HomeBanc Reports 4Q Loss

HomeBanc Corp., Atlanta, has reported a net loss of $10.7 million ($0.18 per share) for the fourth quarter under generally accepted accounting principles, compared with GAAP net earnings of $348,000 ($0.01 per share) for the same period a year earlier.Kevin Race, recently promoted to president and chief executive following the departure of Patrick Flood, said HomeBanc had a GAAP net operating loss of $6.3 million for the period, but the company had to record a net tax expense instead of a net tax benefit for the quarter. For the year, HomeBanc reported a GAAP net loss of just under $11 million ($0.20 per share), an improvement over the net loss of $11.6 million ($0.21 per share) in 2005. As part of its 2007 strategic plan, the company has sold its mortgage-backed securities portfolio, generating $70 million in net proceeds. The sale reduced its investment portfolio from $5.9 billion at year-end 2006 to $4.6 billion, and it now consists almost entirely of mortgage loans. The company, a real estate investment trust, has also closed five of its 10 Georgia production offices and two of its nine Florida production offices. Mr. Race said this would generate $3.8 million of savings in 2007. The company is also working on how to implement its intentions to give up its REIT status. (REITs typically report financial results as funds from operations, a non-GAAP measure.)