American Home Mortgage Announces Fourth Quarter and Full Year Results

  
    
  
  
    
      American Home Mortgage Investment Corp. (NYSE: AHM) announced today 
      results for the quarter and full year ended December 31, 2006.
    
    
      FINANCIAL HIGHLIGHTS
    
    
      Comparison of the Three Months Ended December 31, 2006 and 2005
    
    
      
        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%.
      
      
        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%.
      
      
        Earnings per diluted share for the fourth quarter of 2006 were $1.21, 
        compared to earnings per diluted share of $0.27 for the fourth quarter 
        of 2005, an increase of 348.1%.
      
      
        Dividends declared per common share for the fourth quarter of 2006 
        were $1.06, compared to $0.91 for the fourth quarter of 2005, 
        an increase of 16.5%.
      
      
        Book value per common share was $22.64 at December 31, 2006, compared 
        to book value per common share of $21.62 at December 31, 2005, an 
        increase of 4.7%.
      
    
    
      Comparison of the Three Months Ended December 31, 2006 and September 
      30, 2006
    
    
      
        Revenue for the fourth quarter of 2006 was $257.7 million, compared to 
        revenue of $258.9 million for the third quarter of 2006, a decrease of 
        0.5%.
      
      
        Net earnings for the fourth quarter of 2006 were $64.7 million, 
        compared to net earnings of $72.0 million for the third quarter of 
        2006, a decrease of 10.2%.
      
      
        Earnings per diluted share for the fourth quarter of 2006 were $1.21, 
        compared to earnings per diluted share of $1.36 for the third quarter 
        of 2006, a decrease of 11.0%.
      
      
        Dividends declared per common share for the fourth quarter of 2006 
        were $1.06, compared to $1.01 for the third quarter of 2006, an 
        increase of 5.0%.
      
      
        Book value per common share was $22.64 at December 31, 2006, compared 
        to book value per common share of $22.52 at September 30, 2006, an 
        increase of 0.5%.
      
    
    
      Comparison of the Year Ended December 31, 2006 and 2005
    
    
      
        Revenue for the year ended December 31, 2006 was $1.03 billion, 
        compared to adjusted revenue of $722.6 million for the year ended 
        December 31, 2005, an increase of 42.0%. GAAP revenue for the year 
        ended December 31, 2005 was $793.9 million.
      
      
        Net earnings for the year ended December 31, 2006 were $263.5 million 
        compared to adjusted net earnings of $189.4 million for the year ended 
        December 31, 2005, an increase of 39.1%. GAAP net earnings for the 
        year ended December 31, 2005 were $260.8 million.
      
      
        Earnings per diluted share for the year ended December 31, 2006 were 
        $4.96 compared to adjusted earnings per diluted share of $3.97 for the 
        year ended December 31, 2005, an increase of 24.9%. GAAP earnings per 
        diluted share for the year ended December 31, 2005 were $5.58.
      
      
        Dividends per common share for the year ended December 31, 2006 were 
        $3.94, compared to $3.24 for the year ended December 31, 2005, an 
        increase of 21.6%.
      
    
    
      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 $1.0 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% 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.
    
    
      The fourth quarter concluded a very successful year for our company, 
      with earnings per diluted share reaching a record $4.96. By comparison, 
      diluted earnings per share were $3.97 in 2005, $3.74 in 2004, $4.07 in 
      2003 and $2.65 in 2002*. A key financial goal 
      for our company in 2007 is to continue our multi-year growth trend in 
      earnings per share. During 2006, our company’s 
      return on average common equity was 22.7%, which surpassed our target of 
      20%, and compares favorably to 2005 when our adjusted return on average 
      common equity was 19.7%. Also during 2006 our company originated $58.9 
      billion of loans compared to $45.3 billion in 2005. Finally, during 
      2006, our company reached a milestone as, for the first time; its 
      revenues exceeded $1.0 billion.
    
    
      In this earnings release, our company is providing 2007 earnings 
      guidance of $5.40 to $5.70 per fully diluted share with the earnings per 
      diluted share for each quarter in 2007 projected to be approximately 9% 
      to 15% higher than for the comparable quarter in 2006. Our earnings 
      guidance is based on stable net interest margins applied to a growing 
      portfolio of loans held for investment, loan production of $68 billion 
      to $74 billion, and a reduction in gain on sale margins of approximately 
      12 basis points. Lower gain on sale margins are expected in part because 
      delinquency losses on loans held for sale, including losses due to 
      repurchases, are projected to continue at high levels throughout 2007. 
      Projections for continued high losses are based on our company’s 
      view that while there are signs that housing prices are starting to 
      stabilize, future abatements in foreclosure activity will lag a recovery 
      in the housing market. As a result, our 2007 earnings guidance 
      anticipates a highly stressed credit environment.
    
    
      Not included in our earnings guidance are potential benefits from new 
      strategies that offer the possibility of higher portfolio income, 
      increased loan production and reduced income tax expense. Our company 
      will keep investors apprised if material benefits from these strategies 
      become likely.
    
    
      I am very pleased to announce that based on our company’s 
      results and prospects, our Board of Directors has voted to increase our 
      company’s dividend policy by $0.06 to $1.12 
      per share per quarter or $4.48 per share on an annualized basis. The new 
      dividend policy is expected to take effect with our April dividend 
      payment. Please note, however, that our company is not obligated to pay 
      dividends until such dividends are declared by our Board of Directors, 
      and our Board of Directors may change our company’s 
      dividend policy at any time without prior notice.”
    
    
      FOURTH QUARTER RESULTS
    
    
      During the fourth quarter, the Company’s net 
      interest income, plus the positive carry from interest rate swaps, was 
      $48.9 million compared to $50.5 million in the third quarter of 2006. Of 
      the $48.9 million, $12.4 million was from portfolio loans, $14.7 million 
      was from mortgage-backed securities, $6.3 million was from swaps 
      associated with mortgage-backed securities, $0.6 million was from Flower 
      Bank, and $26.8 million was from loans in warehouse, reduced by $11.9 
      million of interest expense on trust preferred securities and the 
      financing of servicing assets. By comparison, the components of the 
      $50.5 million of net interest income, plus the positive carry from 
      interest rate swaps, earned in the third quarter were $11.8 million from 
      portfolio loans, $16.6 million from mortgage-backed securities, $7.5 
      million from swaps associated with mortgage-backed securities and $25.1 
      million from loans in warehouse, including loans held for investment 
      pending securitization, reduced by $10.5 million of interest expense on 
      trust preferred securities and the financing of servicing assets.
    
    
      During the fourth quarter, portfolio loans earned a net interest margin 
      of 1.42% and had an average balance of $3.5 billion, compared to a net 
      interest margin of 1.27% and an average balance of $3.7 billion in the 
      third quarter of 2006. During the fourth quarter, mortgage-backed 
      securities had an average balance of $9.2 billion, earned a net interest 
      margin on a stand-alone basis of 0.64%, and earned a net interest margin 
      including income from associated swaps of 0.91%. By comparison, in the 
      third quarter of 2006, mortgage-backed securities had an average balance 
      of $9.3 billion, earned net interest margin on a stand-alone basis of 
      0.72%, and earned a net interest margin including income from associated 
      swaps of 1.04%. In the fourth quarter, loans in warehouse, including 
      loans held for investment pending securitization, had an average balance 
      of $10.0 billion and earned a net interest margin of 1.08%. By 
      comparison, during the third quarter of 2006 loans in warehouse, 
      including loans held for investment pending securitization, had an 
      average balance of $8.1 billion and earned a net interest margin of 
      1.24%.
    
    
      Delinquencies and delinquency related charges were up sharply in the 
      fourth quarter and are expected to remain at elevated levels throughout 
      2007. For the fourth quarter, the Company’s 
      provision expense associated with loans held for investment was $6.7 
      million, while its quarter-end allowance for loan loss balance was $14.2 
      million and its non-performing loans held for investment were $82.4 
      million. By comparison, for the third quarter of 2006, the Company’s 
      provision expense was $5.4 million, while its quarter-end allowance for 
      loan loss balance was $10.9 million and its non-performing loans held 
      for investment were $66.9 million. Additionally, in the fourth quarter, 
      the Company added $14.5 million to its reserves for delinquent loans 
      held for sale which include repurchased loans. These added reserves 
      resulted in a charge to the Company’s gain on 
      sale which reduced its net gain on sale revenue. At quarter-end, 
      reserves associated with delinquent loans held for sale were $22.0 
      million, while non-performing loans held for sale were $124.3 million. 
      By comparison, in the third quarter, additions to reserves charged to 
      gain on sale were $2.8 million, reserves associated with loans held for 
      sale were $8.7 million, and non-performing loans held for sale were 
      $50.3 million. During the fourth quarter, the value of the Company’s 
      residual assets decreased approximately $12.1 million due to changes in 
      anticipated credit losses, future interest rates and prepayment speeds, 
      and consequently resulted in a write-down that was charged to income. 
      The Company estimates that approximately half of the write-down in the 
      value of residual securities was attributable to delinquencies.
    
    
      During the fourth quarter, the Company completed foreclosures and sold 
      repossessed real estate for loans with an aggregate unpaid principal 
      balance of $43.4 million. Losses on these loans were $7.0 million, net 
      of mortgage insurance, resulting in a severity rate of 16.2%. By 
      comparison, during the third quarter, the Company completed foreclosures 
      and sold repossessed real estate for loans with an aggregate unpaid 
      principal balance of $29.4 million. Losses on those loans were $4.6 
      million, net of mortgage insurance, resulting in a severity rate of 
      15.7%.
    
    
      Throughout the fourth quarter, the Company continued to pursue a 
      strategy of matching the duration of its portfolio assets with the 
      duration of its liabilities, net of hedges. At December 31, 2006, the 
      composition of the Company’s loans held for 
      investment and loans underlying its mortgage-backed securities was 45.0% 
      5/1 ARM loans, 26.0% short reset ARMs, 13.7% fixed rate loans, 8.9% 7/1 
      ARM loans, 2.0% 3/1 ARM loans, 1.3% HELOC and closed-end seconds, and 
      3.1% other ARM types. On December 31, 2006, the mortgage-backed 
      securities portfolio’s duration, net of 
      liabilities and hedges, was estimated to be 0.07 years and its projected 
      average life was 2.36 years. The composition of the mortgage-backed 
      securities portfolio by credit quality based on Standard & Poor’s 
      ratings was 93.9% Agency and AAA, 3.8% AA, A, and BBB and 2.3% BB and 
      unrated.
    
    
      During the fourth quarter, 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 
      this year’s third quarter. 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%. By comparison, 
      during this year’s third quarter, 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%. 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, the Company’s loan 
      origination expenses were $157.9 million, or 1.11% of loans sold, or 
      1.02% of loans originated, compared to $152.6 million, or 1.06% of loans 
      sold, or 1.00% of loans originated in the third quarter. The Company 
      estimates that its national market share, based on Freddie Mac’s 
      recent, revised estimate of national market size, was 2.48% in the 
      fourth quarter compared to 2.24% in this year’s 
      third quarter and 1.69% during the fourth quarter of 2005. At the end of 
      the fourth quarter, the Company employed approximately 2,450 loan 
      officers and account executives, including call center representatives, 
      but excluding sales assistants, compared to approximately 2,640 on 
      September 30, 2006.
    
    
      During the fourth quarter, the Company’s 
      servicing income and ancillary fees reached a record $47.3 million 
      gross, and $18.4 million net of $28.9 million of reduction of fair value 
      due to realization of servicing cash flows. By comparison, during the 
      third quarter, servicing income and ancillary fees were $43.4 million 
      gross, and $14.6 million net of $28.8 million reduction of fair value 
      due to realization of servicing cash flows. At the end of the fourth 
      quarter, the principal amount of the loans underlying the Company’s 
      servicing assets was $38.5 billion. By comparison, the amount of loans 
      underlying the Company’s servicing assets at 
      the end of this year’s third quarter was 
      $35.9 billion. The principal amount of the servicing portfolio, 
      including warehouse loans, was $46.3 billion at the end of the fourth 
      quarter and $43.0 billion at the end of this year’s 
      third quarter.
    
