Impac Mortgage Holdings, Inc. Reports First Quarter Taxable Income of $0.28 Per Share and May Resume the Payment of Common Dividends As Early as the Third Quarter of 2001

Apr 26, 2001, 01:00 ET from Impac Mortgage Holdings, Inc.

    NEWPORT BEACH, Calif., April 26 /PRNewswire/ -- As a result of higher than
 anticipated taxable income generated by Impac Mortgage Holdings, Inc.
 (Amex:   IMH), (the "Company" or "IMH"), a real estate investment trust
 ("REIT"), during the first quarter of 2001, the Company projects that it may
 completely utilize its tax loss carry forward as early as the third quarter of
 this year.  After utilizing its tax loss carry forward, the Company would be
 required under REIT rules to distribute at least 90% of its taxable income for
 the remainder of the year.  In addition, after 2001 the Company will no longer
 be able to reduce taxable income by an estimated $10.9 million per year from
 the amortization of the termination of the management agreement.  Taxable
 income for the first quarter of 2001 was $7.5 million, or $0.28 per diluted
 common share, as compared to taxable income of $1.4 million, or $0.05 per
 diluted common share, for the quarter ended December 31, 2000.  The remaining
 2001 tax loss carry forward was reduced to $12.6 million after the first
 quarter as a result of applying first quarter taxable income of $7.5 million.
     Joseph R. Tomkinson, Chairman and Chief Executive Officer of the Company,
 commented, "the Company is ahead of its original timetable of utilizing its
 tax loss carry forward as a result of the Mortgage Operations' strong loan
 production and increased profitability on the sale of its mortgage loans,
 growth in Warehouse Lending Operations' balances and a continuing trend
 towards lower borrowing costs, which continues to improve the Company's net
 interest margins."
     Core operating earnings were $5.2 million, or $0.20 per diluted common
 share, for the first quarter of 2001 as compared to core operating earnings of
 $3.7 million, or $0.14 per diluted common share, for the previous quarter.
 Core operating earnings during the first quarter of 2001 exclude the
 cumulative effect of Statement of Financial Accounting Standards No. 133
 ("SFAS 133").  See Effect of SFAS 133 below for further discussion.
     Mr. Tomkinson, further commented, "I am pleased to report that the Company
 posted solid core operating earnings which exceeded our projections for the
 first quarter of 2001.  Exemplary financial performance continues to be driven
 by the Company's core operating businesses, the Mortgage and Warehouse Lending
 Operations, while decreased borrowing costs have significantly improved net
 interest margins on the Company's long-term investment portfolio.  While the
 reduction in interest rates has greatly benefited core operating earnings
 during the first quarter, I believe that strategic initiatives implemented
 over the past year are beginning to pay off."  Impac Funding Corporation
 ("IFC") is the Mortgage Operations of the Company and includes correspondent
 business along with wholesale and retail business from Impac Lending Group
 ("ILG").  Impac Warehouse Lending Group, Inc. ("IWLG") is the Warehouse
 Lending Operations and advances short-term lines of credit to the Mortgage
 Operations and non-affiliated mortgage bankers.
     Net interest income improved significantly during the first quarter of
 2001 in comparison to the fourth quarter of 2000 as it increased 52% to
 $8.9 million as compared to $5.9 million, respectively.  The increase in net
 interest income was primarily attributable to a decrease in borrowing costs,
 which decreased to 6.84% during the first quarter of 2001 as compared to 7.71%
 during the previous quarter.  Mr. Tomkinson commented, "borrowing costs on CMO
 financing continues to trend lower as recent interest rate reductions by the
 Federal Reserve Bank should continue to improve net interest margins for the
 remainder of the year.  Because a significant portion of CMO collateral
 includes prepayment penalties, we anticipate that the effect of early
 prepayments on net interest income due to refinance activity will be partially
 mitigated."  As of March 31, 2001, 30% of the Company's CMO collateral had
 prepayment penalties with a weighted average life to prepayment penalty
 expiration of approximately 26 months.  In addition, the Company expects to
 complete a CMO during May 2001 for approximately $300.0 million, of which
 approximately 60% of the mortgage loans will include prepayment penalties
 ranging from one to five years.
     Loan production by the Company's conduit operations conducted by IFC and
 the wholesale and retail mortgage platforms operated by ILG remained strong
 during the first quarter of 2001.  Loan acquisitions and originations
 increased 32% during the first quarter of 2001 to $607.2 million as compared
 to $458.8 million, including bulk acquisitions of $63.9 million, during the
 same quarter of last year.  Strong loan production during the first quarter
 was driven by lower interest rates and by mortgage loan applications submitted
 through IDASL, which increased 29% in average monthly loan volume as compared
 to the previous quarter.  IDASL stands for Impac Direct Access System for
 Lending and can be viewed at the Company's new and improved website at
 www.impaccompanies.com.  Loan production decreased slightly during the first
 quarter of 2001 to $607.2 million as compared to $632.0 million the previous
 quarter due to seasonality of the mortgage business during this period of the
 year.
     As a result of strong loan production by the Mortgage Operations during
 the first quarter of 2001, IFC was able to execute its 2001 business plan to
 securitize more frequently, which will require less capital and provide more
 liquidity with less interest rate and price volatility.  IFC securitized a
 total of $450.1 million of mortgage loans during the first quarter of 2001.
 Mr. Tomkinson commented, "like the fourth quarter of 2000, IFC successfully
 completed two REMIC securitizations during this quarter at prices exceeding
 profit expectations for cash gains, which continue to provide a comfortable
 level of liquidity."
 
          Customers of Impac Funding Corporation Continue to Increase
             Utilization of IDASL during the First Quarter of 2001
 
     During the first quarter of 2001, IFC's customers increased average
 monthly volume of loans submitted through the IDASL system by 29% over fourth
 quarter of 2000 loan submissions.  Loan submissions during the first quarter
 of 2001 averaged $719.2 million per month in loan volume as compared to
 $555.5 million per month in loan volume during the fourth quarter of 2000 and
 $438.0 million per month during the third quarter of 2000. By March 31, 2001,
 substantially all of IFC's correspondents were submitting loans through IDASL
 and 100% of all wholesale loans delivered by brokers were directly
 underwritten through IDASL.
     IDASL is not a lead generator for mortgage brokers, but is an interactive
 internet system that enables our customers to access loan status, current
 pricing, purchase confirmations and receive consistent and reliable automated
 loan underwriting decisions within minutes.  In addition, IDASL has an
 integrated credit-reporting interface that provides our customers with a very
 competitive tool enabling them to render a loan decision at point of sale.
 IDASL dramatically increases efficiencies not only for our customers but also
 for the Mortgage Operations by significantly decreasing the processing time
 for a mortgage loan, while improving employee production and maintaining
 superior customer service, which together leads to higher closing ratios,
 improved profit margins and increased profitability at all levels of its
 business operations.  In the near future, IDASL will include automated
 mortgage insurance approval, fraud detection and electronic property appraisal
 that will further streamline the entire mortgage application and approval
 process.  Most importantly, IDASL allows the Company to move closer to its
 borrowers with minimal future capital investment while maintaining
 centralization, a key factor in the success of the Company's operating
 strategy.
 
