News Release
NEWPORT BEACH, Calif., Jan. 29 /PRNewswire-FirstCall/ -- Impac Mortgage Holdings, Inc. (Amex: IMH) ("IMH" or the "Company"), a real estate investment trust ("REIT"), reports net earnings of $74.9 million, or $1.84 per diluted share, for 2002 as compared to net earnings of $33.2 million, or $1.19 per diluted share, for 2001. Net earnings for the fourth quarter were $22.1 million, or $0.50 per diluted share, as compared to net earnings of $15.0 million, or $0.48 per diluted share, for the fourth quarter of 2001 and $19.4 million, or $0.47 per diluted share, for the third quarter of 2002. For comparative purposes please refer to the accompanying financial statements for the calculation of core operating earnings and a reconciliation of core operating earnings to net earnings. Core operating earnings exclude certain non-core revenue and expense items that are included in net earnings.
Estimated taxable income was $85.6 million, or $2.10 per diluted share, for 2002 as compared to taxable income of $38.3 million, or $1.37 per diluted share, for 2001. Estimated taxable income for the fourth quarter was $25.9 million, or $0.58 per diluted share, as compared to estimated taxable income of $18.7 million, or $0.61 per diluted share, for the fourth quarter of 2001 and $25.5 million, or $0.61 per diluted share, for the third quarter of 2002. Please refer to the accompanying financial statements for the calculation of estimated taxable income and a reconciliation of estimated taxable income to net earnings.
Joseph R. Tomkinson, Chairman and Chief Executive Officer of Impac Mortgage Holdings, Inc., commented, "2002 was an exciting year for the company. We exceeded our initial goals of $1.60 per share in net earnings and total assets by year-end in excess of $5.0 billion as well as a return to paying consistent and reliable quarterly dividends to our shareholders. Underlying operating results was the success and growth of our core operating businesses, which all made positive earnings contributions during 2002. As a result of the growth of our core operating businesses, year-over-year earnings per share increased 55% and total assets at year-end increased 128% over the prior year."
Financial Highlights for 2002
-
Earnings per share ("EPS") increased 55% to $1.84 as compared to $1.19 for 2001
-
Estimated taxable income per share increased 53% to $2.10 as compared to taxable income of $1.37 for 2001
-
Total cash dividends declared increased to $1.76 per share as compared to $0.69 per share for 2001
Total assets increased 128% to $6.6 billion as of December 31, 2002 from $2.9 billion for the prior year
- Book value per share increased to $6.70 as of December 31, 2002 as compared to $6.35 for the prior year
- Return on average assets and equity was 1.70% and 28.70%, respectively, as compared to 1.48% and 17.40%, respectively, for 2001
- Total market capitalization was $521.2 million as of December 31, 2002 as compared to $272.0 million for the prior year
- Dividend yield as of December 31, 2002 was 16.70%, based on an annualized fourth quarter dividend of $0.48 per share and a closing stock price of $11.50
- Total return to shareholders was 56%, based on common stock price appreciation of $3.00 per share and common stock dividends declared of $1.76 per share
- Net earnings from the long-term investment operations and warehouse lending operations was 77% of consolidated net earnings as compared to 67% for 2001
- Impac Funding Corporation ("IFC"), the Company's mortgage operations, acquired and originated $6.0 billion of primarily non-conforming Alt-A mortgages ("Alt-A mortgages") as compared to $3.2 billion for 2001
- Retained for long-term investment $3.9 billion in principal balance of primarily Alt-A adjustable and fixed rate mortgages which were acquired and originated by the mortgage operations
- Allowance for loan losses increased to $26.6 million, or 42 basis points of loans receivable, as of December 31, 2002 as compared to $11.7 million, or 43 basis points of loans receivable, for the prior year
- Average finance receivables to non-affiliates increased 66% to $341.5 million as compared to $205.5 million for 2001
Outlook for 2003
Mr. Tomkinson said, "Although the Mortgage Bankers Association ("MBA") estimates that nationwide mortgage originations may decline 28% from 2002 levels, primarily due to a decline in refinancing activity, we look to modestly increase our loan acquisition and origination levels over 2002 results. Our belief is that Alt-A mortgage originations as a percentage of the total mortgage origination market will continue to grow as mortgage borrowers seek alternatives to the traditional mortgage products offered by government sponsored agencies. We believe that we can increase our share of the Alt-A mortgage market as we have built a solid origination platform that focuses on product, price and service, along with people that work effectively together to profitably manage the acquisition, sale, finance and investment of our mortgage loans. We also believe that we will be less affected by a decline in refinance activity as we rely on purchase money transactions as evidenced by MBA estimates that 58% of nationwide residential mortgage originations during 2002 were from refinancing activity as compared to 45% of the Company's acquisitions and originations that were from refinances during the same period."
