America First Mortgage Investments, Inc. Announces Substantial Increase In First Quarter Earnings

Apr 30, 2001, 01:00 ET from America First Mortgage Investments, Inc.

    NEW YORK, April 30 /PRNewswire/ -- America First Mortgage Investments,
 Inc. (NYSE:   MFA) today reported first quarter net income of $4,068,297 or
 $0.47 per common share, compared to $1,494,751 or $0.17 per share for the same
 period of 2000.  Included in the current quarter's net income was a net gain
 from the sale of The Parklane senior living facility of $2,043,679.  Excluding
 the net gain from sale, net income for the quarter totaled $2,024,618 or $0.23
 per share, representing an increase of 35% from the first quarter of 2000.
     On April 9, 2001, MFA's board of directors increased the quarterly
 dividend on its common stock from $0.165 per share to $0.175 per share,
 payable on July 16, 2001, to shareholders of record on June 30, 2001.  This is
 the second dividend increase of 2001.
     Stewart Zimmerman, president and chief executive officer, commented, "We
 are very pleased with MFA's financial results in the first quarter and project
 continued strong performance for the company for the remainder of 2001.  Our
 average cost of funds decreased to 5.62% from 6.67% in the previous quarter.
 We expect our cost of funds to continue its downward trend in the second
 quarter."
     During the first quarter, the average securities portfolio yield decreased
 to 6.81% from 7.18%.  Reduced funding costs more than offset the decline in
 the portfolio yield, resulting in a portfolio spread (difference between our
 average security portfolio yield and our average cost of funds) of 1.19%
 compared to .51% in the previous quarter.  The prepayment rate on our mortgage
 backed securities portfolio increased at an acceptable rate averaging a 19.2%
 Constant Prepayment Rate (CPR) for the first quarter, up from a 16.6% CPR in
 the previous quarter.
     MFA's objective is to generate a high level of income from its portfolio
 of high-quality adjustable-rate mortgage securities and other assets.  At
 March 31, 2001 MFA had total assets on its balance sheet of $563 million.  As
 of that date, approximately 77% of these assets consisted of adjustable-rate
 mortgage-backed securities guaranteed by an agency of the United States
 government such as the Government National Mortgage Association ("GNMA"), the
 Federal National Mortgage Association ("FNMA") or the Federal Home Loan
 Mortgage corporation ("FHLMC") secured by single-family residential mortgage
 loans.  MFA also owns interests in six multifamily apartment properties
 consisting of a total of 1,473 rental units and certain debt and equity
 securities.
     MFA finances the acquisition of mortgage-backed securities primarily by
 borrowing at short-term rates using repurchase agreements.  The company's
 current policy is to maintain an assets-to-equity ratio of less than 11 to 1
 and as of March 31, 2001, the assets-to-equity ratio was approximately
 7.42 to 1.
 
     Information contained in this Press Release contains "forward-looking
 statements" relating to, without limitation, future performance, plans and
 objectives of management for future operations and projections of revenue and
 other financial items, which can be identified by the use of forward-looking
 terminology such as "may", "will", "should", "expect", "anticipate",
 "estimate", or "continue" or the negative thereof or other variations thereon
 or comparable terminology.  Several factors with respect to such
 forward-looking statements, including certain risks and uncertainties, could
 cause actual results to differ materially from those in such forward-looking
 statements.
 
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SOURCE America First Mortgage Investments, Inc.
    NEW YORK, April 30 /PRNewswire/ -- America First Mortgage Investments,
 Inc. (NYSE:   MFA) today reported first quarter net income of $4,068,297 or
 $0.47 per common share, compared to $1,494,751 or $0.17 per share for the same
 period of 2000.  Included in the current quarter's net income was a net gain
 from the sale of The Parklane senior living facility of $2,043,679.  Excluding
 the net gain from sale, net income for the quarter totaled $2,024,618 or $0.23
 per share, representing an increase of 35% from the first quarter of 2000.
     On April 9, 2001, MFA's board of directors increased the quarterly
 dividend on its common stock from $0.165 per share to $0.175 per share,
 payable on July 16, 2001, to shareholders of record on June 30, 2001.  This is
 the second dividend increase of 2001.
     Stewart Zimmerman, president and chief executive officer, commented, "We
 are very pleased with MFA's financial results in the first quarter and project
 continued strong performance for the company for the remainder of 2001.  Our
 average cost of funds decreased to 5.62% from 6.67% in the previous quarter.
 We expect our cost of funds to continue its downward trend in the second
 quarter."
     During the first quarter, the average securities portfolio yield decreased
 to 6.81% from 7.18%.  Reduced funding costs more than offset the decline in
 the portfolio yield, resulting in a portfolio spread (difference between our
 average security portfolio yield and our average cost of funds) of 1.19%
 compared to .51% in the previous quarter.  The prepayment rate on our mortgage
 backed securities portfolio increased at an acceptable rate averaging a 19.2%
 Constant Prepayment Rate (CPR) for the first quarter, up from a 16.6% CPR in
 the previous quarter.
     MFA's objective is to generate a high level of income from its portfolio
 of high-quality adjustable-rate mortgage securities and other assets.  At
 March 31, 2001 MFA had total assets on its balance sheet of $563 million.  As
 of that date, approximately 77% of these assets consisted of adjustable-rate
 mortgage-backed securities guaranteed by an agency of the United States
 government such as the Government National Mortgage Association ("GNMA"), the
 Federal National Mortgage Association ("FNMA") or the Federal Home Loan
 Mortgage corporation ("FHLMC") secured by single-family residential mortgage
 loans.  MFA also owns interests in six multifamily apartment properties
 consisting of a total of 1,473 rental units and certain debt and equity
 securities.
     MFA finances the acquisition of mortgage-backed securities primarily by
 borrowing at short-term rates using repurchase agreements.  The company's
 current policy is to maintain an assets-to-equity ratio of less than 11 to 1
 and as of March 31, 2001, the assets-to-equity ratio was approximately
 7.42 to 1.
 
     Information contained in this Press Release contains "forward-looking
 statements" relating to, without limitation, future performance, plans and
 objectives of management for future operations and projections of revenue and
 other financial items, which can be identified by the use of forward-looking
 terminology such as "may", "will", "should", "expect", "anticipate",
 "estimate", or "continue" or the negative thereof or other variations thereon
 or comparable terminology.  Several factors with respect to such
 forward-looking statements, including certain risks and uncertainties, could
 cause actual results to differ materially from those in such forward-looking
 statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X66277624
 
 SOURCE  America First Mortgage Investments, Inc.