Exhibit 99.1
[NYMT LOGO]
NEW YORK MORTGAGE TRUST
ANNOUNCES CHANGES IN MANAGEMENT TEAM
NEW YORK, NY - July 1, 2005 - New York Mortgage Trust, Inc. (NYSE: NTR), a
self-advised residential mortgage finance company organized as a real estate
investment trust ("REIT"), announced today that Ray Redlingshafer, the Company's
President and Chief Investment Officer and a member of the Company's Board of
Directors, has resigned each of these positions effective June 30, 2005. Mr.
Redlingshafer intends to pursue other career opportunities and spend time with
his family. The Company will take a one-time charge in the quarter ended June
30, 2005 of approximately $2.9 million relating to severance benefits payable to
Mr. Redlingshafer pursuant to the separation agreement and general release
entered into by the Company and Mr. Redlingshafer. These severance benefits
include a lump sum payment of approximately $2.5 million and approximately
$400,000 of equity incentive awards which immediately vested and became
exercisable under the terms of the agreement. Steven Schnall, the Company's
Chairman and Co-Chief Executive Officer, will assume the additional role of
President, David Akre, the Company's other Co-Chief Executive Officer, will
assume the additional role of Vice Chairman and Steven Mumma, the Company's
Chief Operating Officer, will assume the additional role of Chief Investment
Officer.
Mr. Redlingshafer's resignation is accompanied by a companywide second quarter
cost-cutting initiative undertaken by the Company which has reduced its overall
recurring annual compensation expenses by an estimated $3.7 million. In
connection with this cost cutting initiative, the Company recently executed work
force reductions primarily in operations and support functions in order to
streamline former Guaranty Residential Lending ("GRL") branches with existing
branches at the Company. The actions have affected approximately 45 full-time
employees, none of which are loan origination officers. Steven Schnall
commented, "Staff reductions are always very difficult but after our successful
integration of the GRL branches we acquired at the end of 2004, we identified
and adopted certain best practices of the two organizations and have since
evaluated the efficiencies of our combined branches and infrastructure. As a
result, we have eliminated redundancies in the organization in an effort to
reduce operating costs while striving to maintain customer service levels and
our processing of mortgage loans."
Mr. Schnall added, "We do not expect these actions to impact our ability to grow
our residential mortgage loan business and portfolio of prime and hybrid
adjustable rate loans."
New York Mortgage Trust
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The Company is also announcing today record mortgage loan origination volume for
the second quarter of 2005 of more than $925 million, representing an increase
of approximately $514 million over the same period of 2004. Approximately $400
million of the estimated $925 million in mortgage loan origination volume for
the second quarter of 2005 was contributed by the GRL branches acquired at the
end of 2004.
About New York Mortgage Trust
New York Mortgage Trust, Inc. (NYMT) is a real estate investment trust (REIT)
focused on owning and managing a leveraged portfolio of residential mortgage
securities and a mortgage origination business. The mortgage portfolio is
comprised largely of prime adjustable-rate and hybrid mortgage loans and
securities, much of which, over time will be originated by NYMT's wholly owned
mortgage origination business, The New York Mortgage Company, LLC (NYMC), a
taxable REIT subsidiary. The ability to build a portion of its loan portfolio
from loans internally originated is a cornerstone of NYMT's strategy.
For Further Information
AT THE COMPANY AT FINANCIAL RELATIONS BOARD
Michael I. Wirth, Joe Calabrese (General) 212-827-3772
Chief Financial Officer Julie Tu (Analysts) 212-827-3776
Phone: 212-634-2342
Email: mwirth@nymtrust.com
This news release contains 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, the possibilities that a rise in interest rates
may cause a decline in the market value of the Company's assets, a decrease in
the demand for mortgage loans may have a negative effect on the Company's volume
of closed loan originations, prepayment rates 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 real estate,
including changes in business conditions and the general economy, 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 news release.