EXHIBIT 99.1
[AMERICAN HOME MORTGAGE LOGO]
FOR IMMEDIATE RELEASE
AMERICAN HOME MORTGAGE REPORTS RESULTS FOR THE FIRST QUARTER 2005
ANNOUNCES ADJUSTED DILUTED EARNINGS PER SHARE OF $1.24
EXCLUDING GAIN FROM FOURTH QUARTER 2004 SECURITIZATION
BOARD OF DIRECTORS INCREASES DIVIDEND POLICY TO $0.76
PER SHARE PER QUARTER OR $3.04 PER SHARE ANNUALIZED
COMPANY RAISES 2005 ADJUSTED EARNINGS GUIDANCE TO $4.15 TO
$4.35 PER DILUTED SHARE
COMMON STOCKHOLDER BOOK VALUE INCREASES TO $19.41
EARNINGS PER DILUTED SHARE, IN ACCORDANCE WITH GAAP INCLUDING GAIN FROM FOURTH
QUARTER 2004 SECURITIZATION ARE $2.99, 2005 EARNINGS GUIDANCE INCLUDING GAIN
FROM FOURTH QUARTER 2004 SECURITIZATION IS $5.90 - $6.10 PER DILUTED SHARE
Melville, NY (April 18, 2005) - American Home Mortgage Investment Corp.
(NYSE: AHM) announced today results for the first quarter ended March 31, 2005.
ADJUSTED FINANCIAL MEASURES
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Throughout this news release the terms adjusted revenues, adjusted net earnings,
adjusted earnings per diluted share, adjusted book value per share, 2005
adjusted earnings guidance and other similar terms are used to identify
financial measures that are not prepared in accordance with Generally Accepted
Accounting Principles ("GAAP"). These adjusted financial measures reflect the
reallocation of revenue and earnings of approximately $71.4 million or $1.75 per
diluted share from the Company's first quarter 2005 GAAP financial results to
the Company's fourth quarter 2004 GAAP financial results. The reason for the use
of adjusted financial measures is to show the Company's first quarter results
excluding substantial revenue associated with prior period loan production that
is not expected to be recurring, and which resulted from the Company's fourth
quarter securitization ("Q4-04 Gains") not qualifying for sale treatment in
accordance with SFAS 140 until the first quarter, 2005. The Company has been,
and expects to continue to be managed on the basis of the adjusted financial
measures. The adjusted financial measures should be read in conjunction with the
Company's GAAP results.
FINANCIAL HIGHLIGHTS
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COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
o Adjusted revenue, excluding the effects of the Q4-04 Gains, for the first
quarter of 2005 was $164.0 million compared to revenue of $84.1 million
for the first quarter of 2004, an increase of 94.9%. Revenue for the first
quarter of 2005 in accordance with GAAP and including the effects of the
Q4-04 Gains was $235.3 million.
o Adjusted net earnings, excluding the effects of the Q4-04 Gains, for the
first quarter of 2005 were $54.0 million compared to net earnings of $21.2
million for the first quarter of 2004, an increase of 154.6%. Net earnings
for the first quarter in accordance with GAAP and including the effects of
the Q4-04 Gains were $125.4 million.
o Adjusted earnings per diluted share, excluding the effects of the Q4-04
Gains, for the first quarter were $1.24 compared to earnings per diluted
share of $0.70 for the first quarter of 2004, an increase of 77.1%.
Earnings per diluted share for the first quarter in accordance with GAAP
and including the effects of the Q4-04 Gains were $2.99.
o Dividends per common share for the first quarter of 2005 were $0.71,
compared to $0.55 for the first quarter of 2004, an increase of 29.1%.
o Book value per common share was $19.41 at March 31, 2005, compared to
$18.59 per share at March 31, 2004, an increase of 4.4%.
COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2005 AND DECEMBER 31, 2004
o Adjusted revenue, excluding the effects of the Q4-04 Gains, for the first
quarter of 2005 was $164.0 million compared to Adjusted revenue, including
the effects of the Q4-04 Gains, of $152.0 million for the fourth quarter
of 2004, an increase of 7.9%.
o Adjusted net earnings, excluding the effects of the Q4-04 Gains, for the
first quarter of 2005 were $54.0 million compared to Adjusted net
earnings, including the effects of the Q4-04 Gains, of $48.6 million for
the fourth quarter of 2004, an increase of 11.1%
o Adjusted earnings per diluted share, excluding the effects of the Q4-04
Gains, for the first quarter of 2005 were $1.24 compared to Adjusted
earnings per diluted share, including the effects of the Q4-04 Gains, of
$1.14 for the fourth quarter of 2004, an increase of 8.8%.
o Dividends per common share for the first quarter of 2005 were $0.71,
compared to $0.66 for the fourth quarter of 2004, an increase of 7.6%.
o Book value per common share was $19.41 at March 31, 2005, compared to
Adjusted book value per share, including the effects of the Q4-04 Gains,
of $18.95 at December 31, 2004, an increase of 2.4%.
o GAAP Revenue, including the effects of the Q4-04 Gains, for the first
quarter of 2005 increased 191.8% over the fourth quarter of 2004 to $235.3
million from $80.6 million,
o GAAP Net earnings, including the effects of the Q4-04 Gains, for the first
quarter of 2005 increased $148.1 million to $125.4 million from a loss of
$22.7 million in the fourth quarter of 2004 and
o GAAP Earnings per diluted share, including the effects of the Q4-04 Gains,
for the first quarter of 2005 were $2.99 compared to a loss of $0.62 in
the fourth quarter of 2004.
o Book value per common share was $19.41 at March 31, 2005, compared to
$17.18 per share at December 31, 2004.
Michael Strauss, Chairman and Chief Executive Officer, commented, "Our company
was highly successful at implementing our business plan during the first quarter
as our adjusted net interest income, origination activity and adjusted servicing
revenue all reached new highs. Adjusted net interest income during the quarter
reached $48.6 million excluding the benefit of the Q4-04 Gains. As in previous
quarters, our portfolio's adjusted net interest income was benefited by the
excess yield created from our mortgage origination capabilities. In addition,
during the quarter our portfolio's adjusted net interest income and net asset
value were protected by our duration neutral strategy. Loan originations during
the quarter reached $7.3 billion, and were benefited by the continued growth of
both our retail and wholesale lending channels. Our overall market share
experienced a significant jump to 1.16% of the national market, an increase of
approximately 16% compared to the fourth quarter of 2004. Our prospects for
future market share growth should be enhanced by the continued growth of our
sales force, which exceeded 2,100 loan officers and account executives at
quarter's end, and by our recent acquisition of loan production branches from
Irwin Mortgage. During the quarter, our servicing segment became profitable, as
higher interest rates slowed amortization and resulted in an impairment
recovery.