Mr. Tomkinson went on to say, "We expect a gradual rise in interest rates towards the latter part of 2003 from the historic lows experienced during 2002 which should lead to a gradual reduction in mortgage refinance activity along with slightly higher borrowing costs and decreased mortgage prepayment rates in our mortgage loan investment portfolio. We also expect a gradual change in the composition of our acquisitions and originations from adjustable rate to fixed rate mortgages, which started during the latter half of 2002 and which we expect will to continue throughout 2003. Fixed rate mortgages held for investment are financed through the issuance of CMOs, which provide fixed rate financing over the life of the mortgages with no interest rate risk or interest rate hedge related expenses. We plan to continue this strategy during 2003 as we believe we will create long-term shareholder value by retaining mortgage assets that have favorable credit profiles, prepayment penalty features and conservative loan-to-value ratios which should generate positive cash flows over a longer time horizon. Our 2003 business plan is also based on an interest rate hedging strategy that should help maintain relatively stable net interest margins, maintain adequate allowance for loan losses and acquire and originate both adjustable and fixed rate mortgages for long-term investment."
New Business Opportunities
Impac Multifamily Capital Corporation
In addition to acquiring mortgages from our mortgage operations during 2002, the long-term investment operations also originated multi-family mortgages through Impac Multifamily Capital Corporation ("IMCC"), a wholly- owned subsidiary of IMH that was formed during the third quarter of 2002. IMCC is located at our headquarters in Newport Beach, California, which allows us to maintain centralized operations and support. IMCC was formed to primarily originate small balance multi-family mortgages with high credit quality, conservative loan-to-value ratios and adjustable rate mortgages with balances ranging from $250,000 to $1.5 million. Multi-family mortgages provide greater asset diversification on our balance sheet as multi-family mortgages typically have higher interest rate spreads and longer lives than residential mortgages. IMCC originated $25.8 million of multi-family mortgages during the fourth quarter of 2002 with an average loan size of $737,000. We expect IMCC to originate in excess of $300.0 million multi- family mortgages during 2003, which will be retained for long-term investment and financed with CMO borrowings. Multi-family mortgages originated during the fourth quarter of 2002 were primarily secured by properties located in California and all multi-family mortgages had interest rate floors with prepayment penalty periods ranging from three to five years with the borrower's weighted average credit score of 731 and a weighted average loan-to-value ratio of 67%.
Novelle Financial Services, Inc.
Novelle Financial Services, Inc. ("Novelle") is a wholly-owned subsidiary of IFC that originates sub-prime residential mortgages through a network of wholesale brokers and subsequently sells its loans to third party investors for cash gains. Novelle began operations during September of 2001 in San Diego, California, where it is currently headquartered, with an initial capital contribution from IFC of $1.5 million. Subsequently in August of 2002, IFC contributed an additional $3.5 million to Novelle to provide the necessary capital for Novelle to continue its growth. Novelle exceeded origination and profitability goals for 2002 as it originated $404.9 million of sub-prime mortgages and contributed net earnings of $1.7 million to the mortgage operations, which reflected a return on average equity of 69%. We expect Novelle's sub-prime mortgage originations to grow to approximately $700.0 million in 2003.
