NY Mortgage Trust reports solid earnings in 2012
New York Mortgage Trust today reported results for the three and twelve months ended December 31, 2012. Net income attributable to common stockholders of $9.4 million for the quarter ended December 31, 2012, representing net income per weighted average share of $0.19, and net income attributable to common stockholders of $28.3 million for the year ended December 31, 2012, representing net income per weighted average share of $1.08.
The Company completed its fourth public stock offering receiving net proceeds of $104.1 million in October 2012, bringing total net proceeds received during the year to $231.6 million. Completed the acquisition of $75.6 million of multi-family CMBS during the fourth quarter of 2012, resulting in the Company having a net investment of $194.5 million in multi-family CMBS, at fair value, at December 31, 2012. Completed the acquisition of $60.9 million of dis- tressed residential mortgage loans during the fourth quarter of 2012.
Completed two secured structured financing transactions during the fourth quarter of 2012, resulting in $88.7 million in net proceeds. Book value per common share of $6.50 at December 31, 2012, as compared to $6.12 per common share at December 31, 2011 and $6.52 at September 30, 2012. Fourth quarter 2012 portfolio net interest margin was 333 basis points. Declared fourth quarter dividend of $0.27 per common share that was paid on January 25, 2013. NYMT is an internally managed real estate investment trust, or REIT, which invests in mortgage-related and financial assets. The Company currently targets multi-family CMBS, Agency RMBS, including Agency fixed-rate RMBS, Agency ARMs, and Agency IOs, and residential mortgage loans. RiverBanc, LLC, The Midway Group, L.P. and Headlands Asset Management, LLC provide investment management services to the Company with respect to certain of its targeted asset classes. For a list of defined terms used from time to time in this press release, see "Defined Terms" below.
Steven Mumma, NYMT's CEO and President, said the Company finished the year on a strong note, funding over $75.6 million in multi-family CMBS securities and $60.9 million in residential distressed mortgage loans during the fourth quarter of 2012, bringing our total investment in credit sensitive assets to $255.0 million for the year. In addition, the Company raised total net proceeds of $231.6 million in public equity offerings during 2012, including $104.1 million in October 2012. The Company also completed three structured financing transactions in 2012 of a significant portion of its credit sensitive assets, resulting in total net proceeds for the Company of $114.7 million. These financings provide longer term funding for certain multi-family CMBS and distressed residential loans, thereby reducing liquidity risk and, we believe, enhancing the overall return for invested capital. Our increase in capital has resulted in a more diverse portfolio, access to better financing terms as well as lowering our expense operating ratios by over 64%.
Management believes the Company's portfolio is well positioned heading into 2013 with a balanced investment strategy for both interest rate risk and credit risk. The Company's current funding sources are also well balanced with a combination of short term repurchase agreements that fund primarily our Agency RMBS portfolio and our newly issued securitized debt. We will continue to pursue credit sensitive assets and more traditional mortgage-related assets that we believe, when combined with the appropriate mix and type of financing, will deliver attractive risk adjusted returns and will complement our existing portfolio."
For the quarter ended December 31, 2012, the Company reported consolidated net income attributable to common stockholders of $9.4 million, or $0.19 per common share, as compared to consolidated net loss attributable to common stockholders of $1.9 million, or $0.16 per common share, for the same period in 2011. The increase is primarily due to an increase in net interest margin of $6.0 million, an increase in realized gain on investment securities and related hedges of $2.9 million, an increase in unrealized gain on multi- family loans and debt held in securitization trusts of $1.7 million, a decrease in general, administrative and other expense of $ 1.2 million, and a decrease in impairment loss on investment securities of $0.3 million, partially offset by an increase in unrealized loss on investment securities and related hedges of $0.5 million, and a decrease in income from investments in limited partnership and limited liability company of $0.5 million. The increase in net interest margin of $6.0 million is primarily due to an increase of $977.3 million in average interest earning assets at December 31, 2012 as compared to December 31, 2011.