Impac Mortgage Holdings, Inc. (IMH) has reported a 58.19 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $16.94 million, or $1 a share in the quarter, compared with $10.71 million, or $0.85 a share for the same period last year. On an adjusted basis, earnings per share were at $1.37 for the quarter compared with a loss of $0.04 a share in the same period last year.
Revenue during the quarter surged 115.33 percent to $77.25 million from $35.88 million in the previous year period.
Total expenses were $50.64 million for the quarter, up 136.14 percent or $29.19 million from year-ago period. Operating margin for the quarter contracted 578 basis points over the previous year period to 34.45 percent.
Operating income for the quarter was $26.62 million, compared with $14.43 million in the previous year period. However, the adjusted operating profit for the quarter stood at $23.94 million compared to operating loss of $0.59 million in prior year period.
Revenue from real estate activities during the quarter declined 18 percent or $0.36 million to $1.62 million.
Gain on sale of assets was $65.17 million for the quarter, compared with gain of $36.19 million in the previous year period. Other income during the quarter was $10.46 million, up 556.77 percent or $12.75 million from year-ago period.
Mr. Joseph Tomkinson, chairman and chief executive officer of Impac Mortgage Holdings, Inc., commented, "2016 proved to be our best year in over a decade, surpassing our projections with nearly $100 million of Adjusted Operating Income and $13 billion in total originations. With our strong loan retention capabilities, we were able to take advantage of the low interest rate environment and create a low weighted average coupon servicing portfolio. As a result of the current rising rate environment, our servicing portfolio continues to increase in value and generate larger amounts of servicing income. This strategy was the core reason for our third quarter capital raise, and we are pleased to be executing this strategy successfully. In 2017, we expect that a rising rate environment will allow us to substantially grow our NonQM originations, continue to diversify our product offerings, and take advantage of the consolidation that is anticipated in the mortgage lending industry."
Receivables increase substantially
Net receivables were at $62.94 million as on Dec. 31, 2016, up 73.06 percent or $26.57 million from year-ago.
Total assets declined 6.67 percent or $347.12 million to $4,863.73 million on Dec. 31, 2016. On the other hand, total liabilities were at $4,632.69 million as on Dec. 31, 2016, down 9.11 percent or $463.67 million from year-ago.
Return on assets moved down 513 basis points to 0.35 percent in the quarter. At the same time, return on equity moved down 202 basis points to 7.33 percent in the quarter.
Debt moves up
Total debt was at $522.66 million as on Dec. 31, 2016, up 20.97 percent or $90.61 million from year-ago. Shareholders equity stood at $231.04 million as on Dec. 31, 2016, up 101.80 percent or $116.55 million from year-ago. As a result, debt to equity ratio went down 151 basis points to 2.26 percent in the quarter.
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