AmNet Takes 1Q Loss

AmNet Mortgage Inc. (formerly American Residential Investment Trust), San Diego, has reported a net loss of $5.7 million ($0.72 per share) for the first quarter, compared with net income of $12.2 million ($1.53 per share) a year earlier.The loss included a $2.6 million after-tax charge relating to a pending asset sale. "As a result of our decision to sell the majority of the remaining mortgage asset portfolio and focus entirely on our mortgage banking business, we reclassified certain portfolio assets from 'held for investment' to 'held for sale'," said AmNet chief executive officer John M. Robbins. "When we made that reclassification, we were obligated to mark those assets to market, and we took a pretax valuation adjustment of $4.4 million.... The sale will simplify our balance sheet, virtually double our cash reserves, eliminate nearly all future prepayment or credit risk represented by the portfolio, and unlock the cash equity previously invested in these assets." The company can be found online at http://www.amnetmortgage.com.