Imperial Credit Industries Reports First Quarter 2001 Results of Operations

Apr 24, 2001, 01:00 ET from Imperial Credit Industries, Inc.

    TORRANCE, Calif., April 24 /PRNewswire/ -- Imperial Credit Industries,
 Inc. (Nasdaq:   ICII) reports results for the first quarter ended March 31,
 2001.
 
     ICII Returns to Profitability in the First Quarter of 2001
     Imperial Credit Industries, Inc., (the "Company" or "ICII") reported net
 income for the quarter ended March 31, 2001 of $312,000 or $0.01 diluted net
 income per share including an operating loss from discontinued operations of
 $200,000 or $0.01 diluted net loss per share and an extraordinary gain on the
 early extinguishment of debt of $618,000 or $0.02 diluted net income per
 share.  The operating results for the quarter ended March 31, 2001 were
 favorably impacted by a significant increase in recoveries to $4.1 million of
 previously charged off loans, which resulted in a reduction of the provision
 for loan and lease losses to $4.6 million as compared to $24.0 million in the
 same period of the prior year.  The Company has increased its allowance for
 loan and lease losses to $64.8 million at March 31, 2001 as compared to
 $63.6 million at December 31, 2000.  The operating results for the quarter
 ended March 31, 2001 were negatively impacted by a 150 basis point decrease in
 the Prime rate and increased levels of non-accrual loans which reduced
 Southern Pacific Bank's ("SPB") net interest margin to 4.11% for the quarter
 ended March 31, 2001 as compared to 4.89% for the same period of the prior
 year.  The Company recorded no income tax expense during the quarter ended
 March 31, 2001 as the Company currently has $130.0 million of tax net
 operating loss carry-forwards available to offset future income.  For the same
 period of the prior year, the Company reported a net loss of $15.9 million or
 $0.48 diluted net loss per share after an extraordinary gain on the
 extinguishment of debt of $947,000 or $0.03 diluted net income per share.  Net
 loss for the quarter ended March 31, 2000 included $9.4 million of severance
 and other costs related to the Imperial Credit Commercial Mortgage Investment
 Corp. ("ICCMIC") acquisition.
 
     Net Interest Income Decreases As a Result of Margin Compression
     For the quarter ended March 31, 2001, net interest income before
 provisions for loan and lease losses and net interest margin decreased to
 $14.6 million and 4.11% as compared to $21.1 million and 4.89% for the same
 period in the prior year, respectively.  Net interest income before provisions
 for loan and lease losses and net interest margin decreased primarily as a
 result of increased deposit costs coupled with lower yields on our loan and
 securities portfolios.
     During the quarter ended March 31, 2001, interest income decreased to
 $48.6 million as compared to $53.4 million for the same period of the prior
 year.  Interest income decreased primarily as a result of decreases in the
 Prime and Libor interest rates.  A majority of the Company's loans are indexed
 to these indices.  As a result of the decrease in the Prime and Libor rates,
 these loans re-priced to reduced yields during the first quarter, while a
 majority of our deposit funding base is expected to re-price with reduced
 interest rates over the next six months.  As a result of our loans re-pricing
 faster than our deposits, SPB's net interest margin decreased during the
 quarter ended March 31, 2001.  The average yield on loans at SPB decreased to
 10.42% during the quarter ended March 31, 2001 as compared to 10.74% in the
 same period of the prior year.  SPB's yields on its outstanding loans were
 also negatively affected by a higher level of non-accrual loans during the
 quarter ended March 31, 2001 as compared to the same period of the prior year.
 Average non-accrual loans were approximately $78.4 for the quarter ended March
 31, 2001 as compared to approximately $65.5 million for the same period of the
 prior year.  The Company's total loans and leases held for sale and
 investment, net of allowance for loan and lease losses increased to $1.6
 billion at March 31, 2001 compared to $1.5 billion at December 31, 2000.
     Interest expense was $34.0 million for the quarter ended March 31, 2001 as
 compared to $32.3 million for the same period of the prior year.  The increase
 in interest expense primarily resulted from an increase in the cost of the
 Federal Deposit Insurance Corporation ("FDIC") insured deposits of SPB.  The
 average cost of deposits based on daily averages at SPB increased to 6.61%
 during the quarter ended March 31, 2001 as compared to 5.85% in the same
 period of the prior year.  SPB's average outstanding deposits decreased to
 $1.6 billion for the quarter ended March 31, 2001 as compared to $1.7 billion
 at March 31, 2000.  Interest on other borrowings increased as a result of the
 ICCMIC acquisition on March 28, 2000.  Average outstanding debt and related
 interest expense at ICCMIC totaled $37.1 million and $734,000 for the quarter
 ended March 31, 2001, respectively.  The increases in interest expense on
 deposits and other borrowings were partially offset by a decrease in interest
 expense on long-term debt which decreased 10.0% to $5.7 million for the
 quarter ended March 31, 2001 as compared to $6.4 million for the same period
 in the prior year.  The decrease in interest expense on long-term debt
 resulted from the repurchase of long-term debt during the previous twelve
 months.
 
     Fee and Other Income Decrease As a Result of ICG Deconsolidation
     Fee and other income decreased $4.4 million to $6.0 million for the
 quarter ended March 31, 2001 as compared to $10.5 million in the same period
 of the prior year.  Fee and other income decreased primarily due to the
 deconsolidation of Imperial Capital Group ("ICG") during the fourth quarter of
 2000.  As a result of the deconsolidation, the Company will not report any
 investment banking and brokerage fees, other income, or expenses of ICG.
 Beginning with the fourth quarter of 2000, ICII's 38.5% equity interest in ICG
 will be reported as equity in the net income of ICG.  During the quarter ended
 March 31, 2000 the Company reported $7.7 million of investment banking and
 brokerage fees.
     Gain on sale of loans decreased to $102,000 for the quarter ended March
 31, 2001, as compared to $133,000 in the same period of the prior year.  For
 the quarter ended March 31, 2001, the Company sold $44.5 million of Income
 Property Lending Division ("IPL") loans and $11.1 million of participations in
 nationally syndicated loans generating a gain of $257,000 and a loss of
 $165,000, respectively.  For the quarter ended March 31, 2000, the Company
 sold $34.7 million of IPL loans, $51.4 million of nationally syndicated
 participation loans, $7.5 million of consumer loans, and securitized
 $28.2 million of Imperial Business Credit's ("IBC") equipment leases,
 generating gains (losses) of $271,000, ($400,000), zero, and $261,000,
 respectively.
     Asset management fees were relatively unchanged at $842,000 for the
 quarter ended March 31, 2001 as compared to $861,000 in the same period of the
 prior year.  Asset management fees are derived primarily from the management
 of Pacifica Partners I, a $500 million collateralized loan obligation fund.
 The balance of assets under management was $484.5 million at March 31, 2001 as
 compared to $491.3 million at March 31, 2000.
     For the three months ended March 31, 2001, the equity in net income of ICG
 was $912,000.  The pre-tax income of ICG for the quarter ended March 31, 2000
 was $1.0 million.
     Gain on sale of securities increased to $130,000 for the quarter ended
 March 31, 2001 as compared to a loss of $602,000 in the same period of the
 prior year.  During the quarter ended March 31, 2001, the Company sold part of
 its interest in a high yield bond fund managed by Imperial Capital Group
 ("ICG").
     Rental income increased to $1.9 million for the quarter ended March 31,
 2001 as compared to $120,000 in the same period of the prior year.  Rental
 income increased as a result of the income producing commercial real estate
 properties acquired in the ICCMIC transaction, which was completed on March
 28, 2000.
     For the quarters ending March 31, 2001 and 2000, mark-to-market losses
 were unchanged at $1.8 million.  The net mark-to-market losses for the quarter
 ended March 31, 2001 primarily related to a $649,000 write-down of IBC's
 retained interests in lease securitizations, a $311,000 write-down of other
 retained interests, and an $801,000 write-down of loans funded through an
 off-balance sheet swap managed by SPB's Loan Participation and Investment
 Group ("LPIG") division.  For the quarter ended March 31, 2000, mark-to-market
 losses were primarily related to a decline in the value of the Company's
 commercial mortgage-backed securities and investments in total return swaps.
 The Company wrote down its commercial mortgage-backed securities by $462,000
 and its investments in total return swaps by $1.0 million as a result of
 increased interest spreads and loss assumptions.  During the quarter ended
 March 31, 2000, the Company also wrote down certain consumer loans held for
 sale by $770,000.  The write-downs in these securities and loans during the
 quarter ended March 31, 2000 were partially offset by increases in the value
 of the Company's retained interest in residential mortgage loan
 securitizations of $542,000 as a result of increased prepayment assumptions.
 
     Noninterest Expenses Decrease 37%
     Total noninterest expenses for the quarter ended March 31, 2001 decreased
 37% to $16.1 million as compared to $25.5 million for the prior year.  The
 decrease in expenses primarily resulted from decreases in personnel expense,
 amortization of goodwill, and general and administrative expenses in addition
 to the deconsolidation of ICG.  These decreases were partially offset by
 increases in legal and professional services and collection costs associated
 with non-accrual loans and non-performing assets, and real property expenses.
 During the quarter ended March 31, 2000 noninterest expenses decreased 15% to
 $16.1 million as compared to $18.9 million for the same period in the prior
 year assuming ICG was accounted for under the equity method.  The decrease in
 expenses occurred in all expense categories except legal and professional
 services, collection costs associated with non-accrual loans and
 non-performing assets, and real property expenses.
     Assuming ICG was accounted for under the equity method, during the quarter
 ended March 31, 2000, personnel expenses decreased 25% to $6.8 million as
 compared to $9.1 million in the same period of the prior year.  The decrease
 was primarily the result of reduced Full Time Equivalent employees ("FTE") and
 reduced bonus expense.  At March 31, 2001, the Company had 404 FTE as compared
 to 520 FTE (excluding ICG) at March 31, 2000.
     Assuming ICG was accounted for under the equity method, during the quarter
 ended March 31, 2000, legal and professional and collection costs increased to
 $3.2 million as compared to $1.7 million in the same period of the prior year.
 The increase was primarily the result of increased levels of non-accrual loans
 and the Company's efforts to accelerate the resolution of problem loans.
     Assuming ICG was accounted for under the equity method, during the quarter
 ended March 31, 2000, general and administrative expenses decreased 12% to
 $3.8 million as compared to $4.3 million in the same period of the prior year.
 General and administrative expenses decreased in both periods as a result of
 the Company's efforts to cut costs and increase operational efficiency.
     Assuming ICG was accounted for under the equity method, during the quarter
 ended March 31, 2000, amortization of goodwill, net was ($722,000) as compared
 to $607,000 in the prior year.  Amortization of goodwill decreased as a result
 of the amortization of negative goodwill associated with the ICCMIC
 acquisition in the first quarter of 2000.  During the quarter ended March 31,
 2001, amortization of negative goodwill at ICCMIC reduced amortization of
 goodwill, net by $1.4 million as compared to $72,000 during the same period of
 the prior year.
     Real property expenses began to be incurred by our company as a result of
 the ICCMIC acquisition in the first quarter of 2000.  These costs solely
 relate to the income producing properties owned by ICCMIC. Real property
 expenses totaled $914,000 for the quarter ended March 31, 2001 as compared to
 $18,000 in the same period of the prior year.
 
