American Home Mortgage Announces Third Quarter Results

Monitor this Company



     Quarterly earnings are $1.09 per diluted share Dividend policy increased $0.05 per quarter to $0.91 per share, or $3.64 per

     share annually

     Quarterly loan production reaches a record $13.7 billion

     Company embarks on strategy of holding selected loans for investment

     2005 and 2006 earnings guidance reaffirmed

    MELVILLE, N.Y., Oct. 26 - American Home Mortgage Investment Corp. (NYSE: AHM) announced today results for the quarter ended September 30, 2005.

    FINANCIAL HIGHLIGHTS

    Comparison of the Three Months Ended September 30, 2005 and 2004

    - Revenue for the third quarter of 2005 was $204.8 million compared to

     revenue of $111.3 million for the third quarter of 2004, an increase of

     84.1%.

    - Net earnings for the third quarter of 2005 were $53.2 million compared

     to net earnings of $42.9 million for the third quarter of 2004, an

     increase of 23.9%.

    - Earnings per diluted share for the third quarter of 2005 were $1.09

     compared to earnings per diluted share of $1.02 for the third quarter of

     2004, an increase of 6.9%.

    - Dividends per common share for the third quarter of 2005 were $0.86,

     compared to $0.61 for the third quarter of 2004, an increase of 41.0%.

    - Book value per common share was $22.81 at September 30, 2005, compared

     to $18.42 per share at September 30, 2004, an increase of 23.8%.

    Comparison of the Three Months Ended September 30, 2005 and June 30, 2005

    - Revenue for the third quarter of 2005 was $204.8 million compared to

     revenue of $203.3 million for the second quarter of 2005, an increase of

     0.7%.

    - Net earnings for the third quarter of 2005 were $53.2 million compared

     to net earnings of $65.5 million for the second quarter of 2005, a

     decrease of 18.8%.

    - Earnings per diluted share for the third quarter of 2005 were $1.09

     compared to earnings per diluted share of $1.52 for the second quarter

     of 2005, a decrease of 28.3%.

    - Dividends per common share for the third quarter of 2005 were $0.86,

     compared to $0.76 for the second quarter of 2005, an increase of 13.2%.

    - Book value per common share was $22.81 at September 30, 2005, compared

     to book value per common share of $20.21 at June 30, 2005, an increase

     of 12.9%.

    Comparison of the Nine Months Ended September 30, 2005 and 2004

    - Adjusted revenue for the nine months ended September 30, 2005 was $572.1

     million compared to revenue of $284.6 million for the nine months ended

     September 30, 2004, an increase of 101.0%. GAAP revenue for the nine

     months ended September 30, 2005 totaled $643.5 million.

    - Adjusted net earnings for the nine months ended September 30, 2005 were

     $172.7 million compared to net earnings of $97.6 million for the nine

     months ended September 30, 2004, an increase of 76.9%. GAAP net

     earnings for the nine months ended September 30, 2005 totaled $244.1

     million.

    - Adjusted earnings per diluted share for the nine months ended September

     30, 2005 were $3.83 compared to earnings per diluted share of $2.58 for

     the nine months ended September 30, 2004, an increase of 48.4%. GAAP

     earnings per diluted share for the nine months ended September 30, 2005

     were $5.51.

    - Dividends per common share for the nine months ended September 30, 2005

     were $2.33, compared to $1.77 for the nine months ended September 30,

     2004, an increase of 31.6%.

    Michael Strauss, American Home's Chief Executive Officer, commented, "I am pleased by our company's overall results for the third quarter. During the quarter, our diluted earnings per share were $1.09, slightly higher than expected. Earnings were driven by record high loan production of $13.7 billion due to a record market share of 1.81% of national originations based on Freddie Mac estimates. As a result, our company's revenues from loan sales and warehouse interest income reached all time highs. Also, during the quarter, our company successfully embarked on the strategic shifts described during our second quarter earnings release. Specifically, we retained only a selected portion of the ARM loans we originated, while selling the balance of our ARM loan production. The $1.3 billion of ARM loans we kept during the quarter, we believe, offer relatively high returns and less exposure to changes in prepayment speeds. The ARM loans we kept were accounted for as loans held for investment, and are carried at their cost basis rather than their market value. As a result, we expect ongoing enhanced net interest income from these loans. In the future, we expect that all of the loans we retain will be accounted for as loans held for investment, and will be carried at their cost basis.

    Our company's third quarter results would have been much stronger if not for a $34 million write-down, net of associated hedges, of the value of residual assets we hold from our prior period securitizations. This write-down, which was charged to current period income, primarily reflects changes in prepayment speed assumptions used by residual asset buyers. We have written these assets down in previous quarters and our earnings model allows for limited write-downs of these assets, but the third quarter write-down was disproportionately large. Our most recent data shows prepayment speeds on our prior period securitizations slowing. If this trend continues, I would expect that any future write-downs of these assets would be much more limited. I believe our positive financial results, even given the impact of the write-down, demonstrates the resiliency of our business model.

    Our third quarter net interest income reached $46.9 million, a slight increase over the second quarter of 2005. Mortgage loan net interest income increased by $4.4 million to $26.9 million, however, portfolio net interest income decreased by $3.3 million to $21.6 million. Portfolio net interest income was reduced by sharp movements in interest rates. I believe net interest income will materially increase in the coming quarters as a result of our company holding self-originated loans for investment, carried at their cost. I also believe net interest income will increase because a growing portion of our assets will be financed through the permanent issuance of mortgage- backed securities, which will largely reduce the impact of sharp movements in interest rates on our net interest income. Finally, our net interest income should be enhanced as we invest and reap the benefit of the proceeds from our recent common stock offering.

    As I consider our company's outlook for the fourth quarter and 2006, I caution investors against taking our company's third quarter results and adding back the write-down of our residual assets. I believe our company's net interest income and servicing results are likely to improve in coming quarters, but I also expect our loan production will decline in response to rising interest rates and our tax expense will increase due to greater profitability in our taxable REIT subsidiaries. Based on our prospects taken as a whole, our company is reaffirming our 2005 adjusted earnings guidance of $4.60 to $4.80 per share and our 2006 earnings guidance of $4.85 to $5.15 per share.

    Based on our results and prospects, I am very pleased to announce that our Board of Directors has increased our company's dividend policy by $0.05 per quarter, to $0.91 per quarter or $3.64 on an annualized basis. This is the eleventh increase in our quarterly dividend since we began paying dividends in April 2001. The increased dividend rate is expected to be effective for dividends paid in January 2006."

    THIRD QUARTER RESULTS

    During the third quarter, American Home's mortgage-backed securities ("MBS") portfolio averaged $7.1 billion, and earned a net interest margin of 1.24%, resulting in net interest income of $21.6 million. By comparison, during the second quarter of 2005, the MBS portfolio averaged $6.8 billion and earned a net interest margin of 1.48%, resulting in net interest income of $24.9 million. Net interest income is projected to increase in coming quarters due to a growing portion of the portfolio's make-up being self- originated whole loans financed by MBS, due to an anticipated normalization of interest rate volatility, and as a result of fully investing the proceeds from the Company's recent stock offering. During the third quarter, American Home purchased a number of securities for its investment portfolio which settled at or near the end of September and has since purchased additional securities as it seeks to fully deploy the capital raised from its third quarter common stock offering.

    During the third quarter, American Home's inventory of loans averaged $5.7 billion, earned a net interest margin of 2.06% and earned net interest income of $26.9 million. This compares with an average balance of $3.9 billion, a net interest margin of 2.37% and net interest income of $22.5 million in the second quarter of 2005. During the third quarter, the Company had interest expense on servicing financing and other obligations of $1.7 million compared to $2.4 million during the second quarter of 2005.

