Impac Mortgage Holdings Inc (IMH)

Up 4.23% premarket

Today is the day the Preferred B and C get finally converted to commons, warrants, and preferred D (cash equivalent). Preferred D is callable at any moment.

A Mortgage Billionaire Bids for the Commanders NFL Franchise, GSE Shareholders and Impac's Restructuring

The NFL's Commanders Franchise may sell for $7 Billion, GSE Shareholders had a setback with a mistrial in DC, Impac's preferred is going to be swapped on November 15th.

https://ridgehaven.substack.com/p/a-mortgage-billionaire-bids-for-the?sd=pf

............
Details on Impac’s November 15th Preferred Clean-up

Judging from market prices for the Impac Preferred B (IMPHP) and Preferred C shares (IMPHO), there is still some confusion about what happens on November 15th.

Impac Mortgage Holdings, Inc. Announces Date of Redemption of Series B Preferred Stock and Series C Preferred Stock

IRVINE, Calif., October 28, 2022--(BUSINESS WIRE)--Impac Mortgage Holdings, Inc. (NYSE American: IMH) (the "Company") today announced it intends to redeem all outstanding shares of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share (CUSIP: 45254P300) ("Series B Preferred Stock"), and all outstanding shares of the Company’s 9.125% Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share (CUSIP: 45254P409) (the "Series C Preferred Stock," and together with the Series B Preferred Stock, the "Preferred Stock"). Preferred Stock held through the Depository Trust Company will be redeemed in accordance with the applicable procedures of the Depository Trust Company.

The redemption date will be November 15, 2022 (the "Redemption Date"). Each outstanding share of Series B Preferred Stock will be redeemed for (i) thirty (30) shares of the Company’s 8.25% Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share ("New Preferred Stock"), and (ii) 13.33 shares of the Company’s Common Stock, par value $0.01 per share (the "Common Stock") (collectively, the "Series B Redemption Price"). Each outstanding share of Series C Preferred Stock will be redeemed for (i) one share of New Preferred Stock, (ii) 1.25 shares of Common Stock, and (ii) a 1.5 warrants to purchase the same number of shares of Common Stock at a purchase price of $5.00 per share of Common Stock (collectively, the "Series C Redemption Price," and together with the Series B Redemption Price, the "Redemption Price").

SEC Filing

The last trade for the IMPHO shares was 25 cents a few days ago. However, on November 15th, these shares will be converted to common worth 1.25 x the market price. Yesterday’s afterhours session sent the common to $0.42 per share, meaning the converted value is $0.52. Additionally, the shareholder will receive 1.5 warrants with a strike of $5 and a 10 cent preferred D, which is expected to be redeemed for cash. This means IMPHO is trading at a steep discount to market value, which I’d estimate to be about $0.82 per share.

The last trade for the IMPHP was $4.25. These shares will be exchanged for 13.33 common shares worth $5.60 as of yesterday evening. These shares will also receive $3 per share worth of Preferred D. So, they are also trading at a steep discount. Market value is about $8.60 on the IMPHP.

You won’t likely be able to buy these shares, as the float is significantly reduced. This message is for the current stockholders that seem to be dumping the shares without understanding what they are selling.

Yesterday's move was +19% and +30% in the regular followed by the after hours session.

People must be realizing that Impac has a large DTA and are about to complete the restructuring on November 15th.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170367819
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170357252

Just bought a little at 30 cents. The DTA is worth $7.50 per share. So, that seems like a good bargain.

Last night's SEC Filing 13G
https://ir.impaccompanies.com/static-files/1198f98c-5d78-4e7b-9fee-4bbd8786b2d7

Camac fund now owns 3,283,147 shares of Common or 9.9% of the total common stock.



Why does this matter?

Camac was a party to the lawsuit with Timm and chose to settle to help preserve value in the company. Amounts above 10% would begin to impair the DTA under IRS rules.

Impac's Largest Asset



The DTA comes with a valuation allowance. Full or partial reversal of this valuation allowance creates instant book value and income recorded as earnings per share. Impac will have about 34.2 million diluted shares after restructuring is complete.

