
|
||||||||||||||
Year Ended December
31, 2008
|
|||||||||||||||||||
Fourth
quarter
|
$ | 4.37 | $ | 1.51 | $ | 2.20 |
12/23/08
|
01/26/09
|
$ | 0.10 | |||||||||
Third
quarter
|
5.99 | 2.50 | 3.17 |
09/29/08
|
10/27/08
|
0.16 | |||||||||||||
Second
quarter
|
6.24 | 4.00 | 6.20 |
06/30/08
|
7/25/08
|
0.16 | |||||||||||||
First
quarter
|
9.80 | 4.40 | 5.40 |
04/21/08
|
05/15/08
|
0.12 |
Common Stock Prices
(2)
|
Cash Dividends
|
||||||||||||||||||
High
|
Low
|
Close
|
Declared
|
Paid
or
Payable
|
Amount
per Share
|
||||||||||||||
Year
Ended December 31, 2007
|
|||||||||||||||||||
Fourth
quarter
|
$ | 10.00 | $ | 6.02 | $ | 8.60 |
|
—
|
|||||||||||
Third
quarter
|
19.26 | 3.10 | 8.40 |
|
—
|
||||||||||||||
Second
quarter
|
29.60 | 17.70 | 19.10 |
|
—
|
||||||||||||||
First
quarter
|
33.90 | 23.40 | 25.40 |
3/14/07
|
4/26/07
|
$ |
0.50
|
(1)
|
Our
common stock was reported on the OTCBB from January 1, 2008 through June
4, 2008. Our common stock has been listed on the NASDAQ since
June 5, 2008.
|
(2)
|
Our
common stock was listed on the NYSE from the date of our IPO until
September 11, 2007, at which time our common stock was delisted from the
NYSE. Our common stock was reported on the OTCBB beginning on
September 11,
2007.
|
Declaration Date
|
Record Date
|
Payment Date
|
Cash Distribution
per share
|
Income
Dividends
|
Short-term
Capital Gain
|
Total Taxable
Ordinary
Dividend
|
Return of
Capital
|
|||||||||||||||||
04/21/08
|
04/30/08
|
05/15/08
|
$ | 0.1200 | $ | 0.0941 | $ | 0.0000 | $ | 0.0941 | $ | 0.0259 | ||||||||||||
06/30/08
|
07/10/08
|
07/25/08
|
$ | 0.1600 | $ | 0.1600 | $ | 0.0000 | $ | 0.1600 | $ | 0.0000 | ||||||||||||
09/29/08
|
10/10/08
|
10/27/08
|
$ | 0.1600 | $ | 0.0056 | $ | 0.0000 | $ | 0.0056 | $ | 0.1544 | ||||||||||||
Total
2008 Cash Distributions
|
$ | 0.4400 | $ | 0.2597 | $ | 0.0000 | $ | 0.2597 | $ | 0.1803 |
Plan Category
|
Number of Securities to
be Issued upon Exercise
of Outstanding Options,
Warrants and Rights
|
Weighted Average
Exercise Price of
Outstanding Options,
Warrants and Rights
|
Number of Securities
Remaining Available for
Future Issuance under
Equity
Compensation Plans
|
|||
Equity compensation plans approved by security
holders
|
—
|
$
|
—
|
103,111
|
As of and For the Year Ended December 31,
|
||||||||||||||||||||
(Dollar amounts in thousands, except per Share Amounts)
|
2008
|
2007
|
2006
|
2005
|
2004
|
|||||||||||||||
Operating
Data:
|
||||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Interest
income
|
$ | 44,123 | $ | 50,564 | $ | 64,881 | $ | 62,725 | $ | 20,394 | ||||||||||
Interest
expense
|
36,260 | 50,087 | 60,097 | 49,852 | 12,470 | |||||||||||||||
Net
Interest Income
|
7,863 | 477 | 4,784 | 12,873 | 7,924 | |||||||||||||||
Provision
for loan losses
|
(1,462 | ) | (1,683 | ) | (57 | ) | — | — | ||||||||||||
(Loss)
gain on sale of securities and related hedges
|
(19,977 | ) | (8,350 | ) | (529 | ) | 2,207 | 167 | ||||||||||||
Impairment
loss on investment securities
|
(5,278 | ) | (8,480 | ) | — | (7,440 | ) | — | ||||||||||||
Total
other expense
|
(26,717 | ) | (18,513 | ) | (586 | ) | (5,233 | ) | 167 | |||||||||||
Expenses:
|
||||||||||||||||||||
Salaries
and benefits
|
1,869 | 865 | 714 | 1,934 | 382 | |||||||||||||||
General
and administrative expenses
|
5,041 | 1,889 | 1,318 | 2,384 | 810 | |||||||||||||||
Total
expenses
|
6,910 | 2,754 | 2,032 | 4,318 | 1,192 | |||||||||||||||
(Loss)
income from continuing operations
|
(25,764 | ) | (20,790 | ) | 2,166 | 3,322 | 6,899 | |||||||||||||
Income
(loss) discontinued operations – net of
tax (1)
|
1,657 | (34,478 | ) | (17,197 | ) | (8,662 | ) | (1,952 | ) | |||||||||||
Net
(loss) income (2)
|
$ | (24,107 | ) | $ | (55,268 | ) | $ | (15,031 | ) | $ | (5,340 | ) | $ | 4,947 | ||||||
Basic
and diluted (loss) income per common share from continuing
operations
|
$ | (3.11 | ) | $ | (11.46 | ) | $ | 1.20 | $ | 1.85 | $ | 3.85 | ||||||||
Basic
and diluted income (loss) per common share from discontinued
operations
|
$ | 0.20 | $ | (19.01 | ) | $ | (9.53 | ) | $ | (4.81 | ) | $ | (1.09 | ) | ||||||
Basic
and diluted (loss) income per common share
|
$ | (2.91 | ) | $ | (30.47 | ) | $ | (8.33 | ) | $ | (2.96 | ) | $ | 2.76 | ||||||
Dividends
per common share
|
$ | 0.54 | $ | 0.50 | $ | 4.70 | $ | 9.20 | $ | 4.00 | ||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | 9,387 | $ | 5,508 | $ | 969 | $ | 9,056 | $ | 7,613 | ||||||||||
Investment
securities available for sale
|
477,416 | 350,484 | 488,962 | 716,482 | 1,204,745 | |||||||||||||||
Mortgage
loans held in securitization trusts or held for investment
(net)
|
348,337 | 430,715 | 588,160 | 780,670 | 190,153 | |||||||||||||||
Assets
related to discontinued operations
|
5,854 | 8,876 | 212,805 | 248,871 | 201,034 | |||||||||||||||
Total
assets
|
853,300 | 808,606 | 1,321,979 | 1,789,943 | 1,614,762 | |||||||||||||||
Financing
arrangements
|
402,329 | 315,714 | 815,313 | 1,166,499 | 1,115,809 | |||||||||||||||
Collateralized
debt obligations
|
335,646 | 417,027 | 197,447 | 228,226 | — | |||||||||||||||
Subordinated
debentures
|
44,618 | 44,345 | 44,071 | 43,650 | — | |||||||||||||||
Convertible
preferred debentures
|
19,702 | — | — | — | — | |||||||||||||||
Liabilities
related to discontinued operations
|
3,566 | 5,833 | 187,705 | 231,925 | 189,095 | |||||||||||||||
Total
liabilities
|
814,052 | 790,188 | 1,250,407 | 1,688,985 | 1,495,280 | |||||||||||||||
Total
stockholders’ equity
|
$ | 39,248 | $ | 18,418 | $ | 71,572 | $ | 100,958 | $ | 119,482 |
(1)
|
In
connection with the sale of the Company's wholesale mortgage origination
platform assets on February 22, 2007 and the sale of its retail mortgage
origination platform assets on March 31, 2007, the Company is required to
classify its mortgage lending business as a discontinued operations in
accordance with Statement of Financial Accounting Standards No. 144 (see
note 8 in the notes to our consolidated financial
statements).
|
(2)
|
The
selected financial data as of and for the years ended December 31, 2008,
December 31, 2007, December 31, 2006 and December 31, 2005, include the
operations of NYMT and its consolidated subsidiaries. Included in the
selected financial data for the year ended December 31, 2004 are the
results of NYMT for the period beginning June 29, 2004 (the closing date
of our IPO) and HC for the period January 1, 2004 to June 29,
2004.
|
|
·
|
changes
in interest rates;
|
|
·
|
rates
of prepayment and default on our assets or the mortgages or loans that
underlie such assets;
|
|
·
|
general
economic and financial and credit market conditions;
|
|
·
|
our
leverage, our access to funding and our borrowing
costs;
|
|
·
|
our
hedging activities;
|
|
·
|
changes
in the credit ratings of the loans, securities, and other assets we
own;
|
|
·
|
the
market value of our investments;
|
|
·
|
liabilities related
to our discontinued operations, including repurchase obligations on
the sales of mortgage loans;
and
|
|
·
|
requirements
to maintain REIT status and to qualify for an exemption from registration
under the Investment Company Act.