Other Operating Business Segments
Long-Term Investment Operations
We exceeded our growth targets for 2002 as the long-term investment operations acquired $3.9 billion in principal balance of primarily Alt-A adjustable and fixed rate mortgages from the mortgage operations and retained $25.8 million of multi-family mortgages originated by IMCC, which increased CMO collateral and loans held for investment to $5.2 billion at December 31, 2002 from $2.2 billion for the prior year. Mortgages acquired for long-term investment were primarily financed through the issuance of CMOs and sale of common stock. We issued CMOs totaling $3.9 billion of which $3.3 billion were adjustable rate CMOs and $597.0 million were fixed rate CMOs. We also raised $116.0 million from the issuance of 13.3 million new shares of common stock. By issuing new shares periodically throughout the year we were able to utilize new capital more efficiently and profitably, which was important in last year's market as yields on high investment grade alternatives for cash were extremely low. Issuing new shares of common stock was accretive to pro forma book value per common share, which increased to $7.80 at December 31, 2002 as compared to $7.23 for the prior year. Pro forma book value excludes $50.2 million of unrealized mark-to-market losses on derivative instruments that is reflected on the financial statements as a reduction to stockholder's equity.
Warehouse Lending Operations
The warehouse lending operations were a significant contributor to overall earnings during 2002 which we expect to continue throughout 2003. Advances on warehouse lines were $1.1 billion as of December 31, 2002 as compared to $466.6 million for the prior year. Average outstanding advances to non-affiliates increased 66% to $341.5 million in 2002 as compared to $205.5 million during 2001 as new clients were added and mortgage activity with existing clients reflected the overall increase in mortgage demand during 2002. With our expectation that nationwide mortgage demand will gradually decline in 2003, we project growth in average outstanding advances to non- affiliates will remain relatively flat during 2003.
Mortgage Operations
William S. Ashmore, President and Chief Operating Officer, commented, "Net earnings rose 56% to $17.2 million in 2002 as compared to $11.0 million during 2001 as total mortgage acquisitions and originations increased 88% to $6.0 billion from $3.2 billion, respectively. The mortgage operations sold $3.9 billion in principal balance of mortgages to the long-term investment operations, which included $600.0 million of fixed rate mortgages that were retained and financed through the issuance of fixed rate CMOs. By selling fixed rate loans to the long-term investment operations, the Company as a whole is less reliant on revenue generated from gain on sale of loans and is more reliant on revenue generated from its balance sheet. We believe that this strategy will provide more earnings over time than would be received on earnings generated strictly from loan sales."
New Reporting Schedule
In an effort to comply with new reporting guidelines set forth by the Sarbanes-Oxley Act of 2002 and the Securities and Exchange Commission ("SEC"), we anticipate accelerating the reporting timeframes that Form 10-Qs and 10-Ks are available to the public and in the process eliminating our quarterly earnings releases (with the exception of the fourth quarter earnings release). Therefore, beginning with the first quarter of 2003, we expect to file our quarterly Form 10-Q approximately 35 days after quarter-end. This will bring us into compliance with Form 10-Q filing deadlines as mandated by the SEC two years before required. Upon filing our quarterly Form 10-Q, we intend to publish a brief press release that summarizes our quarterly results. We plan to continue quarterly conference calls to discuss results of operations and publish a monthly fact sheet, which can be viewed on our website at www.impaccompanies.com , which provides selected unaudited financial information and results on a monthly basis. We plan to file our Form 10-K according to the accelerated schedule as mandated by the SEC that requires a 75-day filing period beginning with the 2003 annual Form 10-K and a 60-day filing period beginning with the 2004 annual Form 10-K. For year-end and fourth quarter results of operations we expect to publish an earnings release approximately 30 days after year-end.