Current share count: 21.5M
+ IMPHO New Shares 1,405k x 1.25 = 1.76M
+ IMPHP New Shares 665k x 13.33 = 8.9M
+ Warrants 1,405k x 1.5 = 2.1M
--------------------------------------
Total 34.2 M diluted shares

$257.3 M/ 34.2M shares =
$7.52 DTA per Share

Updated to reflect the current rate hike cycle. The pace of rate hikes has made mortgage market conditions brutal.

Here's some analysis...

Impac's stock is sitting at 25 cents partly because they are going through a restructuring that took years to bring to fruition and is largely misunderstood by investors. Just prior to the restructuring, the company pulled back big time on loan production.

Here's a note on the 2nd Q results from Housing Wire.
Impac’s originations declined from $622.5 million in the second quarter of 2021 to $482 million in the first quarter of 2022 and $128 million in the second quarter of 2022. Gain-on-sale margins decreased from 175 basis points from April to June 2021 to 14 bps in the same period this year.

Meanwhile, non-QM originations fell to $80.2 million in Q2 2022, down from $314.3 million in Q1 2022 and $100.6 million in Q2 2021.

“In the second quarter of 2021, we began to increase our marketing expenditures in an effort to more directly target non-QM production in the retail channel, expand production outside of California and maintain our lead volume as competition increased,” the company said.

Impac added, “As a result of the recent dislocation within the nonQM market on account of the significant increase in interest rates, in the second quarter of 2022, we reduced our marketing spend as we pulled back on our origination volumes to mitigate the aforementioned risks associated with the current environment.”
https://www.housingwire.com/articles/impac-mortgage-holdings-backs-off-non-qm-posts-ugly-q2-results/

According to the other article mentioned in the post before this, the firms that actually made NonQM loans in the past couple of quarters are sitting on billions of dollars in NonQM backlogs that are paying below market rates. That's not surprising given the speed of rate hikes during this cycle.



Impac not making NonQM loans in 2nd Q and possibly 3rd Q could be a blessing.

Impac Mortgage Holdings, Inc. Announces Date of Redemption of Series B Preferred Stock and Series C Preferred Stock

IRVINE, Calif., October 28, 2022--(BUSINESS WIRE)--Impac Mortgage Holdings, Inc. (NYSE American: IMH) (the "Company") today announced it intends to redeem all outstanding shares of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share (CUSIP: 45254P300) ("Series B Preferred Stock"), and all outstanding shares of the Company’s 9.125% Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share (CUSIP: 45254P409) (the "Series C Preferred Stock," and together with the Series B Preferred Stock, the "Preferred Stock"). Preferred Stock held through the Depository Trust Company will be redeemed in accordance with the applicable procedures of the Depository Trust Company.

The redemption date will be November 15, 2022 (the "Redemption Date"). Each outstanding share of Series B Preferred Stock will be redeemed for (i) thirty (30) shares of the Company’s 8.25% Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share ("New Preferred Stock"), and (ii) 13.33 shares of the Company’s Common Stock, par value $0.01 per share (the "Common Stock") (collectively, the "Series B Redemption Price"). Each outstanding share of Series C Preferred Stock will be redeemed for (i) one share of New Preferred Stock, (ii) 1.25 shares of Common Stock, and (ii) a 1.5 warrants to purchase the same number of shares of Common Stock at a purchase price of $5.00 per share of Common Stock (collectively, the "Series C Redemption Price," and together with the Series B Redemption Price, the "Redemption Price").

No fractional shares of Common Stock will be issued pursuant to the redemption, and each holder of Preferred Stock entitled to receive a fractional share of Common Stock shall be entitled to receive one share of Common Stock in lieu of the fraction of share of Common Stock. No fractional warrants will be issued pursuant to the redemption, and the Company will round down to the nearest whole number of warrants to be issued to each holder of Series C Preferred Stock otherwise entitled to receive a fractional warrant. The applicable Redemption Price will be paid on the Redemption Date.

https://finance.yahoo.com/news/impac-mortgage-holdings-inc-announces-130000907.html

KBRA: Backlog Of Redeemable Non-QM Securities Growing
David Krechevsky
OCT 21, 2022

KEY TAKEAWAYS
A total of 27 securitizations, with a combined outstanding balance of $3 billion, are redeemable but have not yet been called.
Homeowners thinking about refinancing their mortgages are growing increasingly reluctant, since mortgage rates have more than doubled in the past year.

