News Release
Also, as previously announced, the Company issued
As previously discussed in our annual report on Form 10-K, we believe there are a number of opportunities that exist in today’s mortgage and lending markets, which include the purchase of mortgage servicing rights, originating small balance multifamily loans, originating, pooling and privately securitizing jumbo mortgage loans and offering warehouse lines to small banks, credit unions and mortgage banking firms. With a portion of these proceeds, we expect to pursue some of these opportunities in a manner, and through structures, which we believe deliver accretive value to our shareholders.
In the first quarter of 2013, as compared to the first quarter of 2012, we have increased originations by 85% and the servicing portfolio by 197% as indicated below (in millions):
| Q1 2013 | Q1 2012 | $ Increase | % Change | |||||||||||||
| Originations | $ | 673.8 | $ | 365.1 | $ | 308.7 | 85 | % | ||||||||
| Servicing Portfolio (1) | 1,702.5 | 573.8 | 1,128.7 | 197 | % | |||||||||||
| (1) Excluding servicing sold and not transferred, and interim servicing | ||||||||||||||||
In the first quarter of 2013, as compared to the fourth quarter of 2012, we increased the servicing portfolio by 14% but originations declined 17% as seen below (in millions):
| Q1 2013 | Q4 2012 | $ Increase | % Change | ||||||||||||||
| Originations | $ | 673.8 | $ | 813.2 | $ | (139.4 | ) | -17 | % | ||||||||
| Servicing Portfolio (1) | 1,702.5 | 1,492.1 | 210.4 | 14 | % | ||||||||||||
|
(1) Excluding servicing sold and not transferred, and interim servicing |
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The decline in originations was due to an overall decline in originations in the mortgage lending market in the first quarter of 2013, normal seasonal declines experienced each year in the first quarter, and some operational inefficiencies impacting turn times associated with the implementation of our new loan origination system.
In the first quarter of 2013, as compared to the first quarter of 2012,
continuing operations were profitable and improved by 104% due to the
improvement in the results of mortgage lending, the continued
profitability, albeit expectedly lower, of our real estate services
segment and a
| Q1 2013 | Q1 2012 | |||||||||||||||||||
|
Net earnings (loss) |
Diluted EPS |
Net earnings (loss) |
Diluted EPS | |||||||||||||||||
| Mortgage Lending | $ | 671 | $ | 0.08 | $ | 227 | $ | 0.03 | ||||||||||||
| Real Estate Services | 2,295 | 0.27 | 2,726 | 0.35 | ||||||||||||||||
| Long-term Mortgage Portfolio | (3,916 | ) | (0.46 | ) | (6,445 | ) | (0.83 | ) | ||||||||||||
| Continuing Operations | $ | (950 | ) | $ | (0.11 | ) | $ | (3,492 | ) | $ | (0.45 | ) | ||||||||
| Income tax benefit (expense) from continuing operations | 1,088 | 0.13 | (30 | ) | (0.00 | ) | ||||||||||||||
| Continuing operations, net of tax | $ | 138 | $ | 0.02 | $ | (3,522 | ) | $ | (0.45 | ) | ||||||||||
| Discontinued Operations, net of tax | (876 | ) | (0.10 | ) | (1,268 | ) | (0.16 | ) | ||||||||||||
| Net loss attributable to IMH | $ | (738 | ) | $ | (0.08 | ) | $ | (4,790 | ) | $ | (0.61 | ) | ||||||||
Mortgage Lending
In the first quarter of 2013, mortgage lending net earnings before taxes
improved slightly over the same period in the prior year. However, net
earnings before taxes declined as compared to the fourth quarter of
2012. The decline in the first quarter of 2013 as compared to fourth
quarter of 2012 was primarily due to margin compression, an increase in
lending operations personnel costs and a non-operational, non-recurring
cost of
Margin compression that began in the fourth quarter of 2012 continued in
the first quarter of 2013 reducing our net margins by approximately 20
basis points, although it now appears that margins have stabilized in
the latter part of the first quarter of 2013. Our origination volumes
were lower in the first quarter of 2013 as compared to
During the first part of the second quarter of 2013, we have seen
improved turn times with increased funding volumes. Furthermore, we saw
a significant increase in the pipeline in
In the first quarter of 2013, the Company’s mortgage lending channels continued to experience a more balanced production mix. This was a result of the continued growth in the retail channel, conducted by our branch offices, and correspondent channel, which acquires closed loans from our correspondent sellers. For the first quarter of 2013, our retail channel production contributed 31% of originations while our correspondent channel contributed 23%, with the remaining 46% coming from the wholesale channel.
In the first quarter of 2013, the mix of purchase money transactions, as
compared to refinance transactions, remained consistent with the first
quarter of 2012 and the fourth quarter of 2012. We continue to devote
efforts towards capturing additional purchase money transactions as the
real estate market continues to improve and the home refinance market
continues to contract. We have been able to increase the number of
relationships we have with real estate professionals to 1,266 as of
Our mortgage servicing portfolio increased to
Real Estate Services
Net earnings before taxes from our real estate services segment
decreased to
Long-term Mortgage Portfolio
Net loss before taxes from our long-term mortgage portfolio was
Consolidated Operations
In the first quarter of 2013, the Company reported a consolidated net
loss of
Despite earnings from the mortgage lending segment staying relatively flat, when comparing the first quarter of 2013 with the first quarter 2012, we still believe that the continued driver of growth in net earnings from continuing operations for 2013 will be mortgage lending. Total origination volume fell in the first quarter of 2013 as compared to the fourth quarter of 2012; however we continue to increase production substantially on a year over year basis. The decrease in production from the fourth quarter of 2012, combined with increased margin compression and higher personnel costs, limited the mortgage lending segment’s profitability in the first quarter of 2013.
Mr.
Conference Call
The Company will hold a conference call tomorrow morning,
Forward-Looking Statements
This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements, some of which are based on various assumptions and events that are beyond our control, may be identified by reference to a future period or periods or by the use of forward looking terminology, such as “may,” “will,” “intends,” “believe,” “expect,” “likely,” ”appear,” “should,” “could,” “seem to,” “anticipate,” “expectations,” “plan,” or similar terms or variations on those terms or the negative of those terms. The forward looking statements are based on current management expectations. Actual results may differ materially as a result of several factors, including, but not limited to the following: our ability to manage effectively our mortgage lending operations and continue to expand the Company’s growing mortgage lending activities; volatility in the mortgage industry; unexpected interest rate fluctuations and margin compression; decrease in purchase money transactions; inability to hire qualified retail loan officers or transact with qualified correspondents; failure to successfully launch or continue to market new loan products; increased competition in the mortgage lending industry by larger or more efficient companies; issues and system risks related to our technology; more than expected increases in default rates or loss severities and mortgage related losses; ability to obtain additional financing, the terms of any financing that we do obtain and our expected use of proceeds from any financing; increase in loan repurchase requests and ability to adequately settle repurchase obligations; failure to create brand awareness; the outcome, including any settlements, of litigation or regulatory actions pending against us or other legal contingencies and our compliance with applicable local, state and federal laws and regulations and other general market and economic conditions.
For a discussion of these and other risks and uncertainties that could
cause actual results to differ from those contained in the forward
looking statements, see the annual and quarterly reports we file with
the
About the Company
For additional information, questions or comments, please call
Source:
Impac Mortgage Holdings, Inc.
Justin Moisio
Investor Relations
(949)
475-3988
jmoisio@impacmail.com
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