EX-99.1 2 exhibit991q32019.htm EXHIBIT 99.1 Exhibit


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New York Mortgage Trust Reports
Third Quarter 2019 Results

NEW YORK, NY - November 5, 2019 (GLOBE NEWSWIRE) - New York Mortgage Trust, Inc. (Nasdaq: NYMT) (“NYMT,” the “Company,” “we,” “our” or “us”) today reported results for the third quarter of 2019.

Summary of Third Quarter 2019:
Net income attributable to Company's common stockholders
$
34,835

Net income attributable to Company's common stockholders per share (basic)
$
0.15

Net interest income
$
31,971

Net interest margin
2.40
%
Comprehensive income attributable to Company's common stockholders
$
45,747

Comprehensive income attributable to Company's common stockholders per share (basic)
$
0.20

Book value per share
$
5.77

Economic return on book value (1)
3.83
%
Economic return on book value (annualized) (1) (2)
17.00
%
Dividends per share
$
0.20


(1) 
Economic return on book value is based on the periodic change in GAAP book value per share plus dividends declared per common share during the respective period.
(2) 
Economic return on book value for the nine months ended September 30, 2019 on an annualized basis.

Key Developments:

Issued 51,750,000 shares of common stock collectively through two underwritten public offerings, resulting in total net proceeds of $310.6 million.
Issued 589,420 shares of preferred stock under an at-the-market preferred equity offering program, resulting in net proceeds of $14.4 million.
Acquired residential, multi-family and other credit assets totaling $396.9 million.

Subsequent Development:

In October 2019, the Company closed on an underwritten public offering of 6,900,000 shares of the Company's 7.875% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock. The net proceeds to the Company from the issuance of its Series E Preferred Stock amounted to $166.7 million after deducting underwriting discounts and commissions and estimated offering expenses.



1



Management Overview

Steven Mumma, Chairman and Chief Executive Officer, commented: “The Company delivered another solid performance, generating GAAP earnings per share of $0.15 and comprehensive earnings per share of $0.20 for the third quarter. Our book value per common share was $5.77 at September 30, 2019, an increase of $0.02 over the prior quarter, resulting in a total economic return of 3.8% for the quarter. Through the first nine months of 2019, the Company has generated a total economic return of 17.0% on an annualized basis and comprehensive earnings per share of $0.66. The Company significantly grew its scale through the completion of multiple accretive capital raises during the first nine months of 2019 that generated approximately $619 million in net proceeds. More importantly, during this period of growth, the Company has been able to substantially mitigate the drag on earnings that is often associated with the issuance of additional equity and deliver a strong economic return.

Our investment team continued to be active during the quarter, sourcing and closing on approximately $400 million in credit sensitive assets, bringing our total investment portfolio to $4.5 billion at September 30, 2019. We have maintained our sourcing momentum in the fourth quarter to date, with over $275 million in credit transactions committed to fund in the fourth quarter of 2019.
    
Subsequent to quarter end, the Company completed a preferred stock offering, raising approximately $166.7 million in net proceeds. This offering brings the Company’s total equity market capitalization to $2.1 billion, an increase of over 90% from a year ago.”

Jason Serrano, President, added: “The completion of the internalization of our investment capabilities has proven pivotal in the growth of our business over the past year.  In the latest quarter, the synergies created by this approach were evident.  Our strong earnings and attractive investment pipeline are the byproduct of the efficiencies created by our investment platform.  With credit expertise that touches on both securitizations and their underlying assets, we continue to take advantage of asset mispricing in various facets of the multi-family and single-family markets.”


2



Capital Allocation
 
The following tables set forth our allocated capital by investment category at September 30, 2019, our interest income and interest expense by investment category, and the weighted average yield, average cost of funds, and portfolio net interest margin for our average interest earning assets (by investment category) for the three months ended September 30, 2019 (dollar amounts in thousands):
 
Agency
RMBS
 
Residential Credit
 
Multi-
Family Credit
 
Other
 
Total
Investment securities, available for sale, at fair value
$
955,838

 
$
621,528

 
$
278,398

 
$
48,254

 
$
1,904,018

Distressed and other residential mortgage loans, at fair value

 
1,116,128

 

 

 
1,116,128

Distressed and other residential mortgage loans, net

 
210,466

 

 

 
210,466

Investments in unconsolidated entities

 
61,779

 
107,154

 

 
168,933

Preferred equity and mezzanine loan investments

 

 
178,997

 

 
178,997

Multi-family loans held in securitization trusts, at fair value

 

 
15,863,264

 

 
15,863,264

Multi-family collateralized debt obligations, at fair value

 

 
(14,978,199
)
 

 
(14,978,199
)
Other investments (1)

 
2,437

 
12,968

 

 
15,405

Carrying value
$
955,838

 
$
2,012,338

 
$
1,462,582

 
$
48,254

 
$
4,479,012

Liabilities:
 
 
 
 
 
 
 
 
 
Repurchase agreements
(840,864
)
 
(946,309
)
 
(772,707
)
 

 
(2,559,880
)
CDOs and subordinated debentures

 
(42,119
)
 

 
(45,000
)
 
(87,119
)
Convertible notes

 

 

 
(132,395
)
 
(132,395
)
Hedges (net) (2)
20,673

 

 

 

 
20,673

Cash and restricted cash (3)
9,558

 
9,554

 
5,314

 
42,412

 
66,838

Goodwill

 

 

 
25,222

 
25,222

Other (4)
(3,057
)
 
109,487

 
(11,503
)
 
(60,279
)
 
34,648

Net capital allocated
$
142,148

 
$
1,142,951

 
$
683,686

 
$
(121,786
)
 
$
1,846,999

 
 
 
 
 
 
 
 
 
 
Overall leverage ratio (5)
 
 
 
 
 
 
 
 
1.5

Leverage ratio on callable debt (6)
 
 
 
 
 
 
 
 
1.4

 
 
 
 
 
 
 
 
 
 
Net Interest Income - Three Months Ended September 30, 2019:
 
 
 
 
 
 
 
 
 
Interest Income
$
6,512

 
$
23,668

 
$
28,413

 
$
681

 
$
59,274

Interest Expense
(4,980
)
 
(10,499
)
 
(8,400
)
 
(3,424
)
 
(27,303
)
Net Interest Income (Expense)
$
1,532

 
$
13,169

 
$
20,013

 
$
(2,743
)
 
$
31,971

 
 
 
 
 
 
 
 
 
 
Portfolio Net Interest Margin - Three Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
Average Interest Earning Assets (7) (9)
$
1,001,567

 
$
1,772,485

 
$
1,104,560

 
$
26,235

 
$
3,904,847

Weighted Average Yield on Interest Earning Assets (8)
2.60
 %
 
5.34
 %
 
10.29
 %
 
10.38
%
 
6.07
 %
Average Cost of Funds (10)
(2.38
)%
 
(4.27
)%
 
(4.29
)%
 

 
(3.67
)%
Portfolio Net Interest Margin (11)
0.22
 %
 
1.07
 %
 
6.00
 %
 
10.38
%
 
2.40
 %


3




(1) 
Includes real estate under development in the amount of $13.9 million, net of mortgages and notes payable in consolidated variable interest entities in the amount of $0.9 million, and other loan investments in the amount of $2.4 million. Both real estate under development and other loan investments are included in the Company's accompanying condensed consolidated balance sheets in receivables and other assets.
(2) 
Includes derivative liabilities of $40.4 million netted against a $61.1 million variation margin.
(3) 
Restricted cash is included in the Company's accompanying condensed consolidated balance sheets in receivables and other assets.
(4) 
Includes a $66.0 million deposit to be used towards the purchase price of mortgage-backed securities to be issued in a securitization transaction sponsored by Freddie Mac. The deposit is included in receivables and other assets in the accompanying condensed consolidated balance sheets.
(5) 
Represents total debt divided by our total stockholders' equity. Total debt does not include debt associated with Multi-family CDOs amounting to $15.0 billion and Residential CDOs amounting to $42.1 million that are consolidated in the Company's financial statements as they are non-recourse debt for which we have no obligation.
(6) 
Represents repurchase agreement borrowings divided by our total stockholders' equity.
(7) 
Average Interest Earning Assets for the periods indicated exclude all Consolidated K-Series assets other than those securities actually owned by the Company.
(8) 
Our Weighted Average Yield on Interest Earning Assets was calculated by dividing our annualized interest income by our Average Interest Earning Assets for the respective periods.
(9)  
Our Average Interest Earning Assets is calculated each quarter based on daily average amortized cost for the respective periods.
(10) 
Our Average Cost of Funds was calculated by dividing our annualized interest expense by our average interest bearing liabilities, excluding our subordinated debentures and convertible notes, which generated interest expense of approximately $0.7 million and $2.7 million, respectively.
(11) 
Portfolio Net Interest Margin is the difference between our Weighted Average Yield on Interest Earning Assets and our Average Cost of Funds, excluding the weighted average cost of subordinated debentures and convertible notes.

4



Third Quarter Earnings Summary

For the quarter ended September 30, 2019, we reported net income attributable to common stockholders of $34.8 million as compared to $16.5 million for the quarter ended June 30, 2019.

Net Interest Income

We generated net interest income of $32.0 million and a portfolio net interest margin of 240 basis points for the quarter ended September 30, 2019 as compared to net interest income of $25.7 million and a portfolio net interest margin of 216 basis points for the quarter ended June 30, 2019. The change in net interest income in the third quarter was primarily driven by an increase in average interest earning assets in our residential and multi-family credit portfolios.

Non-interest Income

Realized Gains, net

The following table presents the components of net realized gains recognized for the quarters ended September 30, 2019 and June 30, 2019, respectively (dollar amounts in thousands):

 
 
Three Months Ended
 
 
September 30, 2019
 
June 30, 2019
Investment securities and related hedges
 
$
5,013

 
$

Distressed and other residential mortgage loans at carrying value
 
(569
)
 
2,054

Distressed and other residential mortgage loans at fair value
 
1,658

 
2,393

Total realized gains, net
 
$
6,102

 
$
4,447

 
Realized gains on investment securities and related hedges increased due to the sale of Agency CMBS in the third quarter of 2019. Realized gains on distressed and other residential mortgage loans at carrying value and fair value decreased as there was no sale activity in the third quarter of 2019.

Unrealized Gains (Losses), net

The following table presents the components of unrealized gains (losses), net recognized for the quarters ended September 30, 2019 and June 30, 2019, respectively (dollar amounts in thousands):
 
 
Three Months Ended
 
 
September 30, 2019
 
June 30, 2019
Investment securities and related hedges
 
$
(13,336
)
 
$
(15,007
)
Distressed and other residential mortgage loans at fair value
 
16,818

 
9,878

Multi-family loans and debt held in securitization trusts
 
7,630

 
5,207

Total unrealized gains (losses), net
 
$
11,112

 
$
78


The change in unrealized losses on investment securities and related hedges is due to a decrease in unrealized losses recognized on our interest rate swaps in the third quarter. The increases in unrealized gains on distressed and other residential mortgage loans at fair value is due to increased purchase activity and tightening credit spreads during the quarter. Unrealized gains on multi-family loans and debt held in securitization trusts also increased in the third quarter as a result of tightening credit spreads.


5



Other Income

The following table presents the components of other income for the quarters ended September 30, 2019 and June 30, 2019, respectively (dollar amounts in thousands):
 
 
Three Months Ended
 
 
September 30, 2019
 
June 30, 2019
Income from preferred equity investments accounted for as equity (1)
 
$
2,458

 
$
1,655

Income from joint venture equity investments in multi-family properties
 
985

 
1,698

Income from entities that invest in residential properties and loans
 
431

 
163

Preferred equity and mezzanine loan premiums resulting from early redemption (2)
 

 
522

Losses in Consolidated VIEs (3)
 
(185
)
 
(1,459
)
Miscellaneous income
 
249

 
161

Total other income
 
$
3,938

 
$
2,740


(1) 
Includes income earned from preferred equity ownership interests in entities that invest in multi-family properties accounted for under the equity method of accounting.
(2) 
Includes premiums resulting from early redemptions of preferred equity and mezzanine loan investments accounted for as loans.
(3) 
Losses in Consolidated VIEs are offset by allocations to non-controlling interests in the respective Consolidated VIEs, resulting in net losses to the Company of $0.1 million and $0.7 million for the quarters ended September 30, 2019 and June 30, 2019, respectively.
    
The change in other income during the third quarter is primarily attributable to an increase in preferred equity investments accounted for as equity and reduced losses from our interest in a real estate development property. The increases are partially offset by decreases in preferred equity redemptions and income from joint venture equity investments during the third quarter.

The following table details the general and administrative expenses for the quarters ended September 30, 2019 and June 30, 2019, respectively (dollar amounts in thousands):
 
 
Three Months Ended
General and Administrative Expenses
 
September 30, 2019
 
June 30, 2019
Salaries, benefits and directors’ compensation
 
$
5,780

 
$
6,492

Base management and incentive fees
 
(31
)
 
543

Other general and administrative expenses
 
2,565

 
2,780

Total general and administrative expenses
 
$
8,314

 
$
9,815


The change in general and administrative expenses is primarily related to the annual awards in equity compensation paid to non-employee directors of the Company in the second quarter. Additionally, management and incentive fees decreased due to the termination of our last management agreement and the end of transition services related to that agreement in the second quarter.
    

6



The following table sets out the operating expenses related to our distressed and other residential mortgage loans for the quarters ended September 30, 2019 and June 30, 2019, respectively (dollar amounts in thousands):
 
 
Three Months Ended
Operating Expenses
 
September 30, 2019
 
June 30, 2019
Expenses related to distressed and other residential mortgage loans
 
$
3,974

 
$
2,579

Total operating expenses
 
$
3,974

 
$
2,579

    
The increase in operating expenses in the third quarter can be primarily attributed to an increase in direct operating costs on our distressed and other residential mortgage loans as a result of the growth of the loan portfolio.

