EXHIBIT 99.1
[AHM LOGO]
Lehman Brothers Financial
Services Conference
September 13, 2004
American Home Mortgage Investment Corp.
Corporate Profile
o American Home Mortgage Investment (NYSE: AHM)
o Hybrid Mortgage REIT
o Self-Originates and Holds Mortgage Securities
o Focuses on High Credit Quality Assets
o Offers Strong Dividend with Opportunity for Rapid Growth
o Operates 20th Largest Prime Mortgage Originator in the United States
2
[AHM LOGO]
Business Model
o Focus on Building our Portfolio's
- Value
- Yield
o Value and Yield Building is Accomplished by Originating Loans, Creating
Structured Securities and Investing in Higher Yielding Securities
o Mortgage Origination Business Enables Portfolio to Grow In Value and Yield
o Risk-Averse Portfolio Management Strategy
3
[AHM LOGO]
Growing Portfolio Value and Yield through
Structured Securitizations
o Securitization Process Converts Value Created by the Mortgage Origination
Business into increased Portfolio Value and Higher Yield
o Securitization Structure Designed to Create High Yielding Securities which
are Retained while Lower Yielding Securities are Sold
o Increases Portfolio Value and Yield with Limited Capital Commitment
4
[AHM LOGO]
Expected Yields on Existing Portfolio v.
Self-Originated and Retained Securities
o Expected Yield from Portfolio in place on June 30, 2004 Assuming No Change
in Interest Rates
18.4%
o Expected Yield on Retained Securities Created in Q3, 2004 Assuming No
Change in Interest Rates
26.6%
5
[AHM LOGO]
American Home Aims to be a Strong
Dividend and High Growth Investment
o Dividend Generated by Portfolio
o Origination Business Increases the Value and Yield of the Portfolio Over
Time
o Goal is to Accelerate Growth in Portfolio Value and Yield by Growing the
Mortgage Origination Business
o Greater Portfolio Value and Yield Should Lead to Higher Dividends
6
[AHM LOGO]
Both Investment and Origination Businesses
are Benefited by our Tax Status
o Net Interest Income from the Portfolio is Untaxed Provided it is Paid Out
as Dividends
o Much of the Value Created by the Mortgage Origination Business is Untaxed
- Value is realized as an addition to portfolio value, and not through
an asset sale.
o Tax Structure Provides a Significant Advantage Over Taxable Mortgage Asset
Holders and Taxable Mortgage Originators
7
[AHM LOGO]
Portfolio Strategy
o Yield and Yield Growth Driven by Self-Origination Capability
o Consequently a Defensive Portfolio Management Strategy is Possible
o Key Components of Defensive Strategy
- Duration Neutral
- High Credit Quality
- Low Exposure to Extension and Prepayment due to short resetting ARM
Assets
8
[AHM LOGO]
Portfolio Strategy
o Return Not Benefited by the Slope of the Yield Curve
o Agnostic About Direction of Interest Rates
- Return Not Dependent on Finding Value or Other Portfolio Management
Strategies
9
[AHM LOGO]
Projected Yield and Yield Variance
(Portfolio Income Before Expenses)
ROEs for Instantaneous Interest Rate Changes
=================================================================================================================================
-100 bp -50 bp 0 bp +50 bp +100 bp Flattener Steepner
--------------------------------------------------------------------------------
Portfolio as of 6/30/2004 13.5% 17.6% 18.4% 17.7% 14.3% 15.5% 22.0%
Projected Q3 Securitization ($825 Million*) 20.3% 25.6% 26.6% 25.7% 21.4% 22.9% 31.0%
|
* $2.1 billion securitization, $1.275 billion sold for cash, $825 million
retained for portfolio Flattener and Steepner represent 2-10 yr. 50 bp interest
rate shocks. Assumes 12:1 leverage.
Based on company projections and are to be used as a representative model only.