  Impac Lending Group, a division of IFC, Increases Wholesale and Retail Loan
       Production for the Fourth Consecutive Quarter to a New Record High
 
     ILG's wholesale and retail loan originations increased 29% to
 $130.3 million during the first quarter of 2001 as compared to $101.3 million
 during the previous quarter and $19.5 million during the first quarter of
 2000.  As of March 31, 2001, ILG increased its approved wholesale mortgage
 brokers by 32% to 1,300 brokers as compared to 983 brokers at December 31,
 2000. In conjunction with IDASL, management is committed to expanding the
 wholesale and retail loan production platforms nationwide in order to
 establish direct access to brokers and borrowers, which results in lower
 premiums paid for mortgages and increased profit margins upon loan sales or
 securitization.  As such, ILG is now licensed to conduct business in 43 states
 and has recently expanded its presence in the Midwest.  Mr. Tomkinson
 commented, "I am extremely pleased at the growth of ILG and our projection of
 doubling production this year over 2000 results."
     Loan originations at ILG should remain strong during 2001 with the
 successful roll-out of IDASL with the Mortgage Operations' strategic partner
 Genesis 2000.  Genesis 2000 is a leader in mortgage automation software that
 provides an internet connection to 33,000 users nationwide with direct
 automated download capabilities through "EPass" to the Mortgage Operations'
 products via IDASL.  Recently, Genesis 2000 was acquired by Ellie Mae, a
 leading provider of internet solutions to the mortgage industry, which will
 further enhance ILG's penetration into the wholesale lending arena. Don
 Currie, Senior Vice President, commented, "loan production has increased
 significantly due, in large part, to our association and joint training
 efforts throughout the country with both Genesis 2000 and Ellie Mae which has
 proven to be extremely successful."
 
       Correspondent Loan Production at Impac Funding Corporation during
       the First Quarter of 2001 Remained Strong and Exceeded Projections
 
     Total correspondent loan production increased 27% to $476.9 million during
 the first quarter of 2001 as compared to $375.5 million during the same
 quarter of last year.  Although total correspondent loan production decreased
 4% during the first quarter of 2001 as compared to the previous quarter,
 correspondent loan production by IFC during the first quarter exceeded the
 Company's business plan by approximately 10%.  With the introduction of IDASL,
 IFC has experienced a greater willingness by its correspondent customers to
 originate IFC's loan programs.  IDASL has provided consistent underwriting and
 loan approval decisions by eliminating a great deal of confusion regarding
 IFC's loan programs.  This has resulted in an easier and more efficient
 origination process for IFC's clients.  In addition, IFC approved and issued
 master commitments to four major accounts during the fourth quarter of 2000
 and began delivering loans to IFC during the first quarter.  IFC's goal is to
 continue to add major accounts to its customer base during 2001 and to expand
 more aggressively into other regional markets.
 
    Profit Margins on the Securitization and Sale of Mortgage Loans by Impac
         Funding Corporation Improved during the First Quarter of 2001
 
     Total loan sales increased to $466.4 million during the first quarter of
 2001, resulting in a gain on sale of loans of $7.6 million as compared to
 $415.7 million and $6.6 million, respectively, during the fourth quarter of
 2000.  Loan sales and gain on sale of loans during the first quarter of 2001
 included two REMIC securitizations totaling $450.1 million, which were sold on
 a servicing released basis.  In addition to selling more loans during the
 first quarter of 2001, profit margins on securitizations improved
 significantly as compared to securitizations completed during 2000.  In the
 future, IFC anticipates that it will continue to sell related loan servicing
 rights from securitization of its loans. However, IFC will continue to act as
 master servicer on all its securitizations.  By securitizing loans more
 frequently, IFC expects that less capital requirements, higher liquidity
 levels and less interest rate and price volatility as the mortgage loan
 accumulation period will be reduced.
 
    Impac Warehouse Lending Group Achieves All-Time High Outstanding Finance
         Receivable Balances to External Customers as of March 31, 2001
 
     Outstanding finance receivables to external customers increased 68% to an
 all-time high of $233.2 million as of March 31, 2001 as compared to $138.4
 million as of December 31, 2000.  Average outstanding finance receivables with
 IWLG's external customers increased 31% to $143.8 million during the first
 quarter of 2001 as compared to $109.6 million during the same quarter of last
 year.  At March 31, 2001, IWLG had approved warehouse lines available to
 58 external customers totaling $415.0 million as compared to 50 customers
 totaling $358.0 million as of March 31, 2000.
     Overall, average finance receivables increased 45% to $446.8 million
 during the first quarter of 2001 as compared to $307.2 million during the same
 quarter of last year.  During the first quarter of 2001, the Warehouse Lending
 Operations focused on internal restructuring and technology initiatives,
 including the on-going development and implementation of a web-based funding
 and delivery system, with the overall goal of increasing its customer base and
 outstanding balances during 2001.  The Warehouse Lending Operations continues
 to provide a consistent contribution to net earnings and earnings per share
 for the Company.  Gretchen Verdugo, Executive Vice President, commented, "the
 increase in our average balances reflect the successful partnerships we have
 formed with our clients for growth and profitability.  IWLG will continue to
 benefit from recent automation enhancements and the improved risk profile of
 our clientele."
 