|
December 31, 2008
|
Sponsor or
Rating
|
Par
Value
|
Carrying
Value
|
% of
Portfolio
|
Coupon
|
Yield
|
||||||||||||||||
Credit
|
||||||||||||||||||||||
Agency
Hybrid ARMs
|
FNMA
|
$ | 251,810 | $ | 258,196 | 54 | % | 5.15 | % | 3.93 | % | |||||||||||
Agency
REMIC CMO Floating Rate
|
FNMA/FHLMC
|
203,638 | 197,675 | 41 | % | 1.83 | % | 8.54 | % | |||||||||||||
Private
Label Floating Rate
|
AAA
|
23,289 | 18,118 | 4 | % | 1.27 | % | 15.85 | % | |||||||||||||
Private
Label Floating Rate
|
Aa
|
3,648 | 2,828 | 1 | % | 2.30 | % | 4.08 | % | |||||||||||||
NYMT
Retained Securities
|
AAA-BBB
|
609 | 530 | 0 | % | 5.80 | % | 8.56 | % | |||||||||||||
NYMT
Retained Securities
|
Below
Investment Grade
|
2,462 | 69 | 0 | % | 5.67 | % | 16.99 | % | |||||||||||||
Total/Weighted
Average
|
$ | 485,456 | $ | 477,416 | 100 | % | 3.55 | % | 6.51 | % |
December 31, 2007
|
Sponsor or
Rating
|
Par
Value
|
Carrying
Value
|
% of
Portfolio
|
Coupon
|
Yield
|
||||||||||||||||
Credit
|
||||||||||||||||||||||
Agency
REMIC CMO Floating Rate
|
FNMA/FHLMC/GNMA
|
$ | 324,676 | $ | 318,689 | 91 | % | 5.98 | % | 5.55 | % | |||||||||||
Private
Label Floating Rate
|
AAA
|
29,764 | 28,401 | 8 | % | 5.66 | % | 5.50 | % | |||||||||||||
NYMT
Retained Securities
|
AAA-BBB
|
2,169 | 2,165 | 1 | % | 6.31 | % | 6.28 | % | |||||||||||||
NYMT
Retained Securities
|
Below
Investment Grade
|
2,756 | 1,229 | 0 | % | 5.68 | % | 12.99 | % | |||||||||||||
Total/Weighted
Average
|
$ | 359,365 | $ | 350,484 | 100 | % | 5.95 | % | 5.61 | % |
Less than
6 Months
|
More than 6 Months
To 24 Months
|
More than 24 Months
To 60 Months
|
Total
|
|||||||||||||||||||||||||||||
December 31, 2008
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
||||||||||||||||||||||||
Agency
Hybrid ARMs
|
$ | — | — | % | $ | 66,910 | 3.69 | % | $ | 191,286 | 4.02 | % | $ | 258,196 | 3.93 | % | ||||||||||||||||
Agency
REMIC CMO Floating Rate
|
197,675 | 8.54 | % | — | — | % | — | — | % | 197,675 | 8.54 | % | ||||||||||||||||||||
Private
Label Floating Rate
|
20,946 | 14.25 | % | — | — | % | — | — | % | 20,946 | 14.25 | % | ||||||||||||||||||||
NYMT
Retained Securities
|
530 | 8.56 | % | — | — | % | 69 | 16.99 | % | 599 | 15.32 | % | ||||||||||||||||||||
Total/Weighted
Average
|
$ | 219,151 | 9.21 | % | $ | 66,910 | 3.69 | % | $ | 191,355 | 4.19 | % | $ | 477,416 | 6.51 | % |
Less than
6 Months
|
More than 6 Months
To 24 Months
|
More than 24 Months
To 60 Months
|
Total
|
|||||||||||||||||||||||||||||
December 31, 2007
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
||||||||||||||||||||||||
Agency
REMIC CMO Floating Rate
|
$ | 318,689 | 5.55 | % | $ | — | — | % | $ | — | — | % | $ | 318,689 | 5.55 | % | ||||||||||||||||
Private
Label Floating Rate
|
28,401 | 5.50 | % | — | — | % | — | — | % | 28,401 | 5.50 | % | ||||||||||||||||||||
NYMT
Retained Securities
|
2,165 | 6.28 | % | — | — | % | 1,229 | 12.99 | % | 3,394 | 10.03 | % | ||||||||||||||||||||
Total/Weighted Average
|
$ | 349,255 | 5.55 | % | $ | — | — | % | $ | 1,229 | 12.99 | % | $ | 350,484 | 5.61 | % |
Par Value
|
Coupon
|
Carrying Value
|
Yield
|
|||||||||||||
December
31, 2008
|
$ | 347,546 | 5.56 | % | $ | 348,337 | 3.96 | % | ||||||||
December
31, 2007
|
$ | 429,629 | 5.74 | % | $ | 430,715 | 5.36 | % |
# of Loans
|
Par Value
|
Carrying Value
|
||||||||||
Loan
Characteristics:
|
||||||||||||
Mortgage
loans held in securitization trusts
|
793 | $ | 347,546 | $ | 348,337 | |||||||
Retained
interest in REMIC securitization (included in Investment securities
available for sale)
|
337 | 177,442 | 599 | |||||||||
Total
Loans Held
|
1,130 | $ | 524,988 | $ | 348,936 |
Average
|
High
|
Low
|
||||||||||
General
Loan Characteristics:
|
||||||||||||
Original
Loan Balance
|
$ | 491 | $ | 3,500 | $ | 48 | ||||||
Current
Coupon Rate
|
5.67 | % | 8.13 | % | 4.00 | % | ||||||
Gross
Margin
|
2.34 | % | 5.00 | % | 1.13 | % | ||||||
Lifetime
Cap
|
11.19 | % | 13.38 | % | 9.13 | % | ||||||
Original
Term (Months)
|
360 | 360 | 360 | |||||||||
Remaining
Term (Months)
|
319 | 327 | 283 |
# of Loans
|
Par Value
|
Carrying Value
|
||||||||||
Loan
Characteristics:
|
||||||||||||
Mortgage
loans held in securitization trusts
|
972 | $ | 429,629 | $ | 430,715 | |||||||
Retained
interest in securitization (included in Investment securities
available for sale)
|
391 | 209,455 | 3,394 | |||||||||
Total
Loans Held
|
1,363 | $ | 639,084 | $ | 434,109 |
Average
|
High
|
Low
|
||||||||||
General
Loan Characteristics:
|
||||||||||||
Original
Loan Balance
|
$ | 490 | $ | 3,500 | $ | 48 | ||||||
Current
Coupon Rate
|
5.79 | % | 9.93 | % | 4.00 | % | ||||||
Gross
Margin
|
2.34 | % | 6.50 | % | 1.13 | % | ||||||
Lifetime
Cap
|
11.19 | % | 13.75 | % | 9.00 | % | ||||||
Original
Term (Months)
|
360 | 360 | 360 | |||||||||
Remaining
Term (Months)
|
330 | 339 | 295 |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Arm
Loan Type
|
||||||||
Traditional
ARMs
|
2.2 | % | 2.3 | % | ||||
2/1
Hybrid ARMs
|
1.1 | % | 1.6 | % | ||||
3/1
Hybrid ARMs
|
7.8 | % | 10.2 | % | ||||
5/1
Hybrid ARMs
|
86.3 | % | 83.4 | % | ||||
7/1
Hybrid ARMs
|
2.6 | % | 2.5 | % | ||||
Total
|
100.0 | % | 100.0 | % | ||||
Percent
of ARM loans that are Interest Only
|
78.6 | % | 77.3 | % | ||||
Weighted
average length of interest only period
|
8.3
years
|
8.3
years
|
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Traditional
ARMs - Periodic Caps
|
||||||||
None
|
79.4 | % | 72.9 | % | ||||
1%
|
1.2 | % | 1.4 | % | ||||
Over
1%
|
19.4 | % | 25.7 | % | ||||
Total
|
100.0 | % | 100.0 | % |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Hybrid
ARMs - Initial Cap
|
||||||||
3.00%
or less
|
6.7 | % | 8.3 | % | ||||
3.01%-4.00%
|
4.0 | % | 5.1 | % | ||||
4.01%-5.00%
|
88.2 | % | 85.6 | % | ||||
5.01%-6.00%
|
1.1 | % | 1.0 | % | ||||
Total
|
100.0 | % | 100.0 | % |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Original
FICO Scores
|
||||||||
650
or less
|
4.4 | % | 3.9 | % | ||||
651
to 700
|
18.0 | % | 17.0 | % | ||||
701
to 750
|
32.7 | % | 32.4 | % | ||||
751
to 800
|
40.9 | % | 42.5 | % | ||||
801
and over
|
4.0 | % | 4.2 | % | ||||
Total
|
100.0 | % | 100.0 | % | ||||
Average
FICO Score
|
736 | 738 |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Original
Loan to Value (LTV)
|
||||||||
50%
or less
|
9.7 | % | 9.5 | % | ||||
50.01%-60.00%
|
8.2 | % | 8.9 | % | ||||
60.01%-70.00%
|
25.8 | % | 27.3 | % | ||||
70.01%-80.00%
|
54.4 | % | 52.2 | % | ||||
80.01%
and over
|
1.9 | % | 2.1 | % | ||||
Total
|
100.0 | % | 100.0 | % | ||||
Average
LTV
|
69.9 | % | 69.7 | % |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Property
Type
|
||||||||
Single
Family
|
51.4 | % | 51.3 | % | ||||
Condominium
|
23.3 | % | 22.8 | % | ||||
Cooperative
|
9.8 | % | 9.8 | % | ||||
Planned
Unit Development
|
12.8 | % | 13.0 | % | ||||
Two
to Four Family
|
2.7 | % | 3.1 | % | ||||
Total
|
100.0 | % | 100.0 | % |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Occupancy
Status
|
||||||||
Primary
|
85.1 | % | 84.4 | % | ||||
Secondary
|
11.0 | % | 12.0 | % | ||||
Investor
|
3.9 | % | 3.6 | % | ||||
Total
|
100.0 | % | 100.0 | % |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Documentation
Type
|
||||||||
Full
Documentation
|
72.7 | % | 72.0 | % | ||||
Stated
Income
|
19.6 | % | 19.7 | % | ||||
Stated
Income/ Stated Assets
|
6.3 | % | 6.8 | % | ||||
No
Documentation
|
1.0 | % | 1.0 | % | ||||
No
Ratio
|
0.4 | % | 0.5 | % | ||||
Total
|
100.0 | % | 100.0 | % |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Loan
Purpose
|
||||||||
Purchase
|
58.0 | % | 57.8 | % | ||||
Cash
out refinance
|
16.1 | % | 15.9 | % | ||||
Rate
& term refinance
|
25.9 | % | 26.3 | % | ||||
Total
|
100.0 | % | 100.0 | % |
December 31, 2008
Percentage
|
December 31, 2007
Percentage
|
|||||||
Geographic
Distribution: 5% or more in any one state
|
||||||||
NY
|
30.7 | % | 31.2 | % | ||||
MA
|
17.2 | % | 17.4 | % | ||||
FL
|
7.8 | % | 8.3 | % | ||||
CA
|
7.2 | % | 7.2 | % | ||||
NJ
|
6.0 | % | 5.7 | % | ||||
Other
(less than 5% individually)
|
31.1 | % | 30.2 | % | ||||
Total
|
100.0 | % | 100.0 | % |
Principal
Amount of
Loans
|
|||||||||||||||||||||||||||||||||||||
Subject to
|
|||||||||||||||||||||||||||||||||||||
Periodic
|
Delinquent
|
||||||||||||||||||||||||||||||||||||
Description
|
Interest Rate
|
Final Maturity
|
Payment
|
Original
|
Current
|
Principal
|
|||||||||||||||||||||||||||||||
Property
|
Loan
|
Term
|
Prior
|
Amount of
|
Amount of
|
or
|
|||||||||||||||||||||||||||||||
Type
|
Balance
|
Count
|
Max
|
Min
|
Avg
|
Min
|
Max
|
(months)
|
Liens
|
Principal
|
Principal
|
Interest
|
|||||||||||||||||||||||||
Single
|
<=
$100,000
|
12
