Quarterly report pursuant to Section 13 or 15(d)

PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Details 1)

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PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Details 1) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Interest income $ 16,191 $ 2,037
Interest expense 899   
Net Interest Income 15,292 2,037
Change in fair value of investments in excess mortgage servicing rights 1,858 1,216
Change in fair value of investments in equity method investees 969   
Other Income 2,827 1,216
Expenses    
General and administrative expense 2,719 411
Management fee allocated by Newcastle 2,325 154
Total Expenses 5,044 565
Net Income 13,075 2,688
Pro Forma Adjustment
   
Interest income 4,226 [1]  
Interest expense 2,754 [2]  
Net Interest Income 1,472  
Change in fair value of investments in excess mortgage servicing rights     
Change in fair value of investments in equity method investees     
Other Income     
Expenses    
General and administrative expense     
Management fee allocated by Newcastle 71 [3]  
Total Expenses 71  
Net Income 1,401  
New Residential Pro Forma
   
Interest income 20,417  
Interest expense 3,653  
Net Interest Income 16,764  
Change in fair value of investments in excess mortgage servicing rights 1,858  
Change in fair value of investments in equity method investees 969  
Other Income 2,827  
Expenses    
General and administrative expense 2,719  
Management fee allocated by Newcastle 2,396  
Total Expenses 5,115  
Net Income $ 14,476  
Net Income Per Share    
Basic $ 0.06 [4]  
Diluted $ 0.06  
Weighted average number of shares outstanding    
Basic 235,136,756 [4]  
Diluted 240,079,144 [5]  
[1] Represents additional interest income from Agency RMBS acquired during the quarter ended March 31, 2103 and subsequent to March 31, 2013. The interest income was computed based on the weighted average accounting yield of the securities of 1.43%. A 1/8% increase (decrease) in the benchmark interest rate would result in an increase (decrease) in interest income of approximately $0.4 million for the three months ended March 31, 2013.
[2] Represents additional interest expense from additional repurchase agreements used to finance the real estate securities acquired subsequent to March 31, 2013. The interest expense was computed based on the actual terms of the repurchase agreements. A 1/8% increase (decrease) in the benchmark interest rate would result in an increase (decrease) in interest expense of approximately $0.4 million for the three months ended March 31, 2013.
[3] Represents additional management fees related to the capital transactions noted herein.
[4] Pro forma basic earnings per share and weighted average number of basic shares outstanding reflect an estimated number of shares of common stock outstanding based upon Newcastle's weighted average number of basic shares outstanding for the three months ended March 31, 2013 (based on a distribution ratio of one share of New Residential common stock for each share of Newcastle common stock).
[5] Pro forma diluted earnings per share and weighted average number of diluted shares outstanding reflect shares of common stock that may be issued in connection with awards granted prior to the distribution under Newcastle equity plans based on the distribution ratio noted above. While the actual dilutive impact will depend on various factors, we believe the estimate yields a reasonable approximation of the dilutive impact of the Newcastle equity plans and is based upon Newcastle's weighted average number of diluted shares outstanding.