     Impac Mortgage Holdings, Inc. Increases its Allowance for Loan Losses
             24% at March 31, 2001 as compared to December 31, 2000
 
     The Company's total allowance for loan losses expressed as a percentage of
 Gross Loan Receivables, which includes loans held-for-investment, CMO
 collateral and finance receivables, increased to 0.33% at March 31, 2001 as
 compared to 0.28% at December 31, 2000.  During the first quarter of 2001, the
 Company added provision for loan losses of $4.0 million as compared to
 $1.1 million during the fourth quarter of 2000 which increased the allowance
 for loan losses by 24% to $6.3 million as of March 31, 2001 as compared to
 $5.1 million as of December 31, 2000.  The Company recorded net charge-offs of
 $2.8 million during the first quarter of 2001 as the Company sold
 non-performing loans from the "collapse" of previously existing CMO
 collateral.
     Total non-performing loans, including 90 days past due, foreclosures and
 other real estate owned, increased slightly to $53.9 million, or 3.85% of the
 unpaid principal balance of the long-term investment portfolio, at March 31,
 2001 as compared to $52.2 million, or 4.35% of the unpaid principal balance of
 the long-term investment portfolio, at March 31, 2000.  The loan delinquency
 rate of mortgages in the long-term investment portfolio which were 60 or more
 days past due, inclusive of foreclosures and delinquent bankruptcies,
 decreased to 4.84% at March 31, 2001 as compared to 5.28% at March 31, 2000.
 The unpaid principal balance of mortgage loans in the long-term investment
 portfolio at March 31, 2001 was $1.4 billion as compared to $1.2 billion at
 March 31, 2000.
     The allowance for loan losses is determined primarily on the basis of
 management's judgment of net loss potential, including specific allowances for
 known impaired loans, changes in the nature and volume of the portfolio, the
 value of the collateral and current economic conditions that may affect the
 borrowers' ability to pay.
 
                               Other Information
 
     --  Diluted book value increased to $6.69 per common share at March 31,
         2001 as compared to diluted book value of $6.67 per common share at
         December 31, 2000.
 
     --  At March 31, 2001, the Company had 26,751,106 diluted common shares
         outstanding as compared to 26,765,888 at December 31, 2000.
 
     --  Return on equity and assets, excluding the cumulative effect of FAS
         133, for the first quarter was 11.68% and 1.07%, respectively.
 
     --  Combined cash and cash equivalents of IMH and IFC increased to
         $27.8 million as of March 31, 2001 as compared to $26.2 million as of
         December 31, 2000 while combined assets increased to $2.0 billion as
         compared to $1.9 billion, respectively.
 
     --  The Company's Board of Directors authorized management to call and
         retire the Company's 11% senior subordinated debentures due February
         15, 2004.  As of March 31, 2001, the senior subordinated debentures
         carrying amount was $7.0 million, including discounts of $700,000.
         The Company expects to call these securities in June of this year at a
         price of par plus accrued interest.
 
     --  During the first quarter, IFC acquired $10.0 million of IMH's Series C
         10.5% Cumulative Convertible Preferred Stock ("Preferred Stock") at a
         price of $10.25 million plus accrued interest. The Preferred Stock is
         not intended to be retired but was purchased by IFC as an investment
         that may be sold at a later date.
 
     --  IFC's master servicing portfolio increased 10% to $4.4 billion at
         March 31, 2001 as compared to $4.0 billion at December 31, 2000 and
         increased 52% as compared to $2.9 billion at March 31, 2000.  The loan
         delinquency rate of mortgages in the master servicing portfolio which
         were 60 or more days past due, inclusive of foreclosures and
         delinquent bankruptcies, increased to 4.82% at March 31, 2001 as
         compared to 4.24% at December 31, 2000 and 4.33% at March 31, 2000..
 
                               Effect of SFAS 133
 
     During the first quarter, the Company recognized a cumulative charge to
 earnings of $5.8 million as a fair market valuation of the Company's hedging
 instruments outstanding at March 31, 2001 in accordance with the
 implementation of SFAS 133, "Accounting for Derivative Instruments and Hedging
 Activities."  As part of the Company's secondary marketing activities, it
 purchases interest rate caps as a hedge against adverse changes in interest
 rates and the corresponding adverse effect on net interest margins.  The
 primary effect of SFAS 133 on the Company's financial position is to change
 the prior accounting treatment which amortized interest rate cap costs over
 the life of the caps to recording only the change in the fair market value of
 interest rate caps as an adjustment to current earnings.  During the first
 quarter, the effect of the fair market valuation gain was $612,000 excluding
 $1.1 million of amortization of interest rate cap costs that prior to SFAS 133
 would have been recorded as interest expense.  After implementation of SFAS
 133, the market value of interest rates caps was $1.1 million at March 31,
 2001.  In the future, net interest margins will not reflect the amortization
 of interest rate cap costs.  The Company does not intend to change its
 interest rate cap hedge policy, as the Company believes that it is the best
 protection against increases in interest rates.  Net earnings in the future
 will experience some level of volatility from quarter to quarter due to the
 timing and expense recognition of hedge activity by the Company as a result of
 implementation of SFAS 133.
     Net earnings, which includes the implementation of SFAS 133, was
 $1.1 million, or $0.02 per basic common share, as compared to a net loss of
 $(30.9) million, or $(1.48) per basic common share, during the same quarter of
 last year.
     As part of IFC's secondary marketing activities, IFC utilizes options and
 futures contracts to hedge the value of its mortgage pipeline against adverse
 changes in interest rates.  IFC did not experience any material impact during
 the quarter related to the adoption of SFAS 133 in its mortgage pipeline
 hedging activities.  IFC does not hedge mortgage servicing rights, however,
 valuation changes in mortgage servicing rights continue to be recorded against
 current earnings.  Net earnings in the future will experience some level of
 volatility from quarter to quarter due to the timing and expense recognition
 of hedge activity by IFC as a result of implementation of SFAS 133.
     Additional financial information for the quarter ending March 31, 2001
 will be available simultaneously with the publication of this press release by
 viewing the Company's Monthly Fact Sheet on the Company's web site at
 www.impaccompanies.com.  For additional information, questions or comments
 call or write to the Company's Investor Relations group and speak with Tania
 Jernigan at (949) 475-3600 or email Tania at tjernigan@impaccompanies.com.
 The Company has announced a conference call and live web cast on Friday, April
 27, 2001 at 9:00 AM. Pacific Standard Time (12:00 noon. Eastern Standard
 Time).  Mr. Joseph R. Tomkinson, Chairman and CEO of Impac Mortgage Holdings,
 Inc., will discuss the results of the Company's first quarter results of
 operations and to provide a general update of the Company followed by a
 question and answer session.  The conference call will be limited for
 discussion to certain buyside and sellside analysts and will be open for
 listen only to all interested parties.  If you would like to participate you
 may access the web cast via our web site at
 http://www.impaccompanies.com/Impac Mortgage Holdings, Inc./Audio Archives or
 by using the dial in number, (800) 344-0705.  To participate in the call, dial
 in fifteen minutes prior to the scheduled start time.  The conference call
 will be archived on Impac Mortgage Holdings, Inc.'s web site at
 www.impaccompanies.com, by linking to Impac Mortgage Holdings, Inc./Audio
 Archives.  You can subscribe to receive instant notification of Impac Mortgage
 Holdings, Inc.'s conference, news and monthly unaudited fact sheet by using
 our email alert feature located at the Company's web site at
 www.impaccompanies.com under Impac Mortgage Holdings, Inc./Investor
 Relations/Email Alerts.
 