Why refinance when the rate on your current mortgage is better than the rate you’d get with a refinanced loan?

A similar problem now affects securitizations of non-qualified (Non-QM) mortgages.

In a report issued earlier this month, Kroll Bond Rating Agency LLC (KBRA) noted there is a growing backlog of Non-QM residential mortgage-backed securities (RMBS) that are “callable” or “redeemable,” but have not yet re-entered the market.

According to the report, 27 securitizations, with a combined outstanding balance of just under $3 billion, are redeemable but have not yet been called.

It’s a problem that has grown in the past year, and one that reflects both the volatility of the securities market and the increasingly poor market for securitizing Non-QM loans.

“Notably, only 12 of 31 transactions that became callable based on their earliest optional redemption date were redeemed between August 2021 and September 2022,” the report states, which means 19 were not redeemed. “Additionally, eight more transactions that, though they had not yet reached their earliest optional redemption date, were callable based on their collateral pool factors … were not redeemed.”

https://nationalmortgageprofessional.com/news/kbra-backlog-redeemable-non-qm-securities-growing

Non QM performance wavered in 3Q
By Bonnie Sinnock
October 14, 2022, 5:52 p.m. EDT

Non-qualified mortgages in the securitized market exhibited some mixed performance over the summer, according to a DBRS Morningstar report published Thursday.

The delinquency rate in the third quarter overall was slightly higher than in the second at 3.8% compared to 3.5% in the second.

But whether distress continues to grow in this part of the market remains to be seen.

The latest monthly number for the net impairment rate reported by dv01 this week suggests distress declined in August, falling to 3.9% from 4.1% in July. (Fitch Ratings' parent company has agreed to buy a majority stake in dv01.)

The relative stability in non-QM loan performance over the summer suggests that interest rates continue to be a bigger concern than credit for the time being.

"When you have a rate move that's violent, like the one that we've had this year, you're going to see a situation where the securitizations that are coming to market are still reflecting a lot of loans that have been originated in a very different rate environment," said Vadim Verkhoglyad, vice president and head of research publication at dv01.

A backlog of seasoned non-QM loans has grown as a result of this, Kroll Bond Rating Agency noted in a report published Thursday.

"The current rising rate environment dis-incentivizes issuer redemption by reducing the value of existing loans and increasing the required coupon on newly securitized classes," KBRA said in the report, noting that that's created a "glut" which will eventually re-enter the market.

https://asreport.americanbanker.com/news/non-qm-performance-wavered-in-3q

Some NonQM news....


Jumbo and Non-Agency Loan Changes

HELOCs are a big topic these days, despite the run up in the index rates. HELOCs even have their own home equity lending news: HEL.news. But jumbo, non-conforming, non-Agency, non-QM… although this general product is still the minority of production, loan originators need these products in order to help clients either refinance their existing homes, especially for self-employed borrowers, or purchase a new home.

The question occasionally comes up about why jumbo rates are less than conforming rates. The basic answer is that jumbo loans do not have a 52-basis point (about half a percent) guarantee/guarantor fee attached to each loan. The gfee is firmly in the domain of the FHFA’s Fannie Mae and Freddie Mac.

Life is not easy for non-QM lenders and investors. For example, this month Angel Oak Mortgage Inc., the publicly traded non-QM mortgage REIT, disclosed it had received a two-week extension on a financing facility it has with Barclays Bank. The new termination date is Oct. 14.

The facility was negotiated a few days ago through AOMI subsidiary Peachtree Mortgage. Angel Oak Mortgage parted ways with CEO and President Robert Williams, who helped take the company public in 2021.

Angel Oak Mortgage Solutions’ Non-QM products include delayed financing options. “It is a great way to pay to win a bid and then get the majority of it back within six months of purchase without waiting.”
https://www.mortgagenewsdaily.com/opinion/pipelinepress-10172022

Companies like Impac specialize in NonQM loans and providing alternative methods to finance mortgages. Mortgage credit availability has a long way to go to be back to normal.



With rates surging, this is a business that could be incredibly profitable, given stable rates and better spreads.

Overall, the rumor that the housing market is going to be destroyed by higher rates is definitely hyperbole.

Here's some facts:
Active home listings are up 26% year over year, but still 42.6% lower than prepandemic.
[img]http://substackcdn.com/image/fetch/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Faae832d2-59e0-43b6-a68b-3f9b460f810c_1000x800.png
[/img]

Pending home listings are not rebounding.


Add in the unavailable rental housing and you have a complete lack of supply.

Rental vacancies continue to decline.


Bottom line: Mortgages will remain secured by high quality property that doesn't lose value.

Here are a couple of recent pieces on Impac Common stock and the company after restructuring the preferred shares.

Impac Mortgage Positioned For Optimal Growth After Restructuring
https://ridgehaven.substack.com/p/impac-mortgage-positioned-for-optimal

Real Opportunity Brewing in Mortgage Market Stocks
https://ridgehaven.substack.com/p/real-opportunity-brewing-in-mortgage?sd=pf

How a Company Like Impac Mortgage Will Save Housing
https://medium.com/@david.sims321/how-a-company-like-impac-mortgage-will-save-housing-67dda7f76f9c

Took on a huge position today.

Mortgage Company That Could Move Higher With Interest Rates by David Sims of Seeking Alpha

IMH
Impac Mortgage was hit hard by the housing finance implosion of 2008. However, unlike hundreds of competitors, this company reacted early enough to prepare the company for the crisis. The result is that the company avoided bankruptcy and shares continued trading, albeit much lower.
In the past five years, the stock price found a bottom and insiders have come in to buy value. The biggest value driver is the company's $163 million deferred tax asset (DTA), which is being carried with a full valuation allowance. The valuation allowance may be removed soon, as the company indicated some portion of the DTA is going to be recognized with 1st Q 2015 results.
Impac's operational performance has improved as a result of several deals completed in the past few quarters. In September 2014, the company announced that Macquarie Group would purchase all of their non-qualified mortgage products. These are loans that don't conform to standards held by Fannie and Freddie. The company has stated that they could eventually capture a large portion of the $50 billion market for these loans.
Additionally, during the 1st Q of 2015, the company completed their acquisition of Cash Call Mortgage. This significantly increased the volume of mortgage originations. The company pre-announced at least $2 billion in mortgage originations for the quarter, versus about $2.8 billion in all of 2014. This will result in at least $6 million in profits for the quarter, which is about equal to the losses booked in all of 2014.
The real news may be the impact of increased interest rates on the company's non-QM lending business. If interest rates in the United States rise, while foreign central banks keep rates low or negative, then foreign buyers may have an increased appetite for U.S. debt. The result would be a non-QM lending boom at Impac, fueled by purchases from Macquarie. In 2015, Impac may actually quadruple full-year mortgage originations.
If Impac is able to fully recognize their deferred tax asset, the company could eventually have more than $208 million in equity book value. (This includes a $20 million convertible note held by an insider.) The company's current market capitalization is about $140 million. This indicates that the common stock could have another 30% upside for the year.

3 Stocks Pushing The Real Estate Industry Lower
By TheStreet Wire Follow07/25/14 - 04:01 PM EDT
inShare

Get TheStreet Quant Ratings' exclusive 5-page report for (SPPR) now.
Impac Mortgage Holdings ( IMH) was another company that pushed the Real Estate industry lower today. Impac Mortgage Holdings was down $0.10 (1.8%) to $5.49 on light volume. Throughout the day, 8,401 shares of Impac Mortgage Holdings exchanged hands as compared to its average daily volume of 16,600 shares. The stock ranged in price between $5.25-$5.58 after having opened the day at $5.25 as compared to the previous trading day's close of $5.59.

