Accredited Takes 4Q Loss

Accredited Home Lenders Holding Co., San Diego, has reported a loss of $37.8 million ($1.49 per share) for the fourth quarter, down 187% from net income of $43.3 million ($1.96 per share) a year earlier.For the full year, the company had net income of $57.7 million ($2.48 per share), down 63% from $155.4 million ($7.07 per share) in 2005. "Results for the fourth quarter were dissatisfying; however, during the quarter we absorbed the bulk of the impact of the Aames merger and continued responding to the current difficult credit environment," said James Konrath, Accredited's chairman and chief executive. "We spent much of the quarter completing the integration of Aames' retail business and continued to implement changes to our underwriting guidelines, both of which negatively affected key profitability drivers such as volume, costs and premiums." Accredited added $42 million to its reserve balances during the fourth quarter because of increasing delinquencies and repurchase activity. Accredited's stock closed at $25.22 on Feb. 13. After initially punishing the stock the next morning by driving it down to $22.90, investors reversed course, bringing the price up to $26.69. It was trading at $26.09 around midday Feb. 14, up $0.87 on the day. Accredited can be found online at http://www.accredhome.com.