    At September 30, 2005, the composition of the Company's portfolio by type of loan, including loans held for investment and securitized loans was 78.6% 5/1 adjustable-rate mortgages ("ARMs"), 15.8% short reset ARMs, and 5.6% 3/1 ARMs. The composition of the MBS portfolio by credit quality based on Standard & Poor's ratings was 92.7% Agency and AAA, 4.6% AA, A, and BBB and 2.7% unrated. On September 30, 2005, the MBS portfolio's duration, net of liabilities and hedges, was estimated to be 0.17 years and its projected average life was 2.46 years.

    During the third quarter, the Company's loan production was $13.7 billion. Of the $13.7 billion, 54% of loans were to homebuyers while 46% were for refinancing. During the quarter, the Company estimates its national market share reached 1.81% based on Freddie Mac's recent forecast of national market size, compared to 1.47% in the second quarter of 2005 and 0.77% during the third quarter of 2004. At September 30, 2005, the Company employed approximately 2,377 loan officers and account executives, including call center representatives, but excluding sales assistants, compared to approximately 2,334 on June 30, 2005.

    During the quarter, the Company embarked on its strategy of holding loans in its investment portfolio, which are carried at cost, less any associated loan loss allowance. The amount of loans placed into the investment portfolio during the quarter was $1.3 billion. At September 30, 2005, the $1.3 billion of loans added to the investment portfolio were carried at an average cost of 101.10% of par, or $14.3 million above their par value. These loans had a fair value of 103.15% of par, or $40.8 million above their par value.

    During the quarter, the Company sold $9.9 billion of non-securitized loans to third parties for a net gain of $123.7 million including net mortgage origination fees. Also during the quarter, the Company completed what it anticipates will be its last securitizations structured to be accounted for as sales under FAS 140. These securitizations totaled $2.5 billion. Of the securities created, $1.3 billion were sold for a gain of $20.0 million, while $1.2 billion were retained and carried at their market value, resulting in an unrealized gain of $22.6 million. In addition, during the quarter, the Company's origination segment had interest rate swap hedge gains of $10.3 million.

    During the quarter, the Company recognized realized and unrealized losses, net of hedges, on the value of its securities portfolio of $44.6 million, of which $37.8 million was charged to current period income, and $6.8 million resulted in other comprehensive loss.

    During the quarter, revenue associated with the Company's servicing assets was $17.6 million, including $21.1 million of servicing fee revenue, $15.1 million of amortization expense, and $11.6 million of impairment reserve recovery. At the end of the quarter, the principal amount of the loans being serviced including loans held for sale and loans held for investment was $27.5 billion compared to $24.7 billion at the end of the second quarter.

    The Company's total revenues for the quarter were $204.8 million. Of these revenues, $46.9 million was from net interest income, $176.5 million was from gains on newly originated mortgage loans including origination fees and net of hedges, $21.1 million was from mortgage servicing fees, and $1.6 million was from other sources. Revenues were decreased by $37.8 million of realized and unrealized losses on MBS, net of hedges, and by $3.5 million of servicing amortization, net of recovery. During the quarter, the Company's expenses were $149.1 million, and the Company's pre-tax income was $55.7 million. During the quarter, the Company's taxable subsidiary had pre-tax income of $5.8 million resulting in tax expense of $2.5 million. Consequently, net income for the quarter was $53.2 million while preferred dividends were $3.3 million and net income available to common stockholders was $49.9 million, resulting in earnings per diluted share of $1.09. Book value attributable to common stockholders on September 30, 2005 was $1.1 billion, or $22.81 per common share, compared to $819.1 million, or $20.21 per common share, on June 30, 2005.

    DIVIDEND POLICY INCREASE

    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 $0.91 per share, or $3.64 per share on an annualized basis. It is expected that the first dividend of $0.91 per common share will be payable in January 2006. 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 GUIDANCE

    American Home is reaffirming its 2005 adjusted earnings guidance of $4.60 to $4.80 per diluted share and its 2006 earnings guidance of $4.85 to $5.15. It is expected that 2006 earnings will be affected by seasonality in the Company's production segment with earnings being higher in the second and third quarters compared to the first and fourth quarters.

    OTHER THIRD QUARTER HIGHLIGHTS

    During the quarter, the Company issued 9 million shares of common stock at a price of $35.50 per share. The offering, which closed on August 15, resulted in proceeds to the Company of $319.5 million before underwriting discounts and other expenses.

    During the quarter, the Company privately placed $50 million of trust preferred stock at a yield of LIBOR +300. The trust preferred is callable by the Company after 5 years, and matures after 30 years.

    ADJUSTED FINANCIAL MEASURES

    Throughout this news release the terms adjusted revenues, adjusted net earnings, adjusted earnings per diluted share, adjusted net interest income, adjusted net interest margin, 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"). 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. A reconciliation of the adjusted financial measures to financial measures prepared in accordance with GAAP is included on pages A-1 through A-5 of this release.

    CONFERENCE CALL TODAY

    American Home will hold an investor conference call today, October 26, 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 American Home's corporate website, http://www.americanhm.com. A replay of the online broadcast will be available on the site through November 9, 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 http://www.amstock.com.

    ABOUT AMERICAN HOME

    American Home Mortgage Investment Corp. is a mortgage real estate investment trust ("REIT") focused on earning net interest income from self- originated MBS, 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 correspondents and are serviced at the Company's Irving, Texas servicing center. For additional information, please visit the Company's website at http://www.americanhm.com.

    FORWARD-LOOKING STATEMENTS

    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," "opportunity," "potential," 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.

    Financial Table Presentation

    The following financial tables include GAAP, adjusted and reconciling information for the reasons and purposes described under the heading ADJUSTED FINANCIAL MEASURES herein.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     OPERATING STATISTICS

     Three Months Ended Nine Months Ended

     Sept. 30, Sept. 30, Sept. 30, Sept. 30,

     2005 2004 2005 2004

     (1)

     As Adjusted

    Mortgage-Backed Securities

     Holdings Segment:*

    Average mortgage-backed

     securities held ($ billions) 7.1 7.2 7.1 4.7

    Interest income ($ millions) 84.5 66.7 239.8 123.1

    Average portfolio yield 4.76% 3.72% 4.50% 3.53%

    Interest expense ($ millions) 62.9 42.1 161.8 82.0

    Average cost of funds and

     hedges 3.84% 2.47% 3.29% 2.51%

    Net interest income

     ($ millions) 21.6 24.6 78.0 41.1

    Net interest margin 1.24% 1.39% 1.46% 1.18%

    Mortgage-backed securities held

     - end of period ($ billions) 9.2 7.3 9.2 7.3

    Period end duration gap

     (in years) 0.17 (0.002) 0.17 (0.002)

    * - Excludes loans held pending securitization

    Loan Origination Segment:

    Loan originations

     ($ billions) 13.7 5.3 31.7 16.3

    Refinance 46% 36% 45% 47%

    ARM 48% 56% 50% 47%

    Average mortgage loans, net

     ($ billions) 5.7 2.4 4.1 2.0

    Net interest income

     ($ millions) 26.9 9.7 68.3 28.6

    Net interest margin 2.06% 1.60% 2.26% 1.89%

    Loans securitized and held

    ($ billions) 1.2 1.4 2.9 3.8

    Loans securitized and sold

    ($ billions) 1.3 1.3 10.3 2.0

    Loans sold to third parties

    ($ billions) 9.9 2.9 17.5 10.8

    Additions to loans held

     for investment ($ billions) 1.3 --- 1.4 ---

    Gain on sales of loans and

     current period

     securitizations

     net of hedge gains

     ($ millions) 176.5 81.2 472.0 198.5

    Excess of fair value over

     carrying value of loans

     added to investment

     portfolio ($ millions) 26.5 --- 27.8 ---

    Total ($ millions) 203.0 81.2 499.8 198.5

    Gain on sales of loans and

     current period

     securitizations

     net of hedge gains

     (% of principal) 1.42% 1.45% 1.60% 1.20%

    Excess of fair value over

     carrying value of loans

     added to investment portfolio

     (% of principal) 2.02% --- 1.92% ---

    Total (% of principal) 1.48% 1.45% 1.61% 1.20%

    Applications accepted

    ($ billions) 19.7 8.7 50.0 26.6

    Application pipeline

     ($ billions) 11.6 6.5 11.6 6.5

     Sept. 30, Sept. 30,

    Loan Servicing Segment: 2005 2004

    Loan servicing portfolio -

     total with warehouse

     ($ billions) 27.5 13.6

    Loan servicing portfolio -

     loans sold or securitized

     ($ billions) 24.2 12.5

    Weighted average note rate 5.73% 5.41%

    Weighted average service

     fee 0.331% 0.354%

    Average age (in months) 13 18

    Note:

    (1) Adjusted as if the Company's fourth quarter 2004 securitization had

    qualified for SFAS 140 sale accounting treatment in the fourth quarter of

    2004.

    Please refer to the detailed reconciliation of the Company's GAAP and as

    adjusted results on pages A-1 through A-5.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     OPERATING STATISTICS

     Three Months Ended

     Sept. 30, June 30, March 31, Dec. 31, Sept. 30,

     2005 2005 2005 2004 2004

     (1) (1)

     As Adjusted As Adjusted

    Mortgage-Backed Securities

     Holdings Segment:*

    Average

     mortgage-backed

     securities held

     ($ billions) 7.1 6.8 7.4 7.3 7.2

    Interest income

     ($ millions) 84.5 77.1 78.2 70.6 66.7

    Average portfolio

     yield 4.76% 4.53% 4.23% 3.89% 3.72%

    Interest expense

     ($ millions) 62.9 52.2 46.7 42.6 42.1

    Average cost of

     funds and hedges 3.84% 3.29% 2.71% 2.48% 2.47%

    Net interest income

     ($ millions) 21.6 24.9 31.5 28.0 24.6

    Net interest

     margin 1.24% 1.48% 1.70% 1.57% 1.39%

    Mortgage-backed

     securities held

     - end of period

     ($ billions) 9.2 6.9 7.2 7.6 7.3

    Period end duration

     gap (in years) 0.17 0.08 0.09 0.07 (0.002)

    * - Excludes loans held pending securitization

    Loan Origination Segment:

    Loan originations

     ($ billions) 13.7 10.8 7.2 6.7 5.3

    Refinance 46% 41% 48% 46% 36%

    ARM 48% 50% 53% 55% 56%

    Average mortgage

     loans, net

     ($ billions) 5.7 3.9 2.8 2.7 2.4

    Net interest income

    ($ millions) 26.9 22.5 18.9 20.2 9.7

    Net interest

     margin 2.06% 2.37% 2.70% 2.97% 1.60%

    Loans securitized and

     held ($ billions) 1.2 0.4 1.5 1.4 1.5

    Loans securitized and

     sold ($ billions) 1.3 5.4 2.0 1.3 0.6

    Loans sold to third

     parties ($ billions) 9.9 4.5 2.9 2.9 4.5

    Additions to loans held

     for investment

     ($ billions) 1.3 0.1 --- --- ---

    Gain on sales of loans

     and current period

     securitizations

     net of hedge gains

     ($ millions) 176.5 182.6 112.9 109.4 81.2

    Excess of fair value

     over carrying value

     of loans added to

     investment portfolio

     ($ millions) 26.5 1.3 --- --- ---

    Total ($ millions) 203.0 183.9 112.9 109.4 81.2

    Gain on sales of loans

     and current period

     securitizations

     net of hedge gains

     (% of principal) 1.42% 1.78% 1.64% 1.69% 1.45%

    Excess of fair value

     over carrying value

     of loans added to

     investment portfolio

     (% of principal) 2.02% 0.95% --- --- ---

    Total (% of principal) 1.48% 1.77% 1.64% 1.69% 1.45%

    Applications accepted

    ($ billions) 19.7 17.3 13.0 9.9 8.7

    Application pipeline

     ($ billions) 11.6 10.7 8.4 6.2 6.5

     Sept. 30, June 30, March 31, Dec. 31, Sept. 30,

     2005 2005 2005 2004 2004

    Loan Servicing Segment:

    Loan servicing

     portfolio - total

     with warehouse

     ($ billions) 27.5 24.7 19.9 16.8 13.6

    Loan servicing

     portfolio - loans

     sold or securitized

     ($ billions) 24.2 22.6 18.2 15.5 12.5

    Weighted average

     note rate 5.73% 5.62% 5.21% 5.45% 5.41%

    Weighted average

     service fee 0.331% 0.336% 0.344% 0.345% 0.354%

    Average age

     (in months) 13 13 14 16 18

    Note:

    (1)- Adjusted as if the Company's fourth quarter 2004 securitization had

    qualified for SFAS 140 sale accounting treatment in the fourth quarter of

    2004.

    Please refer to the detailed reconciliation of the Company's GAAP and as

    adjusted results on pages A-1 through A-5.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

     (In thousands, except per share amounts)

     Three Months Ended Nine Months Ended

     Sept. 30, Sept. 30, Sept. 30, Sept. 30,

     2005 2004 2005 2004

     (1)

     As

     Adjusted

    Net interest income:

     Interest income $180,038 $94,298 $435,325 $198,347

     Interest expense (133,169) (61,405) (294,830) (132,596)

     Net interest

     income 46,869 32,893 140,495 65,751

    Non-interest income:

     Gain on sales of

     mortgage loans 123,658 28,373 236,288 98,095

     Gain on sales of

     current period

     securitized

     mortgage loans 19,960 30,460 168,998 40,119

     Gain (loss) on sales

     of mortgage-backed

     securities and

     derivatives 6,116 (8,120) 11,468 (2,810)

     Unrealized (loss)

     gain on mortgage-

     backed securities

     and derivatives (10,965) 27,069 (1,021) 82,041

     Loan servicing fees 21,099 9,822 52,232 28,870

     Amortization (15,055) (7,755) (38,558) (22,865)

     Impairment reserve

     recovery (provision) 11,577 (4,807) (3,354) (10,139)

     Net loan servicing

     fees (loss) 17,621 (2,740) 10,320 (4,134)

     Other non-interest

     income 1,585 3,350 5,594 5,554

     Non-interest income 157,975 78,392 431,647 218,865

    Non-interest expenses:

     Salaries, commissions

     and benefits, net 101,378 46,482 264,712 128,805

     Occupancy and

     equipment 15,328 9,984 42,396 26,086

     Data processing and

     communications 6,479 3,745 18,386 10,296

     Office supplies and

     expenses 5,024 3,012 15,110 9,345

     Marketing and

     promotion 5,104 2,610 14,360 7,018

     Travel and

     entertainment 4,670 3,620 14,025 9,084

     Professional fees 3,744 2,524 10,646 6,781

     Other 7,360 6,363 21,072 15,883

     Non-interest

     expenses 149,087 78,340 400,707 213,298

    Net income before

     income tax expense

     (benefit) 55,757 32,945 171,435 71,318

    Income tax expense

     (benefit) 2,549 (9,998) (1,302) (26,330)

    Net income $53,208 $ 42,943 $172,737 $97,648

    Dividends on preferred

     stock 3,304 1,648 9,913 1,648

    Net income available to

     common shareholders $ 49,904 $ 41,295 $162,824 $ 96,000

     Per share data:

     Basic $1.10 $1.03 $3.88 $2.61

     Diluted $1.09 $1.02 $3.83 $2.58

     Weighted average

     number of shares

     - basic 45,174 40,145 41,973 36,737

     Weighted average

     number of shares

     - diluted 45,669 40,605 42,471 37,198

    Note:

    (1) Adjusted as if the Company's fourth quarter 2004 securitization had

    qualified for SFAS 140 sale accounting treatment in the fourth

    quarter of 2004.

