AmNet Mortgage, Inc. Completes Sale of REIT Mortgage Portfolio Assets.Business Editors SAN DIEGO--(BUSINESS WIRE)--June 9, 2004 AmNet Mortgage, Inc. (formerly American Residential Investment Trust, Inc.) (AMEX AMEX See: American Stock Exchange :INV INV abbr. in vitro fertilization ), the parent company of American Mortgage Network (AmNet), a wholesale mortgage bank serving mortgage brokers nationwide, today announced that it had completed the sale of the majority of its mortgage portfolio assets. Commenting on the sale, John M. Robbins, Chief Executive Officer, said, "The Company took advantage of market demand for seasoned non-prime loans and sold the majority of its remaining mortgage asset portfolio, which had been acquired when the Company operated as a real estate investment trust. This opportunistic transaction had several advantages. The sale simplified our balance sheet and significantly increased our cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. . It has also eliminated the vast majority of prepayment and credit risk represented by the old REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). portfolio." In May, the Company announced a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program of up to 400,000 shares of its outstanding common stock contingent on the anticipated sale of its mortgage asset portfolio. The shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. for repurchase represent approximately 5% of the common shares outstanding at March 31, 2004. Repurchases may be made from time to time at prevailing market prices through open market or negotiated block purchase transactions at the discretion of the Company. The timing of the repurchases will depend on market conditions and corporate requirements. About AmNet Mortgage, Inc. AmNet Mortgage Inc., formerly American Residential Investment Trust, Inc., is the parent company of American Mortgage Network. For more information, please visit amnetmortgageinc.com. About American Mortgage Network Headquartered in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , AmNet is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AmNet Mortgage, Inc. AmNet originates loans for the national mortgage broker community through its network of branches and business-to-business over the Internet. AmNet has loan production offices in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Kansas, Minnesota, New Jersey, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , North Carolina, Oregon, Rhode Island, Texas, Virginia and Washington. AmNet has a total of $1.4 billion in warehouse borrowing capacity and is approved to do business in 49 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). either by license or exemption. AmNet has 5,000 approved broker customers across the nation. For more information, please visit www.amnetmortgage.com. Forward-Looking Statement Certain matters discussed in this press release may constitute forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements regarding the Company's stock repurchase program. Actual results and the timing of certain events could also differ materially from those projected in or contemplated by our forward-looking statements due to a number of other factors, including but not limited to: the level of interest rates generally; economic conditions generally; the size of the national mortgage market; the predictability of the Company's expenses and margins; the future correlation of volatility in forward mortgage sale instruments to the Company's loan lock commitments; interest rate volatility; the Company's liquidity position and other risk factors outlined in the Company's SEC reports. |
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