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995, which can be
 identified by the use of forward-looking terminology such as "may," "will,"
 "intend," "expect," "anticipate," "estimate" or "continue" or the negatives
 thereof or other comparable terminology.  The Company's actual results could
 differ materially from those anticipated in such forward-looking statements as
 a result of certain factors, including but not limited to, changes in the
 origination and resale pricing of mortgage loans, changes in management's
 estimates and expectations, general financial markets and economic conditions
 and other factors described in this press release.  The financial information
 presented in this release pertaining to actual results should not be taken to
 predict future earnings, as the Company may not experience similar earnings in
 future periods.
 
                           IMPAC MORTGAGE HOLDINGS, INC.
                      (in thousands, except per share amounts)
                                    (unaudited)
 
     Balance Sheets:                     March 31,   December 31,
                                            2001         2000
     Cash and cash equivalents            $10,483      $17,944
     Investment securities
      available-for-sale                   36,253       36,921
     Loan receivables:
       CMO collateral                   1,250,728    1,372,996
       Finance receivables                455,517      405,438
       Mortgage loans
        held-for-investment               200,188       16,720
       Allowance for loan losses           (6,295)      (5,090)
         Net Loan Receivables           1,900,138    1,790,064
     Investment in Impac Funding
      Corporation                          15,107       15,762
     REO properties                         6,284        4,669
     Due from affiliates                   14,500       14,500
     Other assets                          16,893       18,978
       Total Assets                    $1,999,658   $1,898,838
 
     CMO borrowings                    $1,177,223   $1,291,284
     Reverse repurchase agreements        615,367      398,653
     Borrowings secured by
      investment securities
      available-for-sale                   18,976       21,124
     11% senior subordinated debt           7,047        6,979
     Other liabilities                      1,992        2,358
     Stockholders' equity                 179,053      178,440
       Total Liabilities and
        Stockholders' Equity           $1,999,658   $1,898,838
 
 
                                             For the Three Months Ended,
     Statements of Operations:                  March 31,        December 31,
                                            2001         2000        2000
     Interest income                      $39,399      $34,140     $40,437
     Interest expense                      30,506       27,725      34,583
       Net interest income                  8,893        6,415       5,854
     Provision for loan losses              4,038       13,183       1,104
       Net interest income (expense)
        after provision
        for loan losses                     4,855       (6,768)      4,750
 
     Equity in net earnings (loss)
      of Impac Funding Corporation          1,290          408        (825)
     Other non-interest income                835          953       2,138
       Total non-interest income            2,125        1,361       1,313
 
     Professional services                    619          629         907
     General and administrative
      and other expense                       376          303       1,159
     Personnel expense                        305          146         183
     Write-down on investment
      securities available-for-sale            --       23,979          --
     Loss on disposition of
      real estate owned                      (639)         428         137
     Mark-to-market gain -- FAS 133          (612)          --          --
       Total non-interest expense              49       25,485       2,386
 
       Earnings (loss) before
        cumulative effect of change
        in accounting principle             6,931      (30,892)      3,677
 
     Cumulative effect of change
      in accounting principle              (5,789)          --          --
       Net earnings (loss) after
        cumulative effect of
        change in accounting
        principle                           1,142      (30,892)      3,677
     Less: Cash dividends on
      10.5% cumulative convertible
      preferred stock                        (788)        (788)       (788)
     Net earnings (loss) available
      to common stockholders                 $354     $(31,680)     $2,889
 
     Net earnings (loss) per share before
      cumulative effect of change in
      accounting principle:
       Basic                                $0.30       $(1.48)      $0.14
       Diluted                              $0.26       $(1.48)      $0.14
 
     Net earnings (loss) per share after
      cumulative effect of change in
      accounting principle:
       Basic                                $0.02       $(1.48)      $0.14
       Diluted                              $0.02       $(1.48)      $0.14
 
     Dividends declared
      per common share                        $--        $0.12         $--
     Weighted average shares outstanding:
       Basic                               20,385       21,401      20,877
       Diluted                             26,751       21,401      27,233
     Common shares outstanding             20,385       21,401      20,410
 
 
                           IMPAC FUNDING CORPORATION
                                 (in thousands)
                                  (unaudited)
 
     Balance Sheets:                     March 31,   December 31,
                                           2001          2000
     Cash                                 $17,360       $8,281
     Securities available-for-sale         10,622          266
     Mortgage loans held-for-sale         218,010      275,570
     Mortgage servicing rights             11,588       10,938
     Premises and equipment, net            5,823        5,037
     Other assets                           9,977       17,071
       Total Assets                      $273,380     $317,163
 
     Warehouse facilities                $219,462     $266,994
     Due to affiliates                     14,500       14,500
     Deferred revenue                       6,220        5,026
     Other liabilities                     18,109       14,722
     Shareholders' equity                  15,089       15,921
       Total Liabilities and
        Shareholders' Equity             $273,380     $317,163
 
 
                                               For the Three Months Ended,
                                                 March 31,       December 31,
                                             2001         2000        2000
     Interest income                       $7,492       $4,945      $8,533
     Interest expense                       7,198        5,660       8,994
       Net interest income (expense)          294         (715)       (461)
 
     Gain on sale of loans                  7,649        5,221       6,564
     Loan servicing income                  1,032        1,536       1,428
     Other non-interest income                 46           23         509
       Total non-interest income            8,727        6,780       8,501
 
     Personnel expense                      3,185        2,322       2,815
     General and administrative
      and other expense                     2,479        1,771       2,912
     Amortization of mortgage
      servicing rights                      1,053        1,192       1,428
     Mark-to-market gain -- FAS 133           (17)          --          --
     Provision for repurchases                  6           64         295
       Total non-interest expense           6,706        5,349       7,450
 
       Earnings before income taxes
        and cumulative effect of change
        in accounting principle             2,315          716         590
 
     Income taxes                           1,000          304       1,421
 
       Earnings (loss) before cumulative
        effect of change in accounting
        principle                           1,315          412        (831)
 
     Cumulative effect of change
      in accounting principle                  17           --          --
 