Comprehensive Income

For the quarter ended September 30, 2019, we reported comprehensive income to common stockholders of $45.7 million, as compared to $36.6 million for the quarter ended June 30, 2019. The main components of comprehensive income for the quarters ended September 30, 2019 and June 30, 2019, respectively, are detailed in the following table (dollar amounts in thousands):
 
Three Months Ended
 
September 30, 2019
 
June 30, 2019
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS
$
34,835

 
$
16,478

OTHER COMPREHENSIVE INCOME
 
 
 
Increase in fair value of available for sale securities
 
 
 
Agency RMBS
5,405

 
12,971

Non-Agency RMBS
6,972

 
1,045

CMBS
2,979

 
6,076

Total
15,356

 
20,092

Reclassification adjustment for net gain included in net income - CMBS
(4,444
)
 

TOTAL OTHER COMPREHENSIVE INCOME
10,912

 
20,092

COMPREHENSIVE INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS
$
45,747

 
$
36,570


The market experienced general spread tightening during the third quarter of 2019 which benefited our investment securities portfolio and resulted in an increase in OCI during the period. This change in OCI was partially offset by the reclassification of unrealized gains reported in OCI to net income in relation to the sale of certain Agency CMBS investments in the third quarter.


7



Analysis of Changes in Book Value

The following table analyzes the changes in book value of our common stock for the quarter ended September 30, 2019 (amounts in thousands, except per share):
 
Quarter Ended September 30, 2019
 
Amount
 
Shares
 
Per Share(1)
Beginning Balance
$
1,211,546

 
210,873

 
$
5.75

Common stock issuance, net(2)
311,848

 
51,748

 
 
Preferred stock issuance, net
14,359

 
 
 
 
Preferred stock liquidation preference
(14,736
)
 
 
 
 
Balance after share issuance activity
1,523,017

 
262,621

 
5.80

Dividends declared
(52,524
)
 
 
 
(0.20
)
Net change in accumulated other comprehensive income:
 
 
 
 
 
Investment securities, available for sale (3)
10,912

 
 
 
0.04

Net income attributable to Company's common stockholders
34,835

 
 
 
0.13

Ending Balance
$
1,516,240

 
262,621

 
$
5.77


(1) 
Outstanding shares used to calculate book value per share for the ending balance is based on outstanding shares as of September 30, 2019 of 262,621,039.
(2) 
Includes amortization of stock based compensation.
(3) 
The increases relate to unrealized gains in our investment securities due to improved pricing.

Conference Call

On Wednesday, November 6, 2019 at 9:00 a.m., Eastern Time, New York Mortgage Trust's executive management is scheduled to host a conference call and audio webcast to discuss the Company’s financial results for the three and nine months ended September 30, 2019. The conference call dial-in number is (877) 312-8806. The replay will be available until Wednesday, November 13, 2019 and can be accessed by dialing (855) 859-2056 and entering passcode 7846548. A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis, at the Company's website at http://www.nymtrust.com. Please allow extra time, prior to the call, to visit the site and download the necessary software to listen to the Internet broadcast.

Third quarter 2019 financial and operating data can be viewed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, which is expected to be filed with the Securities and Exchange Commission on or about November 8, 2019. A copy of the Form 10-Q will be posted at the Company’s website as soon as reasonably practicable following its filing with the Securities and Exchange Commission.



8



About New York Mortgage Trust

New York Mortgage Trust, Inc. is a Maryland corporation that has elected to be taxed as a real estate investment trust for federal income tax purposes (“REIT”). NYMT is an internally managed REIT in the business of acquiring, investing in, financing and managing mortgage-related and residential housing-related assets and targets structured multi-family property investments such as multi-family CMBS and preferred equity in, and mezzanine loans to, owners of multi-family properties, residential mortgage loans (including distressed residential mortgage loans, non-QM loans, second mortgage loans and other residential mortgage loans), non-Agency RMBS, Agency RMBS and certain mortgage-, residential housing- and other credit-related assets. For a list of defined terms used from time to time in this press release, see “Defined Terms” below.

