Impac Mortgage Holdings, Inc. Announces Results Of Second Quarter 2010
Impac Mortgage Holdings, Inc. (NYSE Amex: IMH), a Maryland corporation, or the “Company,” reports second quarter 2010 net earnings of $3.3 million, or $0.39 per diluted common share, as compared to a net loss of $(3.6) million, or $(0.47) per diluted common share for the second quarter of 2009.
Mortgage and real estate services
For the three and six months ended June 30, 2010, mortgage and real estate services fees were $15.7 million and $27.0 million, respectively. The mortgage and real estate services fees of $15.7 million for the three months ended June 30, 2010, was primarily comprised of $7.8 million in monitoring, surveillance and recovery fees, $3.5 million in title and escrow fees, $2.7 million in loan modification fees, and $1.7 million in servicing income. The mortgage and real estate services fees of $27.0 million for the six months ended June 30, 2010, was primarily comprised of $12.8 million in monitoring, surveillance and recovery fees, $6.0 million in title and escrow fees, $5.8 million in loan modification fees, and $2.4 million in servicing income. Although the Company intends to generate more fees by providing these services to third parties in the marketplace, the revenues from these businesses have primarily been generated from the Company’s long-term mortgage portfolio. Furthermore, since these businesses are recently established there remains uncertainty about their future success. During the first quarter of 2010, the Company began to expand the portfolio surveillance and recovery services operations and entered into an agreement with a third party to assist in credit risk management and portfolio surveillance services.
In June 2010, the Company signed a definitive agreement with a regional bank providing the Company with a $10 million warehouse facility. This facility provides the company with a funding source to originate residential conforming loans that are eligible for sale to HUD and other government-sponsored enterprises. As of June 30, 2010, there were no borrowings against this facility. The interest rate on the facility is one month LIBOR plus 4.00%, with a floor no less than 5.00%. The agreement expires June 2011.
Results of Operations
Condensed Statement of Operations Data
|(dollars, except per-share amounts, in thousands)||For the Three Months Ended June 30,|
|Net interest income||1,555||2,953||(1,398||)||(47||)|
|Total non-interest income||16,370||21,566||(5,196||)||(24||)|
|Total non-interest expense||15,398||16,469||(1,071||)||(7||)|
|Income tax expense||45||20||25||125|
|Earnings from continuing operations||2,482||8,030||(5,548||)||(69||)|
|Earnings (loss) from discontinued operations, net||804||(4,195||)||4,999||119|
|Cash dividends on preferred stock||-||(7,443||)||7,443||100|
Earnings available to common stockholders before redemption of preferred stock
Earnings (loss) per share available to common stockholders before redemption of preferred stock - basic
Earnings (loss) per share available to common stockholders before redemption of preferred stock - diluted
Condensed Components of Stockholders' Equity (Deficit)
|(dollars in thousands)||
As of June 30, 2010
|Residual interests in securitizations||27,253||-||27,253|
|Long-term debt ($71,120 par)||(11,357||)||-||(11,357||)|
|Lease liability (1)||-||(2,776||)||(2,776||)|
|Net other assets (liabilities)||6,833||(2,852||)||3,981|
|Stockholders' equity (deficit)||$||38,267||$||(13,022||)||$||25,245|
|(1) Guaranteed by IMH.|
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