    
      The Company’s total revenues in the fourth 
      quarter were $257.7 million. Of these revenues, $42.7 million was from 
      net interest income, $202.9 million was from sales of newly originated 
      mortgage loans including origination fees and net of hedges and 
      additions to loss reserves, $47.3 million was from mortgage servicing 
      fees, $3.9 million was from an increase in the value of servicing due to 
      changes in assumptions, net of hedges, $6.3 million was from interest 
      carry on free-standing swaps and $2.9 million was from other sources. 
      Revenues were decreased by $28.9 million due to realization of servicing 
      cash flows, $12.7 million due to realized and unrealized losses on 
      mortgage-backed securities held, net of hedges and $6.7 million due to 
      provisioning for loan losses. During the fourth quarter, the Company’s 
      expenses were $173.4 million, and the Company’s 
      pre-tax income was $84.3 million. Also during the quarter, the Company’s 
      tax expense was $19.6 million. Consequently, net income for the quarter 
      was $64.7 million while preferred dividends were $3.3 million and net 
      income available to common stockholders was $61.4 million, resulting in 
      earnings per diluted share of $1.21. Book value attributable to common 
      stockholders at December 31, 2006 was $1.14 billion, or $22.64 per 
      common share, compared to $1.13 billion, or $22.52 per common share, at 
      September 30, 2006.
    
    
      EARNINGS GUIDANCE
    
    
      The Company is providing earnings guidance for 2007 of $5.40 to $5.70 
      per diluted share. Quarterly earnings per diluted share are projected to 
      be approximately 9% to 15% higher for each quarter in 2007 compared to 
      the comparable quarter in 2006. Key projections underlying the Company’s 
      guidance are that 1) net interest margins will remain stable and the 
      balance of loans held for investment and carried at cost will continue 
      to grow, 2) that loan production will range between $68 billion and $74 
      billion with higher production in the second and third quarters, and 
      lower production in the first and fourth quarter, 3) that the Company’s 
      gain on sale margin from loans sold will decline by approximately 12 
      basis points, in part due to continued high delinquency charges 
      associated with the Company’s loans held for 
      sale, and 4) that the Company will not experience significant losses net 
      of hedges due to write-downs of its portfolio assets and / or its 
      servicing assets. It is important to note that actual results, which are 
      different than any one or more than one of the key projections, may 
      prevent the Company from achieving its earnings guidance, and may 
      instead result in losses. In addition, factors other than the key 
      projections listed herein may cause the Company to fail to achieve its 
      earnings guidance and may result in losses as more fully described under 
      Risk Factors in the Company’s Annual Report 
      filed on Form 10-K with the Securities and Exchange Commission.
    
    
      DIVIDEND POLICY
    
    
      Based on the Company’s projections for 
      earnings and cash flow, its Board of Directors has raised the Company’s 
      common stock dividend policy to $1.12 per share per quarter, or $4.48 
      per share on an annualized basis. 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. The new dividend policy of $1.12 per share per quarter is 
      expected to commence beginning in April 2007.
    
    
      OTHER HIGHLIGHTS
    
    
      During the fourth quarter, 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 believes Flower will 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. Mr. Dunham has over thirty-two years of banking experience, 
      most recently as President of Ameribank, a Florida based federal thrift. 
      Previously, Mr. Dunham was the Senior EVP and Chief Risk Officer at 
      Republic Security Bank. The Company also elected Tom Wren to serve as an 
      independent Director of Flower. Mr. Wren was recently the Treasurer of 
      MBNA where he served ten years, and previously was a senior bank 
      regulator in the Office of the Controller of the Currency where he 
      served for eighteen 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 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 and A-2 of this release.
    
    
      CONFERENCE CALL TODAY
    
    
      American Home will hold an investor conference call today, January 25, 
      2007, 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, www.americanhm.com. 
      A replay of the online broadcast will be available on the site through 
      February 8, 2007.
    
    
      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 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 loans and 
      mortgage-backed securities, and, through its taxable subsidiaries, from 
      originating and selling mortgage loans and servicing mortgage loans for 
      institutional investors. Mortgages are originated through a network of 
      loan production offices and mortgage brokers as well as purchased from 
      correspondent lenders, and are serviced at the Company’s 
      Irving, Texas servicing center. For additional information, please visit 
      the Company's website at 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.
    
    
      * 2004 and 2005 As Adjusted. See the section titled “Adjusted 
      Financial Measures” on page 5 of this release.
    
    
      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.
    
    
      Financial Tables to Follow on Next Page
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          OPERATING STATISTICS
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          As of and for the
        
        
        
        
          As of and for the
        
      
      
        
        
        
        
        
          Three Months Ended
        
        
        
        
          Year Ended
        
      
      
        
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2005 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          (1)
        
      
      
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
          As Adjusted
        
      
      
        
          Mortgage Holdings Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Investment Portfolio Performance (2):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Average loans and mortgage-backed securities in portfolio ($ 
          billions)
        
        
        
        
          12.7 
        
        
        
        
          10.5 
        
        
        
        
          12.3 
        
        
        
        
          8.0 
        
      
      
        
          Interest income ($ millions)
        
        
        
        
          193.7 
        
        
        
        
          138.0 
        
        
        
        
          725.5 
        
        
        
        
          377.8 
        
      
      
        
          Average portfolio yield
        
        
        
        
          6.08%
        
        
        
        
          5.27%
        
        
        
        
          5.89%
        
        
        
        
          4.75%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest expense ($ millions)
        
        
        
        
          166.6 
        
        
        
        
          108.2 
        
        
        
        
          615.5 
        
        
        
        
          270.0 
        
      
      
        
          Average cost of funds and hedges
        
        
        
        
          5.43%
        
        
        
        
          4.36%
        
        
        
        
          5.25%
        
        
        
        
          3.65%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income ($ millions)
        
        
        
        
          27.1 
        
        
        
        
          29.8 
        
        
        
        
          110.0 
        
        
        
        
          107.8 
        
      
      
        
          Net interest margin
        
        
        
        
          0.85%
        
        
        
        
          1.17%
        
        
        
        
          0.89%
        
        
        
        
          1.36%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest carry on free standing derivatives ($ millions)
        
        
        
        
          6.3 
        
        
        
        
          1.0 
        
        
        
        
          23.5 
        
        
        
        
          -7.3 
        
      
      
        
          Net interest income plus interest carry on free standing derivatives 
          ($ millions)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          33.4 
        
        
        
        
          30.8 
        
        
        
        
          133.5 
        
        
        
        
          100.5 
        
      
      
        
          Net interest margin including interest carry on free standing 
          derivatives
        
        
        
        
          1.05%
        
        
        
        
          1.21%
        
        
        
        
          1.08%
        
        
        
        
          1.26%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Reconciliation of Changes in Mortgage Holdings (3):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net change in mortgage-backed securities ($ billions)
        
        
        
        
          0.3 
        
        
        
        
          1.4 
        
        
        
        
          -1.3 
        
        
        
        
          0.3 
        
      
      
        
          Additions to loans in portfolio ($ billions)
        
        
        
        
          1.0 
        
        
        
        
          2.1 
        
        
        
        
          4.1 
        
        
        
        
          3.5 
        
      
      
        
          Principal repayments and other dispositions of loans in portfolio ($ 
          billions)
        
        
        
        
          0.5 
        
        
        
        
          0.0 
        
        
        
        
          1.3 
        
        
        
        
          0.0 
        
      
      
        
          Net additions to loans in portfolio ($ billions)
        
        
        
        
          0.5 
        
        
        
        
          2.1 
        
        
        
        
          2.8 
        
        
        
        
          3.5 
        
      
      
        
          Loans and mortgage-backed securities held - end of period ($ 
          billions)
        
        
        
        
          15.6 
        
        
        
        
          14.1 
        
        
        
        
          15.6 
        
        
        
        
          14.1 
        
      
      
        
          Mortgage-backed securities period end duration gap (in years)
        
        
        
        
          0.07 
        
        
        
        
          -0.03 
        
        
        
        
          0.07 
        
        
        
        
          -0.03 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loan Origination Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loan originations ($ billions) (4)
        
        
        
        
          15.5 
        
        
        
        
          13.6 
        
        
        
        
          58.9 
        
        
        
        
          45.3 
        
      
      
        
          Refinance
        
        
        
        
          60%
        
        
        
        
          51%
        
        
        
        
          54%
        
        
        
        
          47%
        
      
      
        
          ARM
        
        
        
        
          51%
        
        
        
        
          50%
        
        
        
        
          53%
        
        
        
        
          50%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Average mortgage loans, net ($ billions) (3)
        
        
        
        
          10.0 
        
        
        
        
          8.6 
        
        
        
        
          9.1 
        
        
        
        
          5.2 
        
      
      
        
          Net interest income excluding trust preferred and other interest 
          expense ($ millions)
        
        
        
        
          26.8 
        
        
        
        
          26.4 
        
        
        
        
          111.5 
        
        
        
        
          96.8 
        
      
      
        
          Net interest margin excluding trust preferred and other interest 
          expense
        
        
        
        
          1.08%
        
        
        
        
          1.28%
        
        
        
        
          1.22%
        
        
        
        
          1.85%
        
      
      
        
          Trust preferred and other interest expense ($ millions)
        
        
        
        
          7.4 
        
        
        
        
          3.3 
        
        
        
        
          24.4 
        
        
        
        
          6.5 
        
      
      
        
          Net interest income ($ millions)
        
        
        
        
          19.4 
        
        
        
        
          23.1 
        
        
        
        
          87.1 
        
        
        
        
          90.3 
        
      
      
        
          Loans securitized and held ($ billions)
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          2.9 
        
      
      
        
          Loans securitized and sold ($ billions)
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          10.3 
        
      
      
        
          Loans sold to third parties ($ billions)
        
        
        
        
          14.3 
        
        
        
        
          11.0 
        
        
        
        
          56.0 
        
        
        
        
          28.5 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gain on sales of loans, net of hedge gains ($ millions) (5)
        
        
        
        
          202.9 
        
        
        
        
          105.4 
        
        
        
        
          810.0 
        
        
        
        
          577.4 
        
      
      
        
          Excess of fair value over carrying value of loans added to 
          investment portfolio ($ millions)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          8.7 
        
        
        
        
          30.2 
        
        
        
        
          57.1 
        
        
        
        
          58.0 
        
      
      
        
          Total ($ millions)
        
        
        
        
          211.6 
        
        
        
        
          135.6 
        
        
        
        
          867.1 
        
        
        
        
          635.4 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gain on sales of loans, net of hedge gains (% of principal) (5)
        
        
        
        
          1.42%
        
        
        
        
          0.96%
        
        
        
        
          1.45%
        
        
        
        
          1.42%
        
      
      
        
          Excess of fair value over carrying value of loans added to 
          investment portfolio (% of principal)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          0.82%
        
        
        
        
          1.43%
        
        
        
        
          1.36%
        
        
        
        
          1.63%
        
      
      
        
          Total (% of principal)
        
        
        
        
          1.38%
        
        
        
        
          1.03%
        
        
        
        
          1.44%
        
        
        
        
          1.44%
        
      
      
        
          Applications accepted ($ billions)
        
        
        
        
          23.1 
        
        
        
        
          17.8 
        
        
        
        
          89.4 
        
        
        
        
          67.8 
        
      
      
        
          Application pipeline ($ billions)
        
        
        
        
          11.3 
        
        
        
        
          9.2 
        
        
        
        
          11.3 
        
        
        
        
          9.2 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loan Servicing Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loan servicing portfolio - total with warehouse ($ billions)
        
        
        
        
          46.3 
        
        
        
        
          30.7 
        
        
        
        
        
        
        
        
        
      
      
        
          Loan servicing portfolio - loans sold or securitized ($ billions)
        
        
        
        
          38.5 
        
        
        
        
          25.0 
        
        
        
        
        
        
        
        
        
      
      
        
          Interest expense ($ millions)
        
        
        
        
          4.5 
        
        
        
        
          2.6 
        
        
        
        
          15.3 
        
        
        
        
          7.3 
        
      
      
        
          Weighted average note rate
        
        
        
        
          7.08%
        
        
        
        
          5.79%
        
        
        
        
        
        
        
        
        
      
      
        
          Weighted average service fee
        
        
        
        
          0.347%
        
        
        
        
          0.330%
        
        
        
        
        
        
        
        
        
      
      
        
          Average age (in months)
        
        
        
        
          15 
        
        
        
        
          15 
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Notes:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          (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 and A-2.
        
      
      
        
          (2) Excludes loans held for investment pending securitization.
        
