EXHIBIT 99.1
[AHM LOGO]
Lehman Brothers 2004 Small Cap Conference
November 19, 2004
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American Home Mortgage Investment Corp.
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Cautionary Note Regarding Forward-Looking Statements: This presentation contains
statements about future events and expectations, which are "forward-looking
statements." Any statement in this release that is not a statement of historical
fact, including, but not limited to, earnings guidance and forecasts,
projections of financial results, and expected future financial position,
dividends and dividend plans and business strategy, is a forward-looking
statement. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause American Home's actual results
to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Specific factors that
might cause such a difference include, but are not limited to: American Home's
limited operating history with respect to its portfolio strategy; risks
associated with the use of leverage; American Home's failure to retain its
status as a real estate investment trust; the potential fluctuations in American
Home's operating results; American Home's potential need for additional capital;
the direction of interest rates and their subsequent effect on American Home's
business; federal and state regulation of mortgage banking; and those risks and
uncertainties discussed in filings made by American Home with the Securities and
Exchange Commission. Such forward-looking statements are inherently uncertain,
and stockholders must recognize that actual results may differ from
expectations. American Home does not assume any responsibility to issue updates
to any forward-looking statements discussed in this press release, whether as a
result of new information, future events or otherwise.
[AHM LOGO] 2
Corporate Profile
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o American Home Mortgage Investment Corp. (NYSE: AHM)
o Hybrid Mortgage REIT
o Self-Originates and Holds Mortgage-backed Securities
o Focuses on High-Credit-Quality Assets
o Offers Strong Dividend with Opportunity for Rapid Growth
o Operates 20th Largest Prime Mortgage Originator in the United States
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Business Model
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o Focus on Building our Portfolio's
o Value
o Yield
o Value and Yield Building is Accomplished by Originating Loans, Creating
Structured Securities and Investing in Higher-Yielding Securities
o Mortgage Origination Business Enables Portfolio to Grow In Value and Yield
o Risk-Averse Portfolio Management Strategy
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Growing Portfolio Value and Yield through
Structured Securitizations
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o Securitization Process Converts Value Created by the Mortgage Origination
Business into increased Portfolio Value and Higher Yield
o Securitization Structure Designed to Create High-Yielding Securities which
are Retained while Lower-Yielding Securities are Sold
o Increases Portfolio Value and Yield with Limited Capital Commitment
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Both Investment and Origination Businesses
are Benefited by our Tax Status
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o Net Interest Income from the Portfolio is Untaxed Provided it is Paid Out
as Dividends
o Much of the Value Created by the Mortgage Origination Business is Untaxed
o Value is realized as an addition to portfolio value, and not through
an asset sale
o Tax Structure Provides a Significant Advantage Over Taxable Mortgage Asset
Holders and Taxable Mortgage Originators
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Portfolio Strategy
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o Yield and Yield Growth Driven by Self-Origination Capability
o Consequently, a Defensive Portfolio Management Strategy is Possible
o Key Components of Defensive Strategy
o Duration Neutral
o High Credit Quality
o Low Exposure to Extension and Prepayment due to short resetting ARM
Assets
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Portfolio Strategy
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o Return Not Benefited by the Slope of the Yield Curve
o Agnostic About Direction of Interest Rates
o Return Not Dependent on Finding Value or Other Portfolio Management
Strategies
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Projected Yield and Yield Variance
(Portfolio Income Before Expenses)
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ROEs for Instantaneous Interest Rate Changes
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-100 bp -50 bp 0 bp +50 bp +100 bp Flattener Steepener
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Portfolio as of 9/30/2004 13.0% 17.0% 19.2% 17.8% 12.7% 14.1% 23.9%
Q3 Securitization ($1.045 billion*) 17.2% 22.8% 25.6% 24.2% 18.8% 18.6% 32.9%
*$2.364 billion securitization: $1.319 billion sold for cash, $1.045 billion
retained for portfolio Flattener and Steepner represent 2-10 yr. 50 bp interest
rate shocks. Assumes 12:1 leverage.