     Non-accrual Loans and Non-Performing Assets
     Our non-accrual loans and leases increased to $85.4 million at March 31,
 2001 as compared to $78.5 million at December 31, 2000.  The increase was
 primarily attributable to increased non-accrual loans at SPB's Coast Business
 Credit ("CBC") division and its Imperial Warehouse Finance ("IWF") subsidiary.
 CBC's non-accrual loans increased to $36.0 million at March 31, 2001 as
 compared to $31.8 million at December 31, 2000.  The increase in CBC's
 non-accrual loans was due to the addition of three new non-accrual loans.
 IWF's non-accrual loans increased to $14.4 million at March 31, 2001 as
 compared to $9.4 million at December 31, 2000.  The increase in IWF's
 non-accrual loans was due to the addition of a $6.0 million facility to one
 customer.  Since March 31, 2001, the outstanding balance of this loan has
 decreased to $4.0 million as a result of the sale of underlying loans
 collateralizing the facility.  The overall increase in non-accrual loans was
 partially offset by a decrease at SPB's LPIG lending division as a result of
 the sale of problem loans.  During the first quarter, SPB sold $1.7 million of
 LPIG problem loans, resulting in a recovery of $379,000.  All unsecured loans
 related to non-performing credits have been charged off as of March 31, 2001
 and December 31, 2000.
     Our non-performing assets increased to $98.8 million at March 31, 2001 as
 compared to $87.4 million at December 31, 2000.  The increase was primarily
 attributable to the increase in non-accrual loans described above, and the
 purchase of non-performing entertainment assets with an estimated value of
 $4.9 million in connection with the Lewis Horwitz Organization ("LHO")
 acquisition.  This purchase during the quarter ended March 31, 2001 completes
 the Company's obligation to purchase non-performing assets under the LHO
 purchase agreement.
 
     Allowance for Loan and Lease Losses Increases to $64.8 Million
     The allowance for loan and lease losses was $64.8 million or 5.10% of
 total loans held for investment as compared to $63.6 million or 5.39% of total
 loans held for investment at December 31, 2000 and $49.4 million or 3.61% of
 total loans held for investment at March 31, 2000, respectively.  The ratio of
 the allowance for loan and lease losses to non-accrual loans and leases
 ("coverage ratio") was 75.87% at March 31, 2001 as compared to 81.02% at
 December 31, 2000 and 77.67% at March 31, 2000.
     For the quarter ended March 31, 2001, the provision for loan and lease
 losses was $4.6 million as compared to $24.0 million for the same period of
 the prior year.  The reduced provision for loan and lease losses for the
 quarter ended March 2001 was primarily the result of increased recoveries on
 previously charged off CBC loans totaling $4.0 million and a reduced number of
 performing credits migrating to potential problem status.
 
     First Step of the Company's Recapitalization Transaction Completed
     On March 30, 2001 ICII completed the issuance of $16.2 million of Senior
 Secured Debt.  The notes bear an interest rate of 12% and mature on April 30,
 2002.  The issuance of the Senior Secured Debt is the first step in a
 recapitalization plan for the Company further explained below.  The proceeds
 from the Senior Secured Debt offering were invested in SPB to facilitate
 compliance with its regulatory orders.
     Subsequent to the completed Senior Secured Debt offering, ICII will offer
 pro rata a package of the following securities in exchange (the "Debt
 Exchange") for our three currently outstanding series of debt securities (the
 "Old Notes"):  (i) 12% Senior Secured Notes due 2005 (the "Exchange Notes"),
 (ii) up to 2.0 million shares of our Common Stock (13.952269 shares per $1,000
 face amount of Exchange Notes), no par value and (iii) warrants (the "Debt
 Exchange Warrants") to purchase up to an additional 7.0 million shares of
 Common Stock at an exercise price of $2.15 per share (48.832944 warrants per
 $1,000 face amount of Exchange Notes).  Concurrently with consummation of the
 Debt Exchange, we will issue up to 7.04 million shares of Common Stock to the
 holders of a majority in interest of our Old Notes who executed the
 recapitalization agreement.  We further intend to issue and sell at least
 $10.0 million principal amount of 12% Convertible Subordinated Notes due 2005
 to accredited investors in a private placement.  The Convertible Subordinated
 Notes will be convertible after three years into Common Stock of the Company
 at a price of $1.25 per share.
     The holders of Old Notes will be offered Exchange Notes as follows:
 (i) the holders of our 10.25% Remarketed Par Securities due 2002 will be
 offered to convert into Exchange Notes at $0.80 per dollar of face amount of
 such Old Notes, (ii) the holders of our 9.875% Senior Notes due 2007 will be
 offered to convert into Exchange Notes at $0.65 per dollar of face amount of
 such Old Notes, and (iii) the holders of our 9.75% Senior Notes due 2004 will
 be offered to convert into Exchange Notes at $0.50 per dollar of face amount
 of such Old Notes.
     A majority-in-interest of the 10.25% Remarketed Par Securities due 2002
 and our 9.875% Senior Notes due 2007 have agreed to participate in the Debt
 Exchange, and to strip the Old Notes of all existing financial covenants.
 Supplemental indentures related to the Old Notes were executed on March 29,
 2001.
     Subject to the occurrence of certain conditions (including the closing of
 the Debt Exchange and the issuance of Convertible Subordinated Notes), all of
 the Senior Secured Debt will be automatically exchanged into (i) $18.2 million
 principal amount of Exchange Notes, (ii) 249,052 shares of Common Stock, and
 (iii) warrants to purchase up to an additional 871,681 shares of Common Stock
 at an exercise price of $2.15 per share.  Such Exchange Note holders also have
 limited price protection.  Each of the Senior Secured Debt purchasers will
 further have the right during the period following the Debt Exchange and
 ending March 31, 2002 to elect to exchange all or a portion of their Exchange
 Notes and related shares of Common Stock and Debt Exchange Warrants into
 $18.2 million principal amount of Convertible Subordinated Notes.  The
 Convertible Subordinated Notes will have a 12% coupon and will be convertible
 into Common Stock at $1.25 per share.
     Upon successful completion of the recapitalization transaction, ICII will
 receive gross proceeds of approximately $26.2 million of new capital, most of
 which will be invested in Tier I capital of SPB.  We believe that this new
 capital will assist our company in its attempt to increase capital levels at
 SPB in order to meet regulatory requirements.  Furthermore, the future
 exercise of warrants issued in connection with the Debt Exchange is expected
 to provide approximately an additional $15.0 million of capital for the
 Company at the time of their exercise approximately three years from the date
 of issuance of the Exchange Notes.
     The impact of the Debt Exchange will primarily be to reduce the principal
 amount of ICII's Old Notes by approximately $36.6 million to $71.7 million
 based on the success of the exchange offer.  ICII expects to complete the Debt
 Exchange by June 30, 2001.
 
     Southern Pacific Bank's Regulatory Capital Increased to "Adequately
 Capitalized" Levels
     The Company's largest subsidiary is SPB, an FDIC insured depository
 institution.  On March 30, 2001, the Company contributed $21.2 million of cash
 to the Bank in the form of new equity capital and converted $22.0 million of
 SPB's subordinated debt into non-cumulative perpetual preferred stock of SPB.
 Such capital infusions and conversions, in addition to SPB's earnings through
 March 31, 2001, restored SPB's capital to amounts above the "adequately
 capitalized" regulatory minimums as defined in banking regulations.  However,
 the restoration of SPB's capital was not sufficient to meet the capital levels
 required by its regulatory orders at March 31, 2001.  SPB had Tier 1 Leverage
 and Total Risk-based Capital ratios of 6.11% and 8.40%, at March 31, 2001 as
 compared to 3.46% and 6.59% at December 31, 2000, respectively.  The Company
 is in the process of revising SPB's capital plan that was submitted to the
 FDIC and the DFI.  Such capital plan has not yet been approved by the FDIC and
 the DFI.  The capital plan indicates that the Bank will not meet any of the
 above cited capital ratio targets at the indicated dates.  However, the
 preliminary revised plan does indicate that the Bank's capital ratios at
 December 31, 2001, should qualify it to be categorized as "well capitalized"
 at that time.
 
     Liquidity and Capital Resources
     On a consolidated basis, our cash and interest bearing deposits decreased
 to $153.7 million at March 31, 2001 as compared to $214.1 million at December
 31, 2000.  At our parent company, cash and interest bearing deposits decreased
 to $2.2 million at March 31, 2001 as compared to $15.9 million at December 31,
 2000.  Liquidity at our holding company was reduced primarily due to the
 additional capital investment of $5.0 million into SPB, the repayment of
 inter-company advances to consolidated subsidiaries, and the purchase of
 single family residential mortgage loans from a securitization trust
 established by the Company in 1994.  Cash available to our parent company
 including its consolidated subsidiaries other than SPB totaled $7.4 million at
 March 31, 2001.
 
     Long Term Debt
     Our long term debt increased to $234.0 million at March 31, 2001 as
 compared to $219.6 million at December 31, 2000 as a result of the issuance of
 $16.2 million of Senior Secured Debt on March 30, 2001.  The notes bear an
 interest rate of 12% and mature on April 30, 2002.  During the quarter ended
 March 31, 2001, we repurchased $1.9 million of our company obligated
 mandatorily redeemable preferred securities of subsidiary trust holding solely
 debentures of the company ("ROPES"), resulting in an extraordinary gain on the
 early extinguishment of debt of $618,000.
 