|
7.75
|
4.75
|
5.44
|
12/01/34
|
11/01/35
|
360
|
NA
|
$
|
1,595
|
$
|
853
|
$
|
69
|
||||||||||||||||||||||
Family
|
<=
$250,000
|
93
|
8.13
|
4.75
|
5.63
|
09/01/32
|
12/01/35
|
360
|
NA
|
18,680
|
16,740
|
249
|
|||||||||||||||||||||||||
<=
$500,000
|
139
|
7.13
|
4.25
|
5.54
|
09/01/32
|
01/01/36
|
360
|
NA
|
51,158
|
48,545
|
1,257
|
||||||||||||||||||||||||||
<=$1,000,000
|
65
|
7.38
|
4.38
|
5.56
|
07/01/33
|
12/01/35
|
360
|
NA
|
47,889
|
45,919
|
3,645
|
||||||||||||||||||||||||||
>
$1,000,000
|
33
|
6.75
|
5.00
|
5.64
|
01/01/35
|
01/01/36
|
360
|
NA
|
57,977
|
56,407
|
-
|
||||||||||||||||||||||||||
Summary
|
342
|
8.13
|
4.25
|
5.58
|
09/01/32
|
01/01/36
|
360
|
NA
|
$
|
177,299
|
$
|
168,464
|
$
|
5,220
|
|||||||||||||||||||||||
2-4
|
<=
$100,000
|
1
|
6.63
|
6.63
|
6.63
|
02/01/35
|
02/01/35
|
360
|
NA
|
$
|
80
|
$
|
76
|
$
|
-
|
||||||||||||||||||||||
FAMILY
|
<=
$250,000
|
6
|
6.75
|
4.38
|
5.75
|
12/01/34
|
07/01/35
|
360
|
NA
|
1,115
|
1,015
|
-
|
|||||||||||||||||||||||||
<=
$500,000
|
21
|
7.25
|
5.00
|
5.82
|
09/01/34
|
01/01/36
|
360
|
NA
|
7,764
|
7,568
|
513
|
||||||||||||||||||||||||||
<=$1,000,000
|
4
|
6.88
|
5.38
|
6.06
|
12/01/34
|
08/01/35
|
360
|
NA
|
3,068
|
3,047
|
-
|
||||||||||||||||||||||||||
>$1,000,000
|
0
|
-
|
-
|
-
|
-
|
-
|
360
|
NA
|
-
|
-
|
-
|
||||||||||||||||||||||||||
Summary
|
32
|
7.25
|
4.38
|
5.86
|
09/01/34
|
01/01/36
|
360
|
NA
|
$
|
12,027
|
$
|
11,706
|
$
|
513
|
|||||||||||||||||||||||
Condo
|
<=
$100,000
|
16
|
6.63
|
4.38
|
5.79
|
01/01/35
|
12/01/35
|
360
|
NA
|
$
|
1,938
|
$
|
1,133
|
$
|
-
|
||||||||||||||||||||||
<=
$250,000
|
94
|
6.88
|
4.50
|
5.65
|
08/01/32
|
01/01/36
|
360
|
NA
|
18,643
|
16,953
|
230
|
||||||||||||||||||||||||||
<=
$500,000
|
91
|
6.88
|
4.50
|
5.45
|
09/01/32
|
12/01/35
|
360
|
NA
|
31,915
|
30,853
|
917
|
||||||||||||||||||||||||||
<=$1,000,000
|
36
|
6.13
|
4.50
|
5.36
|
08/01/33
|
11/01/35
|
360
|
NA
|
26,589
|
24,751
|
-
|
||||||||||||||||||||||||||
>
$1,000,000
|
15
|
6.13
|
5.13
|
5.61
|
07/01/34
|
09/01/35
|
360
|
NA
|
24,568
|
22,061
|
-
|
||||||||||||||||||||||||||
Summary
|
252
|
6.88
|
4.38
|
5.55
|
08/01/32
|
01/01/36
|
360
|
NA
|
$
|
103,653
|
$
|
95,751
|
$
|
1,147
|
|||||||||||||||||||||||
CO-OP
|
<=
$100,000
|
5
|
6.25
|
4.75
|
5.60
|
09/01/34
|
06/01/35
|
360
|
NA
|
$
|
842
|
$
|
247
|
$
|
-
|
||||||||||||||||||||||
<=
$250,000
|
24
|
6.25
|
4.00
|
5.45
|
10/01/34
|
12/01/35
|
360
|
NA
|
4,710
|
4,319
|
-
|
||||||||||||||||||||||||||
<=
$500,000
|
41
|
6.38
|
4.75
|
5.45
|
08/01/34
|
12/01/35
|
360
|
NA
|
16,829
|
15,401
|
-
|
||||||||||||||||||||||||||
<=$1,000,000
|
29
|
6.75
|
4.75
|
5.35
|
11/01/34
|
11/01/35
|
360
|
NA
|
21,454
|
20,435
|
-
|
||||||||||||||||||||||||||
>
$1,000,000
|
6
|
6.00
|
4.88
|
5.44
|
11/01/34
|
12/01/35
|
360
|
NA
|
8,664
|
8,164
|
-
|
||||||||||||||||||||||||||
Summary
|
105
|
6.75
|
4.00
|
5.42
|
08/01/34
|
12/01/35
|
360
|
NA
|
$
|
52,499
|
$
|
48,566
|
$
|
-
|
|||||||||||||||||||||||
PUD
|
<=
$100,000
|
3
|
5.63
|
5.25
|
5.38
|
07/01/35
|
08/01/35
|
360
|
NA
|
$
|
938
|
$
|
244
|
$
|
-
|
||||||||||||||||||||||
<=
$250,000
|
25
|
6.75
|
4.38
|
5.61
|
01/01/35
|
12/01/35
|
360
|
NA
|
5,275
|
4,665
|
-
|
||||||||||||||||||||||||||
<=
$500,000
|
22
|
7.88
|
4.38
|
5.70
|
08/01/32
|
12/01/35
|
360
|
NA
|
7,799
|
7,474
|
480
|
||||||||||||||||||||||||||
<=$1,000,000
|
8
|
5.88
|
4.75
|
5.36
|
09/01/33
|
12/01/35
|
360
|
NA
|
5,637
|
5,474
|
-
|
||||||||||||||||||||||||||
>
$1,000,000
|
4
|
6.13
|
5.22
|
5.71
|
04/01/34
|
12/01/35
|
360
|
NA
|
5,233
|
5,202
|
-
|
||||||||||||||||||||||||||
Summary
|
62
|
7.88
|
4.38
|
5.60
|
08/01/32
|
01/01/36
|
360
|
NA
|
$
|
24,882
|
$
|
23,059
|
$
|
480
|
|||||||||||||||||||||||
Summary
|
<=
$100,000
|
37
|
7.75
|
4.38
|
5.64
|
09/01/34
|
12/01/35
|
360
|
NA
|
$
|
5,393
|
$
|
2,553
|
$
|
69
|
||||||||||||||||||||||
<=
$250,000
|
242
|
8.13
|
4.00
|
5.62
|
08/01/32
|
01/01/36
|
360
|
NA
|
48,423
|
43,692
|
479
|
||||||||||||||||||||||||||
<=
$500,000
|
314
|
7.88
|
4.25
|
5.54
|
08/01/32
|
01/01/36
|
360
|
NA
|
115,465
|
109,841
|
3,167
|
||||||||||||||||||||||||||
<=$1,000,000
|
142
|
7.38
|
4.38
|
5.47
|
07/01/33
|
12/01/35
|
360
|
NA
|
104,637
|
99,626
|
3,645
|
||||||||||||||||||||||||||
>
$1,000,000
|
58
|
6.75
|
4.88
|
5.62
|
04/01/34
|
01/01/36
|
360
|
NA
|
96,442
|
91,834
|
-
|
||||||||||||||||||||||||||
Grand
Total
|
793
|
8.13
|
4.00
|
5.56
|
08/01/32
|
01/01/36
|
360
|
NA
|
$
|
370,360
|
$
|
347,546
|
$
|
7,360
|
Principal
|
Premium
|
Allowance for
Loan Losses
|
Net Carrying
Value
|
|||||||||||||
Balance, December 31,
2007
|
$ | 429,629 | $ | 2,733 | $ | (1,647 | ) | $ | 430,715 | |||||||
Additions
|
- | - | - | - | ||||||||||||
Principal
repayments
|
(82,083 | ) | - | - | (82,083 | ) | ||||||||||
Provision
for loan loss
|
- | - | (1,433 | ) | (1,433 | ) | ||||||||||
Charge-Offs
|
1,674 | 1,674 | ||||||||||||||
Amortization for premium
|
- | (536 | ) | - | (536 | ) | ||||||||||
Balance, December 31, 2008
|
$ | 347,546 | $ | 2,197 | $ | (1,406 | ) | $ | 348,337 |
Days Late
|
Number of Delinquent
Loans
|
Total
Dollar Amount
|
% of
Loan Portfolio
|
|||||||||
30-60
|
3 | $ | 1,363 | 0.39 | % | |||||||
61-90
|
1 | $ | 263 | 0.08 | % | |||||||
90+
|
13 | $ | 5,734 | 1.65 | % | |||||||
Real
Estate Owned (REO)
|
4 | $ | 1,927 | 0.55 | % |
Days Late
|
Number of Delinquent
Loans
|
Total
Dollar Amount
|
% of
Loan Portfolio
|
|||||||||
30-60
|
- | $ | - | - | ||||||||
61-90
|
2 | $ | 1,859 | 0.43 | % | |||||||
90+
|
12 | $ | 6,910 | 1.61 | % | |||||||
Real
Estate Owned (REO)
|
4 | $ | 4,145 | 0.96 | % |
|
December 31,
2008
|
December 31,
2007
|
||||||
Derivative assets:
|
||||||||
Interest
rate caps
|
$ | 22 | $ | 416 | ||||
Total
derivative assets
|
$ | 22 | $ | 416 | ||||
|
||||||||
Derivative liabilities:
|
||||||||
Interest
rate swaps
|
$ | 4,194 | $ | 3,517 | ||||
Total
derivative liabilities
|
$ | 4,194 | $ | 3,517 |
(dollar
amounts in thousands)
|
For the Years Ended December 31,
|
|||||||||||||||||||
2008
|
2007
|
% Change
|
2006
|
% Change
|
||||||||||||||||
Net interest income
|
$ | 7,863 | $ | 477 | 1,548.4 | % | $ | 4,784 | (62.8 | )% | ||||||||||
Other
expenses
|
$ | 26,717 | $ | 18,513 | 44.3 | % | $ | 586 | 3,059.2 | % | ||||||||||
Total
expenses
|
$ | 6,910 | $ | 2,754 | 150.9 | % | $ | 2,032 | 52.9 | % | ||||||||||
(Loss)
income for continuing operations
|
$ | (25,764 | ) | $ | (20,790 | ) | (23.9 | )% | $ | 2,166 | (34.8 | )% | ||||||||
Income
(loss) from discontinued operations
|
$ | 1,657 | $ | (34,478 | ) | 104.8 | % | $ | (17,197 | ) | (98.5 | )% | ||||||||
Net
loss
|
$ | (24,107 | ) | $ | (55,268 | ) | 56.4 | % | $ | (15,031 | ) | (181.5 | )% | |||||||
Basic
and diluted loss per share
|
$ | (2.91 | ) | $ | (30.47 | ) | 90.4 | % | $ | (8.33 | ) | (179.9 | )% |
For
the years ended December 31,
|
||||||||||||||||||||||||||||||||||||
|
2008
|
2007
|
2006
|
|||||||||||||||||||||||||||||||||
(dollar amounts in
thousands)
|
Average
Balance
|
Amount
|
Yield/
Rate
|
Average
Balance
|
Amount
|
Yield/
Rate
|
Average
Balance
|
Amount
|
Yield/
Rate
|
|||||||||||||||||||||||||||
|
($ Millions)
|
($ Millions)
|
($ Millions)
|
|||||||||||||||||||||||||||||||||
Interest
Income:
|
||||||||||||||||||||||||||||||||||||
Investment
securities and loans held in the securitization trusts
|
$ | 907.3 | 44,778 | 4.94 | % | $ | 907.0 | $ | 52,180 | 5.74 | % | $ | 1,266.4 | $ | 66,973 | 5.29 | % | |||||||||||||||||||
Amortization
of net premium
|
1.4 | (655 | ) | (0.08 | )% | 2.4 | (1,616 | ) | (0.18 | )% | 5.9 | $ | (2,092 | ) | (0.16 | )% | ||||||||||||||||||||
Interest
income
|
$ | 908.7 | 44,123 | 4.86 | % | $ | 909.4 | $ | 50,564 | 5.56 | % | $ | 1,272.3 | $ | 64,881 | 5.13 | % | |||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Interest
Expense:
|
||||||||||||||||||||||||||||||||||||
Investment
securities and loans held in the securitization trusts
|
$ | 820.5 | 30,351 | 3.65 | % | $ | 864.7 | $ | 46,529 | 5.31 | % | $ | 1,201.2 | $ | 56,553 | 4.64 | % | |||||||||||||||||||
Subordinated
debentures
|
45.0 | 3,760 | 8.24 | % | 45.0 | 3,558 | 7.80 | % | 45.0 | 3,544 | 7.77 | % | ||||||||||||||||||||||||
Convertible
preferred debentures
|
20.0 | 2,149 | 10.60 | % | ||||||||||||||||||||||||||||||||
Interest
expense
|
$ | 885.5 | 36,260 | 4.09 | % | $ | 909.7 | $ | 50,087 | 5.43 | % | $ | 1,246.2 | $ | 60,097 | 4.76 | % | |||||||||||||||||||
Net
interest income
|
$ | 23.2 | 7,863 | 0.77 | % | $ | (0.3 | ) | $ | 477 | 0.13 | % | $ | 26.1 | $ | 4,784 | 0.37 | % |
Quarter Ended
|
Average
Interest
Earning
Assets
($ millions)
|
Weighted
Average
Coupon
|
Weighted
Average
Cash