Based on company projections and are to be used as a representative model only.
Actual results may vary.
[AHM LOGO] 9
Portfolio Characteristics
September 30, 2004
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[THE FOLLOWING TABLES WERE DEPICTED AS PIE CHARTS IN THE PRINTED MATERIAL.]
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Portfolio Size
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Self Originated 41%
Market Bought 59%
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Loan Types
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3/1 ARMs 14%
5/1 ARMs 70%
Short Reset 16%
(Less than 1 year)
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Credit Quality
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AAA and Agency 96%
Other 4%
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Portfolio Statistics
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MBS Duration 1.312 Years
Liabilities & Hedge Duration -1.314 Years
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Net Duration -0.002 Years
Convexity -.97 Price/Yield
Average Life 2.35 Years
Average Mark 100.27 of par
Leverage 12.0 Times Equity
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Risk Mitigation Strategies
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o Ongoing Hedging to Maintain Duration Neutral Position
o Key Rate Management
o Concentration on Short Reset ARMs
o Reduced Extension / Prepayment Exposure
o Reduced Spread Volatility
o BlackRock Tools and Consultation
o Concentration on High-Credit-Quality Assets
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Mortgage Origination Business
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o Origination Business Drives Growth in the Value and Yield of the Mortgage
Portfolio
o Company Aims to Aggressively Grow the Origination Business to Speed
Portfolio Value and Yield Growth
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Mortgage Origination Business - Overview
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o Trend in origination volume:
o 2000 $ 3.0 Billion
o 2001 $ 7.8 Billion
o 2002 $ 12.2 Billion
o 2003 $ 21.7 Billion
o YTD 9/30/04 $ 16.3 Billion
o Average national market share:
o 2000 0.29 %
o 2001 0.38 %
o 2002 0.47 %
o 2003 0.60 %
o YTD 9/30/04 0.80 %
Source: Inside Mortgage Finance, Copyright 2004
Top Mortgage Originators in 2004
(For 3 months - Dollars in Billions)
2Q04
Rank Lender Volume
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1 Countrywide Financial Corp., CA $99.66
2 Wells Fargo Home Mortgage, CA $96.08
3 Washington Mutual, WA $76.36
4 Chase Home Finance, NJ $56.87
5 CitiMortgage, Inc., MO / Principal Residential Mortgage, IA $40.13
6 Bank of America, NC $28.46
7 GMAC Residential Holdings, PA $24.44
8 ABN Amro Mortgage, MI $19.43
9 National City Mortgage, OH $18.73
10 Cendant Mortgage (2), NJ $17.63
11 Homecomings, MN $13.73
12 HSBC Mortgage Corp. USA, NY $12.63
13 Golden West Financial Corp./World, CA $12.40
14 Aurora Loan Services, Inc., CO $11.26
15 GreenPoint Mortgage Funding, CA $11.17
16 First Horizon Home Loans, TX $10.38
17 IndyMac Bancorp, Inc., CA $ 9.42
18 Flagstar Bank, FSB, MI $ 9.00
19 SunTrust Mortgage, Inc., VA $ 8.81
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20 American Home Mtg. Investment, NY $ 6.62
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21 RBC Mortgage, IL $ 5.90
22 Impac Funding Corporation, CA $ 5.50
23 Branch Banking & Trust Co., NC $ 5.46
24 U.S. Bank Home Motgage, MN $ 5.22
25 Wachovia/First Union Mtg., NC $ 5.05
26 Ohio Savings Bank, F.S.B. (E), OH $ 4.50
27 First Magnus Financial Corp., AZ $ 4.09
28 Netbank, SC $ 3.90
29 CTX Mortgage, TX $ 3.50
30 E*Trade, VA $ 3.39
Source: National Mortgage News, Copyright 2004
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Benefits of Scale
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o Lower Per Loan Production Costs
o Better Terms of Business with Counterparties
o Fannie Mae / Freddie Mac
o Liquidity Providers
o Service Providers
o Enhanced Ability to Improve Production Platform
o Technology
o Marketing Innovations
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Origination Business Growth Drivers
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o Inexpensive Acquisitions
o Origination Franchise being Built at Less than Replacement Cost
o Recent Acquisition from Washington Mutual
o Rapid Organic Growth
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Nationwide Branch Network
November 2004
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o American Home Mortgage originates mortgages through approximately 325
branches in 40 states
o Approximately 4,145 Employees
[GRAPHIC OMITTED]
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Production Characteristics
(Third Quarter 2004)
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[THE FOLLOWING TABLES WERE DEPICTED AS PIE CHARTS IN THE PRINTED MATERIAL.]