     Shareholders' Equity
     At March 31, 2001 our shareholders' equity increased to $40.1 million as
 compared to $39.4 million at December 31, 2000.  The increase in shareholders'
 equity was primarily the result of net income recorded during the quarter
 ended March 31, 2001 and due to an increase in the valuation allowance for
 securities available for sale.  Our book value per share and tangible book
 value per share increased to $1.25 and decreased to  $1.35 at March 31, 2001
 as compared to $1.23 and $1.37 at December 31, 2000, respectively.
 
     General Description of the Company
     Imperial Credit Industries, Inc., a diversified financial services holding
 company, was formed in 1991 and is headquartered in Torrance, California.  The
 Company's major business activities are primarily conducted through Southern
 Pacific Bank, a wholly owned subsidiary.  The Company also owns an equity
 interest in Imperial Capital Group, LLC (approximately 38% ownership).
 Imperial Credit Industries, Inc. and its subsidiaries and affiliates offer a
 wide variety of financial services, investment products, and asset management
 services.
 
     Not an Offer of Securities
     This press release does not constitute an offer of any securities for
 sale.  It is expected that the securities referred to herein will not
 initially be registered under the Securities Act of 1933 and may not be
 offered or sold in the United States absent registration or an applicable
 exemption from the registration requirements of such Act.
 
     Safe Harbor Statement
     Certain statements contained herein are "forward-looking statements"
 within the meaning of the Private Securities Litigation Reform Act of 1995,
 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
 Securities Exchange Act of 1934, as amended.  These forward-looking statements
 may be identified by reference to a future period(s) or by the use of
 forward-looking terminology, such as "may," "will," "intend," "should,"
 "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 due to a
 variety of factors.  These factors include but are not limited to:  the demand
 for our products; competitive factors in the businesses in which we compete;
 adverse changes in the securities markets; inflation and changes in the
 interest rate environment that reduce margins or the fair value of financial
 instruments; changes in national, regional or local business conditions or
 economic environments; government fiscal and monetary policies; legislative or
 regulatory changes that affect our business; factors inherent in the valuation
 and pricing of commercial loans; other factors generally understood to affect
 the value of commercial loans and commercial real estate; and the other risks
 detailed in the Company's 8-K dated May 17, 1999 as filed with the Securities
 and Exchange Commission (the "SEC"); periodic reports on Forms 10-Q, 8-K and
 10-K and any amendments with respect thereto filed with the SEC; and other
 filings made by the Company with the SEC.
 
     ICII's news releases are available at no charge through PR Newswire's
 Company News on Call by dialing (800) 758-5804 Ext. 420763.  Additional
 corporate information relating to the Company's SEC filings and corporate news
 releases are available on the internet.  The web site address is
 http://www.icii.com.  The Company will hold a conference call at 8:00 A.M.
 Pacific Time, 11:00 A.M. Eastern Time today.  The phone number for the
 conference call is (913) 981-5542, confirmation number 554862.  Audio of the
 call will be broadcast live on the Internet and will be available on the
 Investor Relations section of Imperial Credit's web site, located at
 http://www.icii.com and at http://www.videonewswire.com/ICII/042401.
 
     For further information contact:  Brad Plantiko/CFO 310-791-8096 or Karen
 Montandon/IR 310-791-8022
 
 
                          IMPERIAL CREDIT INDUSTRIES, INC.
                            CONSOLIDATED BALANCE SHEETS
                         (In thousands, except share data)
                                    (unaudited)
 
                                                    March 31,    December 31,
                                                      2001           2000
                       ASSETS
     Cash                                            $ 56,622       $ 30,938
     Interest bearing deposits                         97,068        183,193
     Investment in Federal Home Loan Bank stock         4,216          4,148
     Securities held for trading, at market           105,080        164,050
     Securities available for sale, at market          61,466         63,684
     Loans and leases held for sale, net              380,132        386,469
     Loans and leases held for investment, net of
      unearned income and deferred loan fees        1,260,308      1,186,119
      less: allowance for loan and lease losses       (64,785)       (63,625)
     Loans held for investment, net                 1,195,523      1,122,494
 
     Real property                                     38,694         53,198
     Retained interest in loan and lease
      securitizations                                   3,635          6,330
     Accrued interest receivable                       13,975         15,744
     Premises and equipment, net                       12,335         10,433
     Other real estate owned and other repossessed
      assets, net                                      13,332          8,778
     Goodwill                                          31,645         32,330
     Other assets                                      31,201         28,158
     Net assets of discontinued operations             11,569         17,630
         Total assets                              $2,056,493     $2,127,577
 
        LIABILITIES AND SHAREHOLDERS' EQUITY
     Deposits                                      $1,623,657     $1,632,704
     Borrowings from Federal Home Loan Bank            50,000         65,000
     Other borrowings                                  34,978         84,118
     Company obligated mandatorily redeemable
      preferred securities of Subsidiary trust
      holding solely debentures of the company
      ("ROPES")                                        41,035         42,885
     Senior secured notes                              16,200             --
     Senior notes                                     176,765        176,757
     Accrued interest payable                          16,421         18,992
     Accrued income taxes payable                      20,507         20,522
     Minority interest in consolidated subsidiaries     1,141          1,116
     Goodwill                                          22,103         23,797
     Other liabilities.                                13,614         22,244
         Total liabilities                          2,016,421      2,088,135
 
     Shareholders' equity:
     Preferred stock, 8,000,000 shares authorized;
      none issued or outstanding                           --             --
     Common stock, no par value.
      Authorized 80,000,000 shares;
      32,096,361 shares issued and outstanding
      at March 31, 2001 and December 31, 2000          97,778         97,668
     Accumulated deficit                              (64,577)       (64,889)
     Shares held in deferred executive
      compensation plan                                 5,635          5,745
     Accumulated other comprehensive
      income-unrealized gain on securities
      available for sale, net                           1,236            918
       Total shareholders' equity                      40,072         39,442
       Total liabilities and shareholders'
        equity                                     $2,056,493     $2,127,577
 
 
                          IMPERIAL CREDIT INDUSTRIES, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                   (Dollars in thousands, except per share data)
                                    (unaudited)
 
                                                        Three Months Ended
                                                             March 31,
     Interest Income:                                  2001           2000
       Interest on loans and leases.                  $43,268        $45,401
       Interest on investments.                         5,020          7,345
       Interest on other finance activities               330            614
         Total interest income                         48,618         53,360
     Interest Expense:
       Interest on deposits.                           26,589         24,293
       Interest on other borrowings.                    1,701          1,582
       Interest on long term debt.                      5,740          6,378
         Total interest expense                        34,030         32,253
         Net interest income                           14,588         21,107
       Provision for loan and lease losses              4,625         24,019
         Net interest income (expense) after
          provision for loan and lease losses          9,963          (2,912)
     Fee and Other Income:
       Gain on sale of loans and leases                  102             133
       Asset management fees                             842             861
       Investment banking and brokerage fees              --           7,654
       Loan servicing income                           1,368           1,526
       Gain (loss) on sale of securities                 130            (602)
       Equity in net income of Imperial Capital Group    912              --
       Mark to market losses on securities and loans
        held for sale                                 (1,822)         (1,773)
       Rental income                                   1,912             120
       Other income                                    2,595           2,544
         Total fee and other income                    6,039          10,463
     Noninterest Expenses:
       Personnel expense                               6,826          11,919
       Commission expense                                487           2,753
       Amortization of servicing rights                  106             136
       Occupancy expense                               1,034           1,349
       Net expenses of other real estate owned            92             556
       Legal and professional services                 1,499           1,392
       Legal (recoveries) settlements                     (1)             13
       Collection costs                                1,662             484
       Telephone and other communications                364             871
       Amortization of goodwill, net                    (722)            631
       Real property expense                             914              18
       General and administrative expense              3,815           5,344
         Noninterest expenses                         16,076          25,466
       Acquisition costs                                   -           9,397
         Total expenses                               16,076          34,863
       Loss from continuing operations before income
        taxes, minority interest and extraordinary
        item                                             (74)        (27,312)
       Income taxes                                       --         (10,835)
       Minority interest in income of consolidated
        subsidiaries                                      32             393
       Loss from continuing operations                  (106)        (16,870)
       Operating losses from discontinued operations
        of AMN, net of income taxes                     (200)             --
       Loss before extraordinary item                   (306)        (16,870)
       Extraordinary item-Gain on early
        extinguishment of debt, net of income taxes      618             947
         Net income (loss)                              $312        $(15,923)
     Comprehensive income (loss):
       Other comprehensive income (loss), net            318          (1,958)
         Comprehensive income (loss)                    $630        $(17,881)
     Basic income per share:
       Income (loss) from continuing operations        $0.00          $(0.51)
       Operating loss from discontinued operations,
        net of income taxes                            (0.01)             --
       Extraordinary item-Gain on early
        extinguishment of debt, net of income taxes     0.02            0.03
         Net income (loss) per common share            $0.01          $(0.48)
     Diluted income per share:
       Income (loss) from continuing operations        $0.00          $(0.51)
       Operating loss from discontinued operations,
        net of income taxes                            (0.01)             --
       Extraordinary item-Gain on early
        extinguishment of debt, net of income taxes     0.02            0.03
         Net income (loss) per common share            $0.01          $(0.48)
 
 
                              SELECTED FINANCIAL DATA
                  (Dollars in thousands, except per share amounts)
 
     Other Selected Financial Data:         At or for the Three Months Ended
                                           March 31,  December 31,   March 31,
                                              2001        2000         2000
     Book value per share                    $1.25        $1.23        $5.65
     Tangible book value per share           $1.35        $1.37        $6.17
 
     Ratio of earnings to fixed charges       1.0x        (0.7x)        0.2x
     Pre-tax interest coverage ratio          1.1x       (10.0x)       (3.3x)
 
     (Loss) earnings before interest,
      taxes, depreciation and amortization
      ("EBITDA")                             7,089     $(56,419)    $(19,518)
     Return on average equity (ROE)          3.14%     (457.76%)     (32.42%)
     Return on average assets (ROA)          0.06%      (19.06%)      (2.86%)
     Net interest margin at SPB              4.11%        4.47%        4.89%
 
