Impac Mortgage Holdings in Irvine, Calif., swung to a profit in the third quarter, due to higher gains on the sale of loans.
Impac reported net income of $19.3 million, compared to $1.2 million in the year-ago period. Earnings per share improved to $1.48 versus a loss of 13 cents per share. Total revenue nearly quadrupled to $47.7 million.
Net gains on the sale of loans rose to $47.3 million from $8.6 million. The loss on mortgage servicing rights increased to $4.8 million from $2.8 million.
Total expenses rose 80.3% to $24.7 million on higher salaries, business development and administrative costs. Expenses also increased as Impac reported a $16.9 million loss in the fair value of contingent consideration.