Based on our first quarter results and our projected earnings for the remainder
of 2005, I am very pleased to announce that the Board of Directors has again
raised the Company's dividend policy with respect to its common stock to $0.76
per quarter, or $3.04 annualized. This is the ninth time the Company has raised
its dividend policy since its initial dividend in April 2001. I am also pleased
to report that based on our internal projections we are raising our earnings
guidance for 2005."
ADJUSTED FIRST QUARTER RESULTS EXCLUDING THE EFFECTS OF THE Q4-04 GAINS:
- ------------------------------------------------------------------------
During the first quarter, the Company's adjusted mortgage-backed securities
("MBS") portfolio averaged $7.4 billion, earned an adjusted net interest margin
of 1.70%, and earned adjusted net interest income of $31.5 million. Also, during
the first quarter, the Company's adjusted inventory of loans pending sale or
securitization averaged $2.8 billion, earned an adjusted net interest margin of
2.70% and earned adjusted net interest income of $18.9 million. Finally, during
the quarter the Company had interest expense on servicing financing and other
obligations of $1.8 million.
At March 31, 2005, the composition of the Company's MBS portfolio by type of
loan was 73.0% 5/1 adjustable-rate mortgages (ARMs), 15.9% short reset ARMs, and
11.1% 3/1 ARMs. The composition of the MBS portfolio by credit quality based on
Standard & Poor's ratings was 94.3% Agency and AAA, 1.5% AA and A, and 4.2% BBB
or unrated. On March 31, 2005, the MBS portfolio's duration, net of liabilities
and hedges, was estimated to be 0.09 years, its projected average life was 2.6
years, and its average cost was 100.4% of par.
During the quarter, the Company securitized an adjusted $3.8 billion of newly
originated loans through collateralized debt obligation transactions. The
collateralized debt obligation was structured to enhance the yield of securities
retained by the Company. Of the securities created, an adjusted $1.3 billion
were retained in the Company's portfolio while an adjusted $2.5 billion were
sold for an adjusted gain of $44.7 million. The adjusted $1.3 billion of
retained securities had a projected yield of 5.26%, an estimated duration of 2.1
years, an expected average life of 2.8 years, were valued at an average market
value of 100.8% of par, and created an adjusted unrealized gain of $23.5
million. In addition, the Company realized gains of $9.5 million on terminated
free standing interest rate swap derivatives in connection with the
securitization. Changes to prepayment speeds and other factors may prevent the
projected yield, estimated duration or expected average life from being
realized. The Company expects that it will continue to create higher yielding
securities from its originations using collateralized debt issuances, and that
it will hold a portion of these securities in substitution of lower yielding,
primarily market-purchased securities. During the quarter, an adjusted $1.2
billion of securities were sold at an adjusted realized loss of $4.7 million,
largely to make room for the higher-yielding, retained securities. During the
quarter, the Company experienced an adjusted mark-to-market unrealized loss, net
of associated hedges, of $3.3 million on its portfolio of trading securities.
The net impact of these portfolio changes was a decrease in adjusted earnings of
$8.0 million, or $0.20 per common share.
During the first quarter, loan production was $7.3 billion. Of the $7.3 billion,
52% of loans were to homebuyers while 48% were for refinancing. During the
quarter, the Company estimates its national market share reached 1.16% based on
Freddie Mac's forecast of national market size, compared to 1.00% in the fourth
quarter of 2004 and 0.69% during the first quarter of 2004. During the quarter,
the Company sold $3.1 billion of non-securitized, primarily fixed-rate loans to
third parties for a gain of $37.8 million and recognized valuation provisions on
loan inventory of $2.5 million. The net gain on sale was $35.3 million. At March
31, 2005, the Company employed approximately 2,143 loan officers and account
executives, including call center representatives, but excluding sales
assistants, compared to approximately 1,867 on December 31, 2004.
The number of loans serviced on March 31, 2005, including warehouse loans,
reached 118,661 loans with a principal balance of $19.9 billion compared to
104,841 loans with a principal balance of $16.8 billion on December 31, 2004.
During the quarter, adjusted servicing revenues were $12.8 million, direct
servicing expenses were $4.6 million, adjusted amortization was $10.7 million
and the adjusted recovery of impairment reserves was $5.5 million. During the
quarter, servicing experienced an adjusted gain of $3.8 million due primarily to
slower amortization and the recovery of previously recognized impairment
reserves. The carrying value, net of impairment reserves, of the servicing
portfolio on March 31 was $228.4 million, or 1.25% of the unpaid principal
balance, or 3.6 times the weighted average servicing fee, compared to $189.2
million, or 1.22% of the unpaid principal balance, or 3.5 times the weighted
average servicing fee at December 31, 2004. The market value of the servicing
portfolio was $233.6 million on March 31 and $189.9 million on December 31. On
March 31, the impairment reserve had decreased to $8.5 million, the weighted
average servicing fee was 0.344%, the weighted average age of the portfolio was
1.4 years, and the weighted average coupon was 5.21%. The market value of the
Company's servicing assets exceeded their carrying value because the Company
carries its servicing assets at the lower of cost or market.
The Company's total adjusted revenues for the quarter were $164.0 million. Of
these revenues, an adjusted $48.6 million was from net interest income, $35.3
million was from gains on sales of loans to third parties and from net mortgage
origination fees, an adjusted $44.7 million was from gains on securitization of
loans, an adjusted $23.5 million of revenue was from unrealized gains on newly
created mortgage securities that were retained, $9.5 million was from realized
gains on terminated interest rate swap derivatives, an adjusted $14.2 million
was from mortgage servicing fees and ancillary revenues, and $1.5 million was
from other sources. Adjusted revenues were decreased by an adjusted $4.7 million
loss from sales of MBS portfolio securities, by $5.2 million for servicing
amortization, net of recovery, and by an adjusted $3.3 million of unrealized
loss on mortgage-backed securities held in trading and their associated hedges.
During the quarter, the Company's expenses were $109.9 million, and the
Company's pre-tax profit was an adjusted $54.0 million. Net income for the
quarter was an adjusted $54.0 million, preferred dividends were $3.3 million and
net income available to common stockholders was an adjusted $50.7 million,
resulting in earnings per fully diluted common share of $1.24. Book value
attributable to common stockholders on March 31, 2005 was $782.9 million, or
$19.41 per common share.