      
      
        
          (3) Includes loans held for investment pending securitization.
        
      
      
        
          (4) Loan originations of $13.2 billion in the first quarter of 2006 
          exclude $559 million of loans purchased in the Waterfield 
          acquisition.
        
      
      
        
          (5) Prior to the fourth quarter of 2005, includes gain on current 
          period securitizations, net of hedge gains.
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          OPERATING STATISTICS
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          As of and for the Three Months Ended
        
      
      
        
        
        
        
        
          Dec. 31,
        
        
        
        
          Sept. 30,
        
        
        
        
          June 30,
        
        
        
        
          March 31,
        
        
        
        
          Dec. 31,
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
          Mortgage Holdings Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Investment Portfolio Performance (1):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Average loans and mortgage-backed securities in portfolio ($ 
          billions)
        
        
        
        
          12.7 
        
        
        
        
          13.0 
        
        
        
        
          12.5 
        
        
        
        
          11.1 
        
        
        
        
          10.5 
        
      
      
        
          Interest income ($ millions)
        
        
        
        
          193.7 
        
        
        
        
          195.6 
        
        
        
        
          181.3 
        
        
        
        
          154.9 
        
        
        
        
          138.0 
        
      
      
        
          Average portfolio yield
        
        
        
        
          6.08%
        
        
        
        
          6.03%
        
        
        
        
          5.82%
        
        
        
        
          5.60%
        
        
        
        
          5.27%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest expense ($ millions)
        
        
        
        
          166.6 
        
        
        
        
          167.2 
        
        
        
        
          153.2 
        
        
        
        
          128.5 
        
        
        
        
          108.2 
        
      
      
        
          Average cost of funds and hedges
        
        
        
        
          5.43%
        
        
        
        
          5.37%
        
        
        
        
          5.19%
        
        
        
        
          4.96%
        
        
        
        
          4.36%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income ($ millions)
        
        
        
        
          27.1 
        
        
        
        
          28.4 
        
        
        
        
          28.1 
        
        
        
        
          26.4 
        
        
        
        
          29.8 
        
      
      
        
          Net interest margin
        
        
        
        
          0.85%
        
        
        
        
          0.88%
        
        
        
        
          0.90%
        
        
        
        
          0.95%
        
        
        
        
          1.17%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest carry on free standing derivatives ($ millions)
        
        
        
        
          6.3 
        
        
        
        
          7.5 
        
        
        
        
          5.8 
        
        
        
        
          3.9 
        
        
        
        
          1.0 
        
      
      
        
          Net interest income plus interest carry on free standing derivatives 
          ($ millions)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          33.4 
        
        
        
        
          35.9 
        
        
        
        
          33.9 
        
        
        
        
          30.3 
        
        
        
        
          30.8 
        
      
      
        
          Net interest margin including interest carry on free standing 
          derivatives
        
        
        
        
          1.05%
        
        
        
        
          1.11%
        
        
        
        
          1.09%
        
        
        
        
          1.09%
        
        
        
        
          1.21%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Reconciliation of Changes in Mortgage Holdings (2):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net change in mortgage-backed securities ($ billions)
        
        
        
        
          0.3 
        
        
        
        
          -0.3 
        
        
        
        
          -0.3 
        
        
        
        
          -1.0 
        
        
        
        
          1.4 
        
      
      
        
          Additions to loans in portfolio ($ billions)
        
        
        
        
          1.0 
        
        
        
        
          0.9 
        
        
        
        
          1.2 
        
        
        
        
          1.0 
        
        
        
        
          2.1 
        
      
      
        
          Principal repayments and other dispositions of loans in portfolio ($ 
          billions)
        
        
        
        
          0.5 
        
        
        
        
          0.4 
        
        
        
        
          0.2 
        
        
        
        
          0.2 
        
        
        
        
          0.0 
        
      
      
        
          Net additions to loans in portfolio ($ billions)
        
        
        
        
          0.5 
        
        
        
        
          0.5 
        
        
        
        
          1.0 
        
        
        
        
          0.8 
        
        
        
        
          2.1 
        
      
      
        
          Loans and mortgage-backed securities held - end of period ($ 
          billions)
        
        
        
        
          15.6 
        
        
        
        
          14.8 
        
        
        
        
          14.6 
        
        
        
        
          13.9 
        
        
        
        
          14.1 
        
      
      
        
          Mortgage-backed securities period end duration gap (in years)
        
        
        
        
          0.07 
        
        
        
        
          -0.12 
        
        
        
        
          0.10 
        
        
        
        
          0.15 
        
        
        
        
          -0.03 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loan Origination Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loan originations ($ billions) (3)
        
        
        
        
          15.5 
        
        
        
        
          15.3 
        
        
        
        
          14.9 
        
        
        
        
          13.2 
        
        
        
        
          13.6 
        
      
      
        
          Refinance
        
        
        
        
          60%
        
        
        
        
          54%
        
        
        
        
          51%
        
        
        
        
          51%
        
        
        
        
          51%
        
      
      
        
          ARM
        
        
        
        
          51%
        
        
        
        
          53%
        
        
        
        
          55%
        
        
        
        
          51%
        
        
        
        
          50%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Average mortgage loans, net ($ billions) (2)
        
        
        
        
          10.0 
        
        
        
        
          8.1 
        
        
        
        
          8.8 
        
        
        
        
          9.6 
        
        
        
        
          8.6 
        
      
      
        
          Net interest income excluding trust preferred and other interest 
          expense ($ millions)
        
        
        
        
          26.8 
        
        
        
        
          25.1 
        
        
        
        
          31.6 
        
        
        
        
          28.0 
        
        
        
        
          26.4 
        
      
      
        
          Net interest margin excluding trust preferred and other interest 
          expense
        
        
        
        
          1.08%
        
        
        
        
          1.24%
        
        
        
        
          1.44%
        
        
        
        
          1.17%
        
        
        
        
          1.28%
        
      
      
        
          Trust preferred and other interest expense ($ millions)
        
        
        
        
          7.4 
        
        
        
        
          6.6 
        
        
        
        
          5.7 
        
        
        
        
          4.7 
        
        
        
        
          3.3 
        
      
      
        
          Net interest income ($ millions)
        
        
        
        
          19.4 
        
        
        
        
          18.5 
        
        
        
        
          25.9 
        
        
        
        
          23.3 
        
        
        
        
          23.1 
        
      
      
        
          Loans securitized and held ($ billions)
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
      
      
        
          Loans securitized and sold ($ billions)
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
        
        
        
          0.0 
        
      
      
        
          Loans sold to third parties ($ billions)
        
        
        
        
          14.3 
        
        
        
        
          14.3 
        
        
        
        
          13.9 
        
        
        
        
          13.5 
        
        
        
        
          11.0 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gain on sales of loans, net of hedge gains ($ millions)
        
        
        
        
          202.9 
        
        
        
        
          210.6 
        
        
        
        
          224.6 
        
        
        
        
          171.9 
        
        
        
        
          105.4 
        
      
      
        
          Excess of fair value over carrying value of loans added to 
          investment portfolio ($ millions)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          8.7 
        
        
        
        
          15.6 
        
        
        
        
          18.8 
        
        
        
        
          14.0 
        
        
        
        
          30.2 
        
      
      
        
          Total ($ millions)
        
        
        
        
          211.6 
        
        
        
        
          226.2 
        
        
        
        
          243.4 
        
        
        
        
          185.9 
        
        
        
        
          135.6 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gain on sales of loans, net of hedge gains (% of principal)
        
        
        
        
          1.42%
        
        
        
        
          1.47%
        
        
        
        
          1.62%
        
        
        
        
          1.27%
        
        
        
        
          0.96%
        
      
      
        
          Excess of fair value over carrying value of loans added to 
          investment portfolio (% of principal)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          0.82%
        
        
        
        
          1.71%
        
        
        
        
          1.49%
        
        
        
        
          1.44%
        
        
        
        
          1.43%
        
      
      
        
          Total (% of principal)
        
        
        
        
          1.38%
        
        
        
        
          1.48%
        
        
        
        
          1.61%
        
        
        
        
          1.28%
        
        
        
        
          1.03%
        
      
      
        
          Applications accepted ($ billions)
        
        
        
        
          23.1 
        
        
        
        
          23.4 
        
        
        
        
          22.1 
        
        
        
        
          20.8 
        
        
        
        
          17.8 
        
      
      
        
          Application pipeline ($ billions)
        
        
        
        
          11.3 
        
        
        
        
          12.3 
        
        
        
        
          12.1 
        
        
        
        
          11.8 
        
        
        
        
          9.2 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loan Servicing Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loan servicing portfolio - total with warehouse ($ billions)
        
        
        
        
          46.3 
        
        
        
        
          43.0 
        
        
        
        
          39.1 
        
        
        
        
          34.8 
        
        
        
        
          30.7 
        
      
      
        
          Loan servicing portfolio - loans sold or securitized ($ billions)
        
        
        
        
          38.5 
        
        
        
        
          35.9 
        
        
        
        
          32.6 
        
        
        
        
          29.0 
        
        
        
        
          25.0 
        
      
      
        
          Interest expense ($ millions)
        
        
        
        
          4.5 
        
        
        
        
          3.9 
        
        
        
        
          3.8 
        
        
        
        
          3.1 
        
        
        
        
          2.6 
        
      
      
        
          Weighted average note rate
        
        
        
        
          7.08%
        
        
        
        
          6.77%
        
        
        
        
          6.38%
        
        
        
        
          6.09%
        
        
        
        
          5.79%
        
      
      
        
          Weighted average service fee
        
        
        
        
          0.347%
        
        
        
        
          0.339%
        
        
        
        
          0.336%
        
        
        
        
          0.329%
        
        
        
        
          0.330%
        
      
      
        
          Average age (in months)
        
        
        
        
          15 
        
        
        
        
          15 
        
        
        
        
          14 
        
        
        
        
          14 
        
        
        
        
          15 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Notes:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          (1) Excludes loans held for investment pending securitization.
        
      
      
        
          (2) Includes loans held for investment pending securitization.
        
      
      
        
          (3) Loan originations of $13.2 billion in the first quarter of 2006 
          exclude $559 million of loans purchased in the Waterfield 
          acquisition.
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
        
      
      
        
          (In thousands, except per share amounts)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Three Months Ended
        
        
        
        
          Year Ended
        
      
      
        
        
        
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
      
      
        
        
        
        
        
        
        
           
        
        
          2006 
        
        
        
        
           
        
        
          2005 
        
        
        
        
           
        
        
          2006 
        
        
        
        
           
        
        
          2005 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          (1)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          As
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
          Adjusted
        
      
      
        
          Net interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Interest income
        
        
        
        
          $
        
        
          364,810 
        
        
        
        
          $
        
        
          265,435 
        
        
        
        
          $
        
        
          1,328,494 
        
        
        
        
          $
        
        
          700,760 
        
      
      
        
        
        
          Interest expense
        
        
        
        
           
        
        
          (322,134)
        
        
        
        
           
        
        
          (215,057)
        
        
        
        
           
        
        
          (1,146,039)
        
        
        
        
           
        
        
          (509,887)
        
      
      
        
        
        
          Net interest income
        
        
        
        
           
        
        
          42,676 
        
        
        
        
           
        
        
          50,378 
        
        
        
        
           
        
        
          182,455 
        
        
        
        
           
        
        
          190,873 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Provision for loan losses
        
        
        
        
        
        
          (6,725)
        
        
        
        
        
        
          (2,142)
        
        
        
        
        
        
          (17,380)
        
        
        
        
        
        
          (2,142)
        
      
      
        
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
      
      
        
        
        
          Net interest income after provision for loan losses
        
        
        
        
           
        
        
          35,951 
        
        
        
        
           
        
        
          48,236 
        
        
        
        
           
        
        
          165,075 
        
        
        
        
           
        
        
          188,731 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Gain on sales of mortgage loans
        
        
        
        
        
        
          202,884 
        
        
        
        
        
        
          98,777 
        
        
        
        
        
        
          810,006 
        
        
        
        
        
        
          335,065 
        
      
      
        
        
        
          Gain on sales of current period securitized mortgage loans
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          168,998 
        
      
      
        
        
        
          Gain on sales of mortgage-backed securities and derivatives
        
        
        
        
        
        
          3,305 
        
        
        
        
        
        
          38,068 
        
        
        
        
        
        
          12,257 
        
        
        