     Basic weighted average shares
      outstanding                           32,096       32,096       33,212
     Diluted weighted average shares
      outstanding                           32,123       32,096       33,212
 
                                        At March 31,  At December 31,
     Selected Credit Data:                    2001        2000
     Core Business Nonperforming Assets
     Coast Business Credit                 $36,041      $31,795
     Acquired Entertainment Assets and
      LHO Loans                             12,393        7,998
     Loan Participation and Investment
      Group                                 22,998       26,206
     Imperial Warehouse Finance             14,365        9,404
     Income Property Lending Division        1,341        1,650
     Other core businesses                     645            9
       Total core business nonperforming
        assets                              87,783       77,062
 
     Non-Core Business Nonperforming Assets
     Former mortgage banking operations        268          431
     Auto Marketing Network, Inc.              596          778
     Single Family Loans                     3,451        3,949
     Other non-core businesses               6,677        5,149
       Total non-core business nonperforming
        assets                              10,992       10,307
       Total nonperforming assets          $98,775      $87,369
 
     Core Business Non-accrual Loans
     Coast Business Credit                  36,041       31,795
     Lewis Horwitz Organization Loans          246          246
     Loan Participation and Investment
      Group                                 22,998       26,206
     Imperial Warehouse Finance             14,365        9,404
     Income Property Lending Division        1,341        1,650
     Other core businesses                     645            7
       Total core business non-accrual
        loans                               75,636       69,308
 
     Non-Core Business Non-accrual Loans
     Former mortgage banking operations        268          431
     Auto Marketing Network, Inc.              545          716
     Single Family Loans                     2,483        3,133
     Other non-core businesses               6,462        4,941
       Total non-core business non-accrual
        loans                                9,758        9,221
       Total non-accrual loans             $85,394      $78,529
 
 
                                           At or for    At or for    At or for
                                           the Three    the Three    the Three
                                             Months      Months       Months
                                             Ended        Ended        Ended
                                           March 31,  December 31,   March 31,
                                              2001        2000         2000
     Allowance for loan and lease losses
      to non-accrual loans and leases       75.87%       81.02%       77.67%
     Allowance for loan and lease losses
      to gross LHFI                          5.10%        5.39%        3.61%
     Nonperforming assets to total assets    4.80%        4.11%        3.33%
     Nonperforming assets to LHFI, OREO and
      other repossessed assets               7.77%        7.39%        5.58%
     Annualized net charge-offs to average
      LHFI, net                              1.18%       19.52%        2.13%
 
 
                          Imperial Credit Industries, Inc.
                         Financial and Operating Highlights
 
     Consolidated
      Operating Results
     (In millions, except    2001            2000
      per share amounts     First      Fourth     Third     Second     First
      and percentages)     Quarter    Quarter    Quarter    Quarter   Quarter
 
     Revenue
       Interest income      $48.6      $53.0     $57.4      $61.0      $53.4
       Interest expense     (34.0)     (35.4)    (37.1)     (35.4)     (32.3)
         Net interest income 14.6       17.6      20.3       25.6       21.1
       Provision for loan
        and lease losses      4.6       66.3      27.5       63.2       24.0
       Net interest income
        (expense) after
        provision            10.0      (48.7)     (7.2)     (37.6)      (2.9)
       Gain (loss) on sale
        of loans and leases   0.1        1.1      (2.3)       0.2        0.1
       Asset management fees  0.8        0.8       0.8        0.8        0.9
       Investment banking
        and brokerage fees     --         --       6.2        7.2        7.7
       Loan servicing
        income                1.4        1.5       1.5        1.5        1.5
       Gain (loss) on sale of
        securities            0.1       (0.1)      0.2       13.5       (0.6)
       Equity in net (loss)
        income of ICG         0.9        0.5        --         --         --
       Mark to market loss
        on securities and
        loans held for
        sale                 (1.8)      (4.8)     (4.3)      (2.0)      (1.7)
       Rental income          1.9        2.6       2.9        2.6        0.1
       Other income           2.6        3.5       2.6        3.7        2.5
       Total fee and other
        income                6.0        5.1       7.6       27.5       10.5
     Expenses
       Personnel expense      7.3       10.1      11.6       13.7       14.7
       Occupancy expense      1.0        1.2       1.3        1.5        1.3
       Legal and
        professional          3.2        3.3       9.4        1.5        1.6
       Amortization of
        goodwill, net        (0.7)      (0.8)      2.9       (1.3)       0.6
       Net expense of real
        estate owned          0.1        0.1       0.2        0.5        0.6
       Real property expense  0.9        1.1       1.6        1.5         --
       Other expenses         4.3        5.2       6.4        6.5        6.7
       Merger costs            --         --        --         --        9.4
     Total expenses          16.1       20.2      33.4       23.9       34.9
     (Loss) from continuing
      operations before
      income taxes and
      minority interest      (0.1)     (63.8)    (33.0)     (34.0)     (27.3)
     Income taxes              --       37.8     (10.0)     (14.6)     (10.8)
     Minority interest in
      income of consolidated
      subsidiaries             --         --       0.2        0.5        0.4
     Loss from continuing
      operations             (0.1)    (101.6)    (23.2)     (19.9)     (16.9)
     Operating loss from
      discontinued operations
      and disposal of AMN    (0.2)      (4.1)     (1.1)        --         --
     Extraordinary item
      - gain on early
      extinguishment of debt  0.6        1.1       0.3        1.1        1.0
     Net income (loss)       $0.3    $(104.6)   $(24.0)    $(18.8)    $(15.9)
     Weighted average number
      of common and common
      equivalent shares
      (diluted)              32.1       32.1      32.8       33.7       33.2
     Net (Loss) Income per
      Diluted Share:
       Income (loss) from
        continuing
        operations            $--     $(3.17)   $(0.73)    $(0.61)    $(0.51)
       Operating loss from
        discontinued
        operations of AMN   (0.01)     (0.13)    (0.03)        --         --
       Extraordinary item
        - gain on early
        extinguishments
        of debt              0.02       0.04      0.01       0.03       0.03
       Net income (loss)
        per diluted share   $0.01     $(3.26)   $(0.75)    $(0.58)    $(0.48)
     Consolidated Financial
      Condition (at
      quarter end):
       Loans and leases
        held for sale      $380.1     $386.5    $400.6     $392.0     $344.4
       Loans held for
        investment, net  $1,195.5   $1,122.5  $1,232.1   $1,311.6   $1,307.3
       Securities, at
        market             $166.5     $227.7    $219.6     $231.2     $252.7
       Retained interest
        in loan and lease
        securitizations      $3.6       $6.3     $10.0      $12.1      $12.4
       Total assets      $2,056.4   $2,127.6  $2,263.7   $2,403.5   $2,288.3
       Deposits          $1,623.7   $1,632.7  $1,699.3   $1,826.5   $1,681.3
       Borrowings from
        FHLB and other
        borrowings          $85.0     $149.1    $117.4      $99.3      $68.1
       ROPES                $41.0      $42.9     $47.0      $48.3      $60.5
       Senior notes        $193.0     $176.8    $176.9     $176.9     $179.0
       Total shareholders'
        equity              $40.1      $39.4    $143.4     $165.5     $187.5
     Asset Quality
       Other real estate
        owned and other
        repossessed
        assets, net         $13.3       $8.8     $11.8      $14.6      $12.8
       Non-accrual loans    $85.4      $78.5     $81.3      $90.8      $72.6
       Allowance for loan
        and lease losses    $64.8      $63.6     $57.8      $50.1      $49.4
       Ratio of the loan
        loss allowance to
        gross loans held
        for investment      5.10%      5.39%     4.69%      3.82%      3.78%
       Ratio of the loan
        loss allowance to
        non-accrual loans  75.87%     81.02%    71.14%     55.21%     77.67%
       Charge-offs           $7.6      $61.5     $20.4      $62.9       $7.9
       Recoveries             4.1        1.2       0.5        0.5        0.8
         Net Charge-offs     $3.5      $60.3     $19.9      $62.4       $7.1
     Performance and
      Valuation
       Return on average
        shareholders'
        equity              3.14%   -457.76%   -62.16%    -42.56%    -32.42%
       Return on average
        assets              0.06%    -19.06%    -4.11%     -3.20%     -2.84%
       After-tax profit
        margin              1.95%        n/a       n/a        n/a        n/a
       Shareholders' equity
        to total assets     1.95%      1.85%     6.33%      6.88%      8.20%
       Book value per
        share               $1.25      $1.23     $4.47      $5.12      $5.65
       Tangible book value
        per share           $1.35      $1.37     $4.71      $5.52      $6.17
     Full Time Equivalent
      Employees               404        428       536        566        591
       Cash Flow Information:
       Earnings before
        interest, taxes,
        depreciation and
        amortization
        (EBITDA)             $7.1     $(35.4)   $(24.8)    $(28.5)    $(19.5)
       Pre-tax interest
        coverage ratio       1.1x     (10.0x)    (4.6x)     (4.7x)     (3.3x)
       Ratio of earnings to
        fixed charges        1.0x      (0.7x)     0.1x       0.1x       0.2x
       Capital Ratios
       Risk-based Capital   8.40%      6.59%     9.35%      9.31%     10.33%
       Risked-based Tier 1
        Capital             6.04%      3.54%     5.23%      5.97%      7.18%
       Tier 1 FDIC Leverage
        Ratio               6.11%      3.46%     5.47%      6.50%      8.25%
     Loan Portfolio
       Multifamily real
        estate             $268.9     $281.3    $310.5     $294.2     $248.2
       Commercial real
        estate              156.8      151.6     169.5      183.4      179.4
       Asset-based loans    742.9      752.9     832.9      844.7      810.3
       Loan participations  108.9      123.5     150.6      172.9      183.7
       Mortgage warehouse
        lines               131.5       50.6      33.8       52.1       69.5
       Film and television
        production loans    113.7       83.7      76.7       75.2       24.9
       Other                 36.9       28.6      17.9       18.2       61.3
         Total Core
          Loans           1,559.6    1,472.2   1,591.9    1,640.7    1,577.3
         Non Core Loans      90.2       95.1      99.9      119.1      127.1
           Gross Loans   $1,649.8   $1,567.3  $1,691.8   $1,759.8   $1,704.4
     Yield on earning
      assets at SPB        10.04%     10.40%    10.65%     11.18%     10.15%
     Cost of borrowings
      at SPB                6.61%      6.66%     6.50%      6.21%      5.85%
     Net interest margin
      at SPB                4.11%      4.47%     4.82%      5.69%      4.89%
 
     Deconsolidation of ICG
     During the fourth quarter of 2000, the Company reduced its ownership
 percentage in ICG from 63.2% to 38.5% through the sale of a part of its equity
 interest to ICG and certain management members of ICG.  The income from ICG is
 accounted for by the equity method of accounting beginning with the quarter
 ended December 31, 2000.  For the three months ended March 31, 2001, the
 equity in net income of ICG was $912,000.  As a result of the deconsolidation
 of ICG, certain components of the Company's first quarter results of
 operations are not comparable to the same period of the prior year.
 Therefore, the following proforma statements of operations present the
 Company's results of operations as if ICG had been accounted for as an equity
 investment for all periods presented.
 