Impac Mortgage Holdings, Inc. operates as an independent residential mortgage lender. It operates through three segments: Mortgage Lending, Real Estate Services, and Long-Term Mortgage Portfolio. Impac Mortgage Holdings has a market cap of $54.2 million and is part of the financial sector. Shares are down 6.5% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Impac Mortgage Holdings a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Impac Mortgage Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on IMH go as follows:

IMPAC MORTGAGE HOLDINGS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, IMPAC MORTGAGE HOLDINGS INC swung to a loss, reporting -$0.59 versus $1.49 in the prior year.
The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income has significantly decreased by 301.9% when compared to the same quarter one year ago, falling from -$0.74 million to -$2.97 million.
Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, IMPAC MORTGAGE HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 51.37%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1700.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
IMH, with its decline in revenue, underperformed when compared the industry average of 0.1%. Since the same quarter one year prior, revenues fell by 27.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
You can view the full analysis from the report here: Impac Mortgage Holdings Ratings Report

Key Stats from the latest 10Q

(in thousands)

Earnings from continuing operations: $2,459 (6 months)
Earnings (loss) per common share - diluted: $0.24 per share

Total Stockholder's Equity at 6/30: $33,599
Liquidation Preference of Preferred Stock: $51,767
Stated Book value per Common Share: ($18,168) for 8,764 shares or -$2.07 per share

NOL Carry-forwards: $489.4 million with full valuation allowance

Possible DTA recognition in future periods: $489.5 at 35% or $171.3 Million

Unbooked and unstated book value per common share: $17.40

($171.3 million plus $33.599 million less $51.767 million)/8,764 shares

Preferred stock discussion is happening at the IMPHO board.

http://investorshub.advfn.com/boards/board.aspx?board_id=24213

this party is over...

Below is the weekly chart for IMH, showing the longterm trend... the MACD suggest that IMH is due for a significant correction, but I do not know...

What does post #144 have to do with the technical analysis of insider sales? To suggest a chart reflects insider buys or sells any differently than retail or is either incompetence, or intentionally deceptive. Trust me on this, I looked it up.
fAt

I'll refer you to post #144

fAt, I believe you need to turn your computer screen 90 degrees to the right. This will enable you to see the insider trading pattern better. If this doesn't work for you just let me know. I have some other suggestions.
I can also show you the shorts and profit taker patterns as well.
Congrats on those who bought and held IMH over the past couple of years. Things sure have paid off on your great investment!!!!!!!!!!

Ah.. the ol' insider selling indicator included on any good chart.. You know they should spend way more time in technical analysis school going over that one since it's so hard to see...
fAt

Below is an Annotated Chart of IMH:

More Insiders selling on 19 November @ $11.38/share and on 16 November @ $12.46/share... If Insiders don't think that IMH can hold these levels for long, then I am inclined to agree with them...

However, If the economy picks back up in 2013 & we see 3-4 months of sustained growth in the housing sector, IMH will be worth a good long look, but I do not see an entry above $8.00 to be practical at this point in time...

I hope everyone had a great Thanksgiving... Chart Below:

Looks like someone might be short....
fAt

More 144's filed, Insiders sales are starting to add up!