Yield on
Interest
Earning
Assets
|
Cost of
Funds
|
Net
Interest
Spread
|
CPR
|
||||||||||||||||||
December 31, 2008
|
$ | 841.7 | 4.77 | % | 4.65 | % | 3.34 | % | 1.31 | % | 9.2 | % | ||||||||||||
September
30, 2008
|
$ | 874.5 | 4.81 | % | 4.72 | % | 3.36 | % | 1.36 | % | 13.8 | % | ||||||||||||
June
30, 2008
|
$ | 899.3 | 4.86 | % | 4.78 | % | 3.35 | % | 1.43 | % | 14.0 | % | ||||||||||||
March
31, 2008
|
$ | 1,019.2 | 5.24 | % | 5.20 | % | 4.35 | % | 0.85 | % | 13.0 | % | ||||||||||||
December
31, 2007
|
$ | 799.2 | 5.90 | % | 5.79 | % | 5.33 | % | 0.46 | % | 19.0 | % | ||||||||||||
September
30, 2007
|
$ | 865.7 | 5.93 | % | 5.72 | % | 5.38 | % | 0.34 | % | 21.0 | % | ||||||||||||
June
30, 2007
|
$ | 948.6 | 5.66 | % | 5.55 | % | 5.43 | % | 0.12 | % | 21.0 | % | ||||||||||||
March
31, 2007
|
$ | 1,022.7 | 5.59 | % | 5.36 | % | 5.34 | % | 0.02 | % | 19.2 | % | ||||||||||||
December
31, 2006
|
$ | 1,111.0 | 5.53 | % | 5.35 | % | 5.26 | % | 0.09 | % | 17.2 | % | ||||||||||||
September
30, 2006
|
$ | 1,287.6 | 5.50 | % | 5.28 | % | 5.12 | % | 0.16 | % | 20.7 | % | ||||||||||||
June
30, 2006
|
$ | 1,217.9 | 5.29 | % | 5.08 | % | 4.30 | % | 0.78 | % | 19.8 | % | ||||||||||||
March
31, 2006
|
$ | 1,478.6 | 4.85 | % | 4.75 | % | 4.04 | % | 0.71 | % | 18.7 | % | ||||||||||||
December
31, 2005
|
$ | 1,499.0 | 4.84 | % | 4.43 | % | 3.81 | % | 0.62 | % | 26.9 | % | ||||||||||||
September
30, 2005
|
$ | 1,494.0 | 4.69 | % | 4.08 | % | 3.38 | % | 0.70 | % | 29.7 | % | ||||||||||||
June
30, 2005
|
$ | 1,590.0 | 4.50 | % | 4.06 | % | 3.06 | % | 1.00 | % | 30.5 | % | ||||||||||||
March
31, 2005
|
$ | 1,447.9 | 4.39 | % | 4.01 | % | 2.86 | % | 1.15 | % | 29.2 | % | ||||||||||||
December
31, 2004
|
$ | 1,325.7 | 4.29 | % | 3.84 | % | 2.58 | % | 1.26 | % | 23.7 | % | ||||||||||||
September
30, 2004
|
$ | 776.5 | 4.04 | % | 3.86 | % | 2.45 | % | 1.41 | % | 16.0 | % |
For
the Year Ended December 31,
|
||||||||||||||||||||
(dollar
amounts in thousands)
|
2008
|
2007
|
%
Change
|
2006
|
%
Change
|
|||||||||||||||
Salaries
and benefits
|
$ | 1,869 | $ | 865 | 116.1 | % | $ | 714 | 21.1 | % | ||||||||||
Professional
fees
|
1,212 | 612 | 98.0 | % | 598 | 2.3 | % | |||||||||||||
Insurance
|
948 | 474 | 100.0 | % | 204 | 132.4 | % | |||||||||||||
Management
fees
|
665 | — | 100.0 | % | — | — | ||||||||||||||
Other
|
2,216 | 803 | 176.0 | % | 516 | 55.6 | % | |||||||||||||
Total
Expenses
|
$ | 6,910 | $ | 2,754 | 150.9 | % | $ | 2,032 | 35.5 | % |
|
·
|
$1.0
million or 116.1% increase in salaries and benefits due mainly to the
elimination of allocating salaries between our continuing and discontinued
operations.
|
|
·
|
$0.6
million or 98.0% increase in professional fees was due to increased legal
fees defending nuisance lawsuits related to our discontinued
operations and the elimination of allocating audit between our
continuing and discontinued
operations.
|
|
·
|
$0.7
million in management fees paid to HCS pursuant the advisory
agreement entered into in January 2008.
|
·
|
$1.4
million increase in other expenses includes $0.7
million non-recurring penalty fees paid in 2008 pursuant to a
registration rights agreement, $0.2 million write-off of capitalized legal
costs related to discontinued securitization shelf
registration statement and $0.2 million related to
rent.
|
Discontinued Operations
|
||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||
(dollar amounts in thousands)
|
2008
|
2007
|
% Change
|
2006
|
% Change
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||
Net
interest income
|
$ | 419 | $ | 1,070 | (60.8 | )% | $ | 3,524 | (69.6 | )% | ||||||||||
Gain
on sale of mortgage loans
|
46 | 2,561 | (98.2 | )% | 17,987 | (85.8 | )% | |||||||||||||
Loan
losses
|
(433 | ) | (8,874 | ) | (95.1 | )% | (8,228 | ) | 7.9 | % | ||||||||||
Brokered
loan fees
|
— | 2,318 | (100.0 | )% | 10,937 | (78.8 | )% | |||||||||||||
Gain
on sale of retail lending segment
|
— | 4,368 | (100.0 | )% | — | 100.0 | ||||||||||||||
Other
income (expense)
|
1,463 | (67 | ) | 2,284 | % | (294 | ) | (77.2 | )% | |||||||||||
Total
net revenues
|
1,495 | 1,376 | 8.6 | % | 23,926 | (94.2 | )% | |||||||||||||
Expenses:
|
||||||||||||||||||||
Salaries,
commissions and benefits
|
63 | 7,209 | (99.1 | )% | 21,711 | (66.8 | )% | |||||||||||||
Brokered
loan expenses
|
— | 1,731 | (100.0 | )% | 8,277 | (79.1 | )% | |||||||||||||
Occupancy
and equipment
|
(559 | ) | 1,819 | (130.7 | )% | 5,077 | (64.2 | )% | ||||||||||||
General
and administrative
|
334 | 6,743 | (95.0 | )% | 14,552 | (53.7 | )% | |||||||||||||
Total
expenses
|
(162 | ) | 17,502 | (100.9 | )% | 49,617 | (64.7 | )% | ||||||||||||
Income
(loss) before income tax (provision) benefit
|
1,657 | (16,126 | ) | 110.3 | % | (25,691 | ) | (37.2 | )% | |||||||||||
Income
tax (provision) benefit
|
— | (18,352 | ) | (100.0 | )% | 8,494 | (316.1 | )% | ||||||||||||
Loss
from discontinued operations – net of tax
|
$ | 1,657 | $ | (34,478 | ) | 104.8 | % | $ | (17,197 | ) | (100.5 | )% |
|
·
|
sell
assets in adverse market
conditions;
|
|
·
|
borrow
on unfavorable terms;
|
|
·
|
distribute
amounts that would otherwise be invested in assets or repayment of debt,
in order to comply with the REIT distribution
requirements.
|
($ amounts in thousands)
|
Total
|
Less than 1
year
|
1 to 3 years
|
4 to 5 years
|
after 5 years
|
|||||||||||||||
Operating
leases
|
$ | 867 | $ | 219 | $ | 383 | $ | 265 | $ | — | ||||||||||
Repurchase
agreements (1)
|
403,627 | 403,627 | — | — | — | |||||||||||||||
Collateralized
debt obligations (1)(2)
|
350,923 | 46,407 | 102,563 | 68,631 | 133,322 | |||||||||||||||
Subordinated
debentures (1)
|
110,168 | 3,016 | 5,187 | 4,849 | 97,116 | |||||||||||||||
Convertible
preferred debentures (1)
|
24,000 | 2,000 | 22,000 | — | — | |||||||||||||||
Interest
rate swaps (1)
|
7,402 | 3,348 | 3,519 | 535 | — | |||||||||||||||
Management
fees (4)
|
1,476 | 738 | 738 | — | — | |||||||||||||||
Employment
agreements (3)
|
200 | 200 | — | — | — | |||||||||||||||
$ | 898,663 | $ | 459,555 | $ | 134,390 | $ | 74,280 | $ | 230,438 |
(1)
|
Amounts
include interest paid during the period. Interest based on interest rates
in effect on December 31, 2008.
|
(2)
|
Maturities
of our CDOs are dependent upon cash flows received from the underlying
loans receivable. Our estimate of their repayment is based on scheduled
principal payments and estimated principal prepayments based on our
internal prepayment model on the underlying loans receivable. This
estimate will differ from actual amounts to the extent prepayments and/or
loan losses are experienced.
|
(3)
|
Represents
base cash compensation under contract of the Company’s Chief Executive
Officer, Steven R. Mumma.
|
(4)
|
Amounts
due with respect to the advisory fee are subject to adjustment based on
the equity capital of the Managed Subsidiaries and any incentive
compensation due pursuant to the advisory agreement between the Managed
Subsidiaries and HCS. See “Item
1. Business - Our Relationship with HCS and the Advisory Agreement -
Advisory Agreement” above for a
summary of the material terms of the advisory
agreement.
|
|
·
|
base advisory fee equal to 1.50%
per annum of the “equity capital” (as defined in Item 1 of this Annual
Report) of the Managed Subsidiaries is payable by us to HCS in cash,
quarterly in arrears; and
|
|
·
|
incentive compensation equal to
25% of the GAAP net income of the Managed Subsidiaries attributable to the
investments that are managed by HCS that exceed a hurdle rate equal to the
greater of (a) 8.00% and (b) 2.00% plus the ten year treasury rate for
such fiscal year will be payable by us to HCS in cash, quarterly in
arrears; provided,
however, that a
portion of the incentive compensation may be paid in shares of our common
stock.
|
|
·
|
Interest
rate risk
|
|
·
|
Liquidity
risk
|
|
·
|
Prepayment
risk
|
|
·
|
Credit
risk
|
|
·
|
Market
(fair value) risk
|
Changes in Net Interest Income
|
||||
Changes in Interest Rates
|
Changes in Net Interest
Income
|
|||
+200
|
$
|
(4,162
|
) | |
+100
|
$
|
(2,508
|
) | |
-100
|
$
|
(6,347
|
) |
Market Value Changes
|
|||||
Changes in
Interest Rates
|
Changes in
Market Value
|
Net
Duration
|
|||
(Amount in thousands)
|
|||||
+200
|
$ | (16,381 | ) |
0.88 years
|
|
+100
|
$ | (6,149 | ) |
0.52 years
|
|
Base
|
$ | — |
0.41 years
|
||
-100
|
$ | 4,595 |
0.15 years
|
(a)
|
Financial
Statements and Schedules. The following financial statements and schedules
are included in this report:
|
Page
|
|
FINANCIAL
STATEMENTS:
|
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
|
|
F-7
|
(b)
|
Exhibits.
|
NEW
YORK MORTGAGE TRUST, INC.