Defined Terms

The following defines certain of the commonly used terms in this press release: “RMBS” refers to residential mortgage-backed securities comprised of adjustable-rate, hybrid adjustable-rate, fixed-rate, interest only and inverse interest only, and principal only securities; “Agency RMBS” refers to RMBS representing interests in or obligations backed by pools of mortgage loans issued or guaranteed by a government sponsored enterprise (“GSE”), such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or an agency of the U.S. government, such as the Government National Mortgage Association (“Ginnie Mae”); “ABS” refers to debt and/or equity tranches of securitizations backed by various asset classes including, but not limited to, automobiles, aircraft, credit cards, equipment, franchises, recreational vehicles and student loans; “non-Agency RMBS” refers to RMBS that are not guaranteed by any agency of the U.S. Government or any GSE; “Agency ARMs” refers to Agency RMBS comprised of adjustable-rate and hybrid adjustable-rate RMBS; “Agency fixed-rate RMBS” refers to Agency RMBS comprised of fixed-rate RMBS; “IOs” refers collectively to interest only and inverse interest only mortgage-backed securities that represent the right to the interest component of the cash flow from a pool of mortgage loans; “POs” refers to mortgage-backed securities that represent the right to the principal component of the cash flow from a pool of mortgage loans; “ARMs” refers to adjustable-rate residential mortgage loans; “residential securitized loans” refers to prime credit quality ARMs held in securitization trusts; “distressed residential mortgage loans” refers to pools of re-performing, non-performing, and other delinquent mortgage loans secured by first liens on one- to four-family properties; “CMBS” refers to commercial mortgage-backed securities comprised of commercial mortgage pass-through securities, as well as PO, IO or mezzanine securities that represent the right to a specific component of the cash flow from a pool of commercial mortgage loans; “Agency CMBS” refers to CMBS representing interests in or obligations backed by pools of multi-family mortgage loans issued or guaranteed by Freddie Mac; “multi-family CMBS” refers to CMBS backed by commercial mortgage loans on multi-family properties; “multi-family securitized loans” refers to the commercial mortgage loans included in the Consolidated K-Series; “CDO” refers to collateralized debt obligation; “Consolidated K-Series” refers to certain Freddie Mac-sponsored multi-family loan K-Series securitizations, of which we, or one of our special purpose entities, own the first loss PO securities and certain IO and/or senior or mezzanine securities issued by them, that we consolidate in our financial statements in accordance with GAAP; and “Residential Credit” portfolio includes distressed and other residential mortgage loans at fair value, distressed and other residential mortgage loans at carrying value, non-Agency RMBS, mortgage loans held for sale, mortgage loans held for investment and certain investments in unconsolidated entities that invest in single-family residential assets.




9



Additional Information

We determined that the Consolidated K-Series were variable interest entities and that we are the primary beneficiary of the Consolidated K-Series. As a result, we are required to consolidate the Consolidated K-Series’ underlying multi-family loans including their liabilities, income and expenses in our condensed consolidated financial statements. We have elected the fair value option on the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations in the assets and liabilities of the Consolidated K-Series be reflected in our condensed consolidated statements of operations.

A reconciliation of our net interest income generated by our multi-family credit portfolio to our condensed consolidated financial statements for the three months ended September 30, 2019 is set forth below (dollar amounts in thousands):
 
Three Months Ended September 30, 2019
Interest income, multi-family loans held in securitization trusts
$
139,818

Interest income, investment securities, available for sale (1)
3,419

Interest income, preferred equity and mezzanine loan investments
5,505

Interest expense, multi-family collateralized debt obligations
(120,329
)
Interest income, Multi-Family Credit, net
28,413

Interest expense, repurchase agreements
(8,400
)
Net interest income, Multi-Family Credit
$
20,013


(1) 
Included in the Company’s accompanying condensed consolidated statements of operations in interest income, investment securities and other interest earning assets.


10



Cautionary Statement Regarding Forward-Looking Statements

When used in this press release, in future filings with the Securities and Exchange Commission (“SEC”) or in other written or oral communications, statements which are not historical in nature, including those containing words such as “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “would,” “could,” “goal,” “objective,” “will,” “may” or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and, as such, may involve known and unknown risks, uncertainties and assumptions.

Forward-looking statements are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to the Company. If a change occurs, the Company’s business, financial condition, liquidity and results of operations may vary materially from those expressed in its forward-looking statements. The following factors are examples of those that could cause actual results to vary from the Company’s forward-looking statements: changes in interest rates and the market value of the Company’s assets; changes in credit spreads; changes in the long-term credit ratings of the U.S., Fannie Mae, Freddie Mac, and Ginnie Mae; market volatility; changes in prepayment rates on the loans the Company owns or that underlie the Company’s investment securities; increased rates of default and/or decreased recovery rates on the Company's assets; the Company's ability to identify and acquire its targeted assets, including assets in its investment pipeline; the Company’s ability to borrow to finance its assets and the terms thereof; changes in governmental laws, regulations or policies affecting the Company’s business; the Company’s ability to maintain its qualification as a REIT for federal tax purposes; the Company’s ability to maintain its exemption from registration under the Investment Company Act of 1940, as amended; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. These and other risks, uncertainties and factors, including the risk factors described in the Company’s reports filed with the SEC pursuant to the Exchange Act, could cause the Company’s actual results to differ materially from those projected in any forward-looking statements it makes. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For Further Information

CONTACT:    AT THE COMPANY    
Kristine R. Nario-Eng
Chief Financial Officer
Phone: (646) 216-2363
Email: KNario@nymtrust.com