       Net earnings (loss) after cumulative
        effect of change in accounting
        principle                          $1,298         $412       $(831)
 
 
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SOURCE Impac Mortgage Holdings, Inc.
    NEWPORT BEACH, Calif., April 26 /PRNewswire/ -- As a result of higher than
 anticipated taxable income generated by Impac Mortgage Holdings, Inc.
 (Amex:   IMH), (the "Company" or "IMH"), a real estate investment trust
 ("REIT"), during the first quarter of 2001, the Company projects that it may
 completely utilize its tax loss carry forward as early as the third quarter of
 this year.  After utilizing its tax loss carry forward, the Company would be
 required under REIT rules to distribute at least 90% of its taxable income for
 the remainder of the year.  In addition, after 2001 the Company will no longer
 be able to reduce taxable income by an estimated $10.9 million per year from
 the amortization of the termination of the management agreement.  Taxable
 income for the first quarter of 2001 was $7.5 million, or $0.28 per diluted
 common share, as compared to taxable income of $1.4 million, or $0.05 per
 diluted common share, for the quarter ended December 31, 2000.  The remaining
 2001 tax loss carry forward was reduced to $12.6 million after the first
 quarter as a result of applying first quarter taxable income of $7.5 million.
     Joseph R. Tomkinson, Chairman and Chief Executive Officer of the Company,
 commented, "the Company is ahead of its original timetable of utilizing its
 tax loss carry forward as a result of the Mortgage Operations' strong loan
 production and increased profitability on the sale of its mortgage loans,
 growth in Warehouse Lending Operations' balances and a continuing trend
 towards lower borrowing costs, which continues to improve the Company's net
 interest margins."
     Core operating earnings were $5.2 million, or $0.20 per diluted common
 share, for the first quarter of 2001 as compared to core operating earnings of
 $3.7 million, or $0.14 per diluted common share, for the previous quarter.
 Core operating earnings during the first quarter of 2001 exclude the
 cumulative effect of Statement of Financial Accounting Standards No. 133
 ("SFAS 133").  See Effect of SFAS 133 below for further discussion.
     Mr. Tomkinson, further commented, "I am pleased to report that the Company
 posted solid core operating earnings which exceeded our projections for the
 first quarter of 2001.  Exemplary financial performance continues to be driven
 by the Company's core operating businesses, the Mortgage and Warehouse Lending
 Operations, while decreased borrowing costs have significantly improved net
 interest margins on the Company's long-term investment portfolio.  While the
 reduction in interest rates has greatly benefited core operating earnings
 during the first quarter, I believe that strategic initiatives implemented
 over the past year are beginning to pay off."  Impac Funding Corporation
 ("IFC") is the Mortgage Operations of the Company and includes correspondent
 business along with wholesale and retail business from Impac Lending Group
 ("ILG").  Impac Warehouse Lending Group, Inc. ("IWLG") is the Warehouse
 Lending Operations and advances short-term lines of credit to the Mortgage
 Operations and non-affiliated mortgage bankers.
     Net interest income improved significantly during the first quarter of
 2001 in comparison to the fourth quarter of 2000 as it increased 52% to
 $8.9 million as compared to $5.9 million, respectively.  The increase in net
 interest income was primarily attributable to a decrease in borrowing costs,
 which decreased to 6.84% during the first quarter of 2001 as compared to 7.71%
 during the previous quarter.  Mr. Tomkinson commented, "borrowing costs on CMO
 financing continues to trend lower as recent interest rate reductions by the
 Federal Reserve Bank should continue to improve net interest margins for the
 remainder of the year.  Because a significant portion of CMO collateral
 includes prepayment penalties, we anticipate that the effect of early
 prepayments on net interest income due to refinance activity will be partially
 mitigated."  As of March 31, 2001, 30% of the Company's CMO collateral had
 prepayment penalties with a weighted average life to prepayment penalty
 expiration of approximately 26 months.  In addition, the Company expects to
 complete a CMO during May 2001 for approximately $300.0 million, of which
 approximately 60% of the mortgage loans will include prepayment penalties
 ranging from one to five years.
     Loan production by the Company's conduit operations conducted by IFC and
 the wholesale and retail mortgage platforms operated by ILG remained strong
 during the first quarter of 2001.  Loan acquisitions and originations
 increased 32% during the first quarter of 2001 to $607.2 million as compared
 to $458.8 million, including bulk acquisitions of $63.9 million, during the
 same quarter of last year.  Strong loan production during the first quarter
 was driven by lower interest rates and by mortgage loan applications submitted
 through IDASL, which increased 29% in average monthly loan volume as compared
 to the previous quarter.  IDASL stands for Impac Direct Access System for
 Lending and can be viewed at the Company's new and improved website at
 www.impaccompanies.com.  Loan production decreased slightly during the first
 quarter of 2001 to $607.2 million as compared to $632.0 million the previous
 quarter due to seasonality of the mortgage business during this period of the
 year.
     As a result of strong loan production by the Mortgage Operations during
 the first quarter of 2001, IFC was able to execute its 2001 business plan to
 securitize more frequently, which will require less capital and provide more
 liquidity with less interest rate and price volatility.  IFC securitized a
 total of $450.1 million of mortgage loans during the first quarter of 2001.
 Mr. Tomkinson commented, "like the fourth quarter of 2000, IFC successfully
 completed two REMIC securitizations during this quarter at prices exceeding
 profit expectations for cash gains, which continue to provide a comfortable
 level of liquidity."
 
          Customers of Impac Funding Corporation Continue to Increase
             Utilization of IDASL during the First Quarter of 2001
 
     During the first quarter of 2001, IFC's customers increased average
 monthly volume of loans submitted through the IDASL system by 29% over fourth
 quarter of 2000 loan submissions.  Loan submissions during the first quarter
 of 2001 averaged $719.2 million per month in loan volume as compared to
 $555.5 million per month in loan volume during the fourth quarter of 2000 and
 $438.0 million per month during the third quarter of 2000. By March 31, 2001,
 substantially all of IFC's correspondents were submitting loans through IDASL
 and 100% of all wholesale loans delivered by brokers were directly
 underwritten through IDASL.
     IDASL is not a lead generator for mortgage brokers, but is an interactive
 internet system that enables our customers to access loan status, current
 pricing, purchase confirmations and receive consistent and reliable automated
 loan underwriting decisions within minutes.  In addition, IDASL has an
 integrated credit-reporting interface that provides our customers with a very
 competitive tool enabling them to render a loan decision at point of sale.
 IDASL dramatically increases efficiencies not only for our customers but also
 for the Mortgage Operations by significantly decreasing the processing time
 for a mortgage loan, while improving employee production and maintaining
 superior customer service, which together leads to higher closing ratios,
 improved profit margins and increased profitability at all levels of its
 business operations.  In the near future, IDASL will include automated
 mortgage insurance approval, fraud detection and electronic property appraisal
 that will further streamline the entire mortgage application and approval
 process.  Most importantly, IDASL allows the Company to move closer to its
 borrowers with minimal future capital investment while maintaining
 centralization, a key factor in the success of the Company's operating
 strategy.
 