Actual results may vary
10
[AHM LOGO]
Portfolio Characteristics
------------------------- ------------------------- -------------------------
Portfolio Size Loan Types Credit Quality
------------------------- ------------------------- -------------------------
[GRAPHIC PIE CHART] [GRAPHIC PIE CHART] [GRAPHIC PIE CHART]
Self Originated 54% 5/1 ARMs 56% AAA and Agency 97%
Market Bought 46% 3/1 ARMs 22% Other 2%
Short Reset (less
than 1 year) 22%
--------------------------------------------------------------------------------
Portfolio Statistics
--------------------------------------------------------------------------------
Leverage Statistic 10.9 Times Equity Average Life 3.78 Years
Net Duration Statistic -0.1 Years Average Mark 100.26 of par
Convexity -.53 Price/Yield Spread Duration 3.17 years
As of 06/30/04
11
[AHM LOGO]
|
Risk Mitigation Strategies
o Ongoing hedging to Maintain Duration Neutral Position
o Key Rate Management
o Concentration on Short Reset ARMs
- Reduced Extension / Prepayment Exposure
- Reduced Spread Volatility
o BlackRock Tools and Consultation
o Concentration on High Credit Quality Assets
12
[AHM LOGO]
Mortgage Origination Business
o Origination Business Drives Growth in the Value and Yield of the Mortgage
Portfolio
o Company Aims to Aggressively Grow the Origination Business to Speed
Portfolio Value and Yield Growth
13
[AHM LOGO]
Mortgage Origination Business - Overview
Top Mortgage Originators in 2004
(For 3 months - Dollars in Billions)
2004
o Trend in origination volume: Rank Lender Volume
---- ----------------------------------------------------------- ----------
- 2000 $ 3.0 Billion 1 Countrywide Financial Corp., CA $ 99.66
2 Wells Fargo Home Mortgage, CA $ 96.08
- 2001 $ 7.8 Billion 3 Washington Mutual, WA $ 76.36
4 Chase Home Finance, NJ $ 56.87
- 2002 $ 12.2 Billion 5 CitiMortgage, Inc., MO / Principal Residential Mortgage, IA $ 40.13
6 Bank of America, NC $ 28.46
- 2003 $ 21.7 Billion 7 GMAC Residential Holdings, PA $ 24.44
8 ABN Amro Mortgage, MI $ 19.43
- Q104 $ 4.4 Billion 9 National City Mortgage, OH $ 18.73
10 Cendant Mortgage (2), NJ $ 17.63
- Q204 $ 6.6 Billion 11 Homecomings, MN $ 13.73
12 HSBC Mortgage Corp. USA, NY $ 12.63
13 Golden West Financial Corp./World, CA $ 12.40
14 Aurora Loan Services, Inc., CO $ 11.26
o Average national market share: 15 GreenPoint Mortgage Funding, CA $ 11.17
16 First Horizon Home Loans, TX $ 10.38
- 2000 0.29 % 17 IndyMac Bancorp, Inc., CA $ 9.42
18 Flagstar Bank, FSB, MI $ 9.00
- 2001 0.38 % 19 SunTrust Mortgage, Inc., VA $ 8.81
------------------------------------------------------------------------------
- 2002 0.47 % 20 American Home Mtg. Investment, NY $ 6.62
------------------------------------------------------------------------------
- 2003 0.60 % 21 RBC Mortgage, IL $ 5.90
22 Impac Funding Corporation, CA $ 5.50
- Q104 0.75 % 23 Branch Banking & Trust Co., NC $ 5.46
24 U.S. Bank Home Mortgage, MN $ 5.22
- Q204 0.83 % 25 Wachovia/First Union Mtg., NC $ 5.05
26 Ohio Savings Bank, F.S.B. (E), OH $ 4.50
27 First Magnus Financial Corp., AZ $ 4.09
28 Netbank, SC $ 3.90
29 CTX Mortgage, TX $ 3.50
30 E*Trade, VA $ 3.39
Source: Inside Mortgage Finance, Copyright 2004 Source: National Mortgage News, Copyright 2004
|
14
[AHM LOGO]
Benefits of Scale
o Lower Per Loan Production Costs
o Better Terms of Business with Counterparties
- Fannie Mae / Freddie Mac
- Liquidity Providers
- Service Providers
o Enhanced Ability to Improve Production Platform
- Technology
- Marketing Innovations
15
[AHM LOGO]
Origination Business Growth Drivers
o Inexpensive Acquisitions