    Please refer to the detailed reconciliation of the Company's GAAP and as

    adjusted results on pages A-1 through A-5.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

     (In thousands, except per share amounts)

     Three Months Ended

     Sept. 30, June 30, March 31, Dec. 31, Sept. 30,

     2005 2005 2005 2004 2004

     (1) (1)

     As As

     Adjusted Adjusted

    Net interest income:

     Interest income $180,038 $135,318 $119,969 $113,785 $94,298

     Interest expense (133,169) (90,336) (71,325) (67,002) (61,405)

     Net interest income 46,869 44,982 48,644 46,783 32,893

    Non-interest income:

     Gain on sales of

     mortgage loans 123,658 77,377 35,253 36,004 28,373

     Gain on sales of current

     period securitized

     mortgage loans 19,960 104,377 44,661 40,674 30,460

     Gain (loss) on sales of

     mortgage-backed

     securities and

     derivatives 6,116 620 4,732 2,873 (8,120)

     Unrealized (loss) gain

     on mortgage-backed

     securities and

     derivatives (10,965) (10,292) 20,236 27,224 27,069

     Loan servicing fees 21,099 16,970 14,163 11,701 9,822

     Amortization (15,055) (12,832) (10,671) (9,750) (7,755)

     Impairment reserve

     recovery (provision) 11,577 (20,398) 5,467 (5,013) (4,807)

     Net loan servicing

     fees (loss) 17,621 (16,260) 8,959 (3,062) (2,740)

     Other non-interest income 1,585 2,543 1,466 1,480 3,350

     Non-interest income 157,975 158,365 115,307 105,193 78,392

    Non-interest expenses:

     Salaries, commissions

     and benefits, net 101,378 94,859 68,475 60,588 46,482

     Occupancy and equipment 15,328 14,397 12,671 11,556 9,984

     Data processing and

     communications 6,479 5,957 5,950 5,869 3,745

     Office supplies and

     expenses 5,024 5,657 4,429 4,385 3,012

     Marketing and promotion 5,104 5,126 4,130 3,391 2,610

     Travel and entertainment 4,670 5,427 3,928 5,106 3,620

     Professional fees 3,744 3,432 3,470 5,378 2,524

     Other 7,360 6,843 6,869 6,333 6,363

     Non-interest

     expenses 149,087 141,698 109,922 102,606 78,340

    Net income before income

     tax expense (benefit) 55,757 61,649 54,029 49,370 32,945

    Income tax expense

     (benefit) 2,549 (3,851) - 755 (9,998)

    Net income $53,208 $65,500 $54,029 $48,615 $42,943

    Dividends on preferred

     stock 3,304 3,304 3,305 2,340 1,648

    Net income available to

     common shareholders $49,904 $62,196 $50,724 $46,275 $41,295

     Per share data:

     Basic $1.10 $1.54 $1.26 $1.15 $1.03

     Diluted $1.09 $1.52 $1.24 $1.14 $1.02

     Weighted average

     number of shares -

     basic 45,174 40,384 40,308 40,216 40,145

     Weighted average

     number of shares -

     diluted 45,669 40,886 40,811 40,737 40,605

     Note:

     (1) - Adjusted as if the Company's fourth quarter 2004 securitization had

     qualified for SFAS 140 sale accounting treatment in the fourth quarter

     of 2004.

     Please refer to the detailed reconciliation of the Company's GAAP and as

     adjusted results on pages A-1 through A-5.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED BALANCE SHEETS (Unaudited)

     (Dollars in thousands)

     September 30, June 30, March 31,

     2005 2005 2005

    Assets:

     Cash and cash equivalents $624,424 $197,375 $162,762

     Accounts receivable and servicing

     advances 335,736 116,835 103,295

     Mortgage-backed securities 9,208,172 6,917,986 7,181,170

     Mortgage loans held for sale, net 1,901,293 1,965,074 1,627,891

     Mortgage loans held for investment,

     net 1,445,429 134,597 -

     Derivative assets 67,185 35,756 73,383

     Mortgage servicing rights, net 300,659 261,839 228,412

     Premises and equipment, net 64,174 61,441 55,986

     Goodwill 99,268 98,826 92,745

     Other assets 31,697 21,185 49,332

     Total assets $14,078,037 $9,810,914 $9,574,976

    Liabilities and Stockholders' Equity:

    Liabilities:

     Warehouse lines of credit $2,165,154 $665,697 $658,686

     Drafts payable 18,763 26,538 28,391

     Commercial paper 1,334,296 1,291,684 858,382

     Reverse repurchase agreements 8,041,579 6,337,630 6,720,167

     Payable for securities purchased 554,717 - -

     Derivative liabilities - 6,195 1,945

     Trust preferred securities 96,964 48,414 -

     Accrued expenses and other

     liabilities 239,382 177,761 176,859

     Notes payable 305,766 256,060 159,339

     Income taxes payable 56,310 47,753 54,250

     Total liabilities 12,812,931 8,857,732 8,658,019

    Stockholders' Equity:

     Preferred stock 134,040 134,040 134,040

     Common stock 496 405 403

     Additional paid-in capital 946,105 638,595 632,828

     Retained earnings 235,556 224,442 193,064

     Accumulated other comprehensive loss (51,091) (44,300) (43,378)

     Total stockholders' equity 1,265,106 953,182 916,957

     Total liabilities and

     stockholders' equity $14,078,037 $9,810,914 $9,574,976

    Number of shares outstanding -

     preferred 5,600,000 5,600,000 5,600,000

    Number of shares outstanding - common 49,590,821 40,538,479 40,335,255

    Note:

    (1) - Adjusted as if the Company's fourth quarter 2004 securitization had

    qualified for SFAS 140 sale accounting treatment in the

    fourth quarter of 2004.

    Please refer to the detailed reconciliation of the Company's GAAP and as

    adjusted results on pages A-1 through A-5.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED BALANCE SHEETS (Unaudited)

     (Dollars in thousands)

     December 31, September 30,

     2004 2004

     (1)

    Assets: As Adjusted

     Cash and cash equivalents $192,821 $186,480

     Accounts receivable and servicing

     advances 105,338 101,105

     Mortgage-backed securities 7,601,793 7,331,888

     Mortgage loans held for sale, net 1,316,609 1,131,661

     Mortgage loans held for investment,

     net - -

     Derivative assets 23,344 11,630

     Mortgage servicing rights, net 189,229 160,435

     Premises and equipment, net 51,576 47,955

     Goodwill 90,877 89,196

     Other assets 46,556 16,645

     Total assets $9,618,143 $9,076,995

    Liabilities and Stockholders' Equity:

    Liabilities:

     Warehouse lines of credit $735,783 $547,584

     Drafts payable 26,200 45,526

     Commercial paper 529,790 462,712

     Reverse repurchase agreements 7,071,168 6,899,024

     Payable for securities purchased - -

     Derivative liabilities 1,860 18,237

     Trust preferred securities - -

     Accrued expenses and other

     liabilities 165,626 154,339

     Notes payable 135,761 128,448

     Income taxes payable 54,342 30,133

     Total liabilities 8,720,530 8,286,003

    Stockholders' Equity:

     Preferred stock 134,040 50,857

     Common stock 403 402

     Additional paid-in capital 631,530 629,807

     Retained earnings 170,979 151,297

     Accumulated other comprehensive

     loss (39,339) (41,371)

     Total stockholders' equity 897,613 790,992

     Total liabilities and

     stockholders' equity $9,618,143 $9,076,995

    Number of shares outstanding -

     preferred 5,600,000 2,150,000

    Number of shares outstanding - common 40,288,077 40,184,333

    Note:

    (1) - Adjusted as if the Company's fourth quarter 2004 securitization had

    qualified for SFAS 140 sale accounting treatment in the

    fourth quarter of 2004.