  Impac Lending Group, a division of IFC, Increases Wholesale and Retail Loan
       Production for the Fourth Consecutive Quarter to a New Record High
 
     ILG's wholesale and retail loan originations increased 29% to
 $130.3 million during the first quarter of 2001 as compared to $101.3 million
 during the previous quarter and $19.5 million during the first quarter of
 2000.  As of March 31, 2001, ILG increased its approved wholesale mortgage
 brokers by 32% to 1,300 brokers as compared to 983 brokers at December 31,
 2000. In conjunction with IDASL, management is committed to expanding the
 wholesale and retail loan production platforms nationwide in order to
 establish direct access to brokers and borrowers, which results in lower
 premiums paid for mortgages and increased profit margins upon loan sales or
 securitization.  As such, ILG is now licensed to conduct business in 43 states
 and has recently expanded its presence in the Midwest.  Mr. Tomkinson
 commented, "I am extremely pleased at the growth of ILG and our projection of
 doubling production this year over 2000 results."
     Loan originations at ILG should remain strong during 2001 with the
 successful roll-out of IDASL with the Mortgage Operations' strategic partner
 Genesis 2000.  Genesis 2000 is a leader in mortgage automation software that
 provides an internet connection to 33,000 users nationwide with direct
 automated download capabilities through "EPass" to the Mortgage Operations'
 products via IDASL.  Recently, Genesis 2000 was acquired by Ellie Mae, a
 leading provider of internet solutions to the mortgage industry, which will
 further enhance ILG's penetration into the wholesale lending arena. Don
 Currie, Senior Vice President, commented, "loan production has increased
 significantly due, in large part, to our association and joint training
 efforts throughout the country with both Genesis 2000 and Ellie Mae which has
 proven to be extremely successful."
 
       Correspondent Loan Production at Impac Funding Corporation during
       the First Quarter of 2001 Remained Strong and Exceeded Projections
 
     Total correspondent loan production increased 27% to $476.9 million during
 the first quarter of 2001 as compared to $375.5 million during the same
 quarter of last year.  Although total correspondent loan production decreased
 4% during the first quarter of 2001 as compared to the previous quarter,
 correspondent loan production by IFC during the first quarter exceeded the
 Company's business plan by approximately 10%.  With the introduction of IDASL,
 IFC has experienced a greater willingness by its correspondent customers to
 originate IFC's loan programs.  IDASL has provided consistent underwriting and
 loan approval decisions by eliminating a great deal of confusion regarding
 IFC's loan programs.  This has resulted in an easier and more efficient
 origination process for IFC's clients.  In addition, IFC approved and issued
 master commitments to four major accounts during the fourth quarter of 2000
 and began delivering loans to IFC during the first quarter.  IFC's goal is to
 continue to add major accounts to its customer base during 2001 and to expand
 more aggressively into other regional markets.
 
    Profit Margins on the Securitization and Sale of Mortgage Loans by Impac
         Funding Corporation Improved during the First Quarter of 2001
 
     Total loan sales increased to $466.4 million during the first quarter of
 2001, resulting in a gain on sale of loans of $7.6 million as compared to
 $415.7 million and $6.6 million, respectively, during the fourth quarter of
 2000.  Loan sales and gain on sale of loans during the first quarter of 2001
 included two REMIC securitizations totaling $450.1 million, which were sold on
 a servicing released basis.  In addition to selling more loans during the
 first quarter of 2001, profit margins on securitizations improved
 significantly as compared to securitizations completed during 2000.  In the
 future, IFC anticipates that it will continue to sell related loan servicing
 rights from securitization of its loans. However, IFC will continue to act as
 master servicer on all its securitizations.  By securitizing loans more
 frequently, IFC expects that less capital requirements, higher liquidity
 levels and less interest rate and price volatility as the mortgage loan
 accumulation period will be reduced.
 
    Impac Warehouse Lending Group Achieves All-Time High Outstanding Finance
         Receivable Balances to External Customers as of March 31, 2001
 
     Outstanding finance receivables to external customers increased 68% to an
 all-time high of $233.2 million as of March 31, 2001 as compared to $138.4
 million as of December 31, 2000.  Average outstanding finance receivables with
 IWLG's external customers increased 31% to $143.8 million during the first
 quarter of 2001 as compared to $109.6 million during the same quarter of last
 year.  At March 31, 2001, IWLG had approved warehouse lines available to
 58 external customers totaling $415.0 million as compared to 50 customers
 totaling $358.0 million as of March 31, 2000.
     Overall, average finance receivables increased 45% to $446.8 million
 during the first quarter of 2001 as compared to $307.2 million during the same
 quarter of last year.  During the first quarter of 2001, the Warehouse Lending
 Operations focused on internal restructuring and technology initiatives,
 including the on-going development and implementation of a web-based funding
 and delivery system, with the overall goal of increasing its customer base and
 outstanding balances during 2001.  The Warehouse Lending Operations continues
 to provide a consistent contribution to net earnings and earnings per share
 for the Company.  Gretchen Verdugo, Executive Vice President, commented, "the
 increase in our average balances reflect the successful partnerships we have
 formed with our clients for growth and profitability.  IWLG will continue to
 benefit from recent automation enhancements and the improved risk profile of
 our clientele."
 