For additional information, questions or comments call or write to the investor relations group and ask for Tania Jernigan at (949) 475-3600 or e-mail Ms. Jernigan at tjernigan@impaccompanies.com. The Company has announced a conference call and live web cast on Thursday, January 30, 2003 at 9:30 a.m. Pacific Time (12:30 p.m. Eastern Time). Mr. William S. Ashmore, President and Chief Operating Officer, will discuss 2002 and the fourth quarter of 2002 results of operations and provide a general update followed by a question and answer session. The conference call will be limited for discussion to certain buyside and sellside analysts and will be open for listen only to all interested parties. If you would like to participate in the conference call, you may listen by dialing (800) 350-9149, conference ID number 7941006, or access the web cast via our web site at http://www.impaccompanies.com/IMH/IMH_main.asp . To participate in the conference call, dial in fifteen minutes prior to the scheduled start time. The conference call will be archived on the Company's web site at www.impaccompanies.com and can be accessed by linking to Impac Mortgage Holdings, Inc./Audio Archives. You can subscribe to receive instant notification of conference calls, new releases and the monthly unaudited fact sheet, which will be available on January 31, 2003, by using our e-mail alert feature located at the web site under Impac Mortgage Holdings, Inc./Investor Relations/Email Alerts.
Note:
IMPAC MORTGAGE HOLDINGS, INC.
(in thousands, except per share amounts)
(unaudited)
Balance Sheets:
As of December 31,
2002 2001
Cash and cash equivalents $113,345 $51,887
Investment securities available-for-sale 26,065 32,989
Loans receivable:
CMO collateral 5,149,680 2,229,168
Finance receivables 1,140,248 466,649
Mortgage loans held-for-investment 57,536 20,078
Allowance for loan losses (26,602) (11,692)
Net Loans Receivable 6,320,862 2,704,203
Investment in Impac Funding Corporation 20,787 19,126
Due from affiliates 14,500 14,500
REO properties 11,116 8,137
Accounts receivable 1,293 3,946
Other assets 43,805 19,946
Total Assets $6,551,773 $2,854,734
CMO borrowings $5,041,751 $2,151,400
Reverse repurchase agreements 1,168,029 469,491
Borrowings secured by investment securities 7,134 12,997
Other liabilities 31,371 17,481
Stockholders' equity 303,488 203,365
Total Liabilities and
Stockholders' Equity $6,551,773 $2,854,734
Statements of Operations:
For the Three Months Ended, For the Year Ended,
December 31, December 31,
2002 2001 2002 2001
Interest income $72,419 $40,582 $226,416 $156,615
Interest expense 47,120 26,809 144,807 112,012
Net interest income 25,299 13,773 81,609 44,603
Provision for loan losses 6,546 6,254 19,848 16,813
Net interest income
after provision
for loan losses 18,753 7,519 61,761 27,790
Equity in net earnings
of Impac Funding
Corporation 4,257 3,055 17,073 10,912
Other non-interest income 1,290 3,048 4,509 6,467
Total non-interest
income 5,547 6,103 21,582 17,379
Professional services 1,000 1,019 3,649 2,747
General and administrative
and other expense 615 413 1,716 1,753
Personnel expense 542 345 1,868 1,211
Loss (gain) on disposition
of real estate owned 34 (347) 154 (1,931)
Write-down on
investment securities
available-for-sale -- 269 1,039 2,217
Mark-to-market loss -
SFAS 133 -- 107 -- 3,821
Total non-interest
expense 2,191 1,806 8,426 9,818
Earnings before taxes,
extraordinary item and
cumulative effect of
change in accounting
principle 22,109 11,816 74,917 35,351
Alternative minimum tax -- (550) -- (550)
Extraordinary item -- -- -- (1,006)
Cumulative effect of
change in accounting
principle -- 3,696 -- (617)
Net earnings 22,109 14,962 74,917 33,178
Less: Cash dividends on
10.5% cumulative
convertible
preferred stock -- -- -- (1,575)
Net earnings available
to common stockholders $22,109 $14,962 $74,917 $31,603
Earnings per share before
taxes, extraordinary item
and cumulative effect
of change in accounting
principle:
Basic $0.50 $0.37 $1.87 $1.41
Diluted 0.50 0.37 1.84 1.25
Net earnings per share:
Basic $0.50 $0.49 $1.87 $1.34
Diluted 0.50 0.48 1.84 1.19
Dividends declared per
common share $0.48 $0.44 $1.76 $0.69
Weighted average shares
outstanding:
Basic 43,808 30,512 40,099 23,510
Diluted 44,516 30,862 40,773 27,952
Common shares
outstanding 45,321 32,002 45,321 32,002
IMPAC MORTGAGE HOLDINGS, INC.