 
                          IMPERIAL CREDIT INDUSTRIES, INC.
       CONSOLIDATED PROFORMA STATEMENTS OF OPERATIONS - ICG UNDER THE EQUITY
                                       METHOD
                         (Dollars in thousands - unaudited)
 
                                                          Three Months Ended
                                                               March 31,
                                                            2001        2000
     Interest Income:
       Interest on loans and leases.                     $43,268     $45,533
       Interest on investments.                            5,020       7,213
       Interest on other finance activities                  330         614
         Total interest income                            48,618      53,360
     Interest Expense:
       Interest on deposits                               26,589      24,293
       Interest on other borrowings.                       1,701       1,457
       Interest on long term debt.                         5,740       6,378
         Total interest expense                           34,030      32,128
         Net interest income                              14,588      21,232
       Provision for loan and lease losses                 4,625      24,019
         Net interest income (expense) after provision
          for loan and lease losses                        9,963      (2,787)
     Fee and Other Income:
       Gain on sale of loans and leases                      102         133
       Asset management fees                                 842         861
       Loan servicing income                               1,368       1,526
       Gain (loss) on sale of securities                     130        (602)
       Equity in net income of Imperial Capital Group        912         640
       Mark to market losses on securities and loans
        held for sale                                     (1,822)     (1,773)
       Rental income                                       1,912         120
       Other income                                        2,595       2,544
         Total fee and other income                        6,039       3,449
     Noninterest Expenses:
       Personnel expense                                   6,826       9,093
       Commission expense                                    487         804
       Amortization of servicing rights                      106         136
       Occupancy expense                                   1,034       1,140
       Net expenses of other real estate owned                92         556
       Legal and professional services                     1,499       1,198
       Lawsuit (recoveries) settlements                       (1)         13
       Collection costs                                    1,662         484
       Telephone and other communications                    364         555
       Amortization of goodwill, net                        (722)        607
       Real property expense                                 914          18
       General and administrative expense                  3,815       4,334
         Noninterest expenses                             16,076      18,938
       Acquisition costs                                      --       9,397
         Total expenses                                   16,076      28,335
         Loss from continuing operations before income
          taxes, minority interest and extraordinary item    (74)    (27,673)
       Income taxes                                           --     (10,835)
       Minority interest in income of consolidated
        subsidiaries                                          32          32
         Loss from continuing operations                    (106)    (16,870)
       Operating losses from discontinued operations
        of AMN, net of income taxes                         (200)         --
         Loss before extraordinary item                     (306)    (16,870)
       Extraordinary item-Gain on early extinguishments
        of debt, net of income taxes                         618         947
         Net income (loss)                                  $312    $(15,923)
 
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SOURCE Imperial Credit Industries, Inc.
    TORRANCE, Calif., April 24 /PRNewswire/ -- Imperial Credit Industries,
 Inc. (Nasdaq:   ICII) reports results for the first quarter ended March 31,
 2001.
 
     ICII Returns to Profitability in the First Quarter of 2001
     Imperial Credit Industries, Inc., (the "Company" or "ICII") reported net
 income for the quarter ended March 31, 2001 of $312,000 or $0.01 diluted net
 income per share including an operating loss from discontinued operations of
 $200,000 or $0.01 diluted net loss per share and an extraordinary gain on the
 early extinguishment of debt of $618,000 or $0.02 diluted net income per
 share.  The operating results for the quarter ended March 31, 2001 were
 favorably impacted by a significant increase in recoveries to $4.1 million of
 previously charged off loans, which resulted in a reduction of the provision
 for loan and lease losses to $4.6 million as compared to $24.0 million in the
 same period of the prior year.  The Company has increased its allowance for
 loan and lease losses to $64.8 million at March 31, 2001 as compared to
 $63.6 million at December 31, 2000.  The operating results for the quarter
 ended March 31, 2001 were negatively impacted by a 150 basis point decrease in
 the Prime rate and increased levels of non-accrual loans which reduced
 Southern Pacific Bank's ("SPB") net interest margin to 4.11% for the quarter
 ended March 31, 2001 as compared to 4.89% for the same period of the prior
 year.  The Company recorded no income tax expense during the quarter ended
 March 31, 2001 as the Company currently has $130.0 million of tax net
 operating loss carry-forwards available to offset future income.  For the same
 period of the prior year, the Company reported a net loss of $15.9 million or
 $0.48 diluted net loss per share after an extraordinary gain on the
 extinguishment of debt of $947,000 or $0.03 diluted net income per share.  Net
 loss for the quarter ended March 31, 2000 included $9.4 million of severance
 and other costs related to the Imperial Credit Commercial Mortgage Investment
 Corp. ("ICCMIC") acquisition.
 
     Net Interest Income Decreases As a Result of Margin Compression
     For the quarter ended March 31, 2001, net interest income before
 provisions for loan and lease losses and net interest margin decreased to
 $14.6 million and 4.11% as compared to $21.1 million and 4.89% for the same
 period in the prior year, respectively.  Net interest income before provisions
 for loan and lease losses and net interest margin decreased primarily as a
 result of increased deposit costs coupled with lower yields on our loan and
 securities portfolios.
     During the quarter ended March 31, 2001, interest income decreased to
 $48.6 million as compared to $53.4 million for the same period of the prior
 year.  Interest income decreased primarily as a result of decreases in the
 Prime and Libor interest rates.  A majority of the Company's loans are indexed
 to these indices.  As a result of the decrease in the Prime and Libor rates,
 these loans re-priced to reduced yields during the first quarter, while a
 majority of our deposit funding base is expected to re-price with reduced
 interest rates over the next six months.  As a result of our loans re-pricing
 faster than our deposits, SPB's net interest margin decreased during the
 quarter ended March 31, 2001.  The average yield on loans at SPB decreased to
 10.42% during the quarter ended March 31, 2001 as compared to 10.74% in the
 same period of the prior year.  SPB's yields on its outstanding loans were
 also negatively affected by a higher level of non-accrual loans during the
 quarter ended March 31, 2001 as compared to the same period of the prior year.
 Average non-accrual loans were approximately $78.4 for the quarter ended March
 31, 2001 as compared to approximately $65.5 million for the same period of the
 prior year.  The Company's total loans and leases held for sale and
 investment, net of allowance for loan and lease losses increased to $1.6
 billion at March 31, 2001 compared to $1.5 billion at December 31, 2000.
     Interest expense was $34.0 million for the quarter ended March 31, 2001 as
 compared to $32.3 million for the same period of the prior year.  The increase
 in interest expense primarily resulted from an increase in the cost of the
 Federal Deposit Insurance Corporation ("FDIC") insured deposits of SPB.  The
 average cost of deposits based on daily averages at SPB increased to 6.61%
 during the quarter ended March 31, 2001 as compared to 5.85% in the same
 period of the prior year.  SPB's average outstanding deposits decreased to
 $1.6 billion for the quarter ended March 31, 2001 as compared to $1.7 billion
 at March 31, 2000.  Interest on other borrowings increased as a result of the
 ICCMIC acquisition on March 28, 2000.  Average outstanding debt and related
 interest expense at ICCMIC totaled $37.1 million and $734,000 for the quarter
 ended March 31, 2001, respectively.  The increases in interest expense on
 deposits and other borrowings were partially offset by a decrease in interest
 expense on long-term debt which decreased 10.0% to $5.7 million for the
 quarter ended March 31, 2001 as compared to $6.4 million for the same period
 in the prior year.  The decrease in interest expense on long-term debt
 resulted from the repurchase of long-term debt during the previous twelve
 months.
 
