Exhibit 99.1
New York Mortgage Trust Announces Completion of Net Deferred Tax Asset Evaluation and Files Quarterly Report
Company Takes Full Valuation Allowance for Net Deferred Tax Asset
Non-Cash Charge to Third Quarter 2007
NEW YORK, NY - November 14, 2007 - New York Mortgage Trust, Inc. (the “Company” or “NYMT”)(OTC BB: NMTR), a self-advised real estate investment trust (REIT) engaged in the investment in and management of high credit quality residential adjustable rate mortgage (ARM) loans and mortgage-backed securities (MBS), today reported that it completed its previously announced evaluation of its net deferred tax asset (“DTA”). As of September 30, 2007, the Company has determined that based on the cumulative losses from its discontinued operation in its taxable REIT subsidiary, combined with uncertainty as to the timing of when it would be able to generate the necessary earnings to recover its DTA, a full valuation allowance is required. The attached consolidated balance sheets and statements of operations reflect a full valuation allowance of $18.4 million, or $5.05 per share, for the DTA. These financial statements update and replace the financial statements included in the Company’s quarterly earning’s release, dated November 6, 2007. The DTA is a non-cash asset as it reflects a net loss carry-forward from the Company’s discontinued mortgage lending operations. This valuation allowance does not impact the Company’s ability to use the DTA to offset taxable income the Company may earn in future periods.
About New York Mortgage Trust
New York Mortgage Trust, Inc., a self-advised real estate investment trust (REIT) engaged in the investment in and management of high credit quality residential adjustable rate mortgage (ARM) loans and mortgage-backed securities (MBS). As of March 31, 2007, the Company 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 Further Information
| AT THE COMPANY | AT FINANCIAL RELATIONS BOARD |
| | |
| Steven R. Mumma, Co-CEO, President, | Joe Calabrese (General) 212-827-3772 |
| Chief Financial Officer | Julie Tu (Analysts) 212-827-3776 |
| Phone: 212-792-0107 | |
| Email: smumma@nymtrust.com | |
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 or 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.
NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands, except per share data)
(unaudited)
| | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | |
| | | | | 2006 | | 2007 | | 2006 | |
| REVENUE: | | | | | | | | | |
| Interest income investment securities and loans held in securitization trusts | | $ | 12,376 | | $ | 16,998 | | $ | 38,987 | | $ | 50,050 | |
| Interest expense investment securities and loans held in securitization trusts | | | 11,212 | | | 15,882 | | | 36,188 | | | 42,320 | |
| Net interest income from investment securities and loans held in securitization trusts | | | 1,164 | | | 1,116 | | | 2,799 | | | 7,730 | |
| Interest expense - subordinated debentures | | | 895 | | | 877 | | | 2,671 | | | 2,656 | |
| Net interest income | | | 269 | | | 239 | | | 128 | | | 5,074 | |
| OTHER EXPENSE: | | | | | | | | | | | | | |
| Realized (loss)/gain on sale of investment securities | | | (1,013 | ) | | 440 | | | (4,834 | ) | | (529 | ) |
| Loan loss reserve on loans held in securitization trusts | | | (99 | ) | | -- | | | (1,039 | ) | | -- | |
| Total other (expenses)/income | | | (1,112 | ) | | 440 | | | (5,873 | ) | | (529 | ) |
| EXPENSES: | | | | | | | | | | | | | |
| Salaries and benefits | | | 178 | | | 166 | | | 674 | | | 618 | |
| Marketing and promotion | | | 37 | | | 20 | | | 99 | | | 54 | |
| Data processing and communications | | | 50 | | | 58 | | | 143 | | | 177 | |
| Professional fees | | | 266 | | | 82 | | | 471 | | | 447 | |
| Depreciation and amortization | | | 93 | | | 131 | | | 242 | | | 398 | |
| Allowance for deferred tax asset | | | 18,352 | | | -- | | | 18,352 | | | -- | |
| Other | | | 222 | | | (46 | ) | | 393 | | | 177 | |
| Total expenses | | | 19,198 | | | 411 | | | 20,374 | | | 1,871 | |
| (LOSS) INCOME FROM CONTINUING OPERATIONS | | | (20,041 | ) | | 268 | | | (26,119 | ) | | 2,674 | |
| Loss from discontinued operation - net of tax | | | (675 | ) | | (4,136 | ) | | (13,534 | ) | | (8,160 | ) |
| NET LOSS | | $ | (20,716 | ) | $ | (3,868 | ) | $ | (39,653 | ) | $ | (5,486 | ) |
| Basic an diluted loss per share | | $ | (5.70 | ) | $ | (1.07 | ) | $ | (10.94 | ) | $ | (1.53 | ) |
| Weighted average shares outstanding- basic and diluted | | | 3,636 | | | 3,605 | | | 3,625 | | | 3,595 | |
NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollar amounts in thousands)
| | September 30, 2007 | | December 31, 2006 | |
| | | (unaudited) | | | |
ASSETS | | | | | |
| Cash and cash equivalents | | $ | 11,144 | | $ | 969 | |
| Restricted cash | | | 6,030 | | | 3,151 | |
| Investment securities - available for sale | | | 359,872 | | | 488,962 | |
| Accounts and accrued interest receivable | | | 4,915 | | | 5,189 | |
| Mortgage loans held in securitization trusts | | | 458,968 | | | 588,160 | |
| Prepaid and other assets | | | 2,411 | | | 20,951 | |
| Derivative assets | | | 977 | | | 2,632 | |
| Property and equipment (net) | | | 76 | | | 89 | |
| Assets related to discontinued operation | | | 9,883 | | | 212,805 | |
Total Assets | | $ | 854,276 | | $ | 1,322,908 | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | |
Liabilities: | | | | | | | |
| Financing arrangements, portfolio investments | | $ | 327,877 | | $ | 815,313 | |
| Collateralized debt obligations | | | 444,204 | | | 197,447 | |
| Derivative liabilities | | | 1,601 | | | -- | |
| Accounts payable and accrued expenses | | | 5,003 | | | 5,871 | |
| Subordinated debentures | | | 45,000 | | | 45,000 | |
| Liabilities related to discontinued operation | | | 5,600 | | | 187,705 | |
| Total liabilities | | $ | 829,285 | | $ | 1,251,336 | |
Commitments and Contingencies | | | | | | | |
Stockholders' Equity: | | | | | | | |
Common stock, $0.01 par value, 400,000,000 shares authorized, 3,635,854 shares issued and outstanding at September 30, 2007 and 3,665,037 shares issued and 3,615,576 outstanding at December 31, 2006 | | | 36 | | | 37 | |
| Additional paid-in capital | | | 99,277 | | | 99,655 | |
| Accumulated other comprehensive loss | | | (10,930 | ) | | (4,381 | )) |
| Accumulated deficit | | | (63,392 | ) | | (23,739 | )) |
| Total stockholders' equity | | | 24,991 | | | 71,572 | |
Total Liabilities and Stockholders' Equity | | $ | 854,276 | | $ | 1,322,908 | |