(in thousands, except per share amounts)
(unaudited)
Reconciliation of Core Operating Earnings to Net Earnings
For the Three Months Ended, For the Year Ended,
December 31, December 31,
2002 2001 2002 2001
Net earnings $22,109 $14,962 $74,917 $33,178
Adjustments to
net earnings:
Mark-to-market loss -
SFAS 133 -- 107 -- 3,821
Alternative minimum tax -- 550 -- 550
Write-down on
investment securities
available-for-sale -- 269 1,039 2,217
Extraordinary item -- -- -- 1,006
Cumulative effect of
change in accounting
principle -- (3,696) -- 617
Tax-effected recovery
of previously charged-off
assets at IFC -- (668) -- (668)
Recovery of previously
charged-off assets -- (2,145) -- (2,145)
Core operating
earnings $22,109 $9,379 $75,956 $38,576
Core operating
earnings per
diluted share $0.50 $0.30 $1.86 $1.38
Diluted weighted
average shares
outstanding 44,516 30,862 40,773 27,952
Reconciliation of Estimated Taxable Income to Net Earnings (1)
For the Three Months Ended, For the Year Ended,
December 31, December 31,
2002 (2) 2001 (3) 2002 (2) 2001 (4)
Net earnings $22,109 $14,962 $74,917 $33,178
Adjustments to net earnings:
Loan loss provision 6,546 6,254 19,848 16,813
Dividends from IFC 2,970 2,475 12,870 8,894
Tax deduction for
actual loan losses (1,508) (2,504) (4,938) (10,211)
Equity in net earnings
of IFC (4,257) (3,055) (17,073) (10,912)
Alternative minimum
tax -- 550 -- 550
Net miscellaneous tax
adjustments -- -- -- 13
Estimated taxable
income $25,860 $18,682 $85,624 $38,325
Estimated taxable
income per diluted
share $0.58 $0.61 $2.10 $1.37
Diluted weighted
average shares
outstanding 44,516 30,862 40,773 27,952
(1) Estimated taxable income include estimates of book to tax adjustments
and can differ from actual taxable income as calculated when the
Company files its annual tax return.
(2) Excludes the deduction for dividends paid and the availability of a
deduction attributable to a net operating loss carryforward.
(3) Excludes the deduction for dividends paid and the availability of a
deduction attributable to a net operating loss carryforward in
addition to a quarterly tax deduction of approximately $2.7 million
for amortization of the termination of the Company's management
agreement.
(4) Actual taxable income per the Company's 2001 tax return. Excludes
the deduction for dividends paid and the availability of a deduction
attributable to a net operating loss carryforward in addition to a
tax deduction of approximately $10.8 million for amortization of the
termination of the Company's management agreement.