     Fee and Other Income Decrease As a Result of ICG Deconsolidation
     Fee and other income decreased $4.4 million to $6.0 million for the
 quarter ended March 31, 2001 as compared to $10.5 million in the same period
 of the prior year.  Fee and other income decreased primarily due to the
 deconsolidation of Imperial Capital Group ("ICG") during the fourth quarter of
 2000.  As a result of the deconsolidation, the Company will not report any
 investment banking and brokerage fees, other income, or expenses of ICG.
 Beginning with the fourth quarter of 2000, ICII's 38.5% equity interest in ICG
 will be reported as equity in the net income of ICG.  During the quarter ended
 March 31, 2000 the Company reported $7.7 million of investment banking and
 brokerage fees.
     Gain on sale of loans decreased to $102,000 for the quarter ended March
 31, 2001, as compared to $133,000 in the same period of the prior year.  For
 the quarter ended March 31, 2001, the Company sold $44.5 million of Income
 Property Lending Division ("IPL") loans and $11.1 million of participations in
 nationally syndicated loans generating a gain of $257,000 and a loss of
 $165,000, respectively.  For the quarter ended March 31, 2000, the Company
 sold $34.7 million of IPL loans, $51.4 million of nationally syndicated
 participation loans, $7.5 million of consumer loans, and securitized
 $28.2 million of Imperial Business Credit's ("IBC") equipment leases,
 generating gains (losses) of $271,000, ($400,000), zero, and $261,000,
 respectively.
     Asset management fees were relatively unchanged at $842,000 for the
 quarter ended March 31, 2001 as compared to $861,000 in the same period of the
 prior year.  Asset management fees are derived primarily from the management
 of Pacifica Partners I, a $500 million collateralized loan obligation fund.
 The balance of assets under management was $484.5 million at March 31, 2001 as
 compared to $491.3 million at March 31, 2000.
     For the three months ended March 31, 2001, the equity in net income of ICG
 was $912,000.  The pre-tax income of ICG for the quarter ended March 31, 2000
 was $1.0 million.
     Gain on sale of securities increased to $130,000 for the quarter ended
 March 31, 2001 as compared to a loss of $602,000 in the same period of the
 prior year.  During the quarter ended March 31, 2001, the Company sold part of
 its interest in a high yield bond fund managed by Imperial Capital Group
 ("ICG").
     Rental income increased to $1.9 million for the quarter ended March 31,
 2001 as compared to $120,000 in the same period of the prior year.  Rental
 income increased as a result of the income producing commercial real estate
 properties acquired in the ICCMIC transaction, which was completed on March
 28, 2000.
     For the quarters ending March 31, 2001 and 2000, mark-to-market losses
 were unchanged at $1.8 million.  The net mark-to-market losses for the quarter
 ended March 31, 2001 primarily related to a $649,000 write-down of IBC's
 retained interests in lease securitizations, a $311,000 write-down of other
 retained interests, and an $801,000 write-down of loans funded through an
 off-balance sheet swap managed by SPB's Loan Participation and Investment
 Group ("LPIG") division.  For the quarter ended March 31, 2000, mark-to-market
 losses were primarily related to a decline in the value of the Company's
 commercial mortgage-backed securities and investments in total return swaps.
 The Company wrote down its commercial mortgage-backed securities by $462,000
 and its investments in total return swaps by $1.0 million as a result of
 increased interest spreads and loss assumptions.  During the quarter ended
 March 31, 2000, the Company also wrote down certain consumer loans held for
 sale by $770,000.  The write-downs in these securities and loans during the
 quarter ended March 31, 2000 were partially offset by increases in the value
 of the Company's retained interest in residential mortgage loan
 securitizations of $542,000 as a result of increased prepayment assumptions.
 
     Noninterest Expenses Decrease 37%
     Total noninterest expenses for the quarter ended March 31, 2001 decreased
 37% to $16.1 million as compared to $25.5 million for the prior year.  The
 decrease in expenses primarily resulted from decreases in personnel expense,
 amortization of goodwill, and general and administrative expenses in addition
 to the deconsolidation of ICG.  These decreases were partially offset by
 increases in legal and professional services and collection costs associated
 with non-accrual loans and non-performing assets, and real property expenses.
 During the quarter ended March 31, 2000 noninterest expenses decreased 15% to
 $16.1 million as compared to $18.9 million for the same period in the prior
 year assuming ICG was accounted for under the equity method.  The decrease in
 expenses occurred in all expense categories except legal and professional
 services, collection costs associated with non-accrual loans and
 non-performing assets, and real property expenses.
     Assuming ICG was accounted for under the equity method, during the quarter
 ended March 31, 2000, personnel expenses decreased 25% to $6.8 million as
 compared to $9.1 million in the same period of the prior year.  The decrease
 was primarily the result of reduced Full Time Equivalent employees ("FTE") and
 reduced bonus expense.  At March 31, 2001, the Company had 404 FTE as compared
 to 520 FTE (excluding ICG) at March 31, 2000.
     Assuming ICG was accounted for under the equity method, during the quarter
 ended March 31, 2000, legal and professional and collection costs increased to
 $3.2 million as compared to $1.7 million in the same period of the prior year.
 The increase was primarily the result of increased levels of non-accrual loans
 and the Company's efforts to accelerate the resolution of problem loans.
     Assuming ICG was accounted for under the equity method, during the quarter
 ended March 31, 2000, general and administrative expenses decreased 12% to
 $3.8 million as compared to $4.3 million in the same period of the prior year.
 General and administrative expenses decreased in both periods as a result of
 the Company's efforts to cut costs and increase operational efficiency.
     Assuming ICG was accounted for under the equity method, during the quarter
 ended March 31, 2000, amortization of goodwill, net was ($722,000) as compared
 to $607,000 in the prior year.  Amortization of goodwill decreased as a result
 of the amortization of negative goodwill associated with the ICCMIC
 acquisition in the first quarter of 2000.  During the quarter ended March 31,
 2001, amortization of negative goodwill at ICCMIC reduced amortization of
 goodwill, net by $1.4 million as compared to $72,000 during the same period of
 the prior year.
     Real property expenses began to be incurred by our company as a result of
 the ICCMIC acquisition in the first quarter of 2000.  These costs solely
 relate to the income producing properties owned by ICCMIC. Real property
 expenses totaled $914,000 for the quarter ended March 31, 2001 as compared to
 $18,000 in the same period of the prior year.
 
     Non-accrual Loans and Non-Performing Assets
     Our non-accrual loans and leases increased to $85.4 million at March 31,
 2001 as compared to $78.5 million at December 31, 2000.  The increase was
 primarily attributable to increased non-accrual loans at SPB's Coast Business
 Credit ("CBC") division and its Imperial Warehouse Finance ("IWF") subsidiary.
 CBC's non-accrual loans increased to $36.0 million at March 31, 2001 as
 compared to $31.8 million at December 31, 2000.  The increase in CBC's
 non-accrual loans was due to the addition of three new non-accrual loans.
 IWF's non-accrual loans increased to $14.4 million at March 31, 2001 as
 compared to $9.4 million at December 31, 2000.  The increase in IWF's
 non-accrual loans was due to the addition of a $6.0 million facility to one
 customer.  Since March 31, 2001, the outstanding balance of this loan has
 decreased to $4.0 million as a result of the sale of underlying loans
 collateralizing the facility.  The overall increase in non-accrual loans was
 partially offset by a decrease at SPB's LPIG lending division as a result of
 the sale of problem loans.  During the first quarter, SPB sold $1.7 million of
 LPIG problem loans, resulting in a recovery of $379,000.  All unsecured loans
 related to non-performing credits have been charged off as of March 31, 2001
 and December 31, 2000.
     Our non-performing assets increased to $98.8 million at March 31, 2001 as
 compared to $87.4 million at December 31, 2000.  The increase was primarily
 attributable to the increase in non-accrual loans described above, and the
 purchase of non-performing entertainment assets with an estimated value of
 $4.9 million in connection with the Lewis Horwitz Organization ("LHO")
 acquisition.  This purchase during the quarter ended March 31, 2001 completes
 the Company's obligation to purchase non-performing assets under the LHO
 purchase agreement.
 
     Allowance for Loan and Lease Losses Increases to $64.8 Million
     The allowance for loan and lease losses was $64.8 million or 5.10% of
 total loans held for investment as compared to $63.6 million or 5.39% of total
 loans held for investment at December 31, 2000 and $49.4 million or 3.61% of
 total loans held for investment at March 31, 2000, respectively.  The ratio of
 the allowance for loan and lease losses to non-accrual loans and leases
 ("coverage ratio") was 75.87% at March 31, 2001 as compared to 81.02% at
 December 31, 2000 and 77.67% at March 31, 2000.
     For the quarter ended March 31, 2001, the provision for loan and lease
 losses was $4.6 million as compared to $24.0 million for the same period of
 the prior year.  The reduced provision for loan and lease losses for the
 quarter ended March 2001 was primarily the result of increased recoveries on
 previously charged off CBC loans totaling $4.0 million and a reduced number of
 performing credits migrating to potential problem status.
 
     First Step of the Company's Recapitalization Transaction Completed
     On March 30, 2001 ICII completed the issuance of $16.2 million of Senior
 Secured Debt.  The notes bear an interest rate of 12% and mature on April 30,
 2002.  The issuance of the Senior Secured Debt is the first step in a
 recapitalization plan for the Company further explained below.  The proceeds
 from the Senior Secured Debt offering were invested in SPB to facilitate
 compliance with its regulatory orders.
     Subsequent to the completed Senior Secured Debt offering, ICII will offer
 pro rata a package of the following securities in exchange (the "Debt
 Exchange") for our three currently outstanding series of debt securities (the
 "Old Notes"):  (i) 12% Senior Secured Notes due 2005 (the "Exchange Notes"),
 (ii) up to 2.0 million shares of our Common Stock (13.952269 shares per $1,000
 face amount of Exchange Notes), no par value and (iii) warrants (the "Debt
 Exchange Warrants") to purchase up to an additional 7.0 million shares of
 Common Stock at an exercise price of $2.15 per share (48.832944 warrants per
 $1,000 face amount of Exchange Notes).  Concurrently with consummation of the
 Debt Exchange, we will issue up to 7.04 million shares of Common Stock to the
 holders of a majority in interest of our Old Notes who executed the
 recapitalization agreement.  We further intend to issue and sell at least
 $10.0 million principal amount of 12% Convertible Subordinated Notes due 2005
 to accredited investors in a private placement.  The Convertible Subordinated
 Notes will be convertible after three years into Common Stock of the Company
 at a price of $1.25 per share.
     The holders of Old Notes will be offered Exchange Notes as follows:
 (i) the holders of our 10.25% Remarketed Par Securities due 2002 will be
 offered to convert into Exchange Notes at $0.80 per dollar of face amount of
 such Old Notes, (ii) the holders of our 9.875% Senior Notes due 2007 will be
 offered to convert into Exchange Notes at $0.65 per dollar of face amount of
 such Old Notes, and (iii) the holders of our 9.75% Senior Notes due 2004 will
 be offered to convert into Exchange Notes at $0.50 per dollar of face amount
 of such Old Notes.
     A majority-in-interest of the 10.25% Remarketed Par Securities due 2002
 and our 9.875% Senior Notes due 2007 have agreed to participate in the Debt
 Exchange, and to strip the Old Notes of all existing financial covenants.
 Supplemental indentures related to the Old Notes were executed on March 29,
 2001.
     Subject to the occurrence of certain conditions (including the closing of
 the Debt Exchange and the issuance of Convertible Subordinated Notes), all of
 the Senior Secured Debt will be automatically exchanged into (i) $18.2 million
 principal amount of Exchange Notes, (ii) 249,052 shares of Common Stock, and
 (iii) warrants to purchase up to an additional 871,681 shares of Common Stock
 at an exercise price of $2.15 per share.  Such Exchange Note holders also have
 limited price protection.  Each of the Senior Secured Debt purchasers will
 further have the right during the period following the Debt Exchange and
 ending March 31, 2002 to elect to exchange all or a portion of their Exchange
 Notes and related shares of Common Stock and Debt Exchange Warrants into
 $18.2 million principal amount of Convertible Subordinated Notes.  The
 Convertible Subordinated Notes will have a 12% coupon and will be convertible
 into Common Stock at $1.25 per share.
     Upon successful completion of the recapitalization transaction, ICII will
 receive gross proceeds of approximately $26.2 million of new capital, most of
 which will be invested in Tier I capital of SPB.  We believe that this new
 capital will assist our company in its attempt to increase capital levels at
 SPB in order to meet regulatory requirements.  Furthermore, the future
 exercise of warrants issued in connection with the Debt Exchange is expected
 to provide approximately an additional $15.0 million of capital for the
 Company at the time of their exercise approximately three years from the date
 of issuance of the Exchange Notes.
     The impact of the Debt Exchange will primarily be to reduce the principal
 amount of ICII's Old Notes by approximately $36.6 million to $71.7 million
 based on the success of the exchange offer.  ICII expects to complete the Debt
 Exchange by June 30, 2001.
 
