Thornburg Mortgage Inc. (TMA) Reports Net Loss
Santa Fe's Thornburg Mortgage Inc. today reported a net loss before preferred stock dividends for the quarter ended Sept. 30 of $1.084 billion, or a loss of $8.83 per common share, as compared to net income of $75.3 million, or $0.64 per common share for the same period in the prior year. Taxable loss for the quarter is estimated to be $0.08 per common share.
The company's board of directors elected not to declare a common stock dividend for the third quarter, though it noted that it expects profitability and market conditions to improve in the fourth quarter and would consider resuming common dividend payments at that time.
Garrett Thornburg, chairman and chief executive officer, said the company believes "it is in the best long-term interests of our shareholders to forgo payment of a common dividend for the quarter and to make conserving cash, enhancing liquidity and selectively acquiring new assets our key priorities during the fourth quarter."
Thornburg's (NYSE:TMA - News) stock slipped on the dividend news, down in midday trading on Wednesday by more than 12 percent to $9.98 per share from Tuesday's close of $11.40 per share. Prior to the credit crunch that has mangled the mortgage lending industry, the company's stock had traded as high as $28.40 per share.
During the third quarter, a number of factors negatively affected the company's earnings and balance sheet, including the sale of $21.9 billion in mortgage assets, resulting in a loss on those sales of $1.093 billion; a loss of $11.5 million on its forward commitments to fund mortgage loans; an amortization expense for the quarter of $36.3 million, compared to an expected $5 million to $10 million; a $12.0 million tax provision; other expenses; a $17.9 million long-term incentive award benefit as the company marked down the value of its long-term incentive awards; a $53.4 million reduction in its interest expense; and other savings.
Commenting on the company's loan portfolio, President and CEO Larry Goldstone said, "The credit quality of the company's originated and bulk purchased loans remains exceptional ... However, after 22 straight quarters without incurring a principal loss on foreclosed loans, the company has realized loan losses of $51,630 in the third quarter of 2007."
Published October 17, 2007 by New Mexico Business Weekly
The company's board of directors elected not to declare a common stock dividend for the third quarter, though it noted that it expects profitability and market conditions to improve in the fourth quarter and would consider resuming common dividend payments at that time.
Garrett Thornburg, chairman and chief executive officer, said the company believes "it is in the best long-term interests of our shareholders to forgo payment of a common dividend for the quarter and to make conserving cash, enhancing liquidity and selectively acquiring new assets our key priorities during the fourth quarter."
Thornburg's (NYSE:TMA - News) stock slipped on the dividend news, down in midday trading on Wednesday by more than 12 percent to $9.98 per share from Tuesday's close of $11.40 per share. Prior to the credit crunch that has mangled the mortgage lending industry, the company's stock had traded as high as $28.40 per share.
During the third quarter, a number of factors negatively affected the company's earnings and balance sheet, including the sale of $21.9 billion in mortgage assets, resulting in a loss on those sales of $1.093 billion; a loss of $11.5 million on its forward commitments to fund mortgage loans; an amortization expense for the quarter of $36.3 million, compared to an expected $5 million to $10 million; a $12.0 million tax provision; other expenses; a $17.9 million long-term incentive award benefit as the company marked down the value of its long-term incentive awards; a $53.4 million reduction in its interest expense; and other savings.
Commenting on the company's loan portfolio, President and CEO Larry Goldstone said, "The credit quality of the company's originated and bulk purchased loans remains exceptional ... However, after 22 straight quarters without incurring a principal loss on foreclosed loans, the company has realized loan losses of $51,630 in the third quarter of 2007."
Published October 17, 2007 by New Mexico Business Weekly
Labels: Thornburg Mortgage Inc., TMA
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