Other Financial Data
For the Three Months Ended, For the Year Ended,
December 31, December 31,
2002 2001 2002 2001
Diluted book value
per share $6.70 $6.35 $6.70 $6.35
Pro forma diluted book
value per share (1) 7.80 7.23 7.80 7.23
Return on average
assets 1.49% 2.24% 1.70% 1.48%
Return on average
equity 31.37% 28.84% 28.70% 17.40%
Pro forma return on
average assets (2) 1.49% 1.40% 1.73% 1.57%
Pro forma return on
average equity (2) 31.37% 18.08% 29.10% 18.47%
Assets to equity
ratio 21.59:1 14.04:1 21.59:1 14.04:1
Debt to equity ratio 20.48:1 12.95:1 20.48:1 12.95:1
Allowance for loan
losses to total
loans receivable 0.42% 0.43% 0.42% 0.43%
Prepay penalties as
a % of mortgages
securing CMOs 72% 49% 72% 49%
CPR on mortgages
securing CMOs 25% 28% 25% 34%
Total non-performing
assets (3) $130,614 $69,273 $130,614 $69,273
Total non-performing
assets to total assets 1.99% 2.43% 1.99% 2.43%
Total mortgages
owned 60+ days
delinquent (4) $161,260 $82,700 $161,260 $82,700
60+ day delinquency
rate of mortgages
owned 3.22% 3.84% 3.22% 3.84%
Master servicing
portfolio $8,694,474 $5,568,740 $8,694,474 $5,568,740
60+ day delinquency
rate of mortgages in
the master servicing
portfolio (4) 4.73% 5.38% 4.73% 5.38%
(1) Pro forma book value excludes unrealized mark-to-market loss on
derivative instruments that are reflected on the financial statements
as a reduction to stockholder's equity.
(2) Based on core operating earnings.
(3) Non-performing assets include mortgages owned that are 90+ days
delinquent, including foreclosures and bankruptcies, plus other real
estate owned.
(4) Includes foreclosures and delinquent bankruptcies.
IMPAC MORTGAGE HOLDINGS, INC.
(in thousands, except per share amounts)
(unaudited)
Yield Analysis of Mortgage Assets and Borrowings on Mortgage Assets
For the Three Months For the Three Months
Ended, Ended,
December 31, 2002 December 31, 2001
Avg Bal Yield Avg Bal Yield
Investment securities
available-for-sale $26,336 5.36% $34,253 6.07%
CMO collateral 4,591,776 4.96% 1,911,579 6.44%
Mortgage loans
held-for-investment 213,402 5.17% 85,055 5.05%
Finance receivables 952,111 4.95% 535,401 5.54%
Total Mortgage
Assets $5,783,625 4.97% $2,566,288 6.20%
CMO borrowings 4,516,563 3.43% 1,844,523 4.51%
Reverse repurchase
agreements 1,133,396 2.77% 588,272 3.62%
Borrowings secured
by investment
securities 7,893 20.07% 14,172 17.16%
Total Borrowings
on Mortgage
Assets $5,657,852 3.32% $2,446,967 4.37%
Net Interest Spread
on Mortgage Assets 1.64% 1.83%
Net Interest Margin
on Mortgage Assets 1.72% 2.04%
For the Year Ended, For the Year Ended,
December 31, 2002 December 31, 2001
Avg Bal Yield Avg Bal Yield
Investment securities
available-for-sale $28,931 5.31% $34,199 10.28%
CMO collateral 3,387,720 5.24% 1,519,702 7.13%
Mortgage loans
held-for-investment 114,519 4.91% 137,130 5.97%
Finance receivables 746,532 5.01% 474,192 7.15%
Total Mortgage
Assets $4,277,702 5.19% $2,165,223 7.11%
CMO borrowings 3,302,988 3.57% 1,444,033 5.39%
Reverse repurchase
agreements 814,248 2.90% 580,605 5.31%
Borrowings secured
by investment
securities 10,037 18.45% 17,199 14.92%
Total Borrowings
on Mortgage
Assets $4,127,273 3.47% $2,041,837 5.45%
Net Interest Spread
on Mortgage Assets 1.72% 1.66%
Net Interest Margin
on Mortgage Assets 1.84% 1.98%
Acquisition Summary (1)