- Origination Franchise being Built at Less than Replacement Cost
- Recent Acquisition from Washington Mutual
o Rapid Organic Growth
16
[AHM LOGO]
Nationwide Branch Network
> American Home Mortgage originates mortgages through approximately 303
branches in 38 states
> Approximately 3900 Employees
[GRAPHIC MAP OF UNITED STATES OF AMERICA]
17
[AHM LOGO]
Production Characteristics
(Second Quarter 2004)
--------------------------------------- ---------------------------------------
Credit Quality Retail vs. Wholesale
--------------------------------------- ---------------------------------------
[GRAPHIC PIE CHART] [GRAPHIC PIE CHART]
Agency Eligible 63% Wholesale 54%
High Credit Quality Jumbo Loans 21% Retail 46%
Alt A 10%
Home Equity & Second Mortgages 3%
Non-Prime 3%
--------------------------------------- ---------------------------------------
Largest States Fixed vs. ARMs
--------------------------------------- ---------------------------------------
[GRAPHIC PIE CHART] [GRAPHIC PIE CHART]
All Other 42% Fixed 51%
CA 24% ARMs 49%
IL 18%
MD 6%
AZ 5%
VA 5%
|
18
[AHM LOGO]
Strong Access to Liquidity
Commercial Paper Program
o $2.0 Billion Lehman Sponsored Asset-Backed CP Guaranteed by Bank of
America, Caylon and ABN Amro
--------------------------------------------------------------------------------
Warehouse and Loan Gestation
--------------------------------------------------------------------------------
UBS $1.2 billion
Bank of America Syndication 600 million
RBS Greenwich Capital 500 million
CDC IXIS 450 million
Morgan Stanley 350 million
Caylon 200 million
|
Securities Repurchase Facilities
Bank of America Bear Stearns Citigroup
Credit Suisse Deutsche Bank Goldman Sachs
Lehman Brothers Merrill Lynch UBS
Morgan Stanley Nomura Greenwich Capital
|
19
[AHM LOGO]
Outstanding Financial Results
American Home Mortgage's Results For Four Full Years
Since Initial Public Offering
--------------------------------------------------------------------------------
AHM Loan Originations Revenues
--------------------------------------------------------------------------------
[GRAPHIC BAR CHART] [GRAPHIC BAR CHART]
92% CAGR 95% CAGR
Billions Millions
2000 $3.0 2000 $58.3
2001 $7.8 2001 $126.1
2002 $12.2 2002 $232.8
2003 $21.7 2003 $432.1
Net Income Earnings Per Share
--------------------------------------------------------------------------------
[GRAPHIC BAR CHART] [GRAPHIC BAR CHART]
139% CAGR 70% CAGR
Millions Dollars
2000 $5.4 2000 $.83
2001 $25.5 2001 $2.14
2002 $39.5 2002 $2.65
2003 $73.8 2003 $4.07
|
20
[AHM LOGO]
Condensed Income Forecast
2nd Half 2004
Dollars in Millions
Net Interest Income 64.8
Reduction in Trading Portfolio Value (14.9)
Portfolio Expenses (4.4)
-----------
Portfolio Income 45.4
Gain on Sale of Loans and Securitizations 156.8
Loan Origination Expenses (124.0)
-----------
Loan Origination Income 32.8
Servicing and Other Income (Expenses) (2.6)
Preferred Dividends (2.5)
-----------
Net Income Available For Common 73.1
Average Diluted Common Shares 40.3
EPS 1.81
|
21
[AHM LOGO]
Condensed Cash Flow Forecast
2nd Half 2004
Dollars in Millions
Net Interest Income (Excludes premium amortization) 75.2
Sales of Loans and Newly Created Securities 121.7
Servicing and Other Income * 21.9
Increase in MBS Value ** 25.4
Increase in Servicing Value *** 17.8
Additional Borrowings Given Constant Leverage 35.9
-----------
Total Cash Generated 254.7
Loan Origination and Servicing Expenses 179.5
Preferred Dividends 2.5
Common Dividends at Current Pay Rate 48.6
-----------
Total Cash Usage 230.6
-----------