|
||
Date: March
31, 2009
|
By:
|
/s/ Steven R. Mumma
|
Name: Steven
R. Mumma
|
||
Title: Chief
Executive Officer
|
Signature
|
Title
|
Date
|
||
/s/ Steven R. Mumma
|
President, Chief Executive Officer and
|
March 31, 2009
|
||
Steven
R. Mumma
|
Chief
Financial Officer
|
|||
(Principal
Executive Officer and Principal Financial Officer)
|
||||
/s/ James J. Fowler
|
Chairman
of the Board
|
March
31, 2009
|
||
James
J. Fowler
|
||||
/s/ David R. Bock
|
Director
|
March
31, 2009
|
||
David
R. Bock
|
||||
/s/ Alan L. Hainey
|
Director
|
March
31, 2009
|
||
Alan
L. Hainey
|
||||
/s/ Steven G. Norcutt
|
Director
|
March
31, 2009
|
||
Steven
G. Norcutt
|
||||
/s/ Steven M. Abreu
|
Director
|
March
31, 2009
|
||
Steven
M. Abreu
|
Page
|
||||
FINANCIAL
STATEMENTS:
|
||||
F-2
|
||||
F-3
|
||||
F-4
|
||||
F-5
|
||||
F-6
|
||||
F-7
|
December 31,
2008
|
December 31,
2007
|
|||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ | 9,387 | $ | 5,508 | ||||
Restricted
cash
|
7,959 | 7,515 | ||||||
Investment
securities available for sale, at fair value (including pledged assets of
$456,506 and $337,356 at December 31, 2008 and 2007,
respectively)
|
477,416 | 350,484 | ||||||
Accounts
and accrued interest receivable
|
3,095 | 3,485 | ||||||
Mortgage
loans held in securitization trusts (net)
|
348,337 | 430,715 | ||||||
Prepaid
and other assets
|
1,191 | 1,545 | ||||||
Derivative
assets
|
22 | 416 | ||||||
Property
and equipment (net)
|
39 | 62 | ||||||
Assets
related to discontinued operations
|
5,854 | 8,876 | ||||||
Total
Assets
|
$ | 853,300 | $ | 808,606 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Financing
arrangements, portfolio investments
|
$ | 402,329 | $ | 315,714 | ||||
Collateralized
debt obligations
|
335,646 | 417,027 | ||||||
Derivative
liabilities
|
4,194 | 3,517 | ||||||
Accounts
payable and accrued expenses
|
3,997 | 3,752 | ||||||
Subordinated
debentures (net)
|
44,618 | 44,345 | ||||||
Convertible
preferred debentures (net)
|
19,702 | — | ||||||
Liabilities
related to discontinued operations
|
3,566 | 5,833 | ||||||
Total
liabilities
|
814,052 | 790,188 | ||||||
Commitments
and Contingencies
|
||||||||
Stockholders’
Equity:
|
||||||||
Common
stock, $0.01 par value, 400,000,000 shares authorized 9,320,094 shares
issued and outstanding at December 31, 2008 and 1,817,927 shares
issued and outstanding at December 31, 2007
|
93 | 18 | ||||||
Additional
paid-in capital
|
150,790 | 99,357 | ||||||
Accumulated
other comprehensive loss
|
(8,521 | ) | (1,950 | ) | ||||
Accumulated
deficit
|
(103,114 | ) | (79,007 | ) | ||||
Total
stockholders’ equity
|
39,248 | 18,418 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 853,300 | $ | 808,606 |
|
For the Year Ended December
31,
|
|||||||||||
2008
|
2007
|
2006
|
||||||||||
REVENUES:
|
||||||||||||
Interest
income - Investment securities and loans held in securitization
trusts
|
$ | 44,123 | $ | 50,564 | $ | 64,881 | ||||||
Interest
expense - Investment securities and loans held in securitization
trusts
|
30,351 | 46,529 | 56,553 | |||||||||
Net
interest income from investment securities and loans held in
securitization trusts
|
13,772 | 4,035 | 8,328 | |||||||||
Interest
expense - subordinated debentures
|
(3,760 | ) | (3,558 | ) | (3,544 | ) | ||||||
Interest
expense - convertible preferred debentures
|
(2,149 | ) | — | — | ||||||||
Net
interest income
|
7,863 | 477 | 4,784 | |||||||||
OTHER
EXPENSE:
|
||||||||||||
Provision
for loan losses
|
(1,462 | ) | (1,683 | ) | (57 | ) | ||||||
Realized
losses on securities and related hedges
|
(19,977 | ) | (8,350 | ) | (529 | ) | ||||||
Impairment
loss on investment securities
|
(5,278 | ) | (8,480 | ) | — | |||||||
Total
other expense
|
(26,717 | ) | (18,513 | ) | (586 | ) | ||||||
EXPENSES:
|
||||||||||||
Salaries
and benefits
|
1,869 | 865 | 714 | |||||||||
Professional
fees
|
1,212 | 612 | 598 | |||||||||
Insurance
|
948 | 474 | 204 | |||||||||
Management
fees
|
665 | — | — | |||||||||
Other
|
2,216 | 803 | 516 | |||||||||
Total
expenses
|
6,910 | 2,754 | 2,032 | |||||||||
(LOSS)
INCOME FROM CONTINUING OPERATIONS
|
(25,764 | ) | (20,790 | ) | 2,166 | |||||||
Income
(loss) from discontinued operations - net of tax
|
1,657 | (34,478 | ) | (17,197 | ) | |||||||
NET
LOSS
|
$ | (24,107 | ) | $ | (55,268 | ) | $ | (15,031 | ) | |||
Basic
and diluted loss per common share
|
$ | (2.91 | ) | $ | (30.47 | ) | $ | (8.33 | ) | |||
Dividends
declared per common share
|
$ | 0.54 | $ | 0.50 | $ | 4.70 | ||||||
Weighted
average common shares outstanding-basic and diluted
|
8,272 | 1,814 | 1,804 |
Common
Stock
|
Additional
Paid-In
Capital
|
Accumulated
Deficit
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Comprehensive
Income (Loss)
|
Total
|
|||||||||||||||||||
BALANCE,
JANUARY 1, 2006
|
$ | 18 | $ | 107,738 | $ | (8,708 | ) | $ | 1,910 | $ | 100,958 | |||||||||||||
Net
loss
|
— | — | (15,031 | ) | — | $ | (15,031 | ) | (15,031 | ) | ||||||||||||||
Dividends
declared
|
— | (8,595 | ) | — | — | — | (8,595 | ) | ||||||||||||||||
Repurchase
of common stock
|
(1 | ) | (299 | ) | — | — | — | (300 | ) | |||||||||||||||
Restricted
stock
|
1 | 819 | — | — | — | 820 | ||||||||||||||||||
Performance
shares
|
— | 8 | — | — | — | 8 | ||||||||||||||||||
Stock
options exercised
|
— | 3 | — | — | — | 3 | ||||||||||||||||||
Decrease
in net unrealized gain on investment available for sale
securities
|
— | — | — | (879 | ) | (879 | ) | (879 | ) | |||||||||||||||
Decrease
in derivative instruments utilized for cash flow
hedge
|
— | — | — | (5,412 | ) | (5,412 | ) | (5,412 | ) | |||||||||||||||
Comprehensive
loss
|
— | — | — | — | $ | (21,322 | ) | |||||||||||||||||
BALANCE,
DECEMBER 31, 2006
|
18 | 99,674 | (23,739 | ) | (4,381 | ) | 71,572 | |||||||||||||||||
Net
loss
|
— | — | (55,268 | ) | — | $ | (55,268 | ) | (55,268 | ) | ||||||||||||||
Dividends
declared
|
— | (909 | ) | — | — | — | (909 | ) | ||||||||||||||||
Restricted
stock
|
— | 592 | — | — | — | 592 | ||||||||||||||||||
Reclassification
adjustment for net loss included in net income
|
— | — | — | 3,192 | 3,192 | 3,192 | ||||||||||||||||||
Decrease
in derivative instruments utilized for cash flow hedge
|
— | — | — | (761 | ) | (761 | ) | (761 | ) | |||||||||||||||
Comprehensive
loss
|
— | — | — | — | $ | (52,837 | ) | |||||||||||||||||
BALANCE,
DECEMBER 31, 2007
|
18 | 99,357 | (79,007 | ) | (1,950 | ) | 18,418 | |||||||||||||||||
Net
loss
|
(24,107 | ) | $ | (24,107 | ) | (24,107 | ) | |||||||||||||||||
Dividends
declared
|
— | (5,033 | ) | — | — | — | (5,033 | ) | ||||||||||||||||
Common
stock issuance
|
75 | 56,466 | — | — | — | 56,541 | ||||||||||||||||||
Increase
in net unrealized loss on investment available for sale
securities
|
— | — | — | (2,961 | ) | (2,961 | ) | (2,961 | ) | |||||||||||||||
Decrease
in derivative instruments utilized for cash flow hedge
|
— | — | — | (3,610 | ) | (3,610 | ) | (3,610 | ) | |||||||||||||||
Comprehensive
loss
|
— | — | — | — | $ | (30,678 | ) | |||||||||||||||||
BALANCE,
DECEMBER 31, 2008
|
$ | 93 | $ | 150,790 | $ | (103,114 | ) | $ | (8,521 | ) | $ | 39,248 |
For the Years Ended December
31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
loss
|
$ | (24,107 | ) | $ | (55,268 | ) | $ | (15,031 | ) | |||
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
||||||||||||
Depreciation
and amortization
|
1,423 | 765 | 2,106 | |||||||||
Amortization
of premium on investment securities and mortgage loans
|
997 | 1,616 | 2,483 | |||||||||
Loss on
sale of securities, loans and related hedges
|
19,977 | 8,350 | 1,276 | |||||||||
Impairment
loss on investment securities
|
5,278 | 8,480 | — | |||||||||
Purchase
of mortgage loans held for investment
|
— | — | (222,907 | ) | ||||||||
Origination
of mortgage loans held for sale
|
— | (300,863 | ) | (1,841,011 | ) | |||||||
Proceeds
from sales of mortgage loans
|
2,746 | 398,678 | 2,059,981 | |||||||||
Allowance
for deferred tax asset / tax (benefit)
|
— | 18,352 | (8,494 | ) | ||||||||
Gain
on sale of retail lending platform
|
— | (4,368 | ) | — | ||||||||
Change
in value of derivatives
|
— | 785 | 289 | |||||||||
Provision
for loan losses
|
1,520 | 2,546 | 6,800 | |||||||||
Other
|
— | 1,111 | 806 | |||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Due
from loan purchasers
|
— | 88,351 | 33,462 | |||||||||
Escrow
deposits-pending loan closings
|
— | 3,814 | (2,380 | ) | ||||||||
Accounts
and accrued interest receivable
|
415 | 4,141 | 7,188 | |||||||||
Prepaid
and other assets
|
642 | 2,903 | (1,586 | ) | ||||||||
Due
to loan purchasers
|
138 | (7,115 | ) | 4,209 | ||||||||
Accounts
payable and accrued expenses
|
(2,767 | ) | (5,009 | ) | (7,957 | ) | ||||||
Other
liabilities
|
— | (131 | ) | (453 | ) | |||||||
Net
cash provided by operating activities
|
6,262 | 167,138 | 18,781 | |||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Increase
in restricted cash
|
(444 | ) | (4,364 | ) | 2,317 | |||||||
Purchases
of investment securities
|
(850,609 | ) | (231,932 | ) | (292,513 | ) | ||||||
Proceeds
from sale of investment securities
|
625,986 | 246,874 | 356,895 | |||||||||
Principal
repayments received on loans held in securitization trust
|
79,951 | 154,729 | 191,673 | |||||||||
Proceeds
from sale of retail lending platform
|
— | 12,936 | — | |||||||||
Principal
paydown on investment securities
|
74,172 | 113,490 | 162,185 | |||||||||
Purchases
of property and equipment
|
— | (396 | ) | (1,464 | ) | |||||||
Proceeds
from sale of fixed asset and real estate owned property
|
10 | 880 | — | |||||||||
Net
cash (used in) provided by investing activities
|
(70,934 | ) | 292,217 | 419,093 | ||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Repurchase
of common stock
|
— | — | (300 | ) | ||||||||
Increase
(decrease) in financing arrangements, portfolio
investments
|
86,615 | (672,570 | ) | (403,400 | ) | |||||||
Collateralized
debt obligation borrowings
|
— | 337,431 | — | |||||||||
Collateralized
debt obligation paydowns
|
(81,725 | ) | (117,851 | ) | (30,779 | ) | ||||||
Dividends
paid
|
(4,100 | ) | (1,826 | ) | (11,524 | ) | ||||||
Capital
contributions from minority interest member
|
— | — | 42 | |||||||||
Payments
made for termination of swaps
|
(8,333 | ) | — | — | ||||||||
Proceeds
from common stock issued (net)
|
56,541 | — | — | |||||||||
Proceeds
from convertible preferred debentures (net)
|
19,553 | — | — | |||||||||
Net
cash provided by (used in) financing activities
|
68,551 | (454,816 | ) | (445,961 | ) | |||||||
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
3,879 | 4,539 | (8,087 | ) | ||||||||
CASH
AND CASH EQUIVALENTS — Beginning
|
5,508 | 969 | 9,056 | |||||||||
CASH
AND CASH EQUIVALENTS — End
|
$ | 9,387 | $ | 5,508 | $ | 969 | ||||||
SUPPLEMENTAL
DISCLOSURE
|
||||||||||||
Cash
paid for interest
|
$ | 31,479 | $ | 41,338 | $ | 76,905 | ||||||
NON
CASH FINANCING ACTIVITIES
|
||||||||||||
Dividends
declared to be paid in subsequent period
|
$ | 932 | $ | — | $ | 905 |
·
|
the items to be hedged expose the
Company to interest rate risk;
and
|
·
|
the interest rate swaps or caps
are expected to be and continue to be highly effective in reducing the
Company's exposure to interest rate
risk.
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Carrying
Value
|
|||||||||||||
Agency
Hybrid Arm Securities
|
$ | 256,978 | $ | 1,316 | $ | (98 | ) | $ | 258,196 | |||||||
Agency
REMIC CMO Floaters
|
197,675 | — | — | 197,675 | ||||||||||||
Private
Label Floaters
|
25,047 | — | (4,101 | ) | 20,946 | |||||||||||
NYMT
Retained Securities
|
677 | — | (78 | ) | 599 | |||||||||||
Total/Weighted
Average
|
$ | 480,377 | $ | 1,316 | $ | (4,277 | ) | $ | 477,416 |
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Carrying
Value
|
|||||||||||||
Agency
Hybrid Arm Securities
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Agency
REMIC CMO Floaters
|
318,689 | — | — | 318,689 | ||||||||||||
Private
Label Floaters
|
28,401 | — | — | 28,401 | ||||||||||||
NYMT
Retained Securities
|
3,394 | — | — | 3,394 | ||||||||||||
Total/Weighted
Average
|
$ | 350,484 | $ | — | $ | — | $ | 350,484 |
Less than 6 Months
|
More than 6 Months
To 24 Months
|
More than 24 Months
to 60 Months
|
Total
|
|||||||||||||||||
Carrying
Value
|
Weighted Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
|||||||||||||
Agency
Hybrid Arm Securities
|
$
|
—
|
—
|
$
|
66,910
|
3.69%
|
$
|
191,286
|
4.02%
|
$
|
258,196
|
3.93%
|
||||||||
Agency
REMIC CMO Floaters
|
197,675
|
8.54%
|
—
|
—
|
—
|
—
|
197,675
|
8.54%
|
||||||||||||
Private
Label Floaters
|
20,946
|
14.25%
|
—
|
—
|
—
|
—
|
20,946
|
14.25%
|
||||||||||||
NYMT
Retained Securities (1)
|
530
|
8.56%
|
—
|
—
|
69
|
16.99%
|
599
|
15.32%
|
||||||||||||
Total/Weighted
Average
|
$
|
219,151
|
9.21%
|
$
|
66,910
|
3.69%
|
$
|
191,355
|
4.19%
|
$
|
477,416
|
6.51%
|
Less than
6 Months
|
More than 6 Months
To 24 Months
|
More than 24 Months
To 60 Months
|
Total
|
|||||||||||||||||||||||||||||
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
Carrying
Value
|
Weighted
Average
Yield
|
|||||||||||||||||||||||||
Agency
REMIC CMO Floaters
|
$ | 318,689 | 5.55 | % | $ | — | — | $ | — | — | $ | 318,689 | 5.55 | % | ||||||||||||||||||
Private
Label Floaters
|
28,401 | 5.50 | % | — | — | — | — | 28,401 | 5.50 | % | ||||||||||||||||||||||
NYMT
Retained Securities (1)
|
2,165 | 6.28 | % | — | — | 1,229 | 12.99 | % | 3,394 | 10.03 | % | |||||||||||||||||||||
Total/Weighted
Average
|
$ | 349,255 | 5.55 | % | $ | — | — | $ | 1,229 | 12.99 | % | $ | 350,484 | 5.61 | % |
December
31, 2008
|
Less than 12 Months
|
Total
|
||||||||||||||
Carrying
Value
|
Gross
Unrealized
Losses
|
Carrying
Value
|
Gross
Unrealized
Losses
|
|||||||||||||
Agency
Hybrid Arm Securities
|
$ | 9,406 | $ | 98 | $ | 9,406 | $ | 98 | ||||||||
Non-Agency
floaters
|
18,119 | 4,101 | 18,119 | 4,101 | ||||||||||||
NYMT
retained security
|
530 | 78 | 530 | 78 | ||||||||||||
Total
|
$ | 28,055 | $ | 4,277 | $ | 28,055 | $ | 4,277 |
December 31,
2008
|
December 31,
2007
|
|||||||
Mortgage
loans principal amount
|
$ | 347,546 | $ | 429,629 | ||||
Deferred
origination costs – net
|
2,197 | 2,733 | ||||||
Allowance
for loan losses
|
(1,406 | ) | (1,647 | ) | ||||
Total
mortgage loans held in securitization trusts (net)
|
$ | 348,337 | $ | 430,715 |
December 31,
|
||||||||
2008
|
2007
|
|||||||
Balance at
beginning of period
|
$ | 1,647 | $ | — | ||||
Provisions
for loan losses
|
1,433 | 1,655 | ||||||
Charge-offs
|
(1,674 | ) | (8 | ) | ||||
Balance
of the end of period
|
$ | 1,406 | $ | 1,647 |
Days Late
|
Number of Delinquent
Loans
|
Total
Dollar Amount
|
% of Loan
Portfolio
|
|||||
30-60
|
3
|
$
|
1,363
|
0.39
|
%
|
|||
61-90
|
1
|
$
|
263
|
0.08
|
%
|
|||
90+
|
13
|
$
|
5,734
|
1.65
|
%
|
|||
REO
|
4
|
$
|
1,927
|
0.55
|
%
|
Days Late
|
Number of Delinquent
Loans
|
Total
Dollar Amount
|
% of Loan
Portfolio
|
|||||||||
30-60
|
—
|
$ | — | — | % | |||||||
61-90
|
2
|
$ | 1,859 | 0.43 | % | |||||||
90+
|
|
12
|
$ | 6,910 | 1.61 | % | ||||||
REO
|
4
|
$ | 4,145 | 0.96 | % |
December 31,
2008
|
December 31,
2007
|
|||||||
Derivative
assets:
|
||||||||
Interest
rate caps
|
$ | 22 | $ | 416 | ||||
Total
derivative assets
|
$ | 22 | $ | 416 | ||||
Derivative
liabilities:
|
||||||||
Interest
rate swaps
|
$ | 4,194 | $ | 3,517 | ||||
Total
derivative liabilities
|
$ | 4,194 | $ | 3,517 |
Counterparty
Name
|
December 31,
2008
|
December 31,
2007
|
||||||
AVM
|
$ | 54,911 | $ | — | ||||
Barclays
Securities
|
— | 101,297 | ||||||
Credit
Suisse First Boston LLC
|
97,781 | 97,388 | ||||||
Enterprise
Bank of Florida
|
19,409 | — | ||||||
Goldman,
Sachs & Co.
|
— | 66,432 | ||||||
HSBC
|
42,120 | 50,597 | ||||||
MF
Global
|
30,272 | — | ||||||
RBS
Greenwich Capital
|
157,836 | — | ||||||
Total
Financing Arrangements, Portfolio Investments
|
$ | 402,329 | $ | 315,714 |
6.
|
Collateralized
Debt Obligations
|
7.
|
Subordinated
Debentures (net)
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Subordinated
debentures
|
$ | 45,000 | $ | 45,000 | ||||
Less:
unamortized bond issuance costs
|
(382 | ) | (655 | ) | ||||
Subordinated
debentures (net)
|
$ | 44,618 | $ | 44,345 |
8.
|
Discontinued
Operations
|
December 31,
|
||||||||
2008
|
2007
|
|||||||
Accounts
and accrued interest receivable
|
$ | 26 | $ | 51 | ||||
Mortgage
loans held for sale (net)
|
5,377 | 8,077 | ||||||
Prepaid
and other assets
|
451 | 737 | ||||||
Property
and equipment (net)
|
— | 11 | ||||||
Total assets
|
$ | 5,854 | $ | 8,876 |
|
December 31,
|
|||||||
2008
|
2007
|
|||||||
Due
to loan purchasers
|
$ | 708 | $ | 894 | ||||
Accounts
payable and accrued expenses
|
2,858 | 4,939 | ||||||
Total liabilities
|
$ | 3,566 | $ | 5,833 |
December 31,
|
||||||||
2008
|
2007
|
|||||||
Mortgage
loans principal amount
|
$ | 6,547 | $ | 9,636 | ||||
Deferred
origination costs – net
|
(34 | ) | (43 | ) | ||||
Lower
of cost or market adjustments
|
(1,136 | ) | (1,516 | ) | ||||
Total mortgage loans
held for sale (net)
|
$ | 5,377 | $ | 8,077 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
Balance at
beginning of year
|
$ | 1,516 | $ | 4,042 | ||||
Lower
cost or market adjustments
|
(380 | ) | (2,526 | ) | ||||
Balance
of the end of year
|
$ | 1,136 | $ | 1,516 |
For
the Year Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Revenues:
|
||||||||||||
Net
interest income
|
$ | 419 | $ | 1,070 | $ | 3,524 | ||||||
Gain
on sale of mortgage loans
|
46 | 2,561 | 17,987 | |||||||||
Losses
from lower of cost or market of loans
|
(433 | ) | (8,874 | ) | (8,228 | ) | ||||||
Brokered
loan fees
|
— | 2,318 | 10,937 | |||||||||
Gain
on retail lending segment
|
— | 4,368 | — | |||||||||
Other
income (expense)
|
1,463 | (67 | ) | (294 | ) | |||||||
Total
net revenues
|
1,495 | 1,376 | 23,926 | |||||||||
Expenses:
|
||||||||||||
Salaries,
commissions and benefits
|
63 | 7,209 | 21,711 | |||||||||
Brokered
loan expenses
|
— | 1,731 | 8,277 | |||||||||
Occupancy
and equipment
|
(559 | ) | 1,819 | 5,077 | ||||||||
General
and administrative
|
334 | 6,743 | 14,552 | |||||||||
Total
expenses
|
(162 | ) | 17,502 | 49,617 | ||||||||
Income
(loss) before income tax benefit
|
1,657 | (16,126 | ) | (25,691 | ) | |||||||
Income
tax (provision) benefit
|
— | (18,352 | ) | 8,494 | ||||||||
Income
(loss) from discontinued operations – net of tax
|
$ | 1,657 | $ | (34,478 | ) | $ | (17,197 | ) |
9.