For the Three Months Ended,
December 31,
2002 2001
Volume % Volume %
Acquisitions by Type:
Fixed rate first
trust deeds $399,006 33 $-- 0
Fixed rate second
trust deeds -- 0 4,000 1
Adjustable rate:
Six month LIBOR
ARMs 624,102 257,138
Six month LIBOR
hybrids (2) 188,261 317,411
Total adjustable
rate 812,363 67 574,549 99
Total loan
production $1,211,369 $578,549
Acquisitions by
Credit Quality:
Alt-A loans $1,208,026 100 $574,038 99
B/C loans 3,343 0 4,511 1
Total loan
acquisitions $1,211,369 $578,549
| Acquisitions by | |
|---|---|
| Purpose: | |
Purchase $683,886 56 $383,234 66
Refinance 527,483 44 195,315 34
| Total loan |
|---|
acquisitions $1,211,369 $578,549
Acquisitions by
Prepayment Penalty:
With prepayment
penalty $1,024,133 85 $342,810 59
Without prepayment
penalty 187,236 15 235,739 41
Total loan
acquisitions $1,211,369 $578,549
For the Year Ended,
December 31,
2002 2001
Volume % Volume %
Acquisitions by Type:
Fixed rate first
trust deeds $599,566 15 $17,028 1
Fixed rate second
trust deeds 311 0 259 0
Adjustable rate:
Six month LIBOR
ARMs 2,351,300 374,114
Six month LIBOR
hybrids (2) 940,080 1,094,942
Total adjustable
rate 3,291,380 85 1,469,056 99
Total loan
production $3,891,257 $1,486,343
Acquisitions by
Credit Quality:
Alt-A loans $3,875,903 100 $1,475,269 99
B/C loans 15,354 0 11,074 1
Total loan
acquisitions $3,891,257 $1,486,343
| Acquisitions by | |
|---|---|
| Purpose: | |
Purchase $2,336,451 60 $997,350 67
Refinance 1,554,806 40 488,993 33
| Total loan |
|---|
acquisitions $3,891,257 $1,486,343
Acquisitions by
Prepayment Penalty:
With prepayment
penalty $3,074,741 79 $876,798 59
Without prepayment
penalty 816,516 21 609,545 41
Total loan
acquisitions $3,891,257 $1,486,343
(1) Excludes premiums paid for acquiring mortgage loans and $25.8 million
of multi-family mortgages originated by IMCC.
(2) Mortgage loans are fixed rate for initial two to five year periods
and subsequently adjust to indicated index plus a margin.
IMPAC FUNDING CORPORATION
(in thousands)
(unaudited)
Balance Sheets:
As of December 31,
2002 2001
Cash $22,773 $28,612
Securities available-for-sale 129 3,394
Mortgage loans held-for-sale 495,877 174,172
Mortgage servicing rights 8,274 8,468
Premises and equipment, net 4,948 5,333
Other assets 43,585 19,823
Total Assets $575,586 $239,802
Warehouse facilities $491,383 $174,136
Due to affiliates 14,500 14,500
Deferred revenue 5,088 4,479
Other liabilities 43,618 27,367
Shareholders' equity 20,997 19,320
Total Liabilities and
Shareholders' Equity $575,586 $239,802
Statements of Operations:
For the Three Months Ended, For the Year Ended,
December 31, December 31,
2002 2001 2002 2001
Interest income $7,749 $5,861 $30,393 $24,175
Interest expense 5,243 4,263 22,125 20,865
Net interest income 2,506 1,598 8,268 3,310
Gain on sale of loans 21,677 14,003 71,064 46,949
Loan servicing income
(expense) (642) (168) (1,863) 2,140
Other non-interest income 50 4,684 2,140 5,005
Total non-interest
income 21,085 18,519 71,341 54,094
Personnel expense 7,328 5,783 25,746 16,559
General and administrative
and other expense 4,996 3,852 18,002 12,352
Amortization and impairment
of mortgage servicing
rights 1,385 1,587 4,914 5,344
Mark-to-market loss
(gain) - SFAS 133 1,692 391 (1,700) 346
Provision for repurchases