Excess Cash Available to Reduce Leverage,
Grow Portfolio or Increase Common Dividend 24.1
|
* Excludes servicing amortization and impairment
** Net of principal paydowns and convexity losses
*** Net of portfolio runoff and market value declines
22
[AHM LOGO]
2nd Half Guidance
Six Months Ended Full Year
December 31 2004
Earnings Per Diluted Share 1.81 3.40
Common Dividends Per Share 1.22 2.32
December 31, 2004
Book Value Per Share 18.41
|
23
[AHM LOGO]
EXHIBIT 99.2
[AHM LOGO]
FOR IMMEDIATE RELEASE
American Home Mortgage Investment Corp. to Present at the
2004 Lehman Brothers Financial Services Conference on September 13
Melville, NY - September 7, 2004 - American Home Mortgage Investment Corp.
(NYSE: AHM) will present at the 2004 Lehman Brothers Financial Service
Conference, which is taking place at The Hilton NY in New York City on Monday,
September 13, 2004.
Michael Strauss, Chairman and Chief Executive Officer, Stephen Hozie, Chief
Financial Officer, and Thomas McDonagh, Chief Investment Officer will be
speaking at the conference beginning at 7:45 a.m. Eastern Time. Attendance at
the Lehman Brothers Financial Service Conference is by invitation only, however,
interested parties may listen to the presentation live by visiting American
Home's Web site www.americanhm.com and clicking on the Investor Info section. A
replay of the presentation will also be available on the Company's Web site.
Please contact John Lovallo of Ogilvy Public Relations Worldwide at 212-880-5216
or john.lovallo@ogilvypr.com with any questions.
ABOUT AMERICAN HOME MORTGAGE INVESTMENT CORP.
American Home Mortgage Investment Corp. (NYSE: AHM) is a mortgage real estate
investment trust focused on earning net interest income from self-originated
mortgage backed securities, and through its taxable subsidiaries, on 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 are serviced at the Company's Columbia, Maryland servicing
center. For additional information, please visit the Company's Web site at
www.americanhm.com.
###
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: This news release contains statements about future events and
expectations, which are "forward-looking statements." Any statement in this
release that is not a statement of historical fact, including, but not limited
to earnings guidance and forecasts, projections of financial results, and
expected future financial position, dividends and dividend plans or business
strategy, is a forward-looking statement. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which may
cause American Home Mortgage Investment Corp.'s actual results to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Specific factors that might cause
such a difference include, but are not limited to: the potential fluctuations in
American Home Mortgage Investment Corp.'s operating results; American Home
Mortgage Investment Corp.'s potential need for additional capital; the direction
of interest rates and their subsequent effect on American Home Mortgage
Investment Corp.'s business and the business of its subsidiaries; federal and
state regulation of mortgage banking; and those risks and uncertainties
discussed in filings made by American Home Mortgage Investment Corp. 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 Mortgage Investment Corp. does not
assume any responsibility to issue updates to any forward-looking statements
discussed in this press release.
AMERICAN HOME MORTGAGE INVESTMENT CORP. CONTACT:
John D. Lovallo, SVP
Ogilvy Public Relations Worldwide
212-880-5216
john.lovallo@ogilvypr.com
Next Section
Previous Section