        
        
        
          49,536 
        
      
      
        
        
        
          Unrealized loss on mortgage-backed securities and derivatives
        
        
        
        
        
        
          (9,663)
        
        
        
        
        
        
          (44,778)
        
        
        
        
        
        
          (7,028)
        
        
        
        
        
        
          (45,799)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loan servicing fees
        
        
        
        
        
        
          47,300 
        
        
        
        
        
        
          26,715 
        
        
        
        
        
        
          145,429 
        
        
        
        
        
        
          78,947 
        
      
      
        
        
        
          Amortization and impairment of mortgage servicing rights
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          (18,745)
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          (60,657)
        
      
      
        
        
        
          Change in fair value of mortgage servicing rights:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Due to realization of cash flows
        
        
        
        
        
        
          (28,940)
        
        
        
        
        
        
          - 
        
        
        
        
        
        
          (102,820)
        
        
        
        
        
        
          - 
        
      
      
        
        
        
          Due to changes in valuation assumptions, net of hedge gain (loss)
        
        
        
        
           
        
        
          3,920 
        
        
        
        
           
        
        
          - 
        
        
        
        
           
        
        
          (5,289)
        
        
        
        
           
        
        
          - 
        
      
      
        
        
        
          Net loan servicing fees
        
        
        
        
           
        
        
          22,280 
        
        
        
        
           
        
        
          7,970 
        
        
        
        
           
        
        
          37,320 
        
        
        
        
           
        
        
          18,290 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Other non-interest income
        
        
        
        
           
        
        
          2,902 
        
        
        
        
           
        
        
          2,181 
        
        
        
        
           
        
        
          8,814 
        
        
        
        
           
        
        
          7,775 
        
      
      
        
        
        
          Non-interest income
        
        
        
        
           
        
        
          221,708 
        
        
        
        
           
        
        
          102,218 
        
        
        
        
           
        
        
          861,369 
        
        
        
        
           
        
        
          533,865 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Salaries, commissions and benefits, net
        
        
        
        
        
        
          105,908 
        
        
        
        
        
        
          95,237 
        
        
        
        
        
        
          414,008 
        
        
        
        
        
        
          359,949 
        
      
      
        
        
        
          Occupancy and equipment
        
        
        
        
        
        
          20,396 
        
        
        
        
        
        
          16,459 
        
        
        
        
        
        
          77,357 
        
        
        
        
        
        
          58,855 
        
      
      
        
        
        
          Data processing and communications
        
        
        
        
        
        
          6,346 
        
        
        
        
        
        
          6,402 
        
        
        
        
        
        
          25,905 
        
        
        
        
        
        
          24,788 
        
      
      
        
        
        
          Office supplies and expenses
        
        
        
        
        
        
          4,324 
        
        
        
        
        
        
          4,612 
        
        
        
        
        
        
          19,147 
        
        
        
        
        
        
          19,722 
        
      
      
        
        
        
          Marketing and promotion
        
        
        
        
        
        
          4,574 
        
        
        
        
        
        
          5,951 
        
        
        
        
        
        
          21,625 
        
        
        
        
        
        
          20,311 
        
      
      
        
        
        
          Travel and entertainment
        
        
        
        
        
        
          8,966 
        
        
        
        
        
        
          6,982 
        
        
        
        
        
        
          31,310 
        
        
        
        
        
        
          21,007 
        
      
      
        
        
        
          Professional fees
        
        
        
        
        
        
          7,902 
        
        
        
        
        
        
          3,586 
        
        
        
        
        
        
          24,322 
        
        
        
        
        
        
          14,232 
        
      
      
        
        
        
          Other
        
        
        
        
           
        
        
          14,952 
        
        
        
        
           
        
        
          10,946 
        
        
        
        
           
        
        
          64,614 
        
        
        
        
           
        
        
          32,018 
        
      
      
        
        
        
          Non-interest expenses
        
        
        
        
           
        
        
          173,368 
        
        
        
        
           
        
        
          150,175 
        
        
        
        
           
        
        
          678,288 
        
        
        
        
           
        
        
          550,882 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income before income tax expense (benefit)
        
        
        
        
        
        
          84,291 
        
        
        
        
        
        
          279 
        
        
        
        
        
        
          348,156 
        
        
        
        
        
        
          171,714 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax expense (benefit)
        
        
        
        
           
        
        
          19,594 
        
        
        
        
           
        
        
          (16,419)
        
        
        
        
           
        
        
          84,629 
        
        
        
        
           
        
        
          (17,721)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
          $
        
        
          64,697 
        
        
        
        
          $
        
        
          16,698 
        
        
        
        
          $
        
        
          263,527 
        
        
        
        
          $
        
        
          189,435 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Dividends on preferred stock
        
        
        
        
        
        
          3,304 
        
        
        
        
        
        
          3,304 
        
        
        
        
        
        
          13,218 
        
        
        
        
        
        
          13,217 
        
      
      
        
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
      
      
        
          Net income available to common shareholders
        
        
        
        
          $
        
        
          61,393 
        
        
        
        
          $
        
        
          13,394 
        
        
        
        
          $
        
        
          250,309 
        
        
        
        
          $
        
        
          176,218 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Per share data:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Basic
        
        
        
        
          $
        
        
          1.22 
        
        
        
        
          $
        
        
          0.27 
        
        
        
        
          $
        
        
          5.00 
        
        
        
        
          $
        
        
          4.01 
        
      
      
        
        
        
          Diluted
        
        
        
        
          $
        
        
          1.21 
        
        
        
        
          $
        
        
          0.27 
        
        
        
        
          $
        
        
          4.96 
        
        
        
        
          $
        
        
          3.97 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Weighted average number of shares - basic
        
        
        
        
        
        
          50,192 
        
        
        
        
        
        
          49,605 
        
        
        
        
        
        
          50,030 
        
        
        
        
        
        
          43,897 
        
      
      
        
        
        
          Weighted average number of shares - diluted
        
        
        
        
        
        
          50,602 
        
        
        
        
        
        
          49,998 
        
        
        
        
        
        
          50,421 
        
        
        
        
        
        
          44,375 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          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 and A-2.
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
        
      
      
        
          (In thousands, except per share amounts)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Three Months Ended
        
      
      
        
        
        
        
        
        
        
          Dec. 31,
        
        
        
        
          Sept. 30,
        
        
        
        
          June 30,
        
        
        
        
          March 31,
        
        
        
        
          Dec. 31,
        
      
      
        
        
        
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
          Net interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Interest income
        
        
        
        
          $ 364,810 
        
        
        
        
          $ 332,875 
        
        
        
        
          $ 330,196 
        
        
        
        
          $ 300,613 
        
        
        
        
          $ 265,435 
        
      
      
        
        
        
          Interest expense
        
        
        
        
          (322,134)
        
        
        
        
          (289,878)
        
        
        
        
          (279,992)
        
        
        
        
          (254,035)
        
        
        
        
          (215,057)
        
      
      
        
        
        
          Net interest income
        
        
        
        
          42,676 
        
        
        
        
          42,997 
        
        
        
        
          50,204 
        
        
        
        
          46,578 
        
        
        
        
          50,378 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Provision for loan losses
        
        
        
        
          (6,725)
        
        
        
        
          (5,365)
        
        
        
        
          (3,979)
        
        
        
        
          (1,311)
        
        
        
        
          (2,142)
        
      
      
        
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
      
      
        
        
        
          Net interest income after provision for loan losses
        
        
        
        
          35,951 
        
        
        
        
          37,632 
        
        
        
        
          46,225 
        
        
        
        
          45,267 
        
        
        
        
          48,236 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Gain on sales of mortgage loans
        
        
        
        
          202,884 
        
        
        
        
          210,621 
        
        
        
        
          224,594 
        
        
        
        
          171,907 
        
        
        
        
          98,777 
        
      
      
        
        
        
          Gain (loss) on sales of mortgage-backed securities and derivatives
        
        
        
        
          3,305 
        
        
        
        
          9,849 
        
        
        
        
          (47)
        
        
        
        
          (850)
        
        
        
        
          38,068 
        
      
      
        
        
        
          Unrealized (loss) gain on mortgage-backed securities and derivatives
        
        
        
        
          (9,663)
        
        
        
        
          1,050 
        
        
        
        
          (7,730)
        
        
        
        
          9,315 
        
        
        
        
          (44,778)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loan servicing fees
        
        
        
        
          47,300 
        
        
        
        
          43,379 
        
        
        
        
          30,417 
        
        
        
        
          24,333 
        
        
        
        
          26,715 
        
      
      
        
        
        
          Amortization and impairment of mortgage servicing rights
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          (18,745)
        
      
      
        
        
        
          Change in fair value of mortgage servicing rights:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          
            Due to realization of cash flows
          
        
        
        
        
          (28,940)
        
        
        
        
          (28,839)
        
        
        
        
          (26,306)
        
        
        
        
          (18,735)
        
        
        
        
          - 
        
      
      
        
        
        
          Due to changes in valuation assumptions, net of hedge gain (loss)
        
        
        
        
          3,920 
        
        
        
        
          (16,799)
        
        
        
        
          7,476 
        
        
        
        
          114 
        
        
        
        
          - 
        
      
      
        
        
        
          Net loan servicing fees (loss)
        
        
        
        
          22,280 
        
        
        
        
          (2,259)
        
        
        
        
          11,587 
        
        
        
        
          5,712 
        
        
        
        
          7,970 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Other non-interest income
        
        
        
        
          2,902 
        
        
        
        
          2,018 
        
        
        
        
          2,125 
        
        
        
        
          1,769 
        
        
        
        
          2,181 
        
      
      
        
        
        
          Non-interest income
        
        
        
        
          221,708 
        
        
        
        
          221,279 
        
        
        
        
          230,529 
        
        
        
        
          187,853 
        
        
        
        
          102,218 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Non-interest expenses:
          
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Salaries, commissions and benefits, net
        
        
        
        
          105,908 
        
        
        
        
          105,676 
        
        
        
        
          103,157 
        
        
        
        
          99,267 
        
        
        
        
          95,237 
        
      
      
        
        
        
          Occupancy and equipment
        
        
        
        
          20,396 
        
        
        
        
          19,228 
        
        
        
        
          19,763 
        
        
        
        
          17,970 
        
        
        
        
          16,459 
        
      
      
        
        
        
          Data processing and communications
        
        
        
        
          6,346 
        
        
        
        
          5,700 
        
        
        
        
          6,733 
        
        
        
        
          7,126 
        
        
        
        
          6,402 
        
      
      
        
        
        
          Office supplies and expenses
        
        
        
        
          4,324 
        
        
        
        
          5,346 
        
        
        
        
          5,145 
        
        
        
        
          4,332 
        
        
        
        
          4,612 
        
      
      
        
        
        
          Marketing and promotion
        
        
        
        
          4,574 
        
        
        
        
          4,868 
        
        
        
        
          6,383 
        
        
        
        
          5,800 
        
        
        
        
          5,951 
        
      
      
        
        
        
          Travel and entertainment
        
        
        
        
          8,966 
        
        
        
        
          7,798 
        
        
        
        
          7,793 
        
        
        
        
          6,753 
        
        
        
        
          6,982 
        
      
      
        
        
        
          Professional fees
        
        
        
        
          7,902 
        
        
        
        
          6,076 
        
        
        
        
          5,013 
        
        
        
        
          5,331 
        
        
        
        
          3,586 
        
      
      
        
        
        
          Other
        
        
        
        
          14,952 
        
        
        
        
          16,588 
        
        
        
        
          17,192 
        
        
        
        
          15,882 
        
        
        
        
          10,946 
        
      
      
        
        
        
          Non-interest expenses
        
        
        
        
          173,368 
        
        
        
        
          171,280 
        
        
        
        
          171,179 
        
        
        
        
          162,461 
        
        
        
        
          150,175 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income before income tax expense (benefit)
        
        
        
        
          84,291 
        
        
        
        
          87,631 
        
        
        
        
          105,575 
        
        
        
        
          70,659 
        
        
        
        
          279 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax expense (benefit)
        
        
        
        
          19,594 
        
        
        
        
          15,611 
        
        
        
        
          33,224 
        
        
        
        
          16,200 
        
        
        
        
          (16,419)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
          $ 64,697 
        
        
        
        
          $ 72,020 
        
        
        
        
          $ 72,351 
        
        
        
