This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Impac Mortgage Holdings, Inc.’s Lending Operations Earns Record Profits While Settling Legacy Litigation

Impac Mortgage Holdings, Inc. (NYSE MKT: IMH), announces today that its continuing operations, comprised primarily of mortgage lending, real estate services and long-term portfolio, earned $6.7 million or $0.86 per diluted share for the third quarter 2012, and $10.5 million or $1.35 per diluted share for the nine months ended September 30, 2012. The Company also announces its intentions to settle two of its remaining legacy lawsuits, which will result in a charge of $6.1 million during the third quarter of this year.

Continuing Operations

The Company’s continued operations will report net profits in the third quarter primarily due to the mortgage lending segment earnings of $8.2 million or $1.04 per diluted share, as compared to $3.8 million or $0.46 per diluted share for the second quarter 2012. In addition, the real estate services segment continues to earn net profits, albeit a decline from second quarter 2012, recording net earnings of $3.6 million or $0.46 per diluted share in the third quarter. The decline in real estate services from second quarter was primarily due to a continued and anticipated decline in the long term mortgage portfolio. The Company’s continuing operations’ net earnings declined by $583 thousand or 8% from Q2 2012 primarily driven by a $2.5 million loss from the change in fair value of our net trust assets (residual interests) in the long-term portfolio segment.

The mortgage lending segment net earnings in the third quarter of 2012 increased by $4.4 million or 115% over the second quarter 2012. The increase was due to the increase in lending volumes by 33% over the second quarter. The Company increased its residential mortgage originations to $709.8 million in the third quarter 2012 as compared to $532.5 million in the second quarter 2012. The Company has originated $1.6 billion in residential mortgage originations, year to date, September 30, 2012. In addition, the servicing portfolio increased to $1.7 billion during the third quarter, from $1.1 billion, in the second quarter which also helped improve the Company’s profitability and cash flows. The Company also increased its warehouse borrowing capacity from $145 million at June 30, 2012, to $185 million at September 30, 2012.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,076.97 -3.17 -0.02%
S&P 500 2,112.92 -4.77 -0.23%
NASDAQ 5,063.92 -28.1650 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs