Impac Earnings Per Share Soar Ahead of Return to Mortgage Lending
Earnings-per-share soared 170% since 2009 at mortgage lender and servicing outsourcing firm Impac Mortgage Holdings (IMH). The firm reported earnings per share of $0.46 in Q110, more than doubled from $0.17 in the year-ago quarter. The growth in earnings-per-share comes ahead of a planned return to mortgage origination later this year. Impac reported $770,000 of net interest income in Q110, down from $3.6m in the year-ago quarter, according to a regulatory filing. At the same time, non-interest income rose to $17.3m from $10.3 in the year-ago quarter. A $7.37m change in fair value of net trust assets was offset slightly by $1.1m in losses from real estate owned (REO) assets. Total assets grew to $6.55bn at the end of Q110, from $5.87bn at the end of the previous quarter. At the same time, Impac's liabilities grew to $6.53bn, from $5.86bn. According to an investor call on the earnings, Impac entered debt resolution contracts totaling $17m that will generate $1.4m in fees for the company over the next several quarters. Meanwhile, Impac is planning a return to mortgage lending through its warehouse channel later this year. The quarterly results come after Impac reported annual earnings of $10.8m in 2009, a return to profitability after losing $44.7m in 2008. While Impac no longer operates as a real estate investment trust (REIT), the company said in March it plans to re-enter the mortgage origination space in 2010, focusing exclusively on loans that are eligible for sale to the US Department of Housing and Urban Development (HUD) and the government-sponsored enterprises. Write to Diana Golobay. Disclosure: the author holds no relevant investments.