        
          $ 54,459 
        
        
        
        
          $ 16,698 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Dividends on preferred stock
        
        
        
        
          3,304 
        
        
        
        
          3,305 
        
        
        
        
          3,304 
        
        
        
        
          3,305 
        
        
        
        
          3,304 
        
      
      
        
        
        
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
        
        
        
           
        
      
      
        
          Net income available to common shareholders
        
        
        
        
          $ 61,393 
        
        
        
        
          $ 68,715 
        
        
        
        
          $ 69,047 
        
        
        
        
          $ 51,154 
        
        
        
        
          $ 13,394 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Per share data:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Basic
        
        
        
        
          $ 1.22 
        
        
        
        
          $ 1.37 
        
        
        
        
          $ 1.38 
        
        
        
        
          $ 1.03 
        
        
        
        
          $ 0.27 
        
      
      
        
        
        
          Diluted
        
        
        
        
          $ 1.21 
        
        
        
        
          $ 1.36 
        
        
        
        
          $ 1.37 
        
        
        
        
          $ 1.02 
        
        
        
        
          $ 0.27 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Weighted average number of shares - basic
        
        
        
        
          50,192 
        
        
        
        
          50,148 
        
        
        
        
          50,056 
        
        
        
        
          49,715 
        
        
        
        
          49,605 
        
      
      
        
        
        
          Weighted average number of shares - diluted
        
        
        
        
          50,602 
        
        
        
        
          50,553 
        
        
        
        
          50,487 
        
        
        
        
          50,070 
        
        
        
        
          49,998 
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          CONSOLIDATED BALANCE SHEETS (Unaudited)
        
      
      
        
          (Dollars in thousands)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          December 31,
        
        
        
        
          September 30,
        
        
        
        
          June 30,
        
        
        
        
          March 31,
        
        
        
        
          December 31,
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
          Assets:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
          $ 398,166 
        
        
        
        
          $ 298,079 
        
        
        
        
          $ 304,268 
        
        
        
        
          $ 572,591 
        
        
        
        
          $ 575,650 
        
      
      
        
          Accounts receivable and servicing advances
        
        
        
        
          432,418 
        
        
        
        
          350,965 
        
        
        
        
          342,244 
        
        
        
        
          327,586 
        
        
        
        
          329,132 
        
      
      
        
          Securities
        
        
        
        
          9,308,032 
        
        
        
        
          8,957,546 
        
        
        
        
          9,299,343 
        
        
        
        
          9,580,974 
        
        
        
        
          10,602,115 
        
      
      
        
          Mortgage loans held for sale, net
        
        
        
        
          1,523,737 
        
        
        
        
          1,365,595 
        
        
        
        
          1,243,702 
        
        
        
        
          1,589,613 
        
        
        
        
          2,208,749 
        
      
      
        
          Loans held for investment, net
        
        
        
        
          6,329,721 
        
        
        
        
          5,797,801 
        
        
        
        
          5,337,138 
        
        
        
        
          4,315,384 
        
        
        
        
          3,479,721 
        
      
      
        
          Derivative assets
        
        
        
        
          32,142 
        
        
        
        
          26,323 
        
        
        
        
          139,397 
        
        
        
        
          102,267 
        
        
        
        
          44,594 
        
      
      
        
          Mortgage servicing rights, net
        
        
        
        
          506,341 
        
        
        
        
          460,913 
        
        
        
        
          434,173 
        
        
        
        
          371,974 
        
        
        
        
          319,671 
        
      
      
        
          Premises and equipment, net
        
        
        
        
          86,211 
        
        
        
        
          82,288 
        
        
        
        
          80,296 
        
        
        
        
          75,594 
        
        
        
        
          68,782 
        
      
      
        
          Goodwill
        
        
        
        
          133,128 
        
        
        
        
          111,890 
        
        
        
        
          110,759 
        
        
        
        
          110,330 
        
        
        
        
          99,527 
        
      
      
        
          Other assets
        
        
        
        
          79,089 
        
        
        
        
          52,927 
        
        
        
        
          34,279 
        
        
        
        
          30,697 
        
        
        
        
          26,804 
        
      
      
        
          Total assets
        
        
        
        
          $ 18,828,985 
        
        
        
        
          $ 17,504,327 
        
        
        
        
          $ 17,325,599 
        
        
        
        
          $ 17,077,010 
        
        
        
        
          $ 17,754,745 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Liabilities and Stockholders' Equity:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Liabilities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Warehouse lines of credit
        
        
        
        
          $ 1,304,541 
        
        
        
        
          $ 1,890,034 
        
        
        
        
          $ 1,476,958 
        
        
        
        
          $ 1,754,581 
        
        
        
        
          $ 3,474,191 
        
      
      
        
          Commercial paper
        
        
        
        
          1,273,965 
        
        
        
        
          1,283,858 
        
        
        
        
          888,476 
        
        
        
        
          1,073,630 
        
        
        
        
          1,079,179 
        
      
      
        
          Reverse repurchase agreements
        
        
        
        
          8,571,459 
        
        
        
        
          7,232,503 
        
        
        
        
          8,939,786 
        
        
        
        
          8,899,050 
        
        
        
        
          9,806,144 
        
      
      
        
          Deposits
        
        
        
        
          24,016 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
      
      
        
          Collateralized debt obligations
        
        
        
        
          4,854,801 
        
        
        
        
          3,484,873 
        
        
        
        
          3,724,878 
        
        
        
        
          2,905,199 
        
        
        
        
          1,057,906 
        
      
      
        
          Payable for securities purchased
        
        
        
        
          289,716 
        
        
        
        
          1,221,105 
        
        
        
        
          - 
        
        
        
        
          215,114 
        
        
        
        
          261,539 
        
      
      
        
          Derivative liabilities
        
        
        
        
          12,644 
        
        
        
        
          40,170 
        
        
        
        
          3,280 
        
        
        
        
          7,512 
        
        
        
        
          16,773 
        
      
      
        
          Trust preferred securities
        
        
        
        
          336,078 
        
        
        
        
          282,340 
        
        
        
        
          252,780 
        
        
        
        
          204,018 
        
        
        
        
          203,688 
        
      
      
        
          Accrued expenses and other liabilities
        
        
        
        
          361,923 
        
        
        
        
          392,334 
        
        
        
        
          367,358 
        
        
        
        
          401,769 
        
        
        
        
          298,230 
        
      
      
        
          Notes payable
        
        
        
        
          417,467 
        
        
        
        
          317,161 
        
        
        
        
          337,700 
        
        
        
        
          330,714 
        
        
        
        
          319,309 
        
      
      
        
          Income taxes payable
        
        
        
        
          112,089 
        
        
        
        
          95,808 
        
        
        
        
          80,529 
        
        
        
        
          51,016 
        
        
        
        
          30,770 
        
      
      
        
          Total liabilities
        
        
        
        
          17,558,699 
        
        
        
        
          16,240,186 
        
        
        
        
          16,071,745 
        
        
        
        
          15,842,603 
        
        
        
        
          16,547,729 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders' Equity:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Preferred stock
        
        
        
        
          134,040 
        
        
        
        
          134,040 
        
        
        
        
          134,040 
        
        
        
        
          134,040 
        
        
        
        
          134,040 
        
      
      
        
          Common stock
        
        
        
        
          502 
        
        
        
        
          502 
        
        
        
        
          501 
        
        
        
        
          500 
        
        
        
        
          496 
        
      
      
        
          Additional paid-in capital
        
        
        
        
          963,617 
        
        
        
        
          962,903 
        
        
        
        
          960,995 
        
        
        
        
          958,175 
        
        
        
        
          947,512 
        
      
      
        
          Retained earnings
        
        
        
        
          257,283 
        
        
        
        
          245,473 
        
        
        
        
          227,450 
        
        
        
        
          206,512 
        
        
        
        
          203,778 
        
      
      
        
          Accumulated other comprehensive loss
        
        
        
        
          (85,156)
        
        
        
        
          (78,777)
        
        
        
        
          (69,132)
        
        
        
        
          (64,820)
        
        
        
        
          (78,810)
        
      
      
        
          Total stockholders’ equity
        
        
        
        
          1,270,286 
        
        
        
        
          1,264,141 
        
        
        
        
          1,253,854 
        
        
        
        
          1,234,407 
        
        
        
        
          1,207,016 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total liabilities and stockholders' equity
        
        
        
        
          $ 18,828,985 
        
        
        
        
          $ 17,504,327 
        
        
        
        
          $ 17,325,599 
        
        
        
        
          $ 17,077,010 
        
        
        
        
          $ 17,754,745 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Number of shares outstanding - preferred
        
        
        
        
          5,600,000 
        
        
        
        
          5,600,000 
        
        
        
        
          5,600,000 
        
        
        
        
          5,600,000 
        
        
        
        
          5,600,000 
        
      
      
        
          Number of shares outstanding - common
        
        
        
        
          50,195,499 
        
        
        
        
          50,182,257 
        
        
        
        
          50,107,214 
        
        
        
        
          50,004,965 
        
        
        
        
          49,639,646 
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ 
          EQUITY (Unaudited)
        
      
      
        
          (In thousands)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Three Months Ended
        
        
        
        
          Year Ended
        
      
      
        
        
        
        
        
          Dec. 31,
        
        
        
        
          Sept. 30,
        
        
        
        
          June 30,
        
        
        
        
          Mar. 31,
        
        
        
        
          Dec. 31,
        
        
        
        
          Dec. 31,
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
        
        
        
          2006 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Preferred stock
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Balance at end of period
        
        
        
        
          $ 134,040 
        
        
        
        
          $ 134,040 
        
        
        
        
          $ 134,040 
        
        
        
        
          $ 134,040 
        
        
        
        
          $ 134,040 
        
        
        
        
          $ 134,040 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Common stock
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Balance at beginning of period
        
        
        
        
          $ 502 
        
        
        
        
          $ 501 
        
        
        
        
          $ 500 
        
        
        
        
          $ 496 
        
        
        
        
          $ 496 
        
        
        
        
          $ 496 
        
      
      
        
          Issuance of common stock - earnouts
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          3 
        
        
        
        
          - 
        
        
        
        
          3 
        
      
      
        
          Issuance of common stock - Omnibus Stock Plan
        
        
        
        
          - 
        
        
        
        
          1 
        
        
        
        
          1 
        
        
        
        
          1 
        
        
        
        
          - 
        
        
        
        
          3 
        
      
      
        
          Balance at end of period
        
        
        
        
          $ 502 
        
        
        
        
          $ 502 
        
        
        
        
          $ 501 
        
        
        
        
          $ 500 
        
        
        
        
          $ 496 
        
        
        
        
          $ 502 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Additional paid-in capital
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Balance at beginning of period
        
        
        
        
          $ 962,903 
        
        
        
        
          $ 960,995 
        
        
        
        
          $ 958,175 
        
        
        
        
          $ 947,512 
        
        
        
        
          $ 946,105 
        
        
        
        
          $ 947,512 
        
      
      
        
          Issuance of common stock - earnouts
        
        
        
        
          - 
        
        
        
        
          296 
        
        
        
        
          - 
        
        
        
        
          9,555 
        
        
        
        
          - 
        
        
        
        
          9,851 
        
      
      
        
          Issuance of common stock - Omnibus Stock Plan
        
        
        
        
          211 
        
        
        
        
          1,067 
        
        
        
        
          1,126 
        
        
        
        
          651 
        
        
        
        
          857 
        
        
        
        
          3,055 
        
      
      
        
          Stock-based employee compensation expense
        
        
        
        
          241 
        
        
        
        
          37 
        
        
        
        
          373 
        
        
        
        
          410 
        
        
        
        
          - 
        
        
        
        
          1,061 
        
      
      
        
          Tax benefit for stock options exercised
        
        
        
        
          102 
        
        
        
        
          332 
        
        
        
        
          1,198 
        
        
        
        
          - 
        
        
        
        
          434 
        
        
        
        
          1,632 
        
      
      
        
          Restricted shares amortization
        
        
        
        
          160 
        
        
        
        
          176 
        
        
        
        
          123 
        
        
        
        
          47 
        
        
        
        
          116 
        
        
        
        
          506 
        
      
      
        
          Balance at end of period
        
        
        
        
          $ 963,617 
        
        
        
        
          $ 962,903 
        
        
        
        
          $ 960,995 
        
        
        
