Impac Mortgage Holdings, Inc. Announces Year End 2020 Results

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Impac Mortgage Holdings (NYSE American: IMH) reported its financial results for Q4 and the year ended December 31, 2020. The company recorded a net loss of $(2.2) million, or $(0.10) per diluted share for Q4 2020, compared to a net loss of $(677) thousand in Q4 2019. For the full year, the net loss was $(88.2) million, or $(4.15) per diluted share, a sharp decline from $(7.9) million in 2019. However, unrestricted cash improved to $54.2 million from $24.7 million due to decreased warehouse haircuts. Core earnings showed a positive shift, indicating focus on mortgage origination.

Positive

Unrestricted cash balances increased to $54.2 million from $24.7 million year-over-year.
Core earnings for Q4 improved to $3.3 million, showing a strategic focus on mortgage originations.

Negative

Net loss for the year reached $(88.2) million, significantly worse than $(7.9) million in 2019.
The company reported a core earnings loss of $(58.7) million for the year.

03/11/2021 - 04:01 PM

Impac Mortgage Holdings, Inc. (NYSE American: IMH) (the “Company”) announces its financial results for the quarter and year ended December 31, 2020.

For the fourth quarter of 2020, the Company reported a net (loss) of $(2.2) million, or $(0.10) per diluted common share, and core earnings of $3.3 million, or $0.16 per diluted common share, as compared to a net (loss) of $(677) thousand, or $(0.03) per diluted common share, and core earnings of $1.8 million, or $0.08 per diluted common share, for the fourth quarter of 2019.

For the year ended December 31, 2020, the Company reported a net (loss) of $(88.2) million, or $(4.15) per diluted common share, and core earnings (loss) of $(58.7) million, or $(2.76) per diluted common share, as compared to a net (loss) of $(7.9) million, or $(0.38) per diluted common share, and core earnings of $15.8 million, or $0.75 per diluted common share, for the year ended December 31, 2019.

At December 31, 2020, unrestricted cash balances increased to $54.2 million from $24.7 million at December 31, 2019. Unrestricted cash balances increased primarily due a decrease in warehouse haircuts (difference between loan balance funded and amount advanced by warehouse lenders).

Core earnings (loss) is not considered an accounting principle generally accepted in the United States of America (“non-GAAP”). Core earnings (loss) is a financial measurement that is calculated by adjusting generally accepted accounting principles (“GAAP”), operating income to exclude certain non-cash items, such as fair value adjustments and mark-to-market of mortgage servicing rights (“MSRs”), and non-recurring expenses. The Company believes core earnings (loss) more accurately reflects the Company’s current business operations of mortgage originations. Core earnings (loss) adjusts GAAP operating income by excluding non-cash items that fluctuate due to market rates, inputs or assumptions rather than management’s determination of fundamental operating income (loss) that reflects the Company’s current business operations. See the discussion and reconciliation of non-GAAP core earnings (loss) further below under “Non-GAAP Financial Measures.”

Results of Operations

For the Three Months Ended

For the Year Ended

(in thousands, except share data)

December 31,

September 30,

December 31,

(unaudited)

2020

2019

2020

2019

Revenues:

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