Press Release: Impac Mortgage Holdings, Inc. – Wed, Oct 31, 2012 5:15 PM EDT

RELATED QUOTES
Symbol Price Change
IMH 13.47 2.23

IRVINE, Calif.--(BUSINESS WIRE)--
Impac Mortgage Holdings, Inc. (NYSE MKT: IMH), announces today that its continuing operations, comprised primarily of mortgage lending, real estate services and long-term portfolio, earned $6.7 million or $0.86 per diluted share for the third quarter 2012, and $10.5 million or $1.35 per diluted share for the nine months ended September 30, 2012. The Company also announces its intentions to settle two of its remaining legacy lawsuits, which will result in a charge of $6.1 million during the third quarter of this year.
Continuing Operations
The Company’s continued operations will report net profits in the third quarter primarily due to the mortgage lending segment earnings of $8.2 million or $1.04 per diluted share, as compared to $3.8 million or $0.46 per diluted share for the second quarter 2012. In addition, the real estate services segment continues to earn net profits, albeit a decline from second quarter 2012, recording net earnings of $3.6 million or $0.46 per diluted share in the third quarter. The decline in real estate services from second quarter was primarily due to a continued and anticipated decline in the long term mortgage portfolio. The Company’s continuing operations’ net earnings declined by $583 thousand or 8% from Q2 2012 primarily driven by a $2.5 million loss from the change in fair value of our net trust assets (residual interests) in the long-term portfolio segment.
The mortgage lending segment net earnings in the third quarter of 2012 increased by $4.4 million or 115% over the second quarter 2012. The increase was due to the increase in lending volumes by 33% over the second quarter. The Company increased its residential mortgage originations to $709.8 million in the third quarter 2012 as compared to $532.5 million in the second quarter 2012. The Company has originated $1.6 billion in residential mortgage originations, year to date, September 30, 2012. In addition, the servicing portfolio increased to $1.7 billion during the third quarter, from $1.1 billion, in the second quarter which also helped improve the Company’s profitability and cash flows. The Company also increased its warehouse borrowing capacity from $145 million at June 30, 2012, to $185 million at September 30, 2012.
Mr. Tomkinson, Chairman and CEO of Impac Mortgage Holdings, Inc., stated, “The net earnings and cash flows from the Company’s mortgage operations are, and will continue to be, the main drivers of the Company’s consolidated earnings. In fact, origination volumes have grown quarter over quarter to new record levels since our re-emergence in the mortgage lending business. Although it has taken over four years, through our hard work and persistence the Company and our employees are finally seeing the fruits of our labor.”
Discontinued Operations
The Company’s discontinued operations had a net loss of $(9.0) million or $(1.15) per diluted share for the third quarter 2012. This loss was primarily due to the Company taking a charge of $6.1 million during the third quarter of this year, as a result of its intentions to settle two of its remaining legacy lawsuits.
Given our significant lending and securitization volumes completed by the previously discontinued mortgage lending operations in years prior to 2008, we, like others, have been sued, sometimes alongside dozens of other co-defendants. We have diligently defended each, sometimes at considerable expense, because, we believed that the Company ultimately had, in most cases, much less exposure, if any, from these claims, and had hoped to end them in a manner where we could preserve as much shareholder value as possible.
Management believes it is in the best interest of the shareholders to settle these lawsuits rather than be faced with the uncertainty of any court rulings, the exorbitant cost in terms of legal fees, the time involved and the distractions these suits create in defending them. It is also important to note that the terms of the settlements have been structured in a manner to minimize impact to our cash flows.
The legal settlement charge will result in the Company reporting a consolidated net loss of approximately $(2.3) million or $(0.29) per share in the third quarter of 2012, as compared to net earnings of $4.2 million in the second quarter of 2012. Excluding the legal settlement charge, the third quarter 2012 results would be consistent with the second quarter 2012.
Mr. Tomkinson stated, “With these settlements, management will be able to take what we believe to be its final steps in resolving the legacy obligations and contingencies of IMH, and put the Company’s mortgage lending business in its best position since the financial crisis began in 2007. Further, it helps put the Company in a position to take advantage of opportunities that exist today in the mortgage lending market.”

Q3 2012 Q2 2012 Q3 YTD
Net earnings (loss) Diluted EPS Net earnings (loss) Diluted EPS Net earnings (loss) Diluted EPS
Long-term Portfolio $ (4,787 ) $ (0.61 ) $ (252 ) $ (0.03 ) $ (11,614 ) $ (1.48 )
Mortgage Lending 8,156 1.04 3,800 0.46 12,280 1.57
Real Estate Services 3,585 0.46 4,012 0.48 10,562 1.35
Discontinued Operations (9,021 ) (1.15 ) (3,113 ) (0.37 ) (13,402 ) (1.71 )
Noncontrolling interests (212 ) (0.03 ) (235 ) (0.03 ) (683 ) (0.09 )
Net (loss) earnings attributable to IMH $ (2,279 ) $ (0.29 ) $ 4,212 $ 0.51 $ (2,857 ) $ (0.36 )