     Southern Pacific Bank's Regulatory Capital Increased to "Adequately
 Capitalized" Levels
     The Company's largest subsidiary is SPB, an FDIC insured depository
 institution.  On March 30, 2001, the Company contributed $21.2 million of cash
 to the Bank in the form of new equity capital and converted $22.0 million of
 SPB's subordinated debt into non-cumulative perpetual preferred stock of SPB.
 Such capital infusions and conversions, in addition to SPB's earnings through
 March 31, 2001, restored SPB's capital to amounts above the "adequately
 capitalized" regulatory minimums as defined in banking regulations.  However,
 the restoration of SPB's capital was not sufficient to meet the capital levels
 required by its regulatory orders at March 31, 2001.  SPB had Tier 1 Leverage
 and Total Risk-based Capital ratios of 6.11% and 8.40%, at March 31, 2001 as
 compared to 3.46% and 6.59% at December 31, 2000, respectively.  The Company
 is in the process of revising SPB's capital plan that was submitted to the
 FDIC and the DFI.  Such capital plan has not yet been approved by the FDIC and
 the DFI.  The capital plan indicates that the Bank will not meet any of the
 above cited capital ratio targets at the indicated dates.  However, the
 preliminary revised plan does indicate that the Bank's capital ratios at
 December 31, 2001, should qualify it to be categorized as "well capitalized"
 at that time.
 
     Liquidity and Capital Resources
     On a consolidated basis, our cash and interest bearing deposits decreased
 to $153.7 million at March 31, 2001 as compared to $214.1 million at December
 31, 2000.  At our parent company, cash and interest bearing deposits decreased
 to $2.2 million at March 31, 2001 as compared to $15.9 million at December 31,
 2000.  Liquidity at our holding company was reduced primarily due to the
 additional capital investment of $5.0 million into SPB, the repayment of
 inter-company advances to consolidated subsidiaries, and the purchase of
 single family residential mortgage loans from a securitization trust
 established by the Company in 1994.  Cash available to our parent company
 including its consolidated subsidiaries other than SPB totaled $7.4 million at
 March 31, 2001.
 
     Long Term Debt
     Our long term debt increased to $234.0 million at March 31, 2001 as
 compared to $219.6 million at December 31, 2000 as a result of the issuance of
 $16.2 million of Senior Secured Debt on March 30, 2001.  The notes bear an
 interest rate of 12% and mature on April 30, 2002.  During the quarter ended
 March 31, 2001, we repurchased $1.9 million of our company obligated
 mandatorily redeemable preferred securities of subsidiary trust holding solely
 debentures of the company ("ROPES"), resulting in an extraordinary gain on the
 early extinguishment of debt of $618,000.
 
     Shareholders' Equity
     At March 31, 2001 our shareholders' equity increased to $40.1 million as
 compared to $39.4 million at December 31, 2000.  The increase in shareholders'
 equity was primarily the result of net income recorded during the quarter
 ended March 31, 2001 and due to an increase in the valuation allowance for
 securities available for sale.  Our book value per share and tangible book
 value per share increased to $1.25 and decreased to  $1.35 at March 31, 2001
 as compared to $1.23 and $1.37 at December 31, 2000, respectively.
 
     General Description of the Company
     Imperial Credit Industries, Inc., a diversified financial services holding
 company, was formed in 1991 and is headquartered in Torrance, California.  The
 Company's major business activities are primarily conducted through Southern
 Pacific Bank, a wholly owned subsidiary.  The Company also owns an equity
 interest in Imperial Capital Group, LLC (approximately 38% ownership).
 Imperial Credit Industries, Inc. and its subsidiaries and affiliates offer a
 wide variety of financial services, investment products, and asset management
 services.
 
     Not an Offer of Securities
     This press release does not constitute an offer of any securities for
 sale.  It is expected that the securities referred to herein will not
 initially be registered under the Securities Act of 1933 and may not be
 offered or sold in the United States absent registration or an applicable
 exemption from the registration requirements of such Act.
 
     Safe Harbor Statement
     Certain statements contained herein are "forward-looking statements"
 within the meaning of the Private Securities Litigation Reform Act of 1995,
 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
 Securities Exchange Act of 1934, as amended.  These forward-looking statements
 may be identified by reference to a future period(s) or by the use of
 forward-looking terminology, such as "may," "will," "intend," "should,"
 "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 due to a
 variety of factors.  These factors include but are not limited to:  the demand
 for our products; competitive factors in the businesses in which we compete;
 adverse changes in the securities markets; inflation and changes in the
 interest rate environment that reduce margins or the fair value of financial
 instruments; changes in national, regional or local business conditions or
 economic environments; government fiscal and monetary policies; legislative or
 regulatory changes that affect our business; factors inherent in the valuation
 and pricing of commercial loans; other factors generally understood to affect
 the value of commercial loans and commercial real estate; and the other risks
 detailed in the Company's 8-K dated May 17, 1999 as filed with the Securities
 and Exchange Commission (the "SEC"); periodic reports on Forms 10-Q, 8-K and
 10-K and any amendments with respect thereto filed with the SEC; and other
 filings made by the Company with the SEC.
 
     ICII's news releases are available at no charge through PR Newswire's
 Company News on Call by dialing (800) 758-5804 Ext. 420763.  Additional
 corporate information relating to the Company's SEC filings and corporate news
 releases are available on the internet.  The web site address is
 http://www.icii.com.  The Company will hold a conference call at 8:00 A.M.
 Pacific Time, 11:00 A.M. Eastern Time today.  The phone number for the
 conference call is (913) 981-5542, confirmation number 554862.  Audio of the
 call will be broadcast live on the Internet and will be available on the
 Investor Relations section of Imperial Credit's web site, located at
 http://www.icii.com and at http://www.videonewswire.com/ICII/042401.
 
     For further information contact:  Brad Plantiko/CFO 310-791-8096 or Karen
 Montandon/IR 310-791-8022
 
 
                          IMPERIAL CREDIT INDUSTRIES, INC.
                            CONSOLIDATED BALANCE SHEETS
                         (In thousands, except share data)
                                    (unaudited)
 
                                                    March 31,    December 31,
                                                      2001           2000
                       ASSETS
     Cash                                            $ 56,622       $ 30,938
     Interest bearing deposits                         97,068        183,193
     Investment in Federal Home Loan Bank stock         4,216          4,148
     Securities held for trading, at market           105,080        164,050
     Securities available for sale, at market          61,466         63,684
     Loans and leases held for sale, net              380,132        386,469
     Loans and leases held for investment, net of
      unearned income and deferred loan fees        1,260,308      1,186,119
      less: allowance for loan and lease losses       (64,785)       (63,625)
     Loans held for investment, net                 1,195,523      1,122,494
 
     Real property                                     38,694         53,198
     Retained interest in loan and lease
      securitizations                                   3,635          6,330
     Accrued interest receivable                       13,975         15,744
     Premises and equipment, net                       12,335         10,433
     Other real estate owned and other repossessed
      assets, net                                      13,332          8,778
     Goodwill                                          31,645         32,330
     Other assets                                      31,201         28,158
     Net assets of discontinued operations             11,569         17,630
         Total assets                              $2,056,493     $2,127,577
 
        LIABILITIES AND SHAREHOLDERS' EQUITY
     Deposits                                      $1,623,657     $1,632,704
     Borrowings from Federal Home Loan Bank            50,000         65,000
     Other borrowings                                  34,978         84,118
     Company obligated mandatorily redeemable
      preferred securities of Subsidiary trust
      holding solely debentures of the company
      ("ROPES")                                        41,035         42,885
     Senior secured notes                              16,200             --
     Senior notes                                     176,765        176,757
     Accrued interest payable                          16,421         18,992
     Accrued income taxes payable                      20,507         20,522
     Minority interest in consolidated subsidiaries     1,141          1,116
     Goodwill                                          22,103         23,797
     Other liabilities.                                13,614         22,244
         Total liabilities                          2,016,421      2,088,135
 
     Shareholders' equity:
     Preferred stock, 8,000,000 shares authorized;
      none issued or outstanding                           --             --
     Common stock, no par value.
      Authorized 80,000,000 shares;
      32,096,361 shares issued and outstanding
      at March 31, 2001 and December 31, 2000          97,778         97,668
     Accumulated deficit                              (64,577)       (64,889)
     Shares held in deferred executive
      compensation plan                                 5,635          5,745
     Accumulated other comprehensive
      income-unrealized gain on securities
      available for sale, net                           1,236            918
       Total shareholders' equity                      40,072         39,442
       Total liabilities and shareholders'
        equity                                     $2,056,493     $2,127,577
 
 
                          IMPERIAL CREDIT INDUSTRIES, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                   (Dollars in thousands, except per share data)
                                    (unaudited)
 