    Please refer to the detailed reconciliation of the Company's GAAP and as

    adjusted results on pages A-1 through A-5.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)

     (In thousands)

     Three Months Ended

     Sept. 30, June 30, Mar. 31,

     2005 2005 2005

    Preferred stock

    Balance at beginning of period $134,040 $134,040 $134,040

    Issuance of preferred stock -

     offering - - -

    Balance at end of period $134,040 $134,040 $134,040

    Common stock

    Balance at beginning of period $405 $403 $403

    Issuance of common stock - earnouts - 2 -

    Issuance of common stock - Omnibus

     Stock Plan 1 - -

    Issuance of common stock - offering 90 - -

    Balance at end of period $496 $405 $403

    Additional paid-in capital

    Balance at beginning of period $638,595 $632,828 $631,530

    Issuance of common stock - earnouts 139 5,005 846

    Issuance of common stock - Omnibus

     Stock Plan 488 588 311

    Issuance of common stock - offering 304,033 - -

    Tax benefit for stock options

     exercised 2,638 - -

    Restricted shares amortization 212 174 141

    Balance at end of period $946,105 $638,595 $632,828

    Retained earnings

    Balance at beginning of period $224,442 $193,064 $99,628

    Net income 53,208 65,500 125,380

    Dividends declared (42,094) (34,122) (31,944)

    Balance at end of period $235,556 $224,442 $193,064

    Other comprehensive loss

    Balance at beginning of period $(44,300) $(43,378) $(39,339)

    Unrealized (loss) gain on mortgage-

     backed securities (15,918) 6,901 (24,435)

    Gain (loss) on cash flow hedges, net

     of amortization 9,127 (7,823) 20,396

    Balance at end of period $(51,091) $(44,300) $(43,378)

    Total stockholders' equity $1,265,106 $953,182 $916,957

    Adjustment (1) - - -

    Adjusted total stockholders'

     equity (1) $1,265,106 $953,182 $916,957

    Note:

    (1) - Adjusted as if the Company's fourth quarter 2004 securitization had

    qualified for SFAS 140 sale accounting treatment in the fourth quarter of

    2004.

    Please refer to the detailed reconciliation of the Company's GAAP and as

    adjusted results on pages A-1 through A-5.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)

     (In thousands)

     Nine

     Months

     Three Months Ended Ended

     Dec. 31, Sept. 30, Sept. 30,

     2004 2004 2005

    Preferred stock

    Balance at beginning of period $50,857 $- $134,040

    Issuance of preferred stock -

     offering 83,183 50,857 -

    Balance at end of period $134,040 $50,857 $134,040

    Common stock

    Balance at beginning of period $402 $401 $403

    Issuance of common stock - earnouts - - 2

    Issuance of common stock - Omnibus

     Stock Plan 1 1 1

    Issuance of common stock - offering - - 90

    Balance at end of period $403 $402 $496

    Additional paid-in capital

    Balance at beginning of period $629,807 $629,203 $631,530

    Issuance of common stock - earnouts 734 151 5,990

    Issuance of common stock - Omnibus

     Stock Plan 823 374 1,387

    Issuance of common stock - offering - - 304,033

    Tax benefit for stock options

     exercised - - 2,638

    Restricted shares amortization 166 79 527

    Balance at end of period $631,530 $629,807 $946,105

    Retained earnings

    Balance at beginning of period $151,297 $134,515 $99,628

    Net income (22,736) 42,943 244,088

    Dividends declared (28,933) (26,161) (108,160)

    Balance at end of period $99,628 $151,297 $235,556

    Other comprehensive loss

    Balance at beginning of period $(41,371) $(50,553) $(39,339)

    Unrealized (loss) gain on mortgage-

     backed securities (12,491) 52,945 (33,452)

    Gain (loss) on cash flow hedges, net

     of amortization 14,523 (43,763) 21,700

    Balance at end of period $(39,339) $(41,371) $(51,091)

    Total stockholders' equity $826,262 $790,992 $1,265,106

    Adjustment (1) 71,351 - -

    Adjusted total stockholders' equity

     (1) $897,613 $790,992 $1,265,106

    Note:

    (1) - Adjusted as if the Company's fourth quarter 2004 securitization had

    qualified for SFAS 140 sale accounting treatment in the fourth quarter

    of 2004.

    Please refer to the detailed reconciliation of the Company's GAAP and as

    adjusted results on pages A-1 through A-5.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

     (In thousands)

     Three Months Ended

     Sept. 30, June 30, Mar. 31,

     2005 2005 2005

    Cash flows from operating

     activities:

    Net income $53,208 $65,500 $125,380

    Adjustments to reconcile net income

     to net cash (used in) provided

     by operating activities:

    Depreciation and amortization 3,098 2,739 2,439

    Amortization and impairment of

     mortgage servicing rights 3,478 33,230 5,082

    Accretion and amortization of

     mortgage-backed securities, net (2,571) (1,169) 4,593

    Amortization of deferred cash flow

     hedge gain (loss) 1,689 1,738 17,052

    Loss on sales of mortgage-backed

     securities and derivatives 2,819 447 3,336

    Unrealized loss (gain) on mortgage-

     backed securities 74,595 (4,533) 51,003

    Unrealized (gain) loss on free

     standing derivatives (31,137) 25,903 (40,312)

    (Decrease) increase in forward

     delivery contracts (12,820) 13,930 (9,595)

    Capitalized mortgage servicing

     rights on securitized loans (27,536) (62,629) (79,711)

    Capitalized mortgage servicing

     rights on sold loans (14,762) (4,027) (2,347)

    Decrease (increase) in interest rate

     lock commitments 14,501 (6,264) 210

    (Increase) decrease in mortgage loan

     basis adjustments (12,649) (10,584) 30,954

    Other 1,469 (2,155) 1,177

    (Increase) decrease in operating

     assets:

     Accounts receivable (218,519) (14,401) 12,952

     Servicing advances (382) 861 731

     Income taxes receivable - 25,797 -

     Other assets (10,512) 2,350 7,714

    Increase (decrease) in operating

     liabilities:

     Accrued expenses and other

     liabilities 53,657 (1,269) 21,432

     Income taxes payable 8,557 (6,497) (92)

    Origination of mortgage loans held

     for sale (12,394,139) (10,647,029) (7,255,400)

    Principal received from sales of

     mortgage loans held for sale 9,448,293 4,457,519 3,080,795

    Proceeds from securitizations of

     mortgage loans held for sale 2,993,315 5,855,914 7,336,612

    Additions to mortgage-backed

     securities and derivatives (1,191,209) (466,522) (2,840,259)