11



FINANCIAL TABLES FOLLOW

12



NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
 
September 30, 2019
 
December 31, 2018
 
(unaudited)
 
 
ASSETS
 
 
 
Investment securities, available for sale, at fair value
$
1,904,018

 
$
1,512,252

Distressed and other residential mortgage loans, at fair value
1,116,128

 
737,523

Distressed and other residential mortgage loans, net
210,466

 
285,261

Investments in unconsolidated entities
168,933

 
73,466

Preferred equity and mezzanine loan investments
178,997

 
165,555

Multi-family loans held in securitization trusts, at fair value
15,863,264

 
11,679,847

Derivative assets
20,673

 
10,263

Cash and cash equivalents
65,906

 
103,724

Real estate held for sale in consolidated variable interest entities

 
29,704

Goodwill
25,222

 
25,222

Receivables and other assets
205,642

 
114,821

Total Assets (1)
$
19,759,249

 
$
14,737,638

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Liabilities:
 
 
 
Repurchase agreements
$
2,559,880

 
$
2,131,505

Residential collateralized debt obligations
42,119

 
53,040

Multi-family collateralized debt obligations, at fair value
14,978,199

 
11,022,248

Convertible notes
132,395

 
130,762

Subordinated debentures
45,000

 
45,000

Mortgages and notes payable in consolidated variable interest entities
935

 
31,227

Securitized debt

 
42,335

Accrued expenses and other liabilities
153,722

 
101,228

Total liabilities (1)
17,912,250

 
13,557,345

Commitments and Contingencies
 
 
 
Stockholders' Equity:
 
 
 
Preferred stock, $0.01 par value, 7.75% Series B cumulative redeemable, $25 liquidation preference per share, 6,000,000 shares authorized, 3,138,019 and 3,000,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
75,733

 
72,397

Preferred stock, $0.01 par value, 7.875% Series C cumulative redeemable, $25 liquidation preference per share, 6,600,000 and 4,140,000 shares authorized as of September 30, 2019 and December 31, 2018, respectively, 4,144,161 and 3,600,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
100,170

 
86,862

Preferred stock, $0.01 par value, 8.00% Series D Fixed-to-Floating Rate cumulative redeemable, $25 liquidation preference per share, 8,400,000 and 5,750,000 shares authorized as of September 30, 2019 and December 31, 2018, respectively, 5,968,527 and 5,400,000 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
144,298

 
130,496

Common stock, $0.01 par value, 400,000,000 shares authorized, 262,621,039 and 155,589,528 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
2,626

 
1,556

Additional paid-in capital
1,648,661

 
1,013,391

Accumulated other comprehensive income (loss)
21,916

 
(22,135
)
Accumulated deficit
(145,896
)
 
(103,178
)
Company's stockholders' equity
1,847,508

 
1,179,389

Non-controlling interest in consolidated variable interest entities
(509
)
 
904

Total equity
1,846,999

 
1,180,293

Total Liabilities and Stockholders' Equity
$
19,759,249

 
$
14,737,638

(1) 
Our condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company is the primary beneficiary of these VIEs. As of September 30, 2019 and December 31, 2018, assets of consolidated VIEs totaled $15,976,914 and $11,984,374, respectively, and the liabilities of consolidated VIEs totaled $15,072,191 and $11,191,736, respectively.

13



NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
CONDENSED 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,
 
2019
 
2018
 
2019
 
2018
INTEREST INCOME:
 
 
 
 
 
 
 
Investment securities and other interest earning assets
$
17,503

 
$
11,147

 
$
48,173

 
$
35,087

Distressed and other residential mortgage loans
16,776

 
6,770

 
46,266

 
19,415

Preferred equity and mezzanine loan investments
5,505

 
5,874

 
15,660

 
15,182

Multi-family loans held in securitization trusts
139,818

 
86,458

 
384,743

 
257,179

Total interest income
179,602

 
110,249

 
494,842

 
326,863

 
 
 
 
 
 
 
 
INTEREST EXPENSE:
 
 
 
 
 
 
 
Repurchase agreements and other interest bearing liabilities
23,540

 
10,548

 
66,749

 
30,673

Residential collateralized debt obligations
338

 
462

 
1,162

 
1,348

Multi-family collateralized debt obligations
120,329

 
75,145

 
332,041

 
224,310

Convertible notes
2,713

 
2,669

 
8,097

 
7,971

Subordinated debentures
711

 
712

 
2,185

 
2,023

Securitized debt

 
1,110

 
742

 
3,684

Total interest expense
147,631

 
90,646

 
410,976

 
270,009

 
 
 
 
 
 
 
 
NET INTEREST INCOME
31,971

 
19,603

 
83,866

 
56,854

 
 
 
 
 
 
 
 
NON-INTEREST INCOME:
 
 
 