                                                        Three Months Ended
                                                             March 31,
     Interest Income:                                  2001           2000
       Interest on loans and leases.                  $43,268        $45,401
       Interest on investments.                         5,020          7,345
       Interest on other finance activities               330            614
         Total interest income                         48,618         53,360
     Interest Expense:
       Interest on deposits.                           26,589         24,293
       Interest on other borrowings.                    1,701          1,582
       Interest on long term debt.                      5,740          6,378
         Total interest expense                        34,030         32,253
         Net interest income                           14,588         21,107
       Provision for loan and lease losses              4,625         24,019
         Net interest income (expense) after
          provision for loan and lease losses          9,963          (2,912)
     Fee and Other Income:
       Gain on sale of loans and leases                  102             133
       Asset management fees                             842             861
       Investment banking and brokerage fees              --           7,654
       Loan servicing income                           1,368           1,526
       Gain (loss) on sale of securities                 130            (602)
       Equity in net income of Imperial Capital Group    912              --
       Mark to market losses on securities and loans
        held for sale                                 (1,822)         (1,773)
       Rental income                                   1,912             120
       Other income                                    2,595           2,544
         Total fee and other income                    6,039          10,463
     Noninterest Expenses:
       Personnel expense                               6,826          11,919
       Commission expense                                487           2,753
       Amortization of servicing rights                  106             136
       Occupancy expense                               1,034           1,349
       Net expenses of other real estate owned            92             556
       Legal and professional services                 1,499           1,392
       Legal (recoveries) settlements                     (1)             13
       Collection costs                                1,662             484
       Telephone and other communications                364             871
       Amortization of goodwill, net                    (722)            631
       Real property expense                             914              18
       General and administrative expense              3,815           5,344
         Noninterest expenses                         16,076          25,466
       Acquisition costs                                   -           9,397
         Total expenses                               16,076          34,863
       Loss from continuing operations before income
        taxes, minority interest and extraordinary
        item                                             (74)        (27,312)
       Income taxes                                       --         (10,835)
       Minority interest in income of consolidated
        subsidiaries                                      32             393
       Loss from continuing operations                  (106)        (16,870)
       Operating losses from discontinued operations
        of AMN, net of income taxes                     (200)             --
       Loss before extraordinary item                   (306)        (16,870)
       Extraordinary item-Gain on early
        extinguishment of debt, net of income taxes      618             947
         Net income (loss)                              $312        $(15,923)
     Comprehensive income (loss):
       Other comprehensive income (loss), net            318          (1,958)
         Comprehensive income (loss)                    $630        $(17,881)
     Basic income per share:
       Income (loss) from continuing operations        $0.00          $(0.51)
       Operating loss from discontinued operations,
        net of income taxes                            (0.01)             --
       Extraordinary item-Gain on early
        extinguishment of debt, net of income taxes     0.02            0.03
         Net income (loss) per common share            $0.01          $(0.48)
     Diluted income per share:
       Income (loss) from continuing operations        $0.00          $(0.51)
       Operating loss from discontinued operations,
        net of income taxes                            (0.01)             --
       Extraordinary item-Gain on early
        extinguishment of debt, net of income taxes     0.02            0.03
         Net income (loss) per common share            $0.01          $(0.48)
 
 
                              SELECTED FINANCIAL DATA
                  (Dollars in thousands, except per share amounts)
 
     Other Selected Financial Data:         At or for the Three Months Ended
                                           March 31,  December 31,   March 31,
                                              2001        2000         2000
     Book value per share                    $1.25        $1.23        $5.65
     Tangible book value per share           $1.35        $1.37        $6.17
 
     Ratio of earnings to fixed charges       1.0x        (0.7x)        0.2x
     Pre-tax interest coverage ratio          1.1x       (10.0x)       (3.3x)
 
     (Loss) earnings before interest,
      taxes, depreciation and amortization
      ("EBITDA")                             7,089     $(56,419)    $(19,518)
     Return on average equity (ROE)          3.14%     (457.76%)     (32.42%)
     Return on average assets (ROA)          0.06%      (19.06%)      (2.86%)
     Net interest margin at SPB              4.11%        4.47%        4.89%
 
     Basic weighted average shares
      outstanding                           32,096       32,096       33,212
     Diluted weighted average shares
      outstanding                           32,123       32,096       33,212
 
                                        At March 31,  At December 31,
     Selected Credit Data:                    2001        2000
     Core Business Nonperforming Assets
     Coast Business Credit                 $36,041      $31,795
     Acquired Entertainment Assets and
      LHO Loans                             12,393        7,998
     Loan Participation and Investment
      Group                                 22,998       26,206
     Imperial Warehouse Finance             14,365        9,404
     Income Property Lending Division        1,341        1,650
     Other core businesses                     645            9
       Total core business nonperforming
        assets                              87,783       77,062
 
     Non-Core Business Nonperforming Assets
     Former mortgage banking operations        268          431
     Auto Marketing Network, Inc.              596          778
     Single Family Loans                     3,451        3,949
     Other non-core businesses               6,677        5,149
       Total non-core business nonperforming
        assets                              10,992       10,307
       Total nonperforming assets          $98,775      $87,369
 
     Core Business Non-accrual Loans
     Coast Business Credit                  36,041       31,795
     Lewis Horwitz Organization Loans          246          246
     Loan Participation and Investment
      Group                                 22,998       26,206
     Imperial Warehouse Finance             14,365        9,404
     Income Property Lending Division        1,341        1,650
     Other core businesses                     645            7
       Total core business non-accrual
        loans                               75,636       69,308
 
     Non-Core Business Non-accrual Loans
     Former mortgage banking operations        268          431
     Auto Marketing Network, Inc.              545          716
     Single Family Loans                     2,483        3,133
     Other non-core businesses               6,462        4,941
       Total non-core business non-accrual
        loans                                9,758        9,221
       Total non-accrual loans             $85,394      $78,529
 
 
                                           At or for    At or for    At or for
                                           the Three    the Three    the Three
                                             Months      Months       Months
                                             Ended        Ended        Ended
                                           March 31,  December 31,   March 31,
                                              2001        2000         2000
     Allowance for loan and lease losses
      to non-accrual loans and leases       75.87%       81.02%       77.67%
     Allowance for loan and lease losses
      to gross LHFI                          5.10%        5.39%        3.61%
     Nonperforming assets to total assets    4.80%        4.11%        3.33%
     Nonperforming assets to LHFI, OREO and
      other repossessed assets               7.77%        7.39%        5.58%
     Annualized net charge-offs to average
      LHFI, net                              1.18%       19.52%        2.13%
 
 
                          Imperial Credit Industries, Inc.
                         Financial and Operating Highlights
 
     Consolidated
      Operating Results
     (In millions, except    2001            2000
      per share amounts     First      Fourth     Third     Second     First
      and percentages)     Quarter    Quarter    Quarter    Quarter   Quarter
 
     Revenue
       Interest income      $48.6      $53.0     $57.4      $61.0      $53.4
       Interest expense     (34.0)     (35.4)    (37.1)     (35.4)     (32.3)
         Net interest income 14.6       17.6      20.3       25.6       21.1
       Provision for loan
        and lease losses      4.6       66.3      27.5       63.2       24.0
       Net interest income
        (expense) after
        provision            10.0      (48.7)     (7.2)     (37.6)      (2.9)
       Gain (loss) on sale
        of loans and leases   0.1        1.1      (2.3)       0.2        0.1
       Asset management fees  0.8        0.8       0.8        0.8        0.9
       Investment banking
        and brokerage fees     --         --       6.2        7.2        7.7
       Loan servicing
        income                1.4        1.5       1.5        1.5        1.5
       Gain (loss) on sale of
        securities            0.1       (0.1)      0.2       13.5       (0.6)
       Equity in net (loss)
        income of ICG         0.9        0.5        --         --         --
       Mark to market loss
        on securities and
        loans held for
        sale                 (1.8)      (4.8)     (4.3)      (2.0)      (1.7)
       Rental income          1.9        2.6       2.9        2.6        0.1
       Other income           2.6        3.5       2.6        3.7        2.5
       Total fee and other
        income                6.0        5.1       7.6       27.5       10.5
     Expenses
       Personnel expense      7.3       10.1      11.6       13.7       14.7
       Occupancy expense      1.0        1.2       1.3        1.5        1.3
       Legal and
        professional          3.2        3.3       9.4        1.5        1.6
       Amortization of
        goodwill, net        (0.7)      (0.8)      2.9       (1.3)       0.6
       Net expense of real
        estate owned          0.1        0.1       0.2        0.5        0.6
       Real property expense  0.9        1.1       1.6        1.5         --
       Other expenses         4.3        5.2       6.4        6.5        6.7
       Merger costs            --         --        --         --        9.4
     Total expenses          16.1       20.2      33.4       23.9       34.9
     (Loss) from continuing
      operations before
      income taxes and
      minority interest      (0.1)     (63.8)    (33.0)     (34.0)     (27.3)
     Income taxes              --       37.8     (10.0)     (14.6)     (10.8)
     Minority interest in
      income of consolidated
      subsidiaries             --         --       0.2        0.5        0.4
     Loss from continuing
      operations             (0.1)    (101.6)    (23.2)     (19.9)     (16.9)
     Operating loss from
      discontinued operations
      and disposal of AMN    (0.2)      (4.1)     (1.1)        --         --
     Extraordinary item
      - gain on early
      extinguishment of debt  0.6        1.1       0.3        1.1        1.0
     Net income (loss)       $0.3    $(104.6)   $(24.0)    $(18.8)    $(15.9)
     Weighted average number
      of common and common
      equivalent shares
      (diluted)              32.1       32.1      32.8       33.7       33.2
     Net (Loss) Income per
      Diluted Share:
       Income (loss) from
        continuing
        operations            $--     $(3.17)   $(0.73)    $(0.61)    $(0.51)
       Operating loss from
        discontinued
        operations of AMN   (0.01)     (0.13)    (0.03)        --         --
       Extraordinary item
        - gain on early
        extinguishments
        of debt              0.02       0.04      0.01       0.03       0.03
       Net income (loss)
        per diluted share   $0.01     $(3.26)   $(0.75)    $(0.58)    $(0.48)
     Consolidated Financial
      Condition (at
      quarter end):
       Loans and leases
        held for sale      $380.1     $386.5    $400.6     $392.0     $344.4
       Loans held for
        investment, net  $1,195.5   $1,122.5  $1,232.1   $1,311.6   $1,307.3
       Securities, at
        market             $166.5     $227.7    $219.6     $231.2     $252.7
       Retained interest
        in loan and lease
        securitizations      $3.6       $6.3     $10.0      $12.1      $12.4
       Total assets      $2,056.4   $2,127.6  $2,263.7   $2,403.5   $2,288.3
       Deposits          $1,623.7   $1,632.7  $1