Impac Mortgage’s second-quarter earnings fell from year ago levels, but the dip was offset by growing originations activity.
The firm reported 2Q net earnings of $1.2 million, or 14 cents a share, compared to $4.2 million, or 51 cents a share for the same period last year.
Meanwhile, mortgage lending net earnings grew by $2.7 million, reaching $3.4 million for the second-quarter, due to a $106.3 million increase in mortgage originations.
The company attributed the dip in overall earnings to an uptick in personnel costs relative to lending volumes, as the company ramped up to handle a surge in origination volumes. However, the growth came to a halt when rates rapidly increased, causing origination volumes to taper off a bit in June.
Overall, originations increased in the second-quarter, climbing to $780.1 million, a 16% increase over the first quarter of 2013, and a 46% increase over the second quarter 2012.
Looking ahead, HousingWire announced Impac's move into the warehouse lending space last week.
“We are very pleased to see the mortgage lending segment’s net earnings rebound from a difficult first quarter, as well as the continued profitability in the real estate services segment,” Joseph Tomkinson, chairman and CEO of Impac Mortgage, said when discussing the firm's earnings report.
“The launch of warehouse lending along with other operational and business initiatives which we have been working on, should establish a good foundation for the rest of the year and strengthen our prospects for 2014,” Tomkinson added.