|
Commitments
and Contingencies
|
Year
Ending December 31,
|
Total
|
|||
2009
|
$
|
219
|
||
2010
|
189
|
|||
2011
|
194
|
|||
2012
|
198
|
|||
2013
|
67
|
|||
Thereafter
|
—
|
|||
$
|
867
|
10.
|
Concentrations
of Credit Risk
|
|
December 31,
|
||||||
2008
|
2007
|
||||||
New
York
|
30.7
|
%
|
31.2
|
%
|
|||
Massachusetts
|
17.2
|
%
|
17.4
|
%
|
|||
Florida
|
7.8
|
%
|
8.3
|
%
|
|||
California
|
7.2
|
%
|
7.2
|
%
|
|||
New
Jersey
|
6.0
|
%
|
5.7
|
%
|
11.
|
Fair
Value of Financial Instruments
|
Fair
Value at December 31, 2008
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Assets
carried at fair value:
|
||||||||||||||||
Investment
securities available for sale
|
$ | — | $ | 477,416 | $ | — | $ | 477,416 | ||||||||
Mortgage
loans held for sale (net)
|
— | — | 5,377 | 5,377 | ||||||||||||
Derivative
assets (interest rate caps)
|
— | 22 | — | 22 | ||||||||||||
Total
|
$ | — | $ | 477,438 | $ | 5,377 | $ | 482,815 |
Liabilities
carried at fair value:
|
||||||||||||||||
Derivative
liabilities (interest rate swaps)
|
— | 4,194 | — | 4,194 | ||||||||||||
Total
|
$ | — | $ | 4,194 | $ | — | $ | 4,194 |
Mortgage
Loans Held for Sale (Net)
|
Three
Months
Ended
December
31, 2008
|
Year
Ended
December
31, 2008
|
||||||
Beginning
balance
|
$ | 5,391 | $ | 8,077 | ||||
Principal
paydown
|
(14 | ) | (2,746 | ) | ||||
LOCOM
adjustment
|
— | 46 | ||||||
Ending
balance
|
$ | 5,377 | $ | 5,377 |
At
December 31,
|
||||||||||||||||
2008
|
2007
|
|||||||||||||||
Carrying
Value
|
Estimated
Fair
Value
|
Carrying
Value
|
Estimated
Fair
Value
|
|||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 9,387 | $ | 9,387 | $ | 5,508 | $ | 5,508 | ||||||||
Restricted
cash
|
7,959 | 7,959 | 7,515 | 7,515 | ||||||||||||
Mortgage
loans held in securitization trusts (net)
|
348,337 | 343,028 | 430,715 | 420,925 |
Financial
liabilities:
|
||||||||||||||||
Financing
arrangements, portfolio investments
|
402,329 | 402,329 | 315,714 | 315,714 | ||||||||||||
Collateralized
debt obligations
|
335,646 | 199,503 | 417,027 | 417,027 | ||||||||||||
Subordinated
debentures (net)
|
44,618 | 10,049 | 44,345 | 44,345 | ||||||||||||
Convertible
preferred debentures (net)
|
19,702 | 16,363 | — | — |
12.
|
Income
taxes
|
December 31,
|
||||||||||||||||||
2008
|
2007
|
2006
|
||||||||||||||||
(Benefit)
provision at statutory rate
|
$
|
(8,438
|
)
|
(35.0
|
)%
|
$
|
(9,830
|
)
|
(35.0
|
)%
|
$
|
(8.234
|
)
|
(35.0
|
)%
|
|||
Non-taxable
REIT income (loss)
|
7,598
|
31.5
|
%
|
3,008
|
10.7
|
%
|
(1,891
|
)
|
(8.0
|
)%
|
||||||||
Transfer
pricing of loans sold to nontaxable parent
|
—
|
—
|
—
|
—
|
11
|
0.0
|
%
|
|||||||||||
State
and local tax benefit
|
(221
|
)
|
(0.9
|
)%
|
(1,797
|
)
|
(6.4
|
)%
|
(2,663
|
)
|
(11.3
|
)%
|
||||||
Valuation
allowance
|
572
|
2.4
|
%
|
26,962
|
96.0
|
%
|
4,269
|
18.1
|
%
|
|||||||||
Miscellaneous
|
489
|
2.0
|
%
|
9
|
0.0
|
%
|
14
|
0.1
|
%
|
|||||||||
Total
provision (benefit)
|
$
|
—
|
—
|
%
|
$
|
18,352
|
65.3
|
%
|
$
|
(8,494
|
)
|
(36.1
|
)%
|
Deferred
|
||||
Regular
tax provision
|
||||
Federal
|
$
|
—
|
||
State
|
—
|
|||
Total
tax provision
|
$
|
—
|
Deferred
|
||||
Regular
tax provision
|
||||
Federal
|
$
|
14,522
|
||
State
|
3,830
|
|||
Total
tax provision
|
$
|
18,352
|
Deferred
|
||||
Regular
tax benefit
|
||||
Federal
|
$
|
(6,721
|
)
|
|
State
|
(1,773
|
)
|
||
Total
tax benefit
|
$
|
(8,494
|
)
|
Deferred
tax assets:
|
||||
Net
operating loss carryover
|
$
|
27,655
|
||
Mark
to market adjustment
|
313
|
|||
Sec.
267 disallowance
|
268
|
|||
Charitable
contribution carryforward
|
1
|
|||
GAAP
reserves
|
769
|
|||
Rent
expense
|
1,074
|
|||
Gross
deferred tax asset
|
30,080
|
|||
Valuation
allowance
|
(30,080
|
)
|
||
Net
deferred tax asset
|
$
|
—
|
Deferred
tax assets:
|
||||
Net
operating loss carryover
|
$
|
27,434
|
||
Restricted
stock, performance shares and stock option expense
|
489
|
|||
Mark
to market adjustment
|
86
|
|||
Sec.
267 disallowance
|
268
|
|||
Charitable
contribution carryforward
|
1
|
|||
GAAP
reserves
|
994
|
|||
Rent
expense
|
252
|
|||
Loss
on sublease
|
|
50
|
||
Gross
deferred tax asset
|
29,574
|
|||
Valuation
allowance
|
(29,509
|
)
|
||
Net
deferred tax asset
|
$
|
65
|
||
Deferred
tax liabilities:
|
||||
Depreciation
|
$
|
65
|
||
Total
deferred tax liability
|
$
|
65
|
13.
|
Segment
Reporting
|
14.
|
Capital
Stock and Earnings per Share
|
For
the Years Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Numerator:
|
||||||||||||
Net
loss – Basic
|
$ | (24,107 | ) | $ | (55,268 | ) | $ | (15,031 | ) | |||
Net
(loss) income from continuing operations
|
(25,764 | ) | (20,790 | ) | 2,166 | |||||||
Net
income (loss) from discontinued operations (net of tax)
|
1,657 | (34,478 | ) | (17,197 | ) | |||||||
Effect
of dilutive instruments:
|
||||||||||||
Convertible
preferred debentures (1)
|
2,149 | — | — | |||||||||
Net
loss – Dilutive
|
(24,107 | ) | (55,268 | ) | (15,031 | ) | ||||||
Net
loss from continuing operations
|
(25,764 | ) | (20,790 | ) | 2,166 | |||||||
Net
income (loss) from discontinued operations (net of tax)
|
$ | 1,657 | $ | (34,478 | ) | $ | (17,197 | ) | ||||
Denominator:
|
||||||||||||
Weighted
average basis shares outstanding
|
8,272 | 1,814 | 1,804 | |||||||||
Effect
of dilutive instruments:
|
||||||||||||
Convertible
preferred debentures (1)
|
2,384 | — | — | |||||||||
Weighted
average dilutive shares outstanding
|
8,272 | 1,814 | 1,804 | |||||||||
EPS:
|
||||||||||||
Basic
EPS
|
$ | (2.91 | ) | $ | (30.47 | ) | $ | (8.33 | ) | |||
Basic
EPS from continuing operations
|
(3.11 | ) | (11.46 | ) | 1.20 | |||||||
Basic
EPS from discontinued operations (net of tax)
|
0.20 | (19.01 | ) | (9.53 | ) | |||||||
Dilutive
EPS
|
$ | (2.91 | ) | $ | (30.47 | ) | $ | (8.33 | ) | |||
Dilutive
EPS from continuing operations
|
(3.11 | ) | (11.46 | ) | 1.20 | |||||||
Basic
EPS from discontinued operations (net of tax)
|
0.20 | (19.01 | ) | (9.53 | ) |
15.
|
Convertible
Preferred Debentures
(net)
|
16.
|
Stock
Incentive Plans
|
Number of
Options
|
Weighted
Average
Exercise
Price
|
|||||||
Outstanding
at beginning of year, January 1, 2007
|
46,900 | $ | 95.20 | |||||
Granted
|
— | — | ||||||
Canceled
|
(46,900 | ) | 95.20 | |||||
Exercised
|
— | — | ||||||
Outstanding
at end of year, December 31, 2007
|
— | $ | — | |||||
Options
exercisable at year-end
|
— | $ | — |
Risk
free interest rate
|
4.5 | % | ||
Expected
volatility
|
10 | % | ||
Expected
life
|
10
years
|
|||
Expected
dividend yield
|
10.48 | % |
Number
of
Non-vested
Restricted
Shares
|
Weighted
Average
Grant
Date
Fair
Value
|
|||||||
|
|
|||||||
Non-vested
shares at beginning of year, January 1, 2007
|
21,350 | $ | 63.60 | |||||
Granted
|
— | — | ||||||
Forfeited
|
(15,589 | ) | 55.78 | |||||
Vested
|
(5,761 | ) | 86.30 | |||||
Non-vested
shares as of December 31, 2007
|
— | $ | — | |||||
Weighted-average
fair value of restricted stock granted during the period
|
$ | — | $ | — |
Number
of
Non-vested
Restricted
Shares
|
Weighted
Average
Grant
Date
Fair
Value
|
|||||||
|
|
|||||||
Non-vested
shares at beginning of year, January 1, 2007
|
2,555 | $ | 98.30 | |||||
Granted
|
— | — | ||||||
Forfeited
|
(2,555 | ) | 98.30 | |||||
Vested
|
— | — | ||||||
Non-vested
shares as of December 31, 2007
|
— | $ | — |
17.
|
Quarterly
Financial Data (unaudited)
|
Three
Months Ended
|
||||||||||||||||
Mar.
31,
2008
|
Jun.
30,
2008
|
Sep.
30,
2008
|
Dec.