FIRST QUARTER RESULTS IN ACCORDANCE WITH GAAP INCLUDING THE EFFECTS
- --------------------------------------------------------------------
OF THE Q4-04 GAINS:
- -------------------
During the first quarter, the Company's mortgage-backed securities ("MBS")
portfolio averaged $5.9 billion, earned a net interest margin of 1.33%, and
earned net interest income of $19.3 million. Also, during the first quarter, the
Company's inventory of loans pending sale or securitization averaged $6.2
billion, earned a net interest margin of 2.64% and earned net interest income of
$41.3 million. Finally, during the quarter the Company had interest expense on
servicing financing and other obligations of $1.8 million.
At March 31, 2005, the composition of the Company's MBS portfolio by type of
loan was 73.0% 5/1 adjustable-rate mortgages (ARMs), 15.9% short reset ARMs, and
11.1% 3/1 ARMs. The composition of the MBS portfolio by credit quality based on
Standard & Poor's ratings was 94.3% Agency and AAA, 1.5% AA and A, and 4.2% BBB
or unrated. On March 31, 2005, the MBS portfolio's duration, net of liabilities
and hedges, was estimated to be 0.09 years, its projected average life was 2.6
years, and its average cost was 100.4% of par.
During the quarter, the Company securitized $7.3 billion of self-originated
loans through collateralized debt obligation transactions. The collateralized
debt obligations were structured to enhance the yield of securities retained by
the Company. Of the total $7.3 billion of securities created, $2.8 billion were
retained in the Company's portfolio while $4.5 billion were sold for a gain of
$69.9 million . The $2.8 billion of retained securities had a projected yield of
5.32%, an estimated duration of 2.0 years, an expected average life of 2.7
years, were valued at an average price of 99.74 % of par, and created an
unrealized gain of $41.7 million In addition, the Company realized gains of $9.5
million on terminated free standing interest rate swap derivatives in
connection with the securitization. Changes to prepayment speeds and other
factors may prevent the projected yield, estimated duration or expected average
life from being realized. The Company expects that it will continue to create
higher yielding securities from its originations using collateralized debt
issuances, and that it will hold a portion of these securities in substitution
of lower yielding, primarily market-purchased securities. During the quarter,
$1.1 billion of securities were sold at a realized loss of $3.3 million, largely
to make room for the higher-yielding, retained securities. During the quarter,
the Company experienced a mark-to-market unrealized gain, net of associated
hedges, of $15.8 million on its portfolio of trading securities. The net impact
of these portfolio changes was an increase in earnings of $12.5 million, or
$0.31 per common share.
During the first quarter, loan production was $7.3 billion. Of the $7.3 billion,
52% of loans were to homebuyers while 48% were for refinancing. During the
quarter, the Company estimates its national market share reached 1.16% based on
Freddie Mac's forecast of national market size, compared to 1.00% in the fourth
quarter of 2004 and 0.69% during the first quarter of 2004. During the quarter,
the Company sold $3.1 billion of non-securitized, primarily fixed-rate loans to
third parties for a gain of $37.8 million and recognized valuation provisions on
loan inventory of $2.5 million. The net gain on sale was $35.3 million. At March
31, 2005, the Company employed approximately 2,143 loan officers and account
executives, including call center representatives, but excluding sales
assistants, compared to approximately 1,867 on December 31, 2004.
The number of loans serviced on March 31, 2005, including warehouse loans,
reached 118,661 loans with a principal balance of $19.9 billion compared to
104,841 loans with a principal balance of $16.8 billion on December 31, 2004.
During the quarter, servicing revenues were $9.9 million, direct servicing
expenses were $4.6 million, amortization was $8.5 million and the recovery of
impairment reserves was $3.4 million. During the quarter, servicing experienced
a gain of $1.1 million, due primarily to slower amortization and the recovery of
previously recognized impairment reserves. The carrying value, net of impairment
reserves, of the servicing portfolio on March 31 was $228.4 million, or 1.25% of
the unpaid principal balance, or 3.6 times the weighted average servicing fee,
compared to $151.4 million, or 1.27% of the unpaid principal balance, or 3.6
times the weighted average servicing fee at December 31, 2004. The market value
of the servicing portfolio was $233.6 million on March 31 and $152.5 million on
December 31. On March 31, the impairment reserve had decreased to $8.5 million,
the weighted average servicing fee was 0.344%, the weighted average age of the
portfolio was 1.4 years, and the weighted average coupon was 5.21%. The market
value of the Company's servicing assets exceeded their carrying value because
the Company carries its servicing assets at the lower of cost or market.
The Company's total revenues for the quarter were $235.3 million. Of these
revenues, $58.8 million was from net interest income, $35.3 million was from
gains on sales of loans to third parties and from net mortgage origination fees,
$69.9 million was from gains on securitization of loans, $41.7 million of
revenue was from unrealized gains on newly created mortgage securities that were
retained, $9.5 million was from realized gains on terminated interest rate swap
derivatives, $15.8 million was from unrealized gain on mortgage-backed
securities held in trading and their associated hedges, $11.3 million was from
mortgage servicing fees and ancillary revenues, and $1.5 million was from other
sources. Revenues were decreased by the $3.3 million loss from sales of MBS
portfolio securities and $5.1 million for servicing amortization, net of
recovery. During the quarter, the Company's expenses were $109.9 million, and
the Company's pre-tax profit was $125.4 million. Net income for the quarter was
$125.4 million, preferred dividends were $3.3 million and net income available
to common stockholders was $122.1 million, resulting in earnings per fully
diluted common share of $2.99. Book value attributable to common stockholders on
March 31, 2005 was $782.9 million, or $19.41 per common share.
ANNUAL REPORT RESTATEMENT AND AMENDED 10-K/A FILING
- ---------------------------------------------------
On April 13, 2005, the Company announced that it would restate its 2004 results
and file an amended annual report on Form 10-K/A with the Securities and
Exchange Commission. The amended annual report will reverse the gain associated
with the Company's fourth quarter securitization due to the securitization not
qualifying as a sale in accordance with SFAS 140, as more fully described in the
Company's news release of April 13. Because the fourth quarter securitization
qualified as a sale in the first quarter of 2005, the gain associated with the
fourth quarter securitization has been included in the Company's first quarter,
2005, revenue in accordance with GAAP. The Company is also presenting adjusted
first quarter 2005 results which exclude the gain associated with the fourth
quarter securitization and presenting adjusted fourth quarter 2004 results which
include the gain associated with the fourth quarter securitization as described
under the heading ADJUSTED FINANCIAL MEASURES herein.