     Impac Mortgage Holdings, Inc. Increases its Allowance for Loan Losses
             24% at March 31, 2001 as compared to December 31, 2000
 
     The Company's total allowance for loan losses expressed as a percentage of
 Gross Loan Receivables, which includes loans held-for-investment, CMO
 collateral and finance receivables, increased to 0.33% at March 31, 2001 as
 compared to 0.28% at December 31, 2000.  During the first quarter of 2001, the
 Company added provision for loan losses of $4.0 million as compared to
 $1.1 million during the fourth quarter of 2000 which increased the allowance
 for loan losses by 24% to $6.3 million as of March 31, 2001 as compared to
 $5.1 million as of December 31, 2000.  The Company recorded net charge-offs of
 $2.8 million during the first quarter of 2001 as the Company sold
 non-performing loans from the "collapse" of previously existing CMO
 collateral.
     Total non-performing loans, including 90 days past due, foreclosures and
 other real estate owned, increased slightly to $53.9 million, or 3.85% of the
 unpaid principal balance of the long-term investment portfolio, at March 31,
 2001 as compared to $52.2 million, or 4.35% of the unpaid principal balance of
 the long-term investment portfolio, at March 31, 2000.  The loan delinquency
 rate of mortgages in the long-term investment portfolio which were 60 or more
 days past due, inclusive of foreclosures and delinquent bankruptcies,
 decreased to 4.84% at March 31, 2001 as compared to 5.28% at March 31, 2000.
 The unpaid principal balance of mortgage loans in the long-term investment
 portfolio at March 31, 2001 was $1.4 billion as compared to $1.2 billion at
 March 31, 2000.
     The allowance for loan losses is determined primarily on the basis of
 management's judgment of net loss potential, including specific allowances for
 known impaired loans, changes in the nature and volume of the portfolio, the
 value of the collateral and current economic conditions that may affect the
 borrowers' ability to pay.
 
                               Other Information
 
     --  Diluted book value increased to $6.69 per common share at March 31,
         2001 as compared to diluted book value of $6.67 per common share at
         December 31, 2000.
 
     --  At March 31, 2001, the Company had 26,751,106 diluted common shares
         outstanding as compared to 26,765,888 at December 31, 2000.
 
     --  Return on equity and assets, excluding the cumulative effect of FAS
         133, for the first quarter was 11.68% and 1.07%, respectively.
 
     --  Combined cash and cash equivalents of IMH and IFC increased to
         $27.8 million as of March 31, 2001 as compared to $26.2 million as of
         December 31, 2000 while combined assets increased to $2.0 billion as
         compared to $1.9 billion, respectively.
 
     --  The Company's Board of Directors authorized management to call and
         retire the Company's 11% senior subordinated debentures due February
         15, 2004.  As of March 31, 2001, the senior subordinated debentures
         carrying amount was $7.0 million, including discounts of $700,000.
         The Company expects to call these securities in June of this year at a
         price of par plus accrued interest.
 
     --  During the first quarter, IFC acquired $10.0 million of IMH's Series C
         10.5% Cumulative Convertible Preferred Stock ("Preferred Stock") at a
         price of $10.25 million plus accrued interest. The Preferred Stock is
         not intended to be retired but was purchased by IFC as an investment
         that may be sold at a later date.
 
     --  IFC's master servicing portfolio increased 10% to $4.4 billion at
         March 31, 2001 as compared to $4.0 billion at December 31, 2000 and
         increased 52% as compared to $2.9 billion at March 31, 2000.  The loan
         delinquency rate of mortgages in the master servicing portfolio which
         were 60 or more days past due, inclusive of foreclosures and
         delinquent bankruptcies, increased to 4.82% at March 31, 2001 as
         compared to 4.24% at December 31, 2000 and 4.33% at March 31, 2000..
 
                               Effect of SFAS 133
 
     During the first quarter, the Company recognized a cumulative charge to
 earnings of $5.8 million as a fair market valuation of the Company's hedging
 instruments outstanding at March 31, 2001 in accordance with the
 implementation of SFAS 133, "Accounting for Derivative Instruments and Hedging
 Activities."  As part of the Company's secondary marketing activities, it
 purchases interest rate caps as a hedge against adverse changes in interest
 rates and the corresponding adverse effect on net interest margins.  The
 primary effect of SFAS 133 on the Company's financial position is to change
 the prior accounting treatment which amortized interest rate cap costs over
 the life of the caps to recording only the change in the fair market value of
 interest rate caps as an adjustment to current earnings.  During the first
 quarter, the effect of the fair market valuation gain was $612,000 excluding
 $1.1 million of amortization of interest rate cap costs that prior to SFAS 133
 would have been recorded as interest expense.  After implementation of SFAS
 133, the market value of interest rates caps was $1.1 million at March 31,
 2001.  In the future, net interest margins will not reflect the amortization
 of interest rate cap costs.  The Company does not intend to change its
 interest rate cap hedge policy, as the Company believes that it is the best
 protection against increases in interest rates.  Net earnings in the future
 will experience some level of volatility from quarter to quarter due to the
 timing and expense recognition of hedge activity by the Company as a result of
 implementation of SFAS 133.
     Net earnings, which includes the implementation of SFAS 133, was
 $1.1 million, or $0.02 per basic common share, as compared to a net loss of
 $(30.9) million, or $(1.48) per basic common share, during the same quarter of
 last year.
     As part of IFC's secondary marketing activities, IFC utilizes options and
 futures contracts to hedge the value of its mortgage pipeline against adverse
 changes in interest rates.  IFC did not experience any material impact during
 the quarter related to the adoption of SFAS 133 in its mortgage pipeline
 hedging activities.  IFC does not hedge mortgage servicing rights, however,
 valuation changes in mortgage servicing rights continue to be recorded against
 current earnings.  Net earnings in the future will experience some level of
 volatility from quarter to quarter due to the timing and expense recognition
 of hedge activity by IFC as a result of implementation of SFAS 133.
     Additional financial information for the quarter ending March 31, 2001
 will be available simultaneously with the publication of this press release by
 viewing the Company's Monthly Fact Sheet on the Company's web site at
 www.impaccompanies.com.  For additional information, questions or comments
 call or write to the Company's Investor Relations group and speak with Tania
 Jernigan at (949) 475-3600 or email Tania at tjernigan@impaccompanies.com.
 The Company has announced a conference call and live web cast on Friday, April
 27, 2001 at 9:00 AM. Pacific Standard Time (12:00 noon. Eastern Standard
 Time).  Mr. Joseph R. Tomkinson, Chairman and CEO of Impac Mortgage Holdings,
 Inc., will discuss the results of the Company's first quarter results of
 operations and to provide a general update of the Company followed by a
 question and answer session.  The conference call will be limited for
 discussion to certain buyside and sellside analysts and will be open for
 listen only to all interested parties.  If you would like to participate you
 may access the web cast via our web site at
 http://www.impaccompanies.com/Impac Mortgage Holdings, Inc./Audio Archives or
 by using the dial in number, (800) 344-0705.  To participate in the call, dial
 in fifteen minutes prior to the scheduled start time.  The conference call
 will be archived on Impac Mortgage Holdings, Inc.'s web site at
 www.impaccompanies.com, by linking to Impac Mortgage Holdings, Inc./Audio
 Archives.  You can subscribe to receive instant notification of Impac Mortgage
 Holdings, Inc.'s conference, news and monthly unaudited fact sheet by using
 our email alert feature located at the Company's web site at
 www.impaccompanies.com under Impac Mortgage Holdings, Inc./Investor
 Relations/Email Alerts.
 
