Headlands Reports Pro Forma Earnings Rise

Headlands Mortgage Co., Larkspur, Calif., has reported pro forma net income of $7.1 million ($0.35 per share) for the second quarter, up from $3.3 million ($0.22 per share) a year ago.The results were reported on a pro forma basis, "assuming the conversion from an S corporation and as if the company had been fully subject to federal and state taxes as a C corporation" for the reported periods, Headlands said. (The company's S corporation status ended in the first quarter with an initial public offering of 9.2 million shares.) Total loan production in the second quarter was nearly $2.1 billion, compared with $825 million a year earlier. Of that total, $1.3 billion were non-agency loans (including $1.0 billion of alternative-A loans), $499.7 million were agency loans, and $234.8 million were home equity loans, the company said. Headlands' servicing portfolio totaled $4.8 billion with a weighted average coupon of 8.31% as of June 30, compared with $3.9 billion and a weighted average coupon of 8.39% a year earlier, the company said.