DIVIDEND POLICY INCREASE
- ------------------------
The Company's Board of Directors sets dividend policy based primarily on the
Company's projected earnings and cash flow. Cash flow is primarily generated
from net interest income, from the sale to third parties of loans and newly
originated securities, from applying leverage to retained newly originated
securities and to increases in the value of mortgage servicing rights and
securities held, and from loan servicing and loan origination fees. Cash flow is
used to pay operating expenses, fund increases in working capital, make capital
expenditures, post securities and derivatives margins and pay preferred and
common dividends. Based on the Company's projections for earnings and cash-flow,
the Company's Board of Directors has changed the Company's dividend policy to
increase the quarterly dividend on its common stock to $0.76, or $3.04
annualized. It is expected that the first dividend of $0.76 per common share
will be payable in July 2005. The Company's dividend policy does not constitute
an obligation to pay dividends, which only occurs when its Board of Directors
declares a dividend. The dividend policy is subject to ongoing review by the
Board of Directors based on, among other things, the Company's business
prospects, financial condition, earnings projections and cash flow projections,
and the Board may, when it deems doing so is advisable, lower or eliminate the
dividend without prior notice.
EARNINGS OUTLOOK
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American Home Mortgage is raising its 2005 adjusted earnings guidance to $4.15
to $4.35 per diluted share, excluding the effects of the Q4-04 Gains, and to
$5.90 to $6.10 per diluted share on a GAAP basis, including the effects of the
Q4-04 Gains. The Company's increased guidance is based on its growing
origination market share, tempered by its expectation that national origination
activity will slow as interest rates rise. The Company could fail to achieve its
earnings guidance, and may experience losses due to a broad range of reasons,
including, but not limited to, market forces reducing net interest income or net
asset values or both, credit delinquencies reducing income and/or net asset
values, loan production or production margins being less than anticipated,
expenses being higher than expected, or any combination thereof.
OTHER FIRST QUARTER HIGHLIGHTS
- ------------------------------
In March 2005, American Home signed a definitive agreement with Irwin Mortgage
to acquire 21 community mortgage loan production branches in Arizona,
California, Colorado, Hawaii and Washington. In addition, American Home Mortgage
acquired Irwin Mortgage's credit union affinity business, which markets mortgage
loans through mortgage salespersons located onsite at approximately 45 credit
unions. The Company closed on the purchase of most of the branches on April 6,
2005 and expects to close on the purchase of the balance of the branches during
the second quarter of 2005.
Also during the quarter, the Company opened a highly automated loan servicing
center in Irving, Texas. The new loan servicing center is expected to provide
the Company with a low-cost operating environment, a large, experienced labor
pool and the benefits of a Central time zone.
CONFERENCE CALL TODAY
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American Home Mortgage will hold an investor conference call today, April 18,
2005, at 10:30 a.m., Eastern Time, to discuss earnings. Interested parties may
listen to the live conference call by visiting the investor relations section of
the American Home Mortgage's corporate website, www.americanhm.com. A replay of
the online broadcast will be available on the site through May 2, 2005.
DIVIDEND REINVESTMENT & DIRECT STOCK PURCHASE AND SALE PLAN
- -----------------------------------------------------------
American Home Mortgage Investment Corp. has established an Investors Choice
Dividend Reinvestment & Direct Stock Purchase and Sale Plan for its
shareholders. The plan offers affordable alternatives for buying and selling
common stock of American Home Mortgage Investment Corp. Participants in the plan
may also reinvest cash dividends and make periodic supplemental cash payments to
purchase additional shares of the Company's common stock. If you have additional
questions or would like to enroll in the plan, please contact the plan
administrator, American Stock Transfer & Trust Company, at 1-888-777-0319 (toll
free) or visit their website at www.amstock.com. American Home Mortgage
Investment Corp. is a mortgage REIT focused on earning net interest income from
self-originated mortgage-backed securities, and through its taxable
subsidiaries, from originating and servicing mortgage loans for institutional
investors. Mortgages are originated through a network of loan production offices
as well as through mortgage brokers and are serviced at the Company's Irving, TX
servicing center. For additional information, please visit the Company's website
at www.americanhm.com.
This news release contains "forward looking statements" that are based upon
expectations, estimates, forecasts, projections and assumptions. Any statement
in this news release that is not a statement of historical fact, including, but
not limited to, earnings guidance and forecasts, projections of financial
results and loan origination volume, expected future financial position,
dividend plans or business strategy, and any other statements of plans,
expectations, objectives, estimates and beliefs, is a forward looking statement.
Words such as "look forward," "will," "anticipate," "may," "expect," "plan,"
"believe," "intend," and similar words, or the negatives of those words, are
intended to identify forward-looking statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that are
difficult to predict, and are not guarantees of future performance. As a result,
actual future events may differ materially from any future results, performance
or achievements expressed in or implied by this news release. 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; 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 the business of American Home and its subsidiaries; risks
associated with the use of leverage; changes in federal and state tax laws
affecting REITs; 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, and
expressly disclaims any responsibility, to issue updates to any forward-looking
statements discussed in this news release, whether as a result of new
information, future events or otherwise.
CONTACT:
Mary M. Feder
Vice President, Investor Relations
American Home Mortgage Investment Corp.
(631) 622-6469
mary.feder@americanhm.com
###
FINANCIAL TABLE PRESENTATION
The following financial tables include GAAP, adjusted and reconciling
information for the reasons and purposed described under the heading ADJUSTED
FINANCIAL MEASURES herein.