        
          $ 958,175 
        
        
        
        
          $ 947,512 
        
        
        
        
          $ 963,617 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Retained earnings
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Balance at beginning of period
        
        
        
        
          $ 245,473 
        
        
        
        
          $ 227,450 
        
        
        
        
          $ 206,512 
        
        
        
        
          $ 203,778 
        
        
        
        
          $ 235,556 
        
        
        
        
          $ 203,778 
        
      
      
        
          Cumulative-effect adjustment as of beginning of period (1)
        
        
        
        
          3,635 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          (2,917)
        
        
        
        
          - 
        
        
        
        
          718 
        
      
      
        
          Net income
        
        
        
        
          64,697 
        
        
        
        
          72,020 
        
        
        
        
          72,351 
        
        
        
        
          54,459 
        
        
        
        
          16,698 
        
        
        
        
          263,527 
        
      
      
        
          Dividends declared
        
        
        
        
          (56,522)
        
        
        
        
          (53,997)
        
        
        
        
          (51,413)
        
        
        
        
          (48,808)
        
        
        
        
          (48,476)
        
        
        
        
          (210,740)
        
      
      
        
          Balance at end of period
        
        
        
        
          $ 257,283 
        
        
        
        
          $ 245,473 
        
        
        
        
          $ 227,450 
        
        
        
        
          $ 206,512 
        
        
        
        
          $ 203,778 
        
        
        
        
          $ 257,283 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other comprehensive loss
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Balance at beginning of period
        
        
        
        
          $ (78,777)
        
        
        
        
          $ (69,132)
        
        
        
        
          $ (64,820)
        
        
        
        
          $ (78,810)
        
        
        
        
          $ (51,091)
        
        
        
        
          $ (78,810)
        
      
      
        
          Unrealized gain (loss) on securities
        
        
        
        
          870 
        
        
        
        
          75,535 
        
        
        
        
          (44,510)
        
        
        
        
          (35,765)
        
        
        
        
          (7,730)
        
        
        
        
          (3,870)
        
      
      
        
          (Loss) gain on derivatives
        
        
        
        
          (7,249)
        
        
        
        
          (85,180)
        
        
        
        
          40,198 
        
        
        
        
          49,755 
        
        
        
        
          (19,989)
        
        
        
        
          (2,476)
        
      
      
        
          Balance at end of period
        
        
        
        
          $ (85,156)
        
        
        
        
          $ (78,777)
        
        
        
        
          $ (69,132)
        
        
        
        
          $ (64,820)
        
        
        
        
          $ (78,810)
        
        
        
        
          $ (85,156)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total stockholders' equity
        
        
        
        
          $ 1,270,286 
        
        
        
        
          $ 1,264,141 
        
        
        
        
          $ 1,253,854 
        
        
        
        
          $ 1,234,407 
        
        
        
        
          $ 1,207,016 
        
        
        
        
          $ 1,270,286 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Note:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          (1) Effective January 1, 2006, the Company adopted SFAS 156 and 
          elected the fair value option to subsequently measure its MSRs.
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
        
      
      
        
          (In thousands)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Three Months Ended
        
      
      
        
        
        
        
        
        
        
        
        
          Dec. 31,
        
        
        
        
          Sept. 30,
        
        
        
        
          June 30,
        
        
        
        
          Mar. 31,
        
        
        
        
          Dec. 31,
        
      
      
        
        
        
        
        
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
          Cash flows from operating activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net income
        
        
        
        
        
        
          $ 64,697 
        
        
        
        
          $ 72,020 
        
        
        
        
          $ 72,351 
        
        
        
        
          $ 54,459 
        
        
        
        
          $ 16,698 
        
      
      
        
          Adjustments to reconcile net income to net cash (used in) provided 
          by operating activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Depreciation and amortization
        
        
        
        
          5,003 
        
        
        
        
          4,275 
        
        
        
        
          5,014 
        
        
        
        
          3,953 
        
        
        
        
          3,454 
        
      
      
        
          Provision for loan losses
        
        
        
        
          6,725 
        
        
        
        
          5,365 
        
        
        
        
          3,979 
        
        
        
        
          1,311 
        
        
        
        
          2,142 
        
      
      
        
          Change in fair value of mortgage servicing rights
        
        
        
        
          28,834 
        
        
        
        
          52,753 
        
        
        
        
          18,830 
        
        
        
        
          18,621 
        
        
        
        
          - 
        
      
      
        
          Amortization and impairment of mortgage servicing rights
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          18,745 
        
      
      
        
          Accretion and amortization of mortgage-backed securities, net
        
        
        
        
          4,845 
        
        
        
        
          4,696 
        
        
        
        
          2,006 
        
        
        
        
          2,331 
        
        
        
        
          1,509 
        
      
      
        
          Deferred cash flow hedge (loss) gain, net of amortization
        
        
        
        
          (14,292)
        
        
        
        
          5,509 
        
        
        
        
          10,509 
        
        
        
        
          3,909 
        
        
        
        
          (346)
        
      
      
        
          (Gain) loss on sales of mortgage-backed securities and derivatives
        
        
        
        
          (930)
        
        
        
        
          (4,735)
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          876 
        
      
      
        
          Unrealized loss (gain) on mortgage-backed securities
        
        
        
        
          10,890 
        
        
        
        
          (1,588)
        
        
        
        
          14,591 
        
        
        
        
          3,090 
        
        
        
        
          40,968 
        
      
      
        
          Unrealized (gain) loss on free standing derivatives
        
        
        
        
          (4,828)
        
        
        
        
          20,629 
        
        
        
        
          (1,038)
        
        
        
        
          (4,765)
        
        
        
        
          6,149 
        
      
      
        
          (Decrease) increase in forward delivery contracts
        
        
        
        
          (35,605)
        
        
        
        
          42,315 
        
        
        
        
          (6,036)
        
        
        
        
          (24,041)
        
        
        
        
          24,124 
        
      
      
        
          Capitalized mortgage servicing rights on sold loans
        
        
        
        
          (73,918)
        
        
        
        
          (79,493)
        
        
        
        
          (81,029)
        
        
        
        
          (69,768)
        
        
        
        
          (37,757)
        
      
      
        
          Decrease (increase) in interest rate lock commitments
        
        
        
        
          12,586 
        
        
        
        
          (5,069)
        
        
        
        
          (4,447)
        
        
        
        
          7,131 
        
        
        
        
          (10,508)
        
      
      
        
          (Increase) decrease in mortgage loan basis adjustments
        
        
        
        
          (4,917)
        
        
        
        
          (10,125)
        
        
        
        
          (2,156)
        
        
        
        
          4,731 
        
        
        
        
          (32,201)
        
      
      
        
          Excess tax benefits from share-based payment arrangements
        
        
        
        
          (102)
        
        
        
        
          (332)
        
        
        
        
          (1,198)
        
        
        
        
          - 
        
        
        
        
          - 
        
      
      
        
          Other
        
        
        
        
        
        
        
        
          (1,450)
        
        
        
        
          (569)
        
        
        
        
          (633)
        
        
        
        
          (198)
        
        
        
        
          (645)
        
      
      
        
          (Increase) decrease in operating assets:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Accounts receivable
        
        
        
        
          (58,738)
        
        
        
        
          2,740 
        
        
        
        
          (13,506)
        
        
        
        
          6,829 
        
        
        
        
          18,156 
        
      
      
        
        
        
          Servicing advances
        
        
        
        
          (22,038)
        
        
        
        
          (11,461)
        
        
        
        
          (1,152)
        
        
        
        
          (3,281)
        
        
        
        
          (11,552)
        
      
      
        
        
        
          Other assets
        
        
        
        
          8,281 
        
        
        
        
          (18,648)
        
        
        
        
          (3,582)
        
        
        
        
          (1,451)
        
        
        
        
          4,882 
        
      
      
        
          Increase (decrease) in operating liabilities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Accrued expenses and other liabilities
        
        
        
        
          (42,808)
        
        
        
        
          25,988 
        
        
        
        
          (32,977)
        
        
        
        
          93,876 
        
        
        
        
          31,696 
        
      
      
        
        
        
          Income taxes payable
        
        
        
        
          20,018 
        
        
        
        
          15,611 
        
        
        
        
          30,711 
        
        
        
        
          16,173 
        
        
        
        
          (25,106)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Origination of mortgage loans held for sale
        
        
        
        
          (15,080,212)
        
        
        
        
          (14,664,704)
        
        
        
        
          (14,371,439)
        
        
        
        
          (12,203,014)
        
        
        
        
          (11,482,292)
        
      
      
        
          Principal received from sales of mortgage loans held for sale
        
        
        
        
          14,371,049 
        
        
        
        
          14,241,440 
        
        
        
        
          14,013,921 
        
        
        
        
          13,372,574 
        
        
        
        
          11,179,015 
        
      
      
        
          Additions to mortgage-backed securities and derivatives
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          (152,666)
        
      
      
        
          Principal proceeds from sales of self-originated mortgage-backed 
          securities
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          99,086 
        
        
        
        
          1,809,796 
        
        
        
        
          1,333,188 
        
      
      
        
          Cash received from residual assets in securitizations
        
        
        
        
          14,710 
        
        
        
        
          16,785 
        
        
        
        
          20,947 
        
        
        
        
          27,353 
        
        
        
        
          26,958 
        
      
      
        
          Principal repayments of mortgage-backed securities
        
        
        
        
          29,491 
        
        
        
        
          35,677 
        
        
        
        
          60,485 
        
        
        
        
          93,845 
        
        
        
        
          212,927 
        
      
      
        
        
        
          Net cash (used in) provided by operating activities
        
        
        
        
          (762,709)
        
        
        
        
          (250,921)
        
        
        
        
          (166,763)
        
        
        
        
          3,213,464 
        
        
        
        
          1,168,414 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash flows from investing activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Purchases of premises and equipment
        
        
        
        
          (8,708)
        
        
        
        
          (6,267)
        
        
        
        
          (9,716)
        
        
        
        
          (10,765)
        
        
        
        
          (8,062)
        
      
      
        
          Origination of mortgage loans held for investment
        
        
        
        
          (450,263)
        
        
        
        
          (599,384)
        
        
        
        
          (560,003)
        
        
        
        
          (970,335)
        
        
        
        
          (2,084,025)
        
      
      
        
          Proceeds from repayments and dispositions of mortgage loans held for 
          investment
        
        
        
        
          464,332 
        
        
        
        
          446,199 
        
        
        
        
          240,403 
        
        
        
        
          137,545 
        
        
        
        
          75,613 
        
      
      
        
          Purchases of mortgage-backed securities
        
        
        
        
          (1,423,115)
        
        
        
        
          (1,666,650)
        
        
        
        
          (461,125)
        
        
        
        
          (1,389,336)
        
        
        
        
          (3,298,636)
        
      
      
        
          Principal proceeds from sales of purchased mortgage-backed securities
        
        
        
        
          482,336 
        
        
        
        
          1,503,760 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          24,592 
        
      
      
        
          Principal repayments of purchased mortgage-backed securities
        
        
        
        
          535,465 
        
        
        
        
          529,441 
        
        
        
        
          501,239 
        
        
        
        
          438,297 
        
        
        
        
          409,080 
        
      
      
        
          Net increase in investment in Federal Home Loan Bank stock, at cost
        
        
        
        
          - 
        
        
        
        
          (54)
        
        
        
        
          (108)
        
        
        
        
          - 
        
        
        
        
          - 
        
      
      
        
          Acquisition of business
        
        
        
        
          (14,108)
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          (550,077)
        
        
        
        
          - 
        
      
      
        
        
        
          Net cash (used in) provided by investing activities
        
        
        
        
          (414,061)
        
        
        
        
          207,045 
        
        
        
        
          (289,310)
        
        
        
        
          (2,344,671)
        
        
        
        
          (4,881,438)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash flows from financing activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          (Decrease) increase in warehouse lines of credit, net
        
        
        
        
          (585,493)
        
        
        
        
          413,076 
        
        
        
        
          (277,623)
        
        
        
        
          (1,719,610)
        
        
        
        
          1,309,037 
        
      
      
        
          Increase (decrease) in reverse repurchase agreements, net
        
        
        
        
          1,338,956 
        
        
        
        
          (1,707,283)
        
        
        
        
          40,736 
        
        
        
        
          (907,094)
        
        
        
        
          1,764,565 
        
      
      
        
          Decrease in deposits
        
        
        
        
          (6,673)
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
        
        
        
          - 
        
      
      
        
          Increase (decrease) in collateralized debt obligations
        
        
        
        
          1,369,928 
        
        
        
        
          (240,005)
        
        
        
        
          819,679 
        
        
        
        
          1,847,293 
        
        
        
        
          1,057,906 
        
      
      
        
          (Decrease) increase in payable for securities purchased
        
        
        
        
          (931,389)
        
        
        
        
          1,221,105 
        
        
        
        
          (215,114)
        
        
        
        
          (46,425)
        
        
        
        
          (293,178)
        
      
      
        
          (Decrease) increase in commercial paper, net
        
        
        
        
          (9,893)
        
        
        
        
          395,382 
        
        
        
        
          (185,154)
        
        
        
        
          (5,549)
        
        
        
        
          (255,117)
        
      
      
        
          Increase (decrease) in drafts payable, net
        
        
        
        
          4,063 
        
        
        
        
          (3,600)
        
        
        
        
          (4,028)
        
        
        
        
          (4,377)
        
        
        
        
          1,991 
        
      
      
        
          Increase in trust preferred securities
        
        
        
        
          53,738 
        
        
        
        
          29,560 
        
        
        
        
          48,762 
        
        
        
        
          330 
        
        
        
        
          106,724 
        
      
      
        
          Increase (decrease) in notes payable, net
        
        
        
        
          97,306 
        
        
        
        
          (20,539)
        
        
        
        
          6,986 
        
        
        
        
          11,405 
        
        
        
        
          13,543 
        
      
      
        
          Proceeds from issuance of common stock
        
        
        
        
          211 
        
        
        
        
          1,068 
        
        
        
        
          1,127 
        
        
        
        
          652 
        
        
        
        
          857 
        
      
      
        
          Excess tax benefits from share-based payment arrangements
        
        
        
        
          102 
        
        
        
        
          332 
        
        
        
        
          1,198 
        
        
        
        
          - 
        
        
        
        
          - 
        
      
      
        
          Dividends paid
        
        
        
        
          (53,999)
        
        
        
        
          (51,409)
        
        
        
        
          (48,819)
        
        
        
        
          (48,477)
        
        
        
        
          (42,078)
        
      
      
        
        
        
          Net cash provided by (used in) financing activities
        
        
        
        
          1,276,857 
        
        
        
        
          37,687 
        
        
        
        
          187,750 
        
        
        
        
          (871,852)
        
        
        
        
          3,664,250 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net increase (decrease) in cash and cash equivalents
        
        
        
        
          100,087 
        
        
        
        
          (6,189)
        
        
        
        
          (268,323)
        
        
        
        
          (3,059)
        
        
        
        
          (48,774)
        
      
      
        
          Cash and cash equivalents, beginning of period
        
        
        
        
          298,079 
        
        
        
        
          304,268 
        
        
        
        
          572,591 
        
        
        
        
          575,650 
        
        
        
        
          624,424 
        
      
      
        
          Cash and cash equivalents, end of period
        
        
        
        
          $ 398,166 
        
        
        
        
          $ 298,079 
        
        
        
        
          $ 304,268 
        
        
        
        
          $ 572,591 
        
        
        
        
          $ 575,650 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Supplemental disclosure of non-cash investing activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net transfer of loans held for sale to loans held for investment
        
        
        
        
          $ 533,184 
        
        
        
        
          $ 307,431 
        
        
        
        
          $ 699,519 
        
        
        
        
          $ - 
        
        
        
        
          $ - 
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
        
      
      
        
          (In thousands)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
          Year Ended
        
      
      
        
        
        
        
        
        
        
        
        
          December 31,
        
      
      
        
        
        
        
        
        
        
        
        
           
        
        
          2006 
        
      
      
        
          Cash flows from operating activities:
        
        
        
        
        
      
      
        
          Net income
        
        
        
        
        
        
          $
        
        
          263,527 
        
      
      
        
          Adjustments to reconcile net income to net cash
        
        
        
        
        
      
      
        
          provided by operating activities:
        
        
        
        
        
      
      
        
          Depreciation and amortization
        
        
        
        
        
        
          18,245 
        
      
      
        
          Provision for loan losses
        
        
        
        
        
        
          17,380 
        
      
      
        
          Change in fair value of mortgage servicing rights
        
        
        
        
        
        
          119,038 
        
      
      
        
          Accretion and amortization of mortgage-backed securities, net
        
        
        
        
        
        
          13,878 
        
      
      
        
          Deferred cash flow hedge gain, net of amortization
        
        
        
        
        
        
          5,635 
        
      
      
        
          Gain on sales of mortgage-backed securities and derivatives
        
        
        
        
        
        
          (5,665)
        
      
      
        
          Unrealized loss on mortgage-backed securities
        
        
        
        
        
        
          26,983 
        
      
      
        
          Unrealized loss on free standing derivatives
        
        
        
        
        
        
          9,998 
        
      
      
        
          Decrease in forward delivery contracts
        
        
        
        
        
        
          (23,367)
        
      
      
        
          Capitalized mortgage servicing rights on sold loans
        
        
        
        
        
        
          (304,208)
        
      
      
        
          Decrease in interest rate lock commitments
        
        
        
        
        
        
          10,201 
        
      
      
        
          Increase in mortgage loan basis adjustments
        
        
        
        
        
        
          (12,467)
        
      
      
        
          Excess tax benefits from share-based payment arrangements
        
        
        
        
        
        
          (1,632)
        
      
      
        
          Other
        
        
        
        
        
        
        
        
        
        
          (2,850)
        
      
      
        
          Increase in operating assets:
        
        
        
        
        
      
      
        
        
        
          Accounts receivable
        
        
        
        
        
        
          (62,675)
        
      
      
        
        
        
          Servicing advances
        
        
        
        
        
        
          (37,932)
        
      
      
        
        
        
          Other assets
        
        
        
        
        
        
        
        
          (15,400)
        
      
      
        
          Increase in operating liabilities:
        
        
        
        
        
      
      
        
        
        
          Accrued expenses and other liabilities
        
        
        
        
        
        
          44,079 
        
      
      
        
        
        
          Income taxes payable
        
        
        
        
        
        
          82,513 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Origination of mortgage loans held for sale
        
        
        
        
        
        
          (56,319,369)
        
      
      
        
          Principal received from sales of mortgage loans held for sale
        
        
        
        
        
        
          55,998,984 
        
      
      
        
          Principal proceeds from sales of self-originated mortgage-backed 
          securities
        
        
        
        
        
        
          1,908,882 
        
      
      
        
          Cash received from residual assets in securitizations
        
        
        
        
        
        
          79,795 
        
      
      
        
          Principal repayments of mortgage-backed securities
        
        
        
        
           
        
        
          219,498 
        
      
      
        
        
        
          Net cash provided by operating activities
        
        
        
        
           
        
        
          2,033,071 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash flows from investing activities:
        
        
        
        
        
      
      
        
          Purchases of premises and equipment
        
        
        
        
        
        
          (35,456)
        
      
      
        
          Origination of mortgage loans held for investment
        
        
        
        
        
        
          (2,579,985)
        
      
      
        
          Proceeds from repayments and dispositions of mortgage loans held for 
          investment
        
        
        
        
          1,288,479 
        
      
      
        
          Purchases of mortgage-backed securities
        
        
        
        
        
        
          (4,940,226)
        
      
      
        
          Principal proceeds from sales of purchased mortgage-backed securities
        
        
        
        
        
        
          1,986,096 
        
      
      
        
          Principal repayments of purchased mortgage-backed securities
        
        
        
        
        
        
          2,004,442 
        
      
      
        
          Net increase in investment in Federal Home Loan Bank stock, at cost
        
        
        
        
        
        
          (162)
        
      
      
        
          Acquisition of business
        
        
        
        
           
        
        
          (564,185)
        
      
      
        
        
        
          Net cash used in investing activities
        
        
        
        
           
        
        
          (2,840,997)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash flows from financing activities:
        
        
        
        
        
      
      
        
          Decrease in warehouse lines of credit, net
        
        
        
        
        
        
          (2,169,650)
        
      
      
        
          Decrease in reverse repurchase agreements, net
        
        
        
        
        
        
          (1,234,685)
        
      
      
        
          Decrease in deposits
        
        
        
        
        
        
          (6,673)
        
      
      
        
          Increase in collateralized debt obligations
        
        
        
        
        
        
          3,796,895 
        
      
      
        
          Increase in payable for securities purchased
        
        
        
        
        
        
          28,177 
        
      
      
        
          Increase in commercial paper, net
        
        
        
        
        
        
          194,786 
        
      
      
        
          Decrease in drafts payable, net
        
        
        
        
        
        
          (7,942)
        
      
      
        
          Increase in trust preferred securities
        
        
        
        
        
        
          132,390 
        
      
      
        
          Increase in notes payable, net
        
        
        
        
        
        
          95,158 
        
      
      
        
          Proceeds from issuance of common stock
        
        
        
        
        
        
          3,058 
        
      
      
        
          Excess tax benefits from share-based payment arrangements
        
        
        
        
        
        
          1,632 
        
      
      
        
          Dividends paid
        
        
        
        
        
        
           
        
        
          (202,704)
        
      
      
        
        
        
          Net cash provided by financing activities
        
        
        
        
           
        
        
          630,442 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net decrease in cash and cash equivalents
        
        
        
        
        
        
          (177,484)
        
      
      
        
          Cash and cash equivalents, beginning of period
        
        
        
        
           
        
        
          575,650 
        
      
      
        
          Cash and cash equivalents, end of period
        
        
        
        
          $
        
        
          398,166 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Supplemental disclosure of non-cash investing activities:
        
        
        
        
        
      
      
        
          Net transfer of loans held for sale to loans held for investment
        
        
          $
        
        
          1,540,134 
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          FAIR VALUE OF FINANCIAL INSTRUMENTS (Unaudited)
        
      
      
        
          (In thousands)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          December 31, 2006
        
      
      
        
        
        
        
        
          Carrying Value
        
        
        
        
          Fair Value
        
        
        
        
          
            Fair Value in Excess of
          
          
            Carrying Value
          
        
      
      
        
          Assets:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
          $ 398,166 
        
        
        
        
          $ 398,166 
        
        
        
        
          $ - 
        
      
      
        
          Accounts receivable and servicing advances
        
        
        
        
          432,418 
        
        
        
        
          432,418 
        
        
        
        
          - 
        
      
      
        
          Securities
        
        
        
        
          9,308,032 
        
        
        
        
          9,308,032 
        
        
        
        
          - 
        
      
      
        
          Mortgage loans held for sale, net
        
        
        
        
          1,523,737 
        
        
        
        
          1,573,564 
        
        
        
        
          49,827 
        
      
      
        
          Loans held for investment, net
        
        
        
        
          6,329,721 
        
        
        
        
          6,461,449 
        
        
        
        
          131,728 
        
      
      
        
          Mortgage servicing rights, net
        
        
        
        
          506,341 
        
        
        
        
          506,341 
        
        
        
        
          - 
        
      
      
        
          Derivative assets (1)
        
        
        
        
          32,142 
        
        
        
        
          130,091 
        
        
        
        
          97,949 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ 279,504 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          Carrying Value in Excess of (Lower Than) Fair Value
        
      
      
        
          Liabilities:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Warehouse lines of credit
        
        
        
        
          $ 1,304,541 
        
        
        
        
          $ 1,304,541 
        
        
        
        
          $ - 
        
      
      
        
          Commercial paper
        
        
        
        
          1,273,965 
        
        
        
        
          1,273,965 
        
        
        
        
          - 
        
      
      
        
          Reverse repurchase agreements
        
        
        
        
          8,571,459 
        
        
        
        
          8,571,538 
        
        
        
        
          (79)
        
      
      
        
          Collateralized debt obligations
        
        
        
        
          4,854,801 
        
        
        
        
          4,856,258 
        
        
        
        
          (1,457)
        
      
      
        
          Derivative liabilities
        
        
        
        
          12,644 
        
        
        
        
          12,644 
        
        
        
        
          - 
        
      
      
        
          Trust preferred securities
        
        
        
        
          336,078 
        
        
        
        
          336,078 
        
        
        
        
          - 
        
      
      
        
          Notes payable
        
        
        
        
          417,467 
        
        
        
        
          417,467 
        
        
        
        
          - 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ (1,536)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          Fair Value in Excess of Carrying Value
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
          $ 277,968 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Note:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          (1) 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
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          As of and for the Year Ended
        
      
      
        
        
        
        
        
          December 31, 2005
        
      
      
        
        
        
        
        
        
        
        
        
          (1)
        
        
        
        
        
      
      
        
        
        
        
        
          GAAP
        
        
        
        
          Adjustments
        
        
        
        
          As Adjusted
        
      
      
        
          Mortgage Holdings Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Investment Portfolio Performance (2):
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Average loans and mortgage-backed securities in portfolio ($ 
          billions)
        
        
        
        
          7.6 
        
        
        
        
          0.4 
        
        
        
        
          8.0 
        
      
      
        
          Interest income ($ millions)
        
        
        
        
          357.9 
        
        
        
        
          19.9 
        
        
        
        
          377.8 
        
      
      
        
          Average portfolio yield
        
        
        
        
          4.73%
        
        
        
        
        
        
        
        
          4.75%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest expense ($ millions)
        
        
        
        
          262.3 
        
        
        
        
          7.7 
        
        
        
        
          270.0 
        
      
      
        
          Average cost of funds and hedges
        
        
        
        
          3.71%
        
        
        
        
        
        
        
        
          3.65%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net interest income ($ millions)
        
        
        
        
          95.6 
        
        
        
        
          12.2 
        
        
        
        
          107.8 
        
      
      
        
          Net interest margin
        
        
        
        
          1.26%
        
        
        
        
        
        
        
        
          1.36%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Interest carry on free standing derivatives ($ millions)
        
        
        
        
          -7.3 
        
        
        
        
        
        
        
        
          -7.3 
        
      
      
        
          Net interest income plus interest carry on free standing derivatives 
          ($ millions)
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          88.3 
        
        
        
        
          12.2 
        
        
        
        
          100.5 
        
      
      
        
          Net interest margin including interest carry on free standing 
          derivatives
        
        
          1.17%
        
        
        
        
        
        
        
        
          1.26%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Reconciliation of Changes in Mortgage Holdings (3):
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net change in mortgage-backed securities ($ billions)
        
        
        
        
          0.3 
        
        
        
        
        
        
        
        
          0.3 
        
      
      
        
          Additions to loans in portfolio ($ billions)
        
        
        
        
          3.5 
        
        
        
        
        
        
        
        
          3.5 
        
      
      
        
          Principal repayments of loans in portfolio ($ billions)
        
        
        
        
          0.0 
        
        
        
        
        
        
        
        
          0.0 
        
      
      
        
          Net additions to loans in portfolio ($ billions)
        
        
        
        
          3.5 
        
        
        
        
        
        
        
        
          3.5 
        
      
      
        
          Loans and mortgage-backed securities held - end of period ($ 
          billions)
        
        
        
        
          14.1 
        
        
        
        
        
        
        
        
          14.1 
        
      
      
        
          Mortgage-backed securities period end duration gap (in years)
        
        
        
        
          -0.03 
        
        
        
        
        
        
        
        
          -0.03 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loan Origination Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loan originations ($ billions)
        
        
        
        
          45.3 
        
        
        
        
        
        
        
        
          45.3 
        
      
      
        
          Refinance
        
        
        
        
          47%
        
        
        
        
        
        
        
        
          47%
        
      
      
        
          ARM
        
        
        
        
          50%
        
        
        
        
        
        
        
        
          50%
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Average mortgage loans, net ($ billions) (3)
        
        
        
        
          6.1 
        
        
        
        
          -0.9 
        
        
        
        
          5.2 
        
      
      
        
          Net interest income excluding trust preferred and other interest 
          expense ($ millions)
        
        
          119.2 
        
        
        
        
          -22.4 
        
        
        
        
          96.8 
        
      
      
        
          Net interest margin excluding trust preferred and other interest 
          expense
        
        
          1.96%
        
        
        
        
        
        
        
        
          1.85%
        
      
      
        
          Trust preferred and other interest expense ($ millions)
        
        
        
        
          6.5 
        
        
        
        
        
        
        
        
          6.5 
        
      
      
        
          Net interest income ($ millions)
        
        
        
        
          112.7 
        
        
        
        
          -22.4 
        
        
        
        
          90.3 
        
      
      
        
          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)
        
        
        
        
          28.5 
        
        
        
        
        
        
        
        
          28.5 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gain on sales of loans, net of hedge gains ($ millions) (4)
        
        
        
        
          620.9 
        
        
        
        
          -43.5 
        
        
        
        
          577.4 
        
      
      
        
          Excess of fair value over carrying value of loans added to 
          investment portfolio ($ millions)
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          58.0 
        
        
        
        
           
        
        
        
        
          58.0 
        
      
      
        
          Total ($ millions)
        
        
        
        
          678.9 
        
        
        
        
          -43.5 
        
        
        
        
          635.4 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gain on sales of loans, net of hedge gains (% of principal) (4)
        
        
        
        
          1.53%
        
        
        
        
        
        
        
        
          1.42%
        
      
      
        
          Excess of fair value over carrying value of loans added to 
          investment portfolio (% of principal)
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          1.63%
        
        
        
        
        
        
        
        
          1.63%
        
      
      
        
          Total (% of principal)
        
        
        
        
          1.54%
        
        
        
        
        
        
        
        
          1.44%
        
      
      
        
          Applications accepted ($ billions)
        
        
        
        
          67.8 
        
        
        
        
        
        
        
        
          67.8 
        
      
      
        
          Application pipeline ($ billions)
        
        
        
        
          9.2 
        
        
        
        
        
        
        
        
          9.2 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loan Servicing Segment:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Loan servicing portfolio - total with warehouse ($ billions)
        
        
        
        
          30.7 
        
        
        
        
        
        
        
        
          30.7 
        
      
      
        
          Loan servicing portfolio - loans sold or securitized ($ billions)
        
        
        
        
          25.0 
        
        
        
        
        
        
        
        
          25.0 
        
      
      
        
          Interest expense ($ millions)
        
        
        
        
          7.3 
        
        
        
        
        
        
        
        
          7.3 
        
      
      
        
          Weighted average note rate
        
        
        
        
          5.79%
        
        
        
        
        
        
        
        
          5.79%
        
      
      
        
          Weighted average service fee
        
        
        
        
          0.330%
        
        
        
        
        
        
        
        
          0.330%
        
      
      
        
          Average age (in months)
        
        
        
        
          15 
        
        
        
        
        
        
        
        
          15 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Notes:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          (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.
        
      
      
        
          (2) Excludes loans held for investment pending securitization.
        
      
      
        
          (3) Includes loans held for investment pending securitization.
        
      
      
        
          (4) Prior to the fourth quarter of 2005, includes gain on current 
          period securitizations, net of hedge gains.
        
      
    
    
      
        
          AMERICAN HOME MORTGAGE INVESTMENT CORP. AND SUBSIDIARIES
        
      
      
        
          CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
        
      
      
        
          (In thousands, except per share amounts)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
        
        
          Year Ended
        
      
      
        
        
        
        
        
        
        
          December 31, 2005
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          
            (1)
          
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          GAAP
        
        
           
        
        
          Adjustments
        
        
           
        
        
          As Adjusted
        
      
      
        
          Net interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Interest income
        
        
        
        
          $ 727,685 
        
        
        
        
          $ (26,925)
        
        
        
        
          $ 700,760 
        
      
      
        
        
        
          Interest expense
        
        
        
        
          (526,653)
        
        
           
        
        
          16,766 
        
        
           
        
        
          (509,887)
        
      
      
        
        
        
          Net interest income
        
        
        
        
          201,032 
        
        
           
        
        
          (10,159)
        
        
           
        
        
          190,873 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Provision for loan losses
        
        
        
        
          (2,142)
        
        
           
        
        
          - 
        
        
           
        
        
          (2,142)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Net interest income after provision for loan losses
        
        
        
        
          198,890 
        
        
           
        
        
          (10,159)
        
        
           
        
        
          188,731 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest income:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Gain on sales of mortgage loans
        
        
        
        
          335,065 
        
        
        
        
          - 
        
        
        
        
          335,065 
        
      
      
        
        
        
          Gain on sales of current period securitized mortgage loans
        
        
        
        
          194,256 
        
        
        
        
          (25,258)
        
        
        
        
          168,998 
        
      
      
        
        
        
          Gain on sales of mortgage-backed securities and derivatives
        
        
        
        
          50,936 
        
        
        
        
          (1,400)
        
        
        
        
          49,536 
        
      
      
        
        
        
          Unrealized loss on mortgage-backed securities and derivatives
        
        
        
        
          (8,536)
        
        
        
        
          (37,263)
        
        
        
        
          (45,799)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Loan servicing fees
        
        
        
        
          76,096 
        
        
        
        
          2,851 
        
        
        
        
          78,947 
        
      
      
        
        
        
          Amortization and impairment of mortgage servicing rights
        
        
        
        
          (60,535)
        
        
        
        
          (122)
        
        
        
        
          (60,657)
        
      
      
        
        
        
          Change in fair value of mortgage servicing rights
        
        
        
        
          - 
        
        
           
        
        
          - 
        
        
           
        
        
          - 
        
      
      
        
        
        
          Net loan servicing fees
        
        
        
        
          15,561 
        
        
           
        
        
          2,729 
        
        
           
        
        
          18,290 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Other non-interest income
        
        
        
        
          7,775 
        
        
           
        
        
          - 
        
        
           
        
        
          7,775 
        
      
      
        
        
        
          Non-interest income
        
        
        
        
          595,057 
        
        
           
        
        
          (61,192)
        
        
           
        
        
          533,865 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Non-interest expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Salaries, commissions and benefits, net
        
        
        
        
          359,949 
        
        
        
        
          - 
        
        
        
        
          359,949 
        
      
      
        
        
        
          Occupancy and equipment
        
        
        
        
          58,855 
        
        
        
        
          - 
        
        
        
        
          58,855 
        
      
      
        
        
        
          Data processing and communications
        
        
        
        
          24,788 
        
        
        
        
          - 
        
        
        
        
          24,788 
        
      
      
        
        
        
          Office supplies and expenses
        
        
        
        
          19,722 
        
        
        
        
          - 
        
        
        
        
          19,722 
        
      
      
        
        
        
          Marketing and promotion
        
        
        
        
          20,311 
        
        
        
        
          - 
        
        
        
        
          20,311 
        
      
      
        
        
        
          Travel and entertainment
        
        
        
        
          21,007 
        
        
        
        
          - 
        
        
        
        
          21,007 
        
      
      
        
        
        
          Professional fees
        
        
        
        
          14,232 
        
        
        
        
          - 
        
        
        
        
          14,232 
        
      
      
        
        
        
          Other
        
        
        
        
          32,018 
        
        
           
        
        
          - 
        
        
           
        
        
          32,018 
        
      
      
        
        
        
          Non-interest expenses
        
        
        
        
          550,882 
        
        
           
        
        
          - 
        
        
           
        
        
          550,882 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income before income tax expense
        
        
        
        
          243,065 
        
        
        
        
          (71,351)
        
        
        
        
          171,714 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income tax benefit
        
        
        
        
          (17,721)
        
        
           
        
        
          - 
        
        
           
        
        
          (17,721)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income
        
        
        
        
          $ 260,786 
        
        
           
        
        
          $ (71,351)
        
        
           
        
        
          $ 189,435 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Dividends on preferred stock
        
        
        
        
          13,217 
        
        
        
        
          - 
        
        
        
        
          13,217 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net income available to common shareholders
        
        
        
        
          $ 247,569 
        
        
           
        
        
          $ (71,351)
        
        
           
        
        
          $ 176,218 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Per share data:
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Basic
        
        
        
        
          $ 5.64 
        
        
        
        
          $ (1.63)
        
        
        
        
          $ 4.01 
        
      
      
        
        
        
          Diluted
        
        
        
        
          $ 5.58 
        
        
        
        
          $ (1.61)
        
        
        
        
          $ 3.97 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Weighted average number of shares - basic
        
        
        
        
          43,897 
        
        
        
        
          43,897 
        
        
        
        
          43,897 
        
      
      
        
        
        
          Weighted average number of shares - diluted
        
        
        
        
          44,375 
        
        
        
        
          44,375 
        
        
        
        
          44,375 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          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.