American Home Mortgage announces Q4 and full year resultsMortgagePress.comloan origination business continued to produce strong results, acquisition of Flower Bank FSB
American
Home Mortgage Investment Corporation has announced its results
for the fourth quarter of 2006, as well as its year-end totals.
Revenue for the fourth quarter of 2006 was $257.7 million, compared
to revenue of $150.5 million for the fourth quarter of 2005, an
increase of 71.3 percent. Net earnings for the fourth quarter of
2006 were $64.7 million, compared to net earnings of $16.7 million
for the fourth quarter of 2005, an increase of 287.5 percent.
Revenue for 2006 was $1.03 billion, compared to adjusted revenue
of $722.6 million for 2005 - an increase of 42 percent. Generally
Accepted Accounting Principles (GAAP) revenue for 2005 was $793.9
million. Net earnings for 2006 were $263.5 million, compared to
adjusted net earnings of $189.4 million for 2005 - an increase of
39.1 percent. GAAP net earnings for 2005 were $260.8 million.
Michael Strauss, American Home's chief executive officer,
commented, "The fourth quarter was highly successful for our
company, with earnings of $1.21 per diluted share. During the
quarter, we added $1 billion of recently originated loans to our
portfolio, which are carried at cost. Loan origination volume was a
record $15.5 billion, due to our company achieving a record market
share of 2.48 percent of national originations. Net interest income
was stable while our servicing portfolio produced record revenues.
During the quarter, our company did, however, experience its
highest delinquency related charges to date, which reduced our
quarterly earnings."
During the fourth quarter of 2006, the company's loan
origination business continued to produce strong results. Loan
originations reached a record $15.5 billion compared to $15.3
billion in the third quarter of 2006. During the fourth quarter,
the company sold $14.3 billion of loans to third parties for a
gross gain on sale, excluding reserving for delinquencies of $217.4
million equal to a gross gain on sale margin of 1.52 percent. By
comparison, during the third quarter of 2006, the company sold
$14.3 billion of loans to third parties for a gross gain on sale of
$213.4 million equal to a gain on sale margin of 1.49 percent. The
company's gain on sale net of additions to its reserves for
delinquent loans held for sale was $202.9 million in the fourth
quarter compared to $210.6 million in the third quarter of
2006.
During the fourth quarter of 2006, the company completed its
acquisition of Flower Bank FSB and consequently became a thrift
holding company. As a result of its acquisition of Flower, a small
portion of the company's liabilities are now deposits. The company
expects to grow Flower slowly at first, but over the long term,
Flower should become a significant contributor to the company's
earnings. In connection with its acquisition of Flower, the company
has hired Lou Dunham to serve as Flower's president. Dunham has
more than 32 years of banking experience, most recently as
president of Ameribank, a Florida-based federal thrift. Previously,
Dunham was the senior executive vice president and chief risk
officer at Republic Security Bank. The company also elected Tom
Wren to serve as an independent director of Flower. Wren was
recently the treasurer of MBNA, where he served for 10 years, and
previously was a senior bank regulator in the Office of the
Controller of the Currency where he served for 18 years.
For more information, visit www.americanhm.com.