Conference Call
The Company will hold a conference call tomorrow morning, November 1st, 2012, at 9 a.m. Pacific Time (12:00 p.m. Eastern Time), to discuss the Company’s financial results and business outlook and to answer investor questions. After the Company’s prepared remarks, management will host a live Q&A session, to answer questions submitted via email. Please email your questions to jmoisio@impacmail.com. Investors may participate in the conference call by dialing (866) 838 - 8084, conference ID number 60081087, or access the web cast via our web site at http://ir.impaccompanies.com. To participate in the conference call, dial in 15 minutes prior to the scheduled start time. The conference call will be archived on the Company's web site at http://ir.impaccompanies.com.
Forward-Looking Statements
This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements, some of which are based on various assumptions and events that are beyond our control, may be identified by reference to a future period or periods or by the use of forward looking terminology, such as “may,” “will,” “intends,” “believe,” “expect,” “likely,” ”appear,” “should,” “could,” “seem to,” “anticipate,” or similar terms or variations on those terms or the negative of those terms. The forward looking statements are based on current management expectations. Actual results may differ materially as a result of several factors, including, but not limited to the following: the ongoing volatility in the mortgage industry; our ability to manage successfully through the current market environment; our compliance with applicable local, state and federal laws and regulations and other general market and economic conditions; our ability to meet liquidity needs from current cash flows or generate new sources of revenue; management’s ability to manage successfully and continue to grow the Company’s mortgage and real estate business activities including the mortgage lending operations; the ability to make interest payments; increases in default rates or loss severities and mortgage related losses; our ability to obtain additional financing and the terms of any financing that we do obtain; inability to effectively liquidate properties to mitigate losses; increase in loan repurchase requests and ability to adequately settle repurchase obligations; the completion, structure and court approval of the proposed legal settlements; and the outcome, including any settlements, of litigation or regulatory actions pending against us or other legal contingencies.
For a discussion of these and other risks and uncertainties that could cause actual results to differ from those contained in the forward looking statements, see Item 1A. “Risk Factors” and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the period ending December 31, 2011. This document speaks only as of its date and we do not undertake, and specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements
About the Company
Impac Mortgage Holdings, Inc. (IMH) provides mortgage and real estate solutions that address the challenges of today’s economic environment. Impac’s operations include mortgage lending, portfolio loss mitigation and real estate services. The Company also specializes in the management of long-term mortgage portfolios, including the residual interest in securitizations, to mitigate losses and maximize cash flows.
For additional information, questions or comments, please call Justin Moisio in Investor Relations at (949) 475-3988 or email jmoisio@impacmail.com. Web site: http://ir.impaccompanies.com or www.impaccompanies.com

I agree these guys over here are dreaming, Oct home sales out just now are very good and we see more selling in IMH...

This reeks of a P&D low float garbage play...

The market is very green on top of the good home sales and IMH continue to fall...

My bet she is under $10 very very soon!

Impulse - the only possible way that IMH has a $100,000,000.00 market-cap... IMHO, somewhere around $35,000,000.00 would be more believable...

Slide continues...

Thanks for the reply

Could be a million reasons for the sale. All of top management took a pay cut over the last few years. He might have wanted to cash out a few shares. Might of been a smart move since taxes will go up next year.

I have disputed pretty much every one of the red flags in that article. The arguments are not very strong. See the comments section:

http://seekingalpha.com/article/999601-impac-mortgage-holdings-8-red-flags

I'll come back to the basic points that the company posted earnings from continued operations of $1.50 in the latest quarter, or $6 annualized, announced a significant increase in origination volumes for the first month of the fourth quarter. Those are not the numbers of a pump and dump. The stock is trading at 2x earnings.

I have no insight into the next couple days of trading but I think it will trend higher in the months ahead.

I am not going to claim to know every detail of this company, if you can dispute all 8 of these red flags then more power to you. All I know is it looks like they are running a pre 2008 mortgage company, in a post 2008 world...

And the R/S done in 2009 makes this look all the more like a complete pump and dump...

GL defending it, I bet this is under $10 by monday or tuesday...