     This press release contains forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995, which can be
 identified by the use of forward-looking terminology such as "may," "will,"
 "intend," "expect," "anticipate," "estimate" or "continue" or the negatives
 thereof or other comparable terminology.  The Company's actual results could
 differ materially from those anticipated in such forward-looking statements as
 a result of certain factors, including but not limited to, changes in the
 origination and resale pricing of mortgage loans, changes in management's
 estimates and expectations, general financial markets and economic conditions
 and other factors described in this press release.  The financial information
 presented in this release pertaining to actual results should not be taken to
 predict future earnings, as the Company may not experience similar earnings in
 future periods.
 
                           IMPAC MORTGAGE HOLDINGS, INC.
                      (in thousands, except per share amounts)
                                    (unaudited)
 
     Balance Sheets:                     March 31,   December 31,
                                            2001         2000
     Cash and cash equivalents            $10,483      $17,944
     Investment securities
      available-for-sale                   36,253       36,921
     Loan receivables:
       CMO collateral                   1,250,728    1,372,996
       Finance receivables                455,517      405,438
       Mortgage loans
        held-for-investment               200,188       16,720
       Allowance for loan losses           (6,295)      (5,090)
         Net Loan Receivables           1,900,138    1,790,064
     Investment in Impac Funding
      Corporation                          15,107       15,762
     REO properties                         6,284        4,669
     Due from affiliates                   14,500       14,500
     Other assets                          16,893       18,978
       Total Assets                    $1,999,658   $1,898,838
 
     CMO borrowings                    $1,177,223   $1,291,284
     Reverse repurchase agreements        615,367      398,653
     Borrowings secured by
      investment securities
      available-for-sale                   18,976       21,124
     11% senior subordinated debt           7,047        6,979
     Other liabilities                      1,992        2,358
     Stockholders' equity                 179,053      178,440
       Total Liabilities and
        Stockholders' Equity           $1,999,658   $1,898,838
 
 
                                             For the Three Months Ended,
     Statements of Operations:                  March 31,        December 31,
                                            2001         2000        2000
     Interest income                      $39,399      $34,140     $40,437
     Interest expense                      30,506       27,725      34,583
       Net interest income                  8,893        6,415       5,854
     Provision for loan losses              4,038       13,183       1,104
       Net interest income (expense)
        after provision
        for loan losses                     4,855       (6,768)      4,750
 
     Equity in net earnings (loss)
      of Impac Funding Corporation          1,290          408        (825)
     Other non-interest income                835          953       2,138
       Total non-interest income            2,125        1,361       1,313
 
     Professional services                    619          629         907
     General and administrative
      and other expense                       376          303       1,159
     Personnel expense                        305          146         183
     Write-down on investment
      securities available-for-sale            --       23,979          --
     Loss on disposition of
      real estate owned                      (639)         428         137
     Mark-to-market gain -- FAS 133          (612)          --          --
       Total non-interest expense              49       25,485       2,386
 
       Earnings (loss) before
        cumulative effect of change
        in accounting principle             6,931      (30,892)      3,677
 
     Cumulative effect of change
      in accounting principle              (5,789)          --          --
       Net earnings (loss) after
        cumulative effect of
        change in accounting
        principle                           1,142      (30,892)      3,677
     Less: Cash dividends on
      10.5% cumulative convertible
      preferred stock                        (788)        (788)       (788)
     Net earnings (loss) available
      to common stockholders                 $354     $(31,680)     $2,889
 
     Net earnings (loss) per share before
      cumulative effect of change in
      accounting principle:
       Basic                                $0.30       $(1.48)      $0.14
       Diluted                              $0.26       $(1.48)      $0.14
 
     Net earnings (loss) per share after
      cumulative effect of change in
      accounting principle:
       Basic                                $0.02       $(1.48)      $0.14
       Diluted                              $0.02       $(1.48)      $0.14
 
     Dividends declared
      per common share                        $--        $0.12         $--
     Weighted average shares outstanding:
       Basic                               20,385       21,401      20,877
       Diluted                             26,751       21,401      27,233
     Common shares outstanding             20,385       21,401      20,410
 
 
                           IMPAC FUNDING CORPORATION
                                 (in thousands)
                                  (unaudited)
 
     Balance Sheets:                     March 31,   December 31,
                                           2001          2000
     Cash                                 $17,360       $8,281
     Securities available-for-sale         10,622          266
     Mortgage loans held-for-sale         218,010      275,570
     Mortgage servicing rights             11,588       10,938
     Premises and equipment, net            5,823        5,037
     Other assets                           9,977       17,071
       Total Assets                      $273,380     $317,163
 
     Warehouse facilities                $219,462     $266,994
     Due to affiliates                     14,500       14,500
     Deferred revenue                       6,220        5,026
     Other liabilities                     18,109       14,722
     Shareholders' equity                  15,089       15,921
       Total Liabilities and
        Shareholders' Equity             $273,380     $317,163
 
 
                                               For the Three Months Ended,
                                                 March 31,       December 31,
                                             2001         2000        2000
     Interest income                       $7,492       $4,945      $8,533
     Interest expense                       7,198        5,660       8,994
       Net interest income (expense)          294         (715)       (461)
 
     Gain on sale of loans                  7,649        5,221       6,564
     Loan servicing income                  1,032        1,536       1,428
     Other non-interest income                 46           23         509
       Total non-interest income            8,727        6,780       8,501
 
     Personnel expense                      3,185        2,322       2,815
     General and administrative
      and other expense                     2,479        1,771       2,912
     Amortization of mortgage
      servicing rights                      1,053        1,192       1,428
     Mark-to-market gain -- FAS 133           (17)          --          --
     Provision for repurchases                  6           64         295
       Total non-interest expense           6,706        5,349       7,450
 
       Earnings before income taxes
        and cumulative effect of change
        in accounting principle             2,315          716         590
 
     Income taxes                           1,000          304       1,421
 
       Earnings (loss) before cumulative
        effect of change in accounting
        principle                           1,315          412        (831)
 
     Cumulative effect of change
      in accounting principle                  17           --          --
 
       Net earnings (loss) after cumulative
        effect of change in accounting
        principle                          $1,298         $412       $(831)
 
 
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 SOURCE  Impac Mortgage Holdings, Inc.