    Principal proceeds from sales of

     self-originated mortgage-backed

     securities - 1,104,227 -

    Cash received from residual assets

     in securitizations 35,431 23,539 16,556

    Principal repayments of mortgage-

     backed securities 274,035 172,172 108,403

     Net cash (used in) provided by

     operating activities (948,091) 558,787 598,705

    Cash flows from investing

     activities:

    Purchases of premises and equipment (5,831) (8,194) (6,849)

    Origination of mortgage loans held

     for investment (1,301,364) (133,757) -

    Proceeds from repayments of mortgage

     loans held for investment 5,108 - -

    Purchases of mortgage-backed

     securities (2,417,565) (933,929) -

    Principal proceeds from sales of

     purchased mortgage-backed

     securities 518,517 20,962 1,133,989

    Principal repayments of purchased

     mortgage-backed securities 414,667 361,049 368,671

     Net cash (used in) provided by

     investing activities (2,786,468) (693,869) 1,495,811

    Cash flows from financing

     activities:

    Increase (decrease) in warehouse

     lines of credit, net 1,499,457 7,011 (77,097)

    Increase (decrease) in reverse

     repurchase agreements, net 1,703,949 (382,537) (351,001)

    (Decrease) increase in

     collateralized debt obligations - - (2,022,218)

    Increase (decrease) in payable for

     securities purchased 554,717 - -

    Increase (decrease) in commercial

     paper, net 42,612 433,302 328,592

    (Decrease) increase in drafts

     payable, net (7,775) (1,853) 2,191

    Increase in trust preferred

     securities 48,550 48,414 -

    Increase in notes payable, net 49,706 96,721 23,578

    Proceeds from issuance of preferred

     stock - - -

    Proceeds from issuance of common

     stock 304,522 587 311

    Dividends paid (34,130) (31,950) (28,931)

     Net cash provided by (used in)

     financing activities 4,161,608 169,695 (2,124,575)

    Net increase (decrease) in cash and

     cash equivalents 427,049 34,613 (30,059)

    Cash and cash equivalents, beginning

     of period 197,375 162,762 192,821

    Cash and cash equivalents, end of

     period $624,424 $197,375 $162,762

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

     (In thousands)

     Three Months Ended

     Dec. 31, Sept. 30,

     2004 2004

    Cash flows from operating activities:

    Net income $(22,736) $42,943

    Adjustments to reconcile net income

     to net cash (used in) provided by

     operating activities:

    Depreciation and amortization 2,288 2,151

    Amortization and impairment of

     mortgage servicing rights 12,034 12,562

    Accretion and amortization of

     mortgage-backed securities, net 7,700 9,455

    Amortization of deferred cash flow

     hedge gain (loss) 515 (7,019)

    Loss on sales of mortgage-backed

     securities and derivatives 390 6,998

    Unrealized loss (gain) on mortgage-

     backed securities 15,850 (33,525)

    Unrealized (gain) loss on free

     standing derivatives (14,482) 14,856

    (Decrease) increase in forward

     delivery contracts 766 (9,004)

    Capitalized mortgage servicing rights

     on securitized loans (123) (27,203)

    Capitalized mortgage servicing rights

     on sold loans (2,912) (3,976)

    Decrease (increase) in interest rate

     lock commitments (395) 7,358

    (Increase) decrease in mortgage loan

     basis adjustments (27,113) (1,817)

    Other (3,720) 2,611

    (Increase) decrease in operating

     assets:

     Accounts receivable (10,569) (124)

     Servicing advances (5,304) (492)

     Income taxes receivable - -

     Other assets (40,401) (2,857)

    Increase (decrease) in operating

     liabilities:

     Accrued expenses and other

     liabilities (4,695) 32,761

     Income taxes payable 24,209 (10,995)

    Origination of mortgage loans held

     for sale (6,744,078) (5,292,191)

    Principal received from sales of

     mortgage loans held for sale 2,974,379 2,806,070

    Proceeds from securitizations of

     mortgage loans held for sale 75,209 2,765,737

    Additions to mortgage-backed

     securities and derivatives (15,112) (1,435,334)

    Principal proceeds from sales of

     self-originated mortgage-backed

     securities 852,283 1,023,037

    Cash received from residual assets in

     securitizations 14,709 7,186

    Principal repayments of mortgage-

     backed securities 132,510 93,120

     Net cash (used in) provided by

     operating activities (2,778,798) 2,308

    Cash flows from investing activities:

    Purchases of premises and equipment (5,909) (5,565)

    Origination of mortgage loans held

     for investment - -

    Proceeds from repayments of mortgage

     loans held for investment - -

    Purchases of mortgage-backed

     securities (107,009) (535,056)

    Principal proceeds from sales of

     purchased mortgage-backed securities 50,710 633,036

    Principal repayments of purchased

     mortgage-backed securities 351,687 296,974

     Net cash (used in) provided by

     investing activities 289,479 389,389

    Cash flows from financing activities:

    Increase (decrease) in warehouse

     lines of credit, net 188,199 (124,872)

    Increase (decrease) in reverse

     repurchase agreements, net 172,144 485,518

    (Decrease) increase in collateralized

     debt obligations 2,022,218 -

    Increase (decrease) in payable for

     securities purchased - (423,909)

    Increase (decrease) in commercial

     paper, net 67,078 (584,324)

    (Decrease) increase in drafts

     payable, net (19,326) (40,774)

    Increase in trust preferred

     securities - -

    Increase in notes payable, net 7,313 21,211

    Proceeds from issuance of preferred

     stock 83,425 52,057

    Proceeds from issuance of common

     stock 776 426

    Dividends paid (26,167) (24,468)

     Net cash provided by (used in)

     financing activities 2,495,660 (639,135)

    Net increase (decrease) in cash and

     cash equivalents 6,341 (247,438)

    Cash and cash equivalents, beginning

     of period 186,480 433,918

    Cash and cash equivalents, end of

     period $192,821 $186,480

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

     (In thousands)

     Nine Months

     Ended

     September 30,

     2005

    Cash flows from operating activities:

    Net income $244,088

    Adjustments to reconcile net income

     to net cash provided by operating activities:

    Depreciation and amortization 8,276

    Amortization and impairment of

     mortgage servicing rights 41,790

    Accretion and amortization of

     mortgage-backed securities, net 853

    Amortization of deferred cash flow hedge gain 20,479

    Loss on sales of mortgage-backed

     securities and derivatives 6,602

    Unrealized loss on mortgage-backed securities 121,065

    Unrealized gain on free standing derivatives (45,546)

    Decrease in forward delivery contracts (8,485)

    Capitalized mortgage servicing rights

     on securitized loans (169,876)

    Capitalized mortgage servicing rights

     on sold loans (21,136)

    Decrease in interest rate lock commitments 8,447

    Decrease in mortgage loans basis adjustments 7,721

    Other 491

    (Increase) decrease in operating assets:

     Accounts receivable (219,968)

     Servicing advances 1,210

     Income taxes receivable 25,797

     Other assets (448)

    Increase (decrease) in operating liabilities:

     Accrued expenses and other liabilities 73,820

     Income taxes payable 1,968

    Origination of mortgage loans held for sale (30,296,568)

    Principal received from sales of

     mortgage loans held for sale 16,986,607

    Proceeds from securitizations of

     mortgage loans held for sale 16,185,841

    Additions to mortgage-backed

     securities and derivatives (4,497,990)

    Principal proceeds from sales of

     self-originated mortgage-backed

     securities 1,104,227

    Cash received from residual assets in

     securitizations 75,526

    Principal repayments of mortgage-

     backed securities 554,610

     Net cash provided by operating activities 209,401

    Cash flows from investing activities:

    Purchases of premises and equipment (20,874)

    Origination of mortgage loans held for investment (1,435,121)

    Proceeds from repayments of mortgage

     loans held for investment 5,108

    Purchases of mortgage-backed securities (3,351,494)

    Principal proceeds from sales of

     purchased mortgage-backed securities 1,673,468

    Principal repayments of purchased

     mortgage-backed securities 1,144,387

     Net cash used in investing activities (1,984,526)

    Cash flows from financing activities:

    Increase in warehouse lines of credit, net 1,429,371

    Increase in reverse repurchase agreements, net 970,411

    Decrease in collateralized debt obligations (2,022,218)

    Increase in payable for securities purchased 554,717

    Increase in commercial paper, net 804,506

    Decrease in drafts payable, net (7,437)

    Increase in trust preferred securities 96,964

    Increase in notes payable, net 170,005

    Proceeds from issuance of common stock 305,420

    Dividends paid (95,011)

     Net cash provided by financing activities 2,206,728

    Net increase in cash and cash equivalents 431,603

    Cash and cash equivalents, beginning of period 192,821

    Cash and cash equivalents, end of period $624,424

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     FAIR VALUE OF FINANCIAL INSTRUMENTS (Unaudited)

     (In thousands)

     September 30, 2005

     Fair Value

     in Excess

     of

     Carrying Carrying

     Value Fair Value Value

    Assets:

     Cash and cash equivalents $624,424 $624,424 $-

     Accounts receivable and servicing

     advances 335,736 335,736 -

     Mortgage-backed securities 9,208,172 9,208,172 -

     Mortgage loans held for sale, net 1,901,293 1,909,533 8,240

     Mortgage loans held for investment,

     net 1,445,429 1,473,965 28,536

     Mortgage servicing rights, net 300,659 300,772 113

     Derivative assets* 67,185 75,556 8,371

     $45,260

     Carrying

     Value in

     Excess of

     Fair Value

    Liabilities:

     Warehouse lines of credit $2,165,154 $2,165,154 $-

     Drafts payable 18,763 18,763 -

     Commercial paper 1,334,296 1,334,296 -

     Reverse repurchase agreements 8,041,579 8,041,313 266

     Trust preferred securities 96,964 96,964 -

     Notes payable 305,766 305,766 -

     $266

     Fair Value

     in Excess of

     Carrying

     Value

     $45,526

    * 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.

     AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES

     OPERATING STATISTICS

     Three Months Ended

     March 31, 2005 December 31, 2004

     (1) (1)

     As As

     GAAP Adjustments Adjusted GAAP Adjustments Adjusted

    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 19.9 78.2 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

    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) 7.2 7.2 6.7 6.7

     Refinance 48% 48% 46% 46%

     ARM 53% 53% 55% 55%

    Average mortgage loans,

     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

    Gain on sales of loans and

     current period

     securitizations

     net of hedge

     gains($ millions) 156.4 -43.5 112.9 36.0 73.4 109.4

    Excess of fair value over

     carrying value of

     loans added to

     investment portfolio

     ($ millions) --- --- --- --- --- ---

     Total

     ($ millions) 156.4 -43.5 112.9 36.0 73.4 109.4

    Gain on sales of loans and

     current period

     securitizations

     net of hedge

     gains

     (% of principal) 2.26% 1.64% 0.56% 1.69%

    Excess of fair value over

     carrying value of loans

     added to investment

     portfolio

     (% of principal) --- --- --- ---

     Total

     (% of principal) 2.26% 1.64% 0.56% 1.69%

    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

    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) 14 14 20 16

    Note:

    (1) - Adjustments reflect the net effect on the period presented to

     reconcile the Company's operating statistics, results of operations

     and financial condition prepared in accordance with GAAP 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

     Nine Months Ended

     September 30, 2005

     (1)

     As

     GAAP Adjustments Adjusted

    Mortgage-Backed Securities Holdings

     Segment:*

    Average mortgage-backed securities

     held ($ billions) 6.6 0.5 7.1

    Interest income ($ millions) 219.9 19.9 239.8

    Average portfolio yield 4.45% 4.50%

    Interest expense ($ millions) 154.1 7.7 161.8

    Average cost of funds and hedges 3.34% 3.29%

    Net interest income ($ millions) 65.8 12.2 78.0

    Net interest margin 1.33% 1.46%

    Mortgage-backed securities held - end

     of period ($ billions) 9.2 9.2

    Period end duration gap (in years) 0.17 0.17

    * - Excludes loans held pending

     securitization

    Loan Origination Segment:

    Loan originations ($ billions) 31.7 31.7

     Refinance 45% 45%

     ARM 50% 50%

    Average mortgage loans, net

    ($ billions) 5.3 -1.2 4.1

    Net interest income ($ millions) 90.7 -22.4 68.3

    Net interest margin 2.34% 2.26%

    Loans securitized and held

    ($ billions) 4.4 -1.5 2.9

    Loans securitized and sold

    ($ billions) 12.3 -2.0 10.3

    Loans sold to third parties

    ($ billions) 17.5 17.5

    Additions to loans held for

     investment ($ billions) 1.4 1.4

    Gain on sales of loans and current

     period securitizations

     net of hedge gains ($ millions) 515.5 -43.5 472.0

    Excess of fair value over carrying

     value of loans added

     to investment portfolio

     ($ millions) 27.8 27.8

     Total ($ millions) 543.3 499.8

    Gain on sales of loans and current

     period securitizations

     net of hedge gains

     (% of principal) 1.74% 1.60%

    Excess of fair value over carrying

     value of loans added

     to investment portfolio

     (% of principal) 1.92% 1.92%

     Total (% of principal) 1.75% 1.61%

    Applications accepted ($ billions) 50.0 50.0

    Application pipeline ($ billions) 11.6 11.6

     September 30, 2005

    Loan Servicing Segment:

    Loan servicing portfolio - total with

     warehouse ($ billions) 27.5 27.5

    Loan servicing portfolio - loans sold

     or securitized ($ billions) 24.2 24.2

    Weighted average note rate 5.73% 5.73%

    Weighted average service fee 0.331% 0.331%

    Average age (in months) 13 13

    Note:

    (1)- Adjustments reflect the net effect on the period presented to

     reconcile the Company's operating statistics, results of operations

     and financial condition prepared in accordance with GAAP 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

     (1)

     GAAP Adjustments As Adjusted

    Net interest income:

     Interest income $146,894 $(26,925) $119,969

     Interest expense (88,091) 16,766 (71,325)

     Net interest income 58,803 (10,159) 48,644

    Non-interest income:

     Gain on sales of mortgage loans 35,253 - 35,253

     Gain on sales of current period

     securitized mortgage loans 69,919 (25,258) 44,661

     Gain on sales of mortgage-backed

     securities and derivatives 6,132 (1,400) 4,732

     Unrealized gain (loss) on mortgage-

     backed securities and derivatives 57,499 (37,263) 20,236

     Loan servicing fees 11,312 2,851 14,163

     Amortization (8,501) (2,170) (10,671)

     Impairment reserve recovery

     (provision) 3,419 2,048 5,467

     Net loan servicing fees (loss) 6,230 2,729 8,959

     Other non-interest income 1,466 - 1,466

     Non-interest income 176,499 (61,192) 115,307

    Non-interest expenses:

     Salaries, commissions and benefits,

     net 68,475 - 68,475

     Occupancy and equipment 12,671 - 12,671

     Data processing and communications 5,950 - 5,950

     Office supplies and expenses 4,429 - 4,429

     Marketing and promotion 4,130 - 4,130

     Travel and entertainment 3,928 - 3,928

     Professional fees 3,470 - 3,470

     Other 6,869 - 6,869

     Non-interest expenses 109,922 - 109,922

    Net income before income tax expense 125,380 (71,351) 54,029

    Income tax expense - - -

    Net income $125,380 $(71,351) $54,029

    Dividends on preferred stock 3,305 - 3,305

    Net income available to common

     shareholders $122,075 $(71,351) $50,724

     Per share data:

     Basic $3.03 $(1.77) $1.26

     Diluted $2.99 $(1.75) $1.24

     Weighted average number of shares

     - basic 40,308 40,308 40,308

     Weighted average number of shares

     - diluted 40,811 40,811 40,811

     Note:

     (1) - Adjustments reflect the net effect on the period presented to

     reconcile the Company's operating statistics, results of operations and

     financial condition prepared in accordance with GAAP 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)

     December 31, 2004

     (1)

     GAAP Adjustments As Adjusted

    Net interest income:

     Interest income $115,957 $(2,172) $113,785

     Interest expense (68,777) 1,775 (67,002)

     Net interest income 47,180 (397) 46,783

    Non-interest income:

     Gain on sales of mortgage loans 36,004 - 36,004

     Gain on sales of current period

     securitized mortgage loans - 40,674 40,674

     Gain on sales of mortgage-backed

     securities and derivatives 2,873 - 2,873

     Unrealized gain (loss) on mortgage-

     backed securities and derivatives (6,579) 33,803 27,224

     Loan servicing fees 11,701 - 11,701

     Amortization (9,750) - (9,750)

     Impairment reserve recovery

     (provision) (2,284) (2,729) (5,013)

     Net loan servicing fees (loss) (333) (2,729) (3,062)

     Other non-interest income 1,480 - 1,480

     Non-interest income 33,445 71,748 105,193

    Non-interest expenses:

     Salaries, commissions and benefits,

     net 60,588 - 60,588

     Occupancy and equipment 11,556 - 11,556

     Data processing and communications 5,869 - 5,869

     Office supplies and expenses 4,385 - 4,385

     Marketing and promotion 3,391 - 3,391

     Travel and entertainment 5,106 - 5,106

     Professional fees 5,378 - 5,378

     Other 6,333 - 6,333

     Non-interest expenses 102,606 - 102,606

    Net income before income tax expense (21,981) 71,351 49,370

    Income tax expense 755 - 755

    Net income $(22,736) $71,351 $48,615

    Dividends on preferred stock 2,340 - 2,340

    Net income available to common

     shareholders $(25,076) $71,351 $46,275

     Per share data:

     Basic $(0.62) $1.77 $1.15

     Diluted $(0.62) $1.75 $1.14

     Weighted average number of shares

     - basic 40,216 40,216 40,216

     Weighted average number of shares

     - diluted 40,737 40,737 40,737

     Note:

     (1) - Adjustments reflect the net effect on the period presented to

     reconcile the Company's operating statistics, results of operations and

     financial condition prepared in accordance with GAAP 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)

     Nine Months Ended

     September 30, 2005

     (1)

     GAAP Adjustments As Adjusted

    Net interest income:

     Interest income $462,250 $(26,925) $435,325

     Interest expense (311,596) 16,766 (294,830)

     Net interest income 150,654 (10,159) 140,495

    Non-interest income:

     Gain on sales of mortgage loans 236,288 - 236,288

     Gain on sales of current period

     securitized mortgage loans 194,256 (25,258) 168,998

     Gain on sales of mortgage-backed

     securities and derivatives 12,868 (1,400) 11,468

     Unrealized gain (loss) on mortgage-

     backed securities and derivatives 36,242 (37,263) (1,021)

     Loan servicing fees 49,381 2,851 52,232

     Amortization (36,388) (2,170) (38,558)

     Impairment reserve provision (5,402) 2,048 (3,354)

     Net loan servicing fees 7,591 2,729 10,320

     Other non-interest income 5,594 - 5,594

     Non-interest income 492,839 (61,192) 431,647

    Non-interest expenses:

     Salaries, commissions and benefits,

     net 264,712 - 264,712

     Occupancy and equipment 42,396 - 42,396

     Data processing and communications 18,386 - 18,386

     Office supplies and expenses 15,110 - 15,110

     Marketing and promotion 14,360 - 14,360

     Travel and entertainment 14,025 - 14,025

     Professional fees 10,646 - 10,646

     Other 21,072 - 21,072

     Non-interest expenses 400,707 - 400,707

    Net income before income tax benefit 242,786 (71,351) 171,435

    Income tax benefit (1,302) - (1,302)

    Net income $244,088 $(71,351) $172,737

    Dividends on preferred stock 9,913 - 9,913

    Net income available to common

     shareholders $234,175 $(71,351) $162,824

     Per share data:

     Basic $5.58 $(1.70) $3.88

     Diluted $5.51 $(1.68) $3.83

     Weighted average number of shares

     - basic 41,973 41,973 41,973

     Weighted average number of shares

     - diluted 42,471 42,471 42,471

     Note:

     (1) - Adjustments reflect the net effect on the period presented to

     reconcile the Company's operating statistics, results of

     operations and financial condition prepared in accordance with GAAP 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)

     December 31, 2004

     (1)

    Assets: GAAP Adjustments As Adjusted

     Cash and cash equivalents $192,821 $- $192,821

     Accounts receivable and servicing

     advances 116,978 (11,640) 105,338

     Mortgage-backed securities 6,016,866 1,584,927 7,601,793

     Mortgage loans held for sale, net 4,853,394 (3,536,785) 1,316,609

     Derivative assets 24,803 (1,459) 23,344

     Mortgage servicing rights, net 151,436 37,793 189,229

     Premises and equipment, net 51,576 - 51,576

     Goodwill 90,877 - 90,877

     Other assets 57,046 (10,490) 46,556

     Total assets $11,555,797 $(1,937,654) $9,618,143

    Liabilities and Stockholders'

     Equity:

    Liabilities:

     Warehouse lines of credit $735,783 $- $735,783

     Drafts payable 26,200 - 26,200

     Commercial paper 529,790 - 529,790

     Reverse repurchase agreements 7,071,168 - 7,071,168

     Collateralized debt obligations 2,022,218 (2,022,218) -

     Derivative liabilities 1,860 - 1,860

     Accrued expenses and other

     liabilities 152,413 13,213 165,626

     Notes payable 135,761 - 135,761

     Income taxes payable 54,342 - 54,342

     Total liabilities 10,729,535 (2,009,005) 8,720,530

    Stockholders' Equity:

     Preferred stock 134,040 - 134,040

     Common stock 403 - 403

     Additional paid-in capital 631,530 - 631,530

     Retained earnings 99,628 71,351 170,979

     Accumulated other comprehensive

     loss (39,339) - (39,339)

     Total stockholders' equity 826,262 71,351 897,613

     Total liabilities and

     stockholders' equity $11,555,797 $(1,937,654) $9,618,143

    Number of shares outstanding -

     preferred 5,600,000 5,600,000 5,600,000

    Number of shares outstanding -

     common 40,288,077 40,288,077 40,288,077

    Note:

    (1) - Adjustments reflect the net effect on the period presented to

    reconcile the Company's operating statistics, results of

    operations and financial condition prepared in accordance with GAAP 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.
Monitor this Company :
You will receive an email alert whenever there is a news item concerning this company.
Name Your Company
Email Address Position/Role


2001 - 2016 Lexdon Business Library
About TrustBase
Privacy Policy