This version corrects a typographical error from the previous earnings announcement.
The corrected release reads:
IMPAC MORTGAGE HOLDINGS, INC. ANNOUNCES RESULTS OF SECOND QUARTER 2012
Impac Mortgage Holdings, Inc. (NYSE MKT: IMH) formerly (NYSE Amex: IMH), a Maryland corporation, along with its subsidiaries and affiliates, or “IMH” or the “Company,” continued to expand its mortgage lending business, through its indirect subsidiary, Excel Mortgage Servicing, Inc. (Excel). In the second quarter of 2012, Excel increased its residential mortgage originations volumes 46% to $531.9 million as compared to $365.0 million in the first quarter of 2012 and by 135% as compared to $226.3 million for the second quarter of 2011. Sales of mortgage loans increased 33% to $474.5 million in the second quarter of 2012 as compared to $355.7 million in the first quarter of 2012 and increased by 128% over the sales of $208.4 million in the second quarter of 2011.
During the three months ended June 30, 2012, the Company’s consolidated net earnings were $4.2 million, or $0.51 per diluted common share, as compared to consolidated net earnings of $361 thousand or $0.04 per diluted common share for the three months ended June 30, 2011 primarily due to the increase in profitability of the mortgage lending business which improved by $7.3 million with net earnings of $3.8 million in the second quarter of 2012 as compared to a net loss of $3.5 million in the second quarter of 2011. The Company’s consolidated results for the six months ended June 30, 2012 improved slightly to a consolidated net loss of $(578) thousand, or $(0.07) per diluted common share, as compared to a consolidated net loss of $(626) thousand or $(0.08) per diluted common share for the six months ended June 30, 2011.
During the second quarter, the mortgage servicing portfolio of Excel Mortgage Servicing, Inc. and its subsidiary increased $196.2 million to $1.1 billion in unpaid principal balance at June 30, 2012 as compared to $891.7 million in unpaid principal balance at March 31, 2012 and increased $482.5 million for the six months ended June 30, 2012 as compared to $605.4 million at December 31, 2011. The increase in the service retained mortgage servicing portfolio resulted in the $3.0 million increase in mortgage servicing rights to $7.1 million at June 30, 2012 as compared to $4.1 million at December 31, 2011. Excel expects to continue building its mortgage servicing portfolio as management believes a servicing portfolio of agency loans during a period of low interest rates and high credit quality focus is a good investment for the Company. Therefore, Excel is expected to continue to increase its servicing portfolio, but it will also selectively sell servicing on a flow and bulk basis, as we recently sold $143 million in unpaid principal balance in a bulk sale in July 2012, to keep the amount of capital invested in servicing at acceptable levels to preserve capital needed for further growth. As Excel continues to expand the mortgage lending platform, production volumes, and servicing portfolio, at some point its growth may be limited by available capital.