New York Mortgage Trust(NYMT) - 2024 Q2 - Quarterly Report

Part I. Financial Information Item 1. Condensed Consolidated Financial Statements This section presents New York Mortgage Trust, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with detailed accounting notes Condensed Consolidated Balance Sheets Total assets increased to $8.23 billion while total liabilities rose to $6.76 billion, leading to a decrease in total equity to $1.44 billion Condensed Consolidated Balance Sheets (in thousands) | Account | June 30, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $8,228,883 | $7,401,328 | | Residential loans, at fair value | $3,503,191 | $3,084,303 | | Investment securities available for sale, at fair value | $2,672,079 | $2,013,817 | | Real estate, net | $879,931 | $1,131,819 | | Cash and cash equivalents | $235,514 | $187,107 | | Total Liabilities | $6,764,132 | $5,773,202 | | Repurchase agreements | $2,952,289 | $2,471,113 | | Collateralized debt obligations | $2,549,500 | $1,870,517 | | Total Equity | $1,441,663 | $1,600,065 | Condensed Consolidated Statements of Operations The company reported a net loss attributable to common stockholders of $94.4 million for the six months ended June 30, 2024, primarily due to a $63.4 million total other loss, despite increased net interest income Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total net interest income | $19,044 | $15,136 | $36,907 | $32,937 | | Total net loss from real estate | ($13,106) | ($7,755) | ($29,473) | ($16,708) | | Total other (loss) income | ($6,080) | ($19,254) | ($63,401) | $5,830 | | NET LOSS | ($24,083) | ($30,820) | ($104,141) | ($16,658) | | NET LOSS ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | ($26,028) | ($37,202) | ($94,367) | ($26,681) | | Basic loss per common share | ($0.29) | ($0.41) | ($1.04) | ($0.29) | | Diluted loss per common share | ($0.29) | ($0.41) | ($1.04) | ($0.29) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities was $14.1 million and in investing activities was $826.1 million, offset by $877.7 million from financing, resulting in a $37.5 million net increase in cash Summary of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($14,123) | ($11,505) | | Net cash used in investing activities | ($826,115) | ($64,194) | | Net cash provided by financing activities | $877,746 | $40,228 | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $37,508 | ($35,471) | Notes to the Condensed Consolidated Financial Statements This section details the company's accounting policies and financial results, covering residential loans, investment securities, VIEs, debt instruments, and stockholders' equity Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's financial condition and operational results, highlighting strategic shifts towards Agency RMBS and business purpose loans, and its approach to leverage and financing - The company is strategically repositioning by disposing of multi-family joint venture investments and reallocating capital to targeted assets like Agency RMBS and business purpose loans[275][279] - In response to interest rate volatility, the company curtailed investment activity in mid-2022 but began stabilizing the portfolio in Q2 2023 by increasing investments in Agency RMBS[274] - The company's Recourse Leverage Ratio increased to 2.1x as of June 30, 2024, from 1.6x at year-end 2023, driven by Agency RMBS financing and senior unsecured notes issuance[278] - During Q2 2024, the company completed a $241.6 million securitization of business purpose loans and issued $60.0 million of 9.125% Senior Notes due 2029[300][301] Item 3. Quantitative and Qualitative Disclosures about Market Risk This section details the company's exposure to market risks, including interest rate, liquidity, and credit risks, and analyzes the impact of interest rate changes on net interest income and portfolio fair value Interest Rate Sensitivity on Annualized Adjusted Net Interest Income (as of June 30, 2024, in thousands) | Change in Interest Rates (bps) | Effect on Annualized Adjusted Net Interest Income (in thousands) | | :--- | :--- | | +200 | $(59,025) | | +100 | $(29,424) | | -100 | $29,178 | | -200 | $57,865 | Interest Rate Sensitivity on Portfolio Fair Value (as of June 30, 2024, in thousands) | Changes in Interest Rates (bps) | Changes in Fair Value (in thousands) | Percentage Change in Portfolio Fair Value | | :--- | :--- | :--- | | +200 | $(179,097) | (3.75)% | | +100 | $(108,186) | (2.26)% | | -100 | $63,711 | 1.33% | | -200 | $113,520 | 2.37% | - The company actively manages risks using derivatives like interest rate swaps and caps, pre-acquisition due diligence, and longer-term, non-mark-to-market financing for its credit portfolio[471][475][484] Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes in internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2024[501] - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2024[502] Part II. Other Information Item 1A. Risk Factors There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes to the risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[504] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds During Q2 2024, the company repurchased 587,347 common shares for $3.5 million, with $189.7 million remaining for common stock repurchases and $97.6 million for preferred stock repurchases Common Stock Repurchases (Q2 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2024 | — | — | | May 2024 | 392,049 | $5.95 | | June 2024 | 195,298 | $5.94 | | Total | 587,347 | $5.95 | - As of June 30, 2024, approximately $189.7 million remained available under the common stock repurchase program, expiring March 31, 2025[507] - No preferred stock was repurchased during Q2 2024, with $97.6 million remaining available under the preferred stock repurchase program[508] Item 6. Exhibits This section provides an index of all exhibits filed with or furnished as part of the quarterly report, including corporate documents and officer certifications