FINANCIAL TABLES TO FOLLOW ON NEXT PAGES
AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
OPERATING STATISTICS
Three Months Ended March 31, 2005 Three Months Ended Dec. 31, 2004
---------------------------------------- ------------------------------------
(1) (1)
As Adjusted to As Adjusted to
Exclude the Exclude the
(1) Effect of the (1) Effect of the
Q4 2004 Q4 2004 Q4 2004 Q4 2004
Gain on Sale Gain on Sale Gain on Sale Gain on Sale
Accounting Accounting Accounting Accounting
Adjustments Adjustment Adjustments Adjustment
---------------------------------------- ------------------------------------
Mortgage-Backed Securities Holdings Segment:*
- -------------------------------------------------
Average mortgage-backed securities held
($ billions) 5.9 1.5 7.4 7.1 0.2 7.3
Interest income ($ millions) 58.3 20.0 78.3 68.4 2.2 70.6
Average portfolio yield 3.98% 4.23% 3.86% 3.89%
Interest expense ($ millions) 39.0 7.7 46.7 42.4 0.2 42.6
Average cost of funds and hedges 2.79% 2.71% 2.52% 2.48%
Net interest income ($ millions) 19.3 12.2 31.5 26.0 2.0 28.0
Net interest margin 1.33% 1.70% 1.49% 1.57%
Mortgage-backed securities held - end of
period ($ billions) 7.2 7.2 6.0 1.6 7.6
Average cost of mortgage-backed securities 100.4% 100.4% 100.8% 100.5%
Period end duration gap (in years) 0.09 0.09 0.07 0.07
* - Excludes loans held pending securitization
Loan Origination Segment:
- -------------------------------------------------
Loan originations ($ billions) 7.3 7.3 6.7 6.7
Refinance 48% 48% 46% 46%
ARM 53% 53% 55% 55%
Average mortgage loans held for
sale, net ($ billions) 6.2 -3.4 2.8 3.1 -0.4 2.7
Net interest income ($ millions) 41.3 -22.4 18.9 22.6 -2.4 20.2
Net interest margin 2.64% 2.70% 2.93% 2.97%
Loans securitized and held ($ billions) 2.8 -1.5 1.3 --- 1.5 1.5
Loans securitized and sold ($ billions) 4.5 -2.0 2.5 --- 2.0 2.0
Loans sold to third parties ($ billions) 3.1 3.1 2.9 2.9
Applications accepted ($ billions) 13.0 13.0 9.9 9.9
Application pipeline ($ billions) 8.4 8.4 6.2 6.2
March 31, 2005 December 31, 2004
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Loan Servicing Segment:
- -------------------------------------------------
Loan servicing portfolio - total with
warehouse ($ billions) 19.9 19.9 16.8 16.8
Loan servicing portfolio - loans sold or
securitized ($ billions) 18.2 18.2 12.0 3.5 15.5
Weighted average note rate 5.21% 5.21% 5.48% 5.45%
Weighted average service fee 0.344% 0.344% 0.348% 0.345%
Average age (in months) 17 17 20 16
Note:
(1) - Adjustments reflect the net effect on the period presented to reconcile the Company's actual operating statistics, results of
operations and financial condition to the amounts adjusted as if the Company's fourth quarter 2004 securitization had qualified for
SFAS 140 sale accounting treatment in the fourth quarter of 2004.
AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
OPERATING STATISTICS
Three Months Ended
------------------------------------------------------------------------
(1) (1)
As Adjusted to As Adjusted to
Exclude the Exclude the
Effect of the Effect of the
Q4 2004 Q4 2004
Gain on Sale Gain on Sale
Accounting Accounting
Adjustment Adjustment
-------------- --------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
-------------- -------------- ------------- -------- ---------
Mortgage-Backed Securities Holdings Segment:*
- -------------------------------------------------
Average mortgage-backed securities
held ($ billions) 7.4 7.3 7.2 4.8 2.0
Interest income ($ millions) 78.3 70.6 66.7 41.3 15.1
Average portfolio yield 4.23% 3.89% 3.72% 3.43% 3.09%
Interest expense ($ millions) 46.7 42.6 42.1 30.5 9.4
Average cost of funds and hedges 2.71% 2.48% 2.47% 2.70% 2.09%
Net interest income ($ millions) 31.5 28.0 24.6 10.8 5.7
Net interest margin 1.70% 1.57% 1.39% 0.91% 1.18%
Mortgage-backed securities held - end of
period ($ billions) 7.2 7.6 7.3 7.3 4.0
Average cost of mortgage-backed securities 100.4% 100.5% 100.7% 100.8% 101.6%
Period end duration gap (in years) 0.09 0.07 (0.002) (0.04) 0.04
* - Excludes loans held pending securitization
Loan Origination Segment:
- -------------------------------------------------
Loan originations ($ billions) 7.3 6.7 5.3 6.6 4.4
Refinance 48% 46% 36% 52% 57%
ARM 53% 55% 56% 49% 35%
Average mortgage loans held for sale,
net ($ billions) 2.8 2.7 2.4 2.2 1.4
Net interest income ($ millions) 18.9 20.2 9.7 10.6 8.3
Net interest margin 2.70% 2.97% 1.60% 1.92% 2.32%
Loans securitized and held ($ billions) 1.3 1.5 1.4 1.5 0.9
Loans securitized and sold ($ billions) 2.5 2.0 1.3 0.6 0.1
Loans sold to third parties ($ billions) 3.1 2.9 2.9 4.5 3.4
Applications accepted ($ billions) 13.0 9.9 8.7 8.8 9.1
Application pipeline ($ billions) 8.4 6.2 6.5 6.5 7.3
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
--------- ------------ ------------- -------- ---------
Loan Servicing Segment:
- -------------------------------------------------
Loan servicing portfolio - total with
warehouse ($ billions) 19.9 16.8 13.6 11.6 10.3
Loan servicing portfolio - loans sold or
securitized ($ billions) 18.2 15.5 12.5 10.2 9.0
Weighted average note rate 5.21% 5.45% 5.41% 5.39% 5.58%
Weighted average service fee 0.344% 0.345% 0.354% 0.358% 0.363%
Average age (in months) 17 16 18 20 26
Note:
(1) - Adjustments reflect the net effect on the period presented to reconcile the Company's actual operating statistics, results of
operations and financial condition to the amounts adjusted as if the Company's fourth quarter 2004 securitization had qualified for
SFAS 140 sale accounting treatment in the fourth quarter of 2004.
AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share amounts)
Three Months Ended March 31, 2005 Three Months Ended Dec. 31, 2004
---------------------------------------- ------------------------------------
(1) (1)
As Adjusted to As Adjusted to
Exclude the Exclude the
(1) Effect of the (1) Effect of the
Q4 2004 Q4 2004 Q4 2004 Q4 2004
Gain on Sale Gain on Sale Gain on Sale Gain on Sale
Accounting Accounting Accounting Accounting
Adjustments Adjustment Adjustments Adjustment
---------------------------------------- ------------------------------------
Net interest income:
Interest income $ 146,894 $ (26,925) $ 119,969 $ 115,957 $ (2,172) $ 113,785
Interest expense (88,091) 16,766 (71,325) (68,777) 1,775 (67,002)
--------- ------------ -------------- --------- ------------ -------------
Net interest income 58,803 (10,159) 48,644 47,180 (397) 46,783
--------- ------------ -------------- --------- ------------ -------------
Non-interest income:
Gain on sales of mortgage loans 35,253 - 35,253 36,004 - 36,004
Gain on securitizations of mortgage
loans 69,919 (25,258) 44,661 - 40,674 40,674
Gain on sales of mortgage-backed
securities and derivatives 6,132 (1,400) 4,732 2,873 - 2,873
Unrealized gain on mortgage-backed
securities and derivatives 57,499 (37,263) 20,236 (6,579) 33,803 27,224
Loan servicing fees 11,312 2,851 14,163 11,701 - 11,701
Amortization (8,501) (2,170) (10,671) (9,750) - (9,750)
Impairment reserve recovery (provision) 3,419 2,048 5,467 (2,284) (2,729) (5,013)
--------- ------------ -------------- --------- ------------ -------------
Net loan servicing fees (loss) 6,230 2,729 8,959 (333) (2,729) (3,062)
--------- ------------ -------------- --------- ------------ -------------
Other non-interest income 1,466 - 1,466 1,480 - 1,480
--------- ------------ -------------- --------- ------------ -------------
Non-interest income 176,499 (61,192) 115,307 33,445 71,748 105,193
--------- ------------ -------------- --------- ------------ -------------
Non-interest expenses:
Salaries, commissions and benefits, net 68,475 - 68,475 60,588 - 60,588
Occupancy and equipment 12,671 - 12,671 11,556 - 11,556
Data processing and communications 5,950 - 5,950 5,869 - 5,869
Office supplies and expenses 4,429 - 4,429 4,385 - 4,385
Marketing and promotion 4,130 - 4,130 3,391 - 3,391
Travel and entertainment 3,928 - 3,928 5,106 - 5,106
Professional fees 3,470 - 3,470 5,378 - 5,378
Other 6,869 - 6,869 6,333 - 6,333
--------- ------------ -------------- --------- ------------ -------------
Non-interest expenses 109,922 - 109,922 102,606 - 102,606
--------- ------------ -------------- --------- ------------ -------------
Net income before income tax expense
(benefit) 125,380 (71,351) 54,029 (21,981) 71,351 49,370
Income tax expense - - - 755 - 755
--------- ------------ -------------- --------- ------------ -------------
Net income $ 125,380 $ (71,351) $ 54,029 $ (22,736) $ 71,351 $ 48,615
========= ============ ============== ========= ============ =============
Dividends on preferred stock 3,305 - 3,305 2,340 - 2,340
--------- ------------ -------------- --------- ------------ -------------
Net income available to common shareholders $ 122,075 $ (71,351) $ 50,724 $ (25,076) $ 71,351 $ 46,275
========= ============ ============== ========= ============ =============
Per share data:
Basic $ 3.03 $ (1.77) $ 1.26 $ (0.62) $ 1.77 $ 1.15
Diluted $ 2.99 $ (1.75) $ 1.24 $ (0.62) $ 1.75 $ 1.14
Weighted average number of
shares - basic 40,308 40,308 40,308 40,216 40,216 40,216
Weighted average number of
shares - diluted 40,811 40,811 40,811 40,737 40,737 40,737
Note:
(1) - Adjustments reflect the net effect on the period presented to reconcile the Company's actual operating statistics, results of
operations and financial condition to the amounts adjusted as if the Company's fourth quarter 2004 securitization had qualified for
SFAS 140 sale accounting treatment in the fourth quarter of 2004.
AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share amounts)
(1) (1)
As Adjusted to As Adjusted to
Exclude the Exclude the
Effect of the Effect of the
Q4 2004 Q4 2004
Gain on Sale Gain on Sale
Accounting Accounting
Adjustment Adjustment
------------------------------------------------------------------------
Three Months Ended
------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
-------------- -------------- ------------- -------- --------
Net interest income:
Interest income $ 119,969 $ 113,785 $ 94,298 $ 69,999 $ 34,050
Interest expense (71,325) (67,002) (61,405) (49,913) (21,278)
-------------- -------------- ------------- -------- --------
Net interest income 48,644 46,783 32,893 20,086 12,772
-------------- -------------- ------------- -------- --------
Non-interest income:
Gain on sales of mortgage loans 35,253 36,004 28,373 17,141 52,581
Gain on securitizations of mortgage loans 44,661 40,674 30,460 7,803 1,856
Gain (loss) on sales of mortgage-backed
securities and derivatives 4,732 2,873 (8,120) (1,322) 6,632
Unrealized gain on mortgage-backed
securities and derivatives 20,236 27,224 27,069 36,063 18,909
Loan servicing fees 14,163 11,701 9,822 8,730 10,318
Amortization (10,671) (9,750) (7,755) (7,764) (7,346)
Impairment reserve recovery (provision) 5,467 (5,013) (4,807) 7,252 (12,584)
-------------- -------------- ------------- -------- --------
Net loan servicing fees (loss) 8,959 (3,062) (2,740) 8,218 (9,612)
-------------- -------------- ------------- -------- --------
Other non-interest income 1,466 1,480 3,350 1,226 978
-------------- -------------- ------------- -------- --------
Non-interest income 115,307 105,193 78,392 69,129 71,344
-------------- -------------- ------------- -------- --------
Non-interest expenses:
Salaries, commissions and benefits, net 68,475 60,588 46,482 42,696 39,627
Occupancy and equipment 12,671 11,556 9,984 8,008 8,094
Data processing and communications 5,950 5,869 3,745 3,338 3,213
Office supplies and expenses 4,429 4,385 3,012 3,215 3,118
Marketing and promotion 4,130 3,391 2,610 2,196 2,212
Travel and entertainment 3,928 5,106 3,620 2,887 2,577
Professional fees 3,470 5,378 2,524 1,829 2,428
Other 6,869 6,333 6,363 4,082 5,438
-------------- -------------- ------------- -------- --------
Non-interest expenses 109,922 102,606 78,340 68,251 66,707
-------------- -------------- ------------- -------- --------
Net income before income tax expense (benefit) 54,029 49,370 32,945 20,964 17,409
Income tax expense (benefit) - 755 (9,998) (12,518) (3,814)
-------------- -------------- ------------- -------- --------
Net income $ 54,029 $ 48,615 $ 42,943 $ 33,482 $ 21,223
============== ============== ============= ======== ========
Dividends on preferred stock 3,305 2,340 1,648 - -
-------------- -------------- ------------- -------- --------
Net income available to common shareholders $ 50,724 $ 46,275 $ 41,295 $ 33,482 $ 21,223
============== ============== ============= ======== ========
Per share data:
Basic $ 1.26 $ 1.15 $ 1.03 $ 0.84 $ 0.71
Diluted $ 1.24 $ 1.14 $ 1.02 $ 0.83 $ 0.70
Weighted average number of
shares - basic 40,308 40,216 40,145 40,000 30,030
Weighted average number of
shares - diluted 40,811 40,737 40,605 40,445 30,508
Note:
(1) - Adjustments reflect the net effect on the period presented to reconcile the Company's actual operating statistics,
results of operations and financial condition to the amounts adjusted as if the Company's fourth quarter 2004
securitization had qualified for SFAS 140 sale accounting treatment in the fourth quarter of 2004.
AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
(1)
As Adjusted to
Exclude the
(1) Effect of the
Q4 2004 Q4 2004
Gain on Sale Gain on Sale
Accounting Accounting
Adjustments Adjustment
-----------------------------------------------------------------------------------------
March 31, December 31, December 31, December 31, September 30, March 31,
2005 2004 2004 2004 2004 2004
------------ ------------ -------------- ------------- ------------ -----------
Assets:
Cash and cash equivalents $ 162,762 $ 192,821 $ - $ 192,821 $ 186,480 $ 97,557
Accounts receivable and servicing
advances 103,295 116,978 (11,640) 105,338 101,105 80,426
Mortgage-backed securities 7,181,170 6,016,866 1,584,927 7,601,793 7,331,888 4,003,079
Mortgage loans held for sale, net 1,627,891 4,853,394 (3,536,785) 1,316,609 1,131,661 1,371,048
Derivative assets 73,383 24,803 (1,459) 23,344 11,630 24,151
Mortgage servicing rights, net 228,412 151,436 37,793 189,229 160,435 113,519
Premises and equipment, net 55,986 51,576 - 51,576 47,955 41,234
Goodwill 92,745 90,877 - 90,877 89,196 83,752
Other assets 49,332 57,046 (10,490) 46,556 16,645 12,213
------------ ------------ ------------- ------------- ------------ -----------
Total assets $ 9,574,976 $ 11,555,797 $ (1,937,654) $ 9,618,143 $ 9,076,995 $ 5,826,979
============ ============ ============= ============= ============ ===========
Liabilities and Stockholders' Equity:
Liabilities:
Warehouse lines of credit $ 658,686 $ 735,783 $ - $ 735,783 $ 547,584 $ 1,251,845
Drafts payable 28,391 26,200 - 26,200 45,526 64,310
Commercial paper 858,382 529,790 - 529,790 462,712 3,394,941
Reverse repurchase agreements 6,720,167 7,071,168 - 7,071,168 6,899,024 134,647
Collateralized debt obligations - 2,022,218 (2,022,218) - - -
Derivative liabilities 1,945 1,860 - 1,860 18,237 21,295
Accrued expenses and other liabilities 176,859 152,413 13,213 165,626 154,339 58,648
Notes payable 159,339 135,761 - 135,761 128,448 106,423
Income taxes payable 54,250 54,342 - 54,342 30,133 53,689
------------ ------------ ------------- ------------- ------------ -----------
Total liabilities 8,658,019 10,729,535 (2,009,005) 8,720,530 8,286,003 5,085,798
------------ ------------ ------------- ------------- ------------ -----------
Stockholders' Equity:
Preferred stock 134,040 134,040 - 134,040 50,857 -
Common stock 403 403 - 403 402 399
Additional paid-in capital 632,828 631,530 - 631,530 629,807 623,953
Retained earnings 193,064 99,628 71,351 170,979 151,297 125,504
Accumulated other comprehensive loss (43,378) (39,339) - (39,339) (41,371) (8,675)
------------ ------------ ------------- ------------- ------------ -----------
Total stockholders' equity 916,957 826,262 71,351 897,613 790,992 741,181
------------ ------------ ------------- ------------- ------------ -----------
Total liabilities and stockholders'
equity $ 9,574,976 $ 11,555,797 $ (1,937,654) $ 9,618,143 $ 9,076,995 $ 5,826,979
============ ============ ============= ============= ============ ===========
Number of shares outstanding - preferred 5,600,000 5,600,000 5,600,000 2,150,000 -
Number of shares outstanding - common 40,335,255 40,288,077 40,288,077 40,184,333 39,875,524
Note:
(1) - Adjustments reflect the net effect on the period presented to reconcile the Company's actual operating statistics, results of
operations and financial condition to the amounts adjusted as if the Company's fourth quarter 2004 securitization had qualified for
SFAS 140 sale accounting treatment in the fourth quarter of 2004.
AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)
(In thousands)
Three Months Ended
------------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Preferred stock
Balance at beginning of period $ 134,040 $ 50,857 $ - $ - $ -
Issuance of preferred stock - offering - 83,183 50,857 - -
------------- ------------- ------------- ------------- -------------
Balance at end of period $ 134,040 $ 134,040 $ 50,857 $ - $ -
------------- ------------- ------------- ------------- -------------
Common stock
Balance at beginning of period $ 403 $ 402 $ 401 $ 399 $ 252
Issuance of common stock - earnouts - - - 2 -
Issuance of common stock - Omnibus Stock Plan - 1 1 - 3
Issuance of common stock - offering - - - - 144
------------- ------------- ------------- ------------- -------------
Balance at end of period $ 403 $ 403 $ 402 $ 401 $ 399
------------- ------------- ------------- ------------- -------------
Additional paid-in capital
Balance at beginning of period $ 631,530 $ 629,807 $ 629,203 $ 623,953 $ 281,432
Issuance of common stock - earnouts 846 734 151 4,583 109
Issuance of common stock - Omnibus Stock Plan 311 823 374 331 978
Issuance of common stock - offering - - - - 339,647
Tax benefit from stock options exercised - - - - 1,599
Restricted shares amortization 141 166 79 336 188
------------- ------------- ------------- ------------- -------------
Balance at end of period $ 632,828 $ 631,530 $ 629,807 $ 629,203 $ 623,953
------------- ------------- ------------- ------------- -------------
Retained earnings
Balance at beginning of period $ 99,628 $ 151,297 $ 134,515 $ 125,504 $ 121,029
Net income 125,380 (22,736) 42,943 33,482 21,223
Dividends declared (31,944) (28,933) (26,161) (24,471) (16,748)
------------- ------------- ------------- ------------- -------------
Balance at end of period $ 193,064 $ 99,628 $ 151,297 $ 134,515 $ 125,504
------------- ------------- ------------- ------------- -------------
Other comprehensive loss
Balance at beginning of period $ (39,339) $ (41,371) $ (50,553) $ (8,675) $ (4,743)
Unrealized (loss) gain on mortgage-backed securities (24,435) (12,491) 52,945 (61,386) 10,221
Gain (loss) on cash flow hedges, net of amortization 20,396 14,523 (43,763) 19,508 (14,153)
------------- ------------- ------------- ------------- -------------
Balance at end of period $ (43,378) $ (39,339) $ (41,371) $ (50,553) $ (8,675)
------------- ------------- ------------- ------------- -------------
Total stockholders' equity $ 916,957 $ 826,262 $ 790,992 $ 713,566 $ 741,181
============= ============= ============= ============= =============
Adjustment (1) - 71,351 - - -
------------- ------------- ------------- ------------- -------------
Adjusted total stockholders' equity (1) $ 916,957 $ 897,613 $ 790,992 $ 713,566 $ 741,181
============= ============= ============= ============= =============
Note:
(1) - Adjustments reflect the net effect on the period presented to reconcile the Company's actual operating statistics, results of
operations and financial condition to the amounts adjusted as if the Company's fourth quarter 2004 securitization had qualified for
SFAS 140 sale accounting treatment in the fourth quarter of 2004.
AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended
-------------------------------------------------------------------------------
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Cash flows from operating activities:
Net income $ 125,380 $ (22,736) $ 42,943 $ 33,482 $ 21,223
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation and amortization 2,439 2,288 2,151 1,988 1,977
Amortization and impairment of mortgage
servicing rights 5,082 12,034 12,562 512 19,930
Amortization of mortgage-backed securities
premiums, net 4,593 7,700 9,455 7,208 2,952
Deferred cash flow hedge gain (loss),
net of amortization 17,052 515 (7,019) 1,871 415
Loss on sales of mortgage-backed securities
and derivatives 3,336 390 6,998 4,246 (6,705)
Unrealized loss (gain) on mortgage-backed
securities 51,003 15,850 (33,525) 20,976 (10,217)
Unrealized (gain) loss on free standing
derivatives (40,312) (14,482) 14,856 (41,451) -
Additions to mortgage servicing rights on
securitized loans (79,711) (123) (27,203) (22,514) (9,863)
Additions to mortgage servicing rights
on sold loans (2,347) (2,912) (3,976) (6,297) (5,802)
Decrease (increase) in interest rate lock
commitments 210 (395) 7,358 21,613 (9,990)
Decrease (increase) in deferred origination
costs 26,025 (28,389) (808) 5,026 (884)
Decrease (increase) in SFAS No. 133 basis
adjustments 4,929 1,276 (1,009) 10,658 5,524
Other 1,177 (3,720) 2,611 2,856 (2,504)
(Increase) decrease in operating assets:
Accounts receivable and servicing
advances 13,683 (15,873) (616) (20,063) 3,885
Other assets 7,714 (40,401) (2,857) (6,477) (6,004)
Increase (decrease) in operating liabilities:
Accrued expenses and other liabilities 21,432 (4,695) 32,761 41,252 (8,092)
Income taxes payable (92) 24,209 (10,995) (7,659) (5,406)
Forward delivery contracts (9,595) 766 (9,004) 9,249 (5,809)
Origination of mortgage loans held for sale (7,255,400) (6,744,078) (5,292,191) (6,619,642) (4,413,174)
Proceeds from sales and repayments of
mortgage loans 3,080,795 2,974,379 2,806,070 4,643,542 3,292,010
Proceeds from securitizations and repayments
of mortgage loans 7,336,612 75,209 2,765,737 1,876,443 969,436
Additions to mortgage-backed securities
and derivatives (2,840,259) (15,112) (1,435,334) (1,470,246) (897,322)
Proceeds from sales of mortgage-backed
securities - 852,283 1,023,037 121,454 23,861
Principal repayments of mortgage-backed
securities 124,959 147,219 100,306 72,697 13,734
------------- ------------- ------------- ------------- -------------
Net cash provided by (used in)
operating activities 598,705 (2,778,798) 2,308 (1,319,276) (1,026,825)
------------- ------------- ------------- ------------- -------------
Cash flows from investing activities:
Purchases of premises and equipment (6,849) (5,909) (5,565) (5,295) (1,473)
Purchases of mortgage-backed securities - (107,009) (535,056) (2,557,318) (2,094,101)
Proceeds from sales of mortgage-backed
securities 1,133,989 50,710 633,036 208,283 697,268
Principal repayments of mortgage-backed
securities 368,671 351,687 296,974 218,826 49,985
Other - - - 109 (353)
------------- ------------- ------------- ------------- -------------
Net cash provided by (used in)
investing activities 1,495,811 289,479 389,389 (2,135,395) (1,348,674)
------------- ------------- ------------- ------------- -------------
Cash flows from financing activities:
(Decrease) increase in warehouse
lines of credit, net (77,097) 188,199 (124,872) (579,389) 130,085
(Decrease) increase in reverse repurchase
agreements, net (351,001) 172,144 485,518 3,018,565 2,050,614
(Decrease) increase in collateralized
debt obligations (2,022,218) 2,022,218 - - -
(Decrease) increase in payable for
securities purchased - - (423,909) 289,262 (125,054)
Increase (decrease) in commercial paper, net 328,592 67,078 (584,324) 1,047,036 -
Increase (decrease) in drafts payable, net 2,191 (19,326) (40,774) 21,990 38,685
Proceeds from issuance of preferred stock - 83,425 52,057 - -
Proceeds from issuance of common stock 311 776 426 329 341,882
Dividends paid (28,931) (26,167) (24,468) (7,575) (23,072)
Increase in notes payable, net 23,578 7,313 21,211 814 6,768
------------- ------------- ------------- ------------- -------------
Net cash (used in) provided by
financing activities (2,124,575) 2,495,660 (639,135) 3,791,032 2,419,908
------------- ------------- ------------- ------------- -------------
Net (decrease) increase in cash
and cash equivalents (30,059) 6,341 (247,438) 336,361 44,409
Cash and cash equivalents, beginning
of period 192,821 186,480 433,918 97,557 53,148
------------- ------------- ------------- ------------- -------------
Cash and cash equivalents, end of period $ 162,762 $ 192,821 $ 186,480 $ 433,918 $ 97,557
============= ============= ============= ============= =============
AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
FAIR VALUE OF FINANCIAL INSTRUMENTS (Unaudited)
(In thousands)
March 31, 2005
------------------------------------------------------------
Fair Value in
Excess of
Carrying Value Fair Value Carrying Value
----------------- ---------- ------------------
Assets:
Cash and cash equivalents $ 162,762 $ 162,762 $ -
Accounts receivable and servicing advances 103,295 103,295 -
Mortgage-backed securities 7,181,170 7,181,170 -
Mortgage loans held for sale, net 1,627,891 1,666,689 38,798
Mortgage servicing rights, net 228,412 233,564 5,152
Derivative assets* 73,383 108,958 35,575
------------------
$ 79,525
------------------
Carrying Value in
Excess of Fair
Value
------------------
Liabilities:
Warehouse lines of credit $ 658,686 $ 658,686 $ -
Commercial paper 858,382 858,382 -
Notes payable 159,339 159,339 -
Drafts payable 28,391 28,391 -
Reverse repurchase agreements 6,720,167 6,718,357 1,810
Derivative liabilities 1,945 1,945 -
------------------
$ 1,810
------------------
$ 81,335
==================
* Derivative assets includes interest rate lock commitments ("IRLCs") to fund mortgage loans.
The carrying value excludes the value of the mortgage servicing rights ("MSRs") attached to the IRLCs in
accordance with SEC Staff Accounting Bulletin No. 105. The fair value includes the value of MSRs.