Quarterly report pursuant to Section 13 or 15(d)

PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

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PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
6 Months Ended
Jun. 30, 2013
Pro Forma Condensed Consolidated Financial Information  
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended June 30, 2013
 
   
Newcastle
   
Pro Forma
   
Newcastle
 
   
Consolidated
   
Adjustments
   
Consolidated
 
   
Historical (A)
   
New Residential (B)
   
Pro Forma
 
                   
Interest income
  $ 62,824     $ (5,863 )   $ 56,961  
Interest expense
    21,998       (1,253 )     20,745  
           Net interest income
    40,826       (4,610 )     36,216  
                         
Impairment/(Reversal)
                       
   Valuation allowance (reversal) on loans
    (709 )           (709 )
   Other-than-temporary impairment on securities
    3,430       (3,756 )     (326 )
   Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)
    480             480  
      3,201       (3,756 )     (555 )
                         
                Net interest income after impairment/reversal
    37,625       (854 )     36,771  
                         
Other Revenues
                       
   Rental income
    11,721             11,721  
   Care and ancillary income
    2,292             2,292  
        Total other revenues
    14,013             14,013  
Other Income (Loss)
                       
   Gain (loss) on settlement of investments, net
    5,066       (58 )     5,008  
   Gain on extinguishment of debt
                -  
   Other income (loss), net
    3,024             3,024  
      8,090       (58 )     8,032  
Expenses
                       
   Loan and security servicing expense
    1,021       (115 )     906  
   Property operating expenses
    8,409             8,409  
   General and administrative expense
    9,938       (26 )     9,912  
   Management fee to affiliate
    8,148       (1,809 )     6,339  
   Depreciation and amortization
    4,070             4,070  
      31,586       (1,950 )     29,636  
Income from continuing operations
    28,142       1,038       29,180  
   Preferred dividends
    (1,395 )           (1,395 )
Income from continuing operations after preferred dividends
  $ 26,747     $ 1,038     $ 27,785  
 
Income from continuing operations per share of common stock, after preferred dividends
         
 Basic
  $ 0.10             $ 0.11  
 Diluted
  $ 0.10             $ 0.10  
Weighted Average Number of Shares of Common
                 
   Stock Outstanding
                       
Basic
    259,228,343               259,228,343  
Diluted
    265,396,219               265,396,219  
                         
  
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Six Months Ended June 30, 2013

   
Newcastle
   
Pro Forma
   
Newcastle
 
   
Consolidated
   
Adjustments
   
Consolidated
 
   
Historical (A)
   
New Residential (B)
   
Pro Forma
 
                   
Interest income
  $ 124,156     $ (12,019 )   $ 112,137  
Interest expense
    44,708       (2,152 )     42,556  
Net interest income
    79,448       (9,867 )     69,581  
                         
Impairment/(Reversal)
                       
Valuation allowance (reversal) on loans
    1,525             1,525  
Other-than-temporary impairment on securities
    4,405       (3,756 )     649  
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss)
    44             44  
      5,974       (3,756 )     2,218  
                         
Net interest income after impairment/reversal
    73,474       (6,111 )     67,363  
                         
Other Revenues
                       
Rental income
    23,195             23,195  
Care and ancillary income
    4,318             4,318  
Total other revenues
    27,513             27,513  
Other Income (Loss)
                       
Gain (loss) on settlement of investments, net
    5,063       (58 )     5,005  
Gain on extinguishment of debt
    1,206             1,206  
Other income (loss), net
    7,591             7,591  
      13,860       (58 )     13,802  
Expenses
                       
Loan and security servicing expense
    2,055       (108 )     1,947  
Property operating expenses
    16,772             16,772  
General and administrative expense
    14,151       (38 )     14,113  
Management fee to affiliate
    17,713       (4,134 )     13,579  
Depreciation and amortization
    8,149             8,149  
      58,840       (4,280 )     54,560  
Income from continuing operations
    56,007       (1,889 )     54,118  
Preferred dividends
    (2,790 )           (2,790 )
Income from continuing operations after preferred dividends
  $ 53,217     $ (1,889 )   $ 51,328  
Income from continuing operations per share of common stock, after preferred dividends
                       
Basic
  $ 0.22             $ 0.21  
Diluted
  $ 0.21             $ 0.20  
Weighted Average Number of Shares of Common Stock Outstanding
                       
Basic
    247,249,101               247,249,101  
Diluted
    252,807,613               252,807,613  

(A)
Represents Newcastle’s historical consolidated statement of operations for the three and six months ended June 30, 2013.
(B)
Represents the portion of New Residential’s historical consolidated statement of operations for the period from April 1, 2013 to May 15, 2013 and from January 1, 2013 to May 15, 2013 that is not included in Newcastle’s income (loss) from discontinued operations.