Impac Mortgage reports 2010 earnings rise, but interest income falls
Real estate services firm Impac Mortgage Holdings (IMH) earned $10.3 million, or $1.24 a share, for 2010, although interest income fell 42% from a year earlier when the company paid $7.4 million of cash dividends on preferred stock. The firm also re-entered the mortgage banking market through its Excel Mortgage Servicing Inc. subsidiary during the second half of the year. Impac Mortgage's annual profit compares to earnings of $3.4 million, or 44 cents a share, a year earlier, according to a regulatory filing. In the third quarter, Impac reinstated its funding of residential mortgages as part of a plan to get back into the mortgage market. The move occurred after the firm obtained its first warehouse facility to fund loans since the onset of the 2008 financial crisis, increasing its funding capacity by $42 million in late December and receiving preliminary term sheets from lenders with the potential to fund up to $160 million in loans. Impac Mortgage also acquired a controlling stake in AmeriHome Mortgage Corp. for the ability to originate, sell and service loans backed by Fannie Mae, Freddie Mac and the Federal Housing Agency, the company said in its earnings report. Through its Excel subsidiary, Impac Mortgage also originates FHA loans as a Department of Housing and Urban Development mortgagee. By the end of 2010, Impac had funded $20.7 million in mortgages, sold $17.4 million and brokered $20.1 million of loans as compared to a minimal amount of loans brokered in 2009. The company expanded mortgage and real estate service revenue by 33% in 2010 to $56.4 million from $42.3 million a year earlier. Write to Kerri Panchuk.