 
 
 
 
Recovery of loan losses
244

 
840

 
2,605

 
1,235

Realized gains (losses), net
6,102

 
3,232

 
32,556

 
(7,228
)
Unrealized gains (losses), net
11,112

 
14,094

 
13,898

 
57,518

Loss on extinguishment of debt

 

 
(2,857
)
 

Income from real estate held for sale in consolidated variable interest entities

 
1,380

 
215

 
4,759

Other income
3,938

 
4,757

 
14,405

 
8,981

Total non-interest income
21,396

 
24,303

 
60,822

 
65,265

 
 
 
 
 
 
 
 
GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES:
 
 
 
 
 
 
 
General and administrative expenses
8,345

 
6,196

 
25,804

 
16,129

Base management and incentive fees
(31
)
 
844

 
1,235

 
2,486

Expenses related to distressed and other residential mortgage loans
3,974

 
2,117

 
9,805

 
5,531

Expenses related to real estate held for sale in consolidated variable interest entities

 
755

 
482

 
3,234

Total general, administrative and operating expenses
12,288

 
9,912

 
37,326

 
27,380

 
 
 
 
 
 
 
 
INCOME FROM OPERATIONS BEFORE INCOME TAXES
41,079

 
33,994

 
107,362

 
94,739

Income tax benefit
(187
)
 
(454
)
 
(247
)
 
(547
)
NET INCOME
41,266

 
34,448

 
107,609

 
95,286

Net loss (income) attributable to non-controlling interest in consolidated variable interest entities
113

 
(475
)
 
645

 
(2,001
)
NET INCOME ATTRIBUTABLE TO COMPANY
41,379

 
33,973

 
108,254

 
93,285

Preferred stock dividends
(6,544
)
 
(5,925
)
 
(18,726
)
 
(17,775
)
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS
$
34,835

 
$
28,048

 
$
89,528

 
$
75,510

 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.15

 
$
0.21

 
$
0.44

 
$
0.63

Diluted earnings per common share
$
0.15

 
$
0.20

 
$
0.43

 
$
0.60

Weighted average shares outstanding-basic
234,043

 
132,413

 
203,270

 
119,955

Weighted average shares outstanding-diluted
255,537

 
152,727

 
224,745

 
140,044


14



NEW YORK MORTGAGE TRUST, INC. AND SUBSIDIARIES
SUMMARY OF QUARTERLY EARNINGS
(Dollar amounts in thousands, except per share data)
(unaudited)
 
For the Three Months Ended
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
Net interest income
$
31,971

 
$
25,691

 
$
26,203

 
$
21,873

 
$
19,603

Total non-interest income
21,396

 
8,561

 
30,865

 
1,217

 
24,303

Total general, administrative and operating expenses
12,288

 
12,394

 
12,644

 
14,091

 
9,912

Income from operations before income taxes
41,079

 
21,858

 
44,424

 
8,999

 
33,994

Income tax (benefit) expense
(187
)
 
(134
)
 
74

 
(511
)
 
(454
)
Net income
41,266

 
21,992

 
44,350

 
9,510

 
34,448

Net loss (income) attributable to non-controlling interest in consolidated variable interest entities
113

 
743

 
(211
)
 
91

 
(475
)
Net income attributable to Company
41,379

 
22,735

 
44,139

 
9,601

 
33,973

Preferred stock dividends
(6,544
)
 
(6,257
)
 
(5,925
)
 
(5,925
)
 
(5,925
)
Net income attributable to Company's common stockholders
34,835

 
16,478

 
38,214

 
3,676

 
28,048

Basic earnings per common share
$
0.15

 
$
0.08

 
$
0.22

 
$
0.02

 
$
0.21

Diluted earnings per common share
$
0.15

 
$
0.08

 
$
0.21

 
$
0.02

 
$
0.20

Weighted average shares outstanding - basic
234,043

 
200,691

 
174,421

 
148,871

 
132,413

Weighted average shares outstanding - diluted
255,537

 
202,398

 
194,970

 
149,590

 
152,727

 
 
 
 
 
 
 
 
 
 
Book value per common share
$
5.77

 
$
5.75

 
$
5.75

 
$
5.65

 
$
5.72

Dividends declared per common share
$
0.20

 
$
0.20

 
$
0.20

 
$
0.20

 
$
0.20

Dividends declared per preferred share on Series B Preferred Stock
$
0.48

 
$
0.48

 
$
0.48

 
$
0.48

 
$
0.48

Dividends declared per preferred share on Series C Preferred Stock
$
0.49

 
$
0.49

 
$
0.49

 
$
0.49

 
$
0.49

Dividends declared per preferred share on Series D Preferred Stock
$
0.50

 
$
0.50

 
$
0.50

 
$
0.50

 
$
0.50



15



Capital Allocation Summary

The following tables set forth our allocated capital by investment category as well as the weighted average yield on interest earning assets, average cost of funds and portfolio net interest margin for our interest earning assets for the periods indicated (dollar amounts in thousands):
 
 Agency RMBS
 
Residential Credit
 
 Multi-Family Credit
 
Other
 
 Total
At September 30, 2019
 
 
 
 
 
 
 
 

Carrying value
$
955,838

 
$
2,012,338

 
$
1,462,582

 
$
48,254

 
$
4,479,012

Net capital allocated
$
142,148

 
$
1,142,951

 
$
683,686

 
$
(121,786
)
 
$
1,846,999

Three Months Ended September 30, 2019
 
 
 
 
 
 
 
 

Average interest earning assets
$
1,001,567

 
$
1,772,485

 
$
1,104,560

 
$
26,235

 
$
3,904,847

Weighted average yield on interest earning assets
2.60
 %
 
5.34
 %
 
10.29
 %
 
10.38
%
 
6.07
 %
Less: Average cost of funds
(2.38
)%
 
(4.27
)%
 
(4.29
)%
 

 
(3.67
)%
Portfolio net interest margin
0.22
 %
 
1.07
 %
 
6.00
 %
 
10.38
%
 
2.40
 %
 
 
 
 
 
 
 
 
 
 
At June 30, 2019
 
 
 
 
 
 
 
 
 
Carrying value
$
994,200

 
$
1,778,276

 
$
1,402,217

 
$
24,739

 
$
4,199,432

Net capital allocated
$
150,314

 
$
900,599

 
$
615,275

 
$
(138,506
)
 
$
1,527,682

Three Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
Average interest earning assets
$
1,017,409

 
$
1,506,973

 
$
1,018,847

 
$
1,098

 
$
3,544,327

Weighted average yield on interest earning assets
2.66
 %
 
4.97
 %
 
10.54
 %
 
10.44
%
 
5.91
 %
Less: Average cost of funds
(2.62
)%
 
(4.54
)%
 
(4.20
)%
 

 
(3.75
)%
Portfolio net interest margin
0.04
 %
 
0.43
 %
 
6.34
 %
 
10.44
%
 
2.16
 %
 
 
 
 
 
 
 
 
 
 
At March 31, 2019
 
 
 
 
 
 
 
 
 
Carrying value
$
1,023,938

 
$
1,467,571

 
$
1,299,404

 
$

 
$
3,790,913

Net capital allocated
$
157,663

 
$
723,960

 
$
686,904

 
$
(189,075
)
 
$
1,379,452

Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
Average interest earning assets
$
1,053,529

 
$
1,312,263

 
$
927,201

 

 
$
3,292,993

Weighted average yield on interest earning assets
2.87
 %
 
5.91
 %
 
10.45
 %
 

 
6.22
 %
Less: Average cost of funds
(2.76
)%
 
(4.71
)%
 
(4.37
)%
 

 
(3.82
)%
Portfolio net interest margin
0.11
 %
 
1.20
 %
 
6.08
 %
 

 
2.40
 %
 
 
 
 
 
 
 
 
 
 
At December 31, 2018
 
 
 
 
 
 
 
 
 
Carrying value
$
1,037,730

 
$
1,252,770

 
$
1,166,628

 
$

 
$
3,457,128

Net capital allocated
$
135,514

 
$
555,900

 
$
619,252

 
$
(130,373
)
 
$
1,180,293

Three Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
Average interest earning assets
$
1,087,267

 
$
848,777

 
$
786,394

 

 
$
2,722,438

Weighted average yield on interest earning assets
2.74
 %
 
5.36
 %
 
10.85
 %
 

 
5.90
 %
Less: Average cost of funds
(2.46
)%
 
(5.01
)%
 
(5.00
)%
 

 
(3.60
)%
Portfolio net interest margin
0.28
 %
 
0.35
 %
 
5.85
 %
 

 
2.30
 %
 
 
 
 
 
 
 
 
 
 
At September 30, 2018
 
 
 
 
 
 
 
 
 
Carrying value
$
1,055,433

 
$
619,945

 
$
947,851

 
$

 
$
2,623,229

Net capital allocated
$
224,545

 
$
402,819

 
$
632,823

 
$
(151,498
)
 
$
1,108,689

Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
Average interest earning assets
$
1,121,180

 
$
597,200

 
$
681,040

 
$

 
$
2,399,420

Weighted average yield on interest earning assets
2.67
 %
 
5.33
 %
 
11.55
 %
 

 
5.85
 %
Less: Average cost of funds
(2.22
)%
 
(4.68
)%
 
(5.04
)%
 

 
(3.30
)%
Portfolio net interest margin
0.45
 %
 
0.65
 %
 
6.51
 %
 

 
2.55
 %

16