Impac Mortgage Holdings earnings plunged from $2.94 per common share in the first quarter of 2015 to $0.85 per common share in the fourth quarter, to 2016’s first quarter $0.08 per common share, however the company said these numbers do not truly reflect the current state of the company.
“The number management considers shows that we have an operating income of $7 million, which is actually better than the fourth quarter,” said Justin Moisio, vice president of Corporate & Investor Relations in an interview with HousingWire.
The operational income increased to $7 million, up from the fourth quarter loss in 2015 of $593 thousand.
The company’s net earnings for the first quarter were $981 thousand, down from $34 million in 2015’s first quarter and $10.7 million in the fourth quarter.
These losses in earnings are mainly due to the low interest rates, Moisio said.
Although we are required by GAAP to record a change in fair value and accretion of the contingent consideration, management believes operating income excluding contingent consideration changes and the related accretion is more useful to discuss the ongoing and future operations of the company, the company said in a release.
In the third quarter of 2015, net earnings jumped to $19.3 million and total originations soared approximately 150% from the third quarter of 2014, according to the lender’s third-quarter earnings.
The company will continue to focus on growing its originations.
"We are pleased to have successfully rebounded from a difficult fourth quarter, by producing strong operational income in the first quarter,” said Joseph Tomkinson, chairman and CEO of Impac Mortgage Holdings. “Based on the continued growth of our mortgage origination pipeline, we expect to further grow our origination volume into the second quarter."
Here is a chart comparing 2016’s first quarter earnings to last years first and fourth quarter earnings:
Click to Enlarge
(Source: Impac Mortgage Holdings)
