EX-99.1 2 v094410_ex99-1.htm
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