and loan losses 652 2,983 2,806 3,498
Total non-interest
expense 16,053 14,596 49,768 38,099
Earnings before income
taxes and cumulative
effect of change in
accounting principle 7,538 5,521 29,841 19,305
Income taxes 3,238 2,435 12,595 8,300
Earnings before cumulative
effect of change in
accounting principle 4,300 3,086 17,246 11,005
Cumulative effect of
change in accounting
principle -- -- -- 17
Net earnings 4,300 3,086 17,246 11,022
Less: Cash dividends
on preferred stock (2,970) (2,475) (12,870) (8,894)
Net earnings available
to common stockholders $1,330 $611 $4,376 $2,128
IMPAC FUNDING CORPORATION
(in thousands)
(unaudited)
Production Summary (1)
For the Three Months Ended,
December 31,
2002 2001
Volume % Volume %
Production by Type:
Fixed rate first
trust deeds $840,250 50 $401,218 41
Fixed rate second
trust deeds 20,426 1 13,195 1
Adjustable rate:
Six month LIBOR
ARMs 551,761 251,122
Six month LIBOR
hybrids (2) 281,271 311,541
Total adjustable
rate 833,032 49 562,663 58
Total loan
production $1,693,708 $977,076
Production by
Channel:
Correspondent
acquisitions $1,278,842 76 $715,645 73
Wholesale and
retail
originations 301,691 18 192,862 20
Novelle Financial
Services, Inc. 113,175 7 68,569 7
Total loan
production $1,693,708 $977,076
Production by
Credit Quality:
Alt-A loans $1,575,306 93 $902,900 92.4
B/C loans 118,402 6.99 74,176 8
Total loan
production $1,693,708 $977,076
| Production by | |
|---|---|
| Purpose: | |
Purchase $815,440 48 $565,496 58
Refinance 878,268 52 411,580 42
| Total loan |
|---|
production $1,693,708 $977,076
Production by
Prepayment Penalty:
With prepayment
penalty $1,385,227 82 $650,504 67
Without prepayment
penalty 308,481 18 326,572 33
Total loan
production $1,693,708 $977,076
For the Year Ended,
December 31,
2002 2001
Volume % Volume %
Production by Type:
Fixed rate first
trust deeds $2,159,696 36 $1,570,225 50
Fixed rate second
trust deeds 82,145 1 43,074 1
Adjustable rate:
Six month LIBOR
ARMs 2,426,865 410,002
Six month LIBOR
hybrids (2) 1,276,792 1,131,327
Total adjustable
rate 3,703,657 62 1,541,329 49
Total loan
production $5,945,498 $3,154,628
Production by
Channel:
Correspondent
acquisitions $4,451,541 75 $2,383,018 76
Wholesale and
retail
originations 1,089,008 18 683,060 22
Novelle Financial
Services, Inc. 404,949 7 88,550 3
Total loan
production $5,945,498 $3,154,628
Production by
Credit Quality:
Alt-A loans $5,515,573 93 $3,046,532 96.6
B/C loans 429,925 7 108,096 3
Total loan
production $5,945,498 $3,154,628
| Production by | |
|---|---|
| Purpose: | |
Purchase $3,288,566 55 $1,938,715 61
Refinance 2,656,932 45 1,215,913 39
| Total loan |
|---|
production $5,945,498 $3,154,628
Production by
Prepayment Penalty:
With prepayment
penalty $4,677,078 79 $2,058,746 65
Without prepayment
penalty 1,268,420 21 1,095,882 35
Total loan
production $5,945,498 $3,154,628
(1) Excludes premiums paid for acquiring and originating mortgage loans.
(2) Mortgage loans are fixed rate for initial two to five year periods
and subsequently adjust to indicated index plus a margin. SOURCE Impac Mortgage Holdings, Inc.
CONTACT: Tania Jernigan of Impac Mortgage Holdings, Inc., +1-949-475-3600, tjernigan@impaccompanies.com/
Web site: http://www.impaccompanies.com
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