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Credit Quality
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High Credit Quality Jumbo Loans 23%
Alt A 16%
Home Equity & Second Mortgages 5%
Non-Prime 2%
Agency Eligible 54%
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Retail vs. Wholesale
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Wholesale 49%
Retail 51%
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Largest States
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AZ 5%
VA 5%
MD 7%
IL 15%
CA 23%
All Other 45%
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Fixed vs. ARMs
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ARMs 56%
Fixed 44%
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Strong Access to Liquidity
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Commercial Paper Program
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o $2.0 Billion Lehman Sponsored Asset-Backed CP Guaranteed by Bank of
America, Caylon and ABN Amro
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Warehouse and Loan Gestation Facilities
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UBS $1.2 billion
Bank of America Syndication 600 million
RBS Greenwich Capital 500 million
CDC IXIS 450 million
Morgan Stanley 350 million
Caylon 200 million
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$3.3 billion
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Securities Repurchase Facilities
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Bank of America Bear Stearns Citigroup
Credit Suisse Deutsche Bank Goldman Sachs
Lehman Brothers Merrill Lynch UBS
Morgan Stanley Nomura Greenwich Capital
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Outstanding Financial Results
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American Home Mortgage's Results For Four Full
Years Since Initial Public Offering
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[THE FOLLOWING TABLES WERE DEPICTED AS BAR GRAPHS IN THE PRINTED MATERIAL.]
AHM Loan Originations
92% CAGR
(Billions)
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2000 $ 3.0
2001 $ 7.8
2002 $12.2
2003 $21.7
Revenues
95% CAGR
(Millions)
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2000 $ 58.3
2001 $126.1
2002 $232.8
2003 $432.1
Net Income
139% CAGR
(Millions)
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2000 $ 5.4
2001 $ 25.5
2002 $ 39.5
2003 $ 73.8
Earnings Per Share
70% CAGR
(Dollars)
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2000 $ .83
2001 $2.14
2002 $2.65
2003 $4.07
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Guidance For Remainder of 2004 & 2005
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Full Year Full Year
2004 2005
Earnings Per Diluted Share $3.55 $3.80-$3.90
Common Dividends Per Share $2.43 $2.64
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2005 Earnings Guidance Assumptions
Midpoint Assumptions of Forecast Range
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Volumes in Billions (In Billions)
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Average MBS holdings $7.7 billion
Average loans held for sale 2.1 billion
Loan originations 19.5 billion
Average servicing unpaid principal balance 18.1 billion
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2005 Earnings Guidance Assumptions
Midpoint Assumptions of Forecast Range
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(In millions)
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Net interest income adjusted for market value losses due
to erosion of MBS premiums and convexity associated
with MBS held in trading classification $140
Gain on sale to third parties of loans and
self-originated securities 318
Servicing revenue, net of amortization and impairment 21
Other Income 6
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Total revenue $485
Non-interest expense 316
Income tax expense 8
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Net earnings $161
Preferred dividends 5
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Earnings available to common shareholders $156
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Average shares outstanding 40.6
Earnings per share $3.85
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[AHM LOGO]
Questions and Answers
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American Home Mortgage Investment Corp.
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