New York Mortgage Trust Completes Sale of its Retail Mortgage Lending Platform Assets to IndyMac Bank, F.S.B.
April 03 2007 - 9:30AM
PR Newswire (US)
The Company Also Announces a Correction to its Previously Issued
Earnings Release NEW YORK, April 3 /PRNewswire-FirstCall/ -- New
York Mortgage Trust, Inc. (NYSE: NTR; "NYMT" or the "Company"), a
self-advised real estate investment trust ("REIT") made the
following announcements today: Completion of $13.5 million Asset
Sale to IndyMac Bank, F.S.B. On March 31, 2007, the Company
completed its previously announced sale of certain assets of the
retail mortgage lending platform of its wholly owned taxable REIT
subsidiary, The New York Mortgage Company, LLC ("NYMC"), to IndyMac
Bank, F.S.B., ("Indymac"), a wholly owned subsidiary of IndyMac
Bancorp, Inc. (NYSE:NDE). The purchase price was $13.5 million,
which included $2.3 million that will be held in escrow to support
warranties and indemnifications provided to IndyMac, as well as
other purchase price adjustments. As part of the transaction,
Indymac purchased substantially all of the operating assets related
to NYMC's retail mortgage lending platform, including use of The
New York Mortgage Company name, and assumed certain liabilities of
NYMC's retail platform. IndyMac has also acquired approximately 20
full service and 10 satellite retail mortgage lending offices
located in 11 states, and NYMC's pipeline of mortgage applications
in process at the time of closing. Indymac has hired substantially
all branch employees and loan officers, as well as the majority of
employees at NYMC's corporate headquarters, and assumed a portion
of the retention and severance expenses associated with the
transaction. Correction of $782,000, or $0.04 per share, to
Previously Issued Earnings Release The Company also announced that
certain of its previously released results for the fourth quarter
and year ended December 31, 2006, as described in its press release
issued March 15, 2007, differ from those disclosed in the Company's
Annual Report on Form 10-K, as filed with the Securities and
Exchange Commission on April 2, 2007. Due to an increase in loan
loss reserves associated with loans originated in 2006 and
repurchased in February and March 2007, the Company's actual net
loss for the fourth quarter and year ended December 31, 2006
increased by $782,000 to $9.6 million and $15.0 million,
respectively. As a result of the increase in loan loss reserves,
the Company corrected the following items from its previously
issued earnings release of March 15, 2007: -- Consolidated net loss
of $15.0 million, or $0.83 per share, for year ended December 31,
2006 versus a previously disclosed $14.2 million, or $0.79 per
share; and -- Consolidated net loss of $9.6 million, or $0.53 per
share, for the fourth quarter of 2006 versus a previously disclosed
$8.8 million, or $0.49 per share. About New York Mortgage Trust New
York Mortgage Trust, Inc., a real estate investment trust (REIT),
is engaged in the management of high credit quality residential
adjustable rate mortgage (ARM) loans and mortgage-backed securities
(MBS). As of March 31, 2007, the Company has exited the mortgage
lending business. The Company's portfolio is comprised of
securitized, high credit quality, adjustable and hybrid ARM loans,
and purchased MBS. Historically at least 98% of the portfolio has
been rated "AA" or "AAA". As a REIT, the Company is not subject to
federal income tax provided that it distributes at least 90% of its
REIT income to stockholders. For more information about New York
Mortgage Trust please visit http://www.nymtrust.com/. Safe Harbor
Regarding Forward-Looking Statements Certain statements contained
in this press release may be deemed to be forward-looking
statements that predict or describe future events or trends. The
matters described in these forward- looking statements are subject
to known and unknown risks, uncertainties and other unpredictable
factors, many of which are beyond the Company's control. The
Company faces many risks that could cause its actual performance to
differ materially from the results predicted by its forward-looking
statements, including, without limitation, that a rise in interest
rates may cause a decline in the market value of the Company's
assets, prepayment rates that may change, borrowings to finance the
purchase of assets may not be available on favorable terms, the
Company may not be able to maintain its qualification as a REIT for
federal tax purposes, the Company may experience the risks
associated with investing in mortgage loans, including changes in
loan delinquencies, and the Company's hedging strategies may not be
effective. The reports that the Company files with the Securities
and Exchange Commission contain a fuller description of these and
many other risks to which the Company is subject. Because of those
risks, the Company's actual results, performance or achievements
may differ materially from the results, performance or achievements
contemplated by its forward- looking statements. The information
set forth in this news release represents management's current
expectations and intentions. The Company assumes no responsibility
to issue updates to the forward-looking matters discussed in this
press release. DATASOURCE: New York Mortgage Trust, Inc. CONTACT:
AT THE COMPANY, Steven R. Mumma, President, Co-Chief Executive
Officer and Chief Financial Officer, +1-212-792-0107, ; AT
FINANCIAL RELATIONS BOARD, Joe Calabrese (General),
+1-212-827-3772, Julie Tu (Analysts), +1-212-827-3776 Web site:
http://www.nymtrust.com/
Copyright