31,
2008
|
|||||||||||||
Revenues:
|
||||||||||||||||
Interest
income
|
$ | 13,253 | $ | 10,755 | $ | 10,324 | $ | 9,791 | ||||||||
Interest
expense
|
11,979 | 8,256 | 8,142 | 7,883 | ||||||||||||
Net interest
income
|
1,274 | 2,499 | 2,182 | 1,908 | ||||||||||||
Other
Expense:
|
||||||||||||||||
Provision
for loan losses
|
(1,433 | ) | (22 | ) | (7 | ) | — | |||||||||
Realized
losses on securities and related hedges
|
(19,848 | ) | (83 | ) | 4 | (50 | ) | |||||||||
Impairment
loss on investment securities
|
— | — | — | (5,278 | ) | |||||||||||
Total
other expense
|
(21,281 | ) | (105 | ) | (3 | ) | (5,328 | ) | ||||||||
Expenses:
|
||||||||||||||||
Salaries
and benefits
|
313 | 417 | 258 | 881 | ||||||||||||
General
and administrative expenses
|
1,118 | 1,543 | 1,177 | 1,203 | ||||||||||||
Total
expenses
|
1,431 | 1,960 | 1,435 | 2,084 | ||||||||||||
(Loss) income
from continuing operations
|
(21,438 | ) | 434 | 744 | (5,504 | ) | ||||||||||
Income
from discontinued operations - net of tax
|
180 | 829 | 285 | 363 | ||||||||||||
Net
(loss) income
|
$ | (21,258 | ) | $ | 1,263 | $ | 1,029 | $ | (5,141 | ) | ||||||
Per
share basic and diluted (loss) income
|
$ | (4.19 | ) | $ | 0.14 | $ | 0.11 | $ | (0.55 | ) | ||||||
Dividends
declared per common share
|
$ | 0.12 | $ | 0.16 | $ | 0.16 | $ | 0.10 |
Three
Months Ended
|
||||||||||||||||
Mar.
31,
2007
|
Jun.
30,
2007
|
Sep.
30,
2007
|
Dec.
31,
2007
|
|||||||||||||
Revenues:
|
||||||||||||||||
Interest
income
|
$ | 13,713 | $ | 12,898 | $ | 12,376 | $ | 11,577 | ||||||||
Interest
expense
|
13,966 | 12,786 | 12,107 | 11,228 | ||||||||||||
Net
interest income
|
(253 | ) | 112 | 269 | 349 | |||||||||||
Other
expense
|
||||||||||||||||
Provision
for loan losses
|
— | (940 | ) | (99 | ) | (644 | ) | |||||||||
Loss
on sale of securities and related hedges
|
— | (3,821 | ) | (1,013 | ) | (3,516 | ) | |||||||||
Impairment
loss on investment securities
|
— | — | — | (8,480 | ) | |||||||||||
Total
other expense
|
— | (4,761 | ) | (1,112 | ) | (12,640 | ) | |||||||||
Expenses:
|
||||||||||||||||
Salaries
and benefits
|
345 | 151 | 178 | 191 | ||||||||||||
General
and administrative expenses
|
302 | 378 | 668 | 541 | ||||||||||||
Total
expenses
|
647 | 529 | 846 | 732 | ||||||||||||
Loss from
continuing operations
|
(900 | ) | (5,178 | ) | (1,689 | ) | (13,023 | ) | ||||||||
Loss
from discontinued operations - net of tax
|
(3,841 | ) | (9,018 | ) | (19,027 | ) | (2,592 | ) | ||||||||
Net
loss
|
$ | (4,741 | ) | $ | (14,196 | ) | $ | (20,716 | ) | $ | (15,615 | ) | ||||
Per
share basic and diluted loss
|
$ | (2.62 | ) | $ | (7.84 | ) | $ | (11.40 | ) | $ | (8.59 | ) | ||||
Dividends
declared per common share
|
$ | 0.50 | $ | — | $ | — | $ | — |
Exhibit
|
Description
|
|
3.1
|
Articles
of Amendment and Restatement of New York Mortgage Trust, Inc.
(Incorporated by reference to Exhibit 3.1 to the Company’s Registration
Statement on Form S-11 as filed with the Securities and Exchange
Commission (Registration No. 333-111668), effective June 23,
2004).
|
|
|
||
3.1(b)
|
Articles
of Amendment of the Registrant (Incorporated by reference to Exhibit 3.1
to the Company’s Current Report on Form 8-K filed on October 4,
2007).
|
|
3.1(c)
|
Articles
of Amendment of the Registrant (Incorporated by reference to Exhibit 3.2
to the Company’s Current Report on Form 8-K filed on October 4,
2007).
|
|
3.1(d)
|
Articles
of Amendment of the Registrant (Incorporated by reference to Exhibit
3.1(d) to the Company’s Current Report on Form 8-K filed on May 16,
2008.)
|
|
3.1(e)
|
Articles
of Amendment of the Registrant (Incorporated by reference to Exhibit
3.1(e) to the Company’s Current Report on Form 8-K filed on May 16,
2008.)
|
|
3.2(a)
|
Bylaws
of New York Mortgage Trust, Inc. (Incorporated by reference to Exhibit 3.2
to the Company’s Registration Statement on Form S-11 as filed with the
Securities and Exchange Commission (Registration No. 333-111668),
effective June 23, 2004).
|
|
|
||
3.2(b)
|
Amendment No. 1 to Bylaws of New
York Mortgage Trust, Inc. (Incorporated by reference to Exhibit 3.2(b) to
Registrant's Annual Report on Form 10-K filed on March 16,
2006).
|
|
|
||
4.1
|
Form
of Common Stock Certificate. (Incorporated by reference to Exhibit 4.1 to
the Company’s Registration Statement on Form S-11 as filed with the
Securities and Exchange Commission (Registration No. 333-111668),
effective June 23, 2004).
|
|
|
||
4.2(a)
|
Junior
Subordinated Indenture between The New York Mortgage Company, LLC and
JPMorgan Chase Bank, National Association, as trustee, dated
September 1, 2005. (Incorporated by reference to Exhibit 4.1 to the
Company’s Current Report on Form 8-K as filed with the Securities and
Exchange Commission on September 6, 2005).
|
|
|
||
4.2(b)
|
Amended
and Restated Trust Agreement among The New York Mortgage Company,
LLC, JPMorgan Chase Bank, National Association, Chase Bank USA, National
Association and the Administrative Trustees named therein, dated
September 1, 2005. (Incorporated by reference to Exhibit 4.2 to the
Company’s Current Report on Form 8-K as filed with the Securities and
Exchange Commission on September 6, 2005).
|
|
|
||
4.3(a)
|
Articles
Supplementary Establishing and Fixing the Rights and Preferences of
Series A Cumulative Redeemable Convertible Preferred Stock of the
Company (Incorporated by reference to Exhibit 4.1 to the Company’s
Current Report on Form 8-K filed on January 25, 2008).
|
|
4.3(b)
|
Form
of Series A Cumulative Redeemable Convertible Preferred Stock Certificate
(Incorporated by reference to Exhibit 4.2 to the Company’s Current Report
on Form 8-K filed on January 25,
2008).
|
10.1
|
Parent
Guarantee Agreement between New York Mortgage Trust, Inc. and JPMorgan
Chase Bank, National Association, as guarantee trustee, dated
September 1, 2005. (Incorporated by reference to Exhibit 10.1 to the
Company’s Current Report on Form 8-K as filed with the Securities and
Exchange Commission on September 6, 2005).
|
|
10.2
|
Purchase
Agreement among The New York Mortgage Company, LLC, New York Mortgage
Trust, Inc., NYM Preferred Trust II and Taberna Preferred
Funding II, Ltd., dated September 1, 2005. (Incorporated by
reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K as
filed with the Securities and Exchange Commission on September 6,
2005).
|
|
10.3
|
New
York Mortgage Trust, Inc. 2005 Stock Incentive Plan. (Incorporated by
reference to Exhibit 10.1 to the Company’s Registration Statement on Form
S-3/A (File No. 333-127400) as filed with the Securities and Exchange
Commission on September 9, 2005).
|
|
10.4
|
Assignment
and Assumption of Sublease, by and between Lehman Brothers Holdings Inc.
and The New York Mortgage Company, LLC, dated as of November 14, 2006
(Incorporated by reference to Exhibit 10.63 to the Registrant's Annual
Report on Form 10-K filed on April 2, 2007).
|
|
10.5
|
First
Amendment to Assignment and Assumption of Sublease, dated as of January 5,
2007, by and between The New York Mortgage Company, LLC and Lehman
Brothers Holdings, Inc. (Incorporated by reference to Exhibit 10.64 to the
Registrant's Annual Report on Form 10-K filed on April 2, 2007).
|
|
10.6
|
Second
Amendment to Assignment and Assumption of Sublease, dated as of February
8, 2007, by and between The New York Mortgage Company, LLC and Lehman
Brothers Holdings, Inc. (Incorporated by reference to Exhibit 10.65 to the
Registrant's Annual Report on Form 10-K filed on April 2,
2007).
|
10.7
|
Third
Amendment to Assignment and Assumption of Sublease, dated as of March 31,
2007, by and between The New York Mortgage Company, LLC and Lehman
Brothers Holdings, Inc. (Incorporated by reference to Exhibit 10.74 to the
Company’s Quarterly Report on Form 10-Q filed on May 15,
2007).
|
|
10.8
|
Fourth
Amendment to Assignment and Assumption of Sublease, dated as of August 30,
2007, by and between The New York Mortgage Company, LLC and Lehman
Brothers Holdings, Inc. (Incorporated by reference to Exhibit 10.1 to the
Company’s Quarterly Report on Form 10-Q filed on November 14,
2007).
|
|
10.9
|
Stock
Purchase Agreement, by and among New York Mortgage Trust, Inc. and the
Investors listed on Schedule I thereto, dated as of November 30, 2007
(Incorporated by reference to Exhibit 10.1(a) to the Company’s Current
Report on Form 8-K filed on January 25, 2008).
|
|
10.10
|
Amendment
No. 5 to Stock Purchase Agreement, by and among New York Mortgage Trust,
Inc. and the Investors listed on Schedule I to the Stock Purchase
Agreement, dated as of January 18, 2008 (Incorporated by reference to
Exhibit 10.1(b) to the Company’s Current Report on Form 8-K filed on
January 25, 2008).
|
|
10.11
|
Registration
Rights Agreement, by and among New York Mortgage Trust, Inc. and the
Investors listed on Schedule I to the Stock Purchase Agreement, dated as
of January 18, 2008 (Incorporated by reference to Exhibit 10.2 to the
Company’s Current Report on Form 8-K filed on January 25,
2008).
|
|
10.12
|
Advisory
Agreement, by and among New York Mortgage Trust, Inc., Hypotheca Capital,
LLC, New York Mortgage Funding, LLC and JMP Asset Management LLC, dated as
of January 18, 2008 (Incorporated by reference to Exhibit 10.3 to the
Company’s Current Report on Form 8-K filed on January 25,
2008).
|
|
10.13
|
Separation
Agreement and General Release, by and between New York Mortgage Trust,
Inc. and David A. Akre, dated as of February 3, 2009 (Incorporated by
reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K
filed on February 4, 2009).
|
|
10.14
|
Amended
and Restated Employment Agreement, by and between New York Mortgage Trust,
Inc. and Steven R. Mumma, dated as of February 11, 2009 (Incorporated by
reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K
filed on February 12, 2009).
|
|
10.15
|
Form
of Purchase Agreement, by and among New York Mortgage Trust, Inc. and the
Investors listed on Schedule A thereto, dated as of February 14, 2008
(Incorporated by reference to Exhibit 10.1 to the Company’s Current Report
on Form 8-K filed on February 19, 2008).
|
|
10.16
|
Form
of Registration Rights Agreement, by and among New York Mortgage Trust,
Inc. and the Investors listed on Schedule A thereto, dated as of
February 14, 2008 (Incorporated by reference to Exhibit 10.2 to the
Company’s Current Report on Form 8-K filed on February 19,
2008).
|
12.1
|
Computation
of Ratios *
|
|
21.1
|
List
of Subsidiaries of the Registrant.*
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm (Deloitte & Touche
LLP).*
|
|
31.1
|
Section
302 Certification of Chief Executive Officer and Chief Financial
Officer.*
|
|
32.1
|
Section
906 Certification of Chief Executive Officer and Chief Financial
Officer.*
|