Red flag 8: If you look at the volume, it seems a pattern of matched orders and wash trades since the volume is continuously high after August. This is as compared to a normal situation, when some good news happens, the volume spikes and then fades.

Red flag 7: Global economy is still in an uncertain situation, and the US is facing the fiscal cliff. S&P 500 dropped from 1460.91 @ Oct 17 to 1379.85 @ Nov 9. These are all bad news for the company and the mortgage industry.

Red flag 6: As of June 30, 2012, long-term debt had an unpaid principal balance of $70.5 million. They are:

Series B 9.375% redeemable preferred stock, 665,592 noncumulative shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively.
Series C 9.125% redeemable preferred stock, 1,405,086 noncumulative shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively.
If the company is bankrupt, preferred stockholders have higher priority than common stockholders. However, current stockholder equity is merely $30M, less than $70.5M, which left common stockholders nothing.

Red flag 5: The Company's discontinued operations, had a net loss of $(9.0) million or $(1.15) per diluted share for the third quarter 2012. This loss was primarily due to the Company taking a charge of $6.1 million during the third quarter of this year, as a result of its intentions to settle two of its remaining legacy law suits.

So first of all, the company is actually losing money for the third quarter.

Red flag 4: Though the company earned $6.7 million or $0.86 per diluted share for the third quarter 2012 from continuing operations, according to red flag 2, it is from high leverage. Nothing impressive here since anybody can do that with this high leverage.

Red flag 3: For stockholder equity 30M and Market Capitalization 136M, the company's price/book ratio is now 4.5, so stockholders are paying $4.5 for $1 value now.

Red flag 2: The company is using leverage of 187 (5623M/30M). In other words, if the assets go down 0.53%, the company is wiped out.

Red flag 1: The stock price reflects the value of the company. So for any company, is it possible to increase the company value by 667% in three months?

They don't usually sell all their shares at once...
;)

William Ashmore holds 177,000 shares after this sale. So he has over $2 million in company stock right now.

Impac earned $1.50 in Q3 from continuing operations.

As for the downgraded rmbs assets, these assets sit in trusts and securitizations that are non-recourse to the company. They also reflect a small portion of the outstanding trust assets with a carrying value of $5.7 billion. That some of these trusts are not performing well is not news. The legacy portfolio, which the trusts are a part of, is in run-off and is not the core business of the company.

Yet Impac does receive cash from its residual interest in the performing trusts, and that amounted to o$7.9 million in cash payments over the last 9 months. That works out to a little over $1 per share over that period.

Cash receipts from the trusts are not included in the earnings from continuing operations that I mention above.

Impac said October origination volumes were 19% higher than the average monthly volume in Q3.

So this is a company that just posted earnings from continued operations of $1.50 in the latest quarter, or $6 annualized, announced a significant increase in origination volumes for the first month of the fourth quarter, and received cash receipts from trust residuals that are in addition to the earnings number above of $1 per share in the last 9 months. It is trading at $12. I am surprised the shorts want to take a chance here.

SOURCE: Form 144

ISSUER: IMPAC MORTGAGE HOLDINGS INC
SYMBOL: IMH


FILER: ASHMORE WILLIAM S
TITLE: President
BROKER: MORGAN STANLEY SMITH BARNEY LLC
RESTRICTED SHARES TO SELL: 46,000 DATE REGISTERED: 11/13/2012
APPROXIMATE DATE OF SALE: 11/6/2012

The Form 144 is filed with the Securities and Exchange Commission to
reflect the intention of any holder of restricted stock to sell those
shares. After the 144 is mailed to the S.E.C., the filer is permitted
to sell the shares, or any fraction of them, within 90 days.


Form 144 Data Source: The Washington Service
(info@washingtonservice.com or 301-913-5100)


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Moody's Takes Action On $188 Million Of Us Alt-A Rmbs Issued By Impac

http://v3.moodys.com/page/viewresearchdoc.aspx?docid=PR_259840&WT.mc_id=
NLTITLE_YYYYMMDD_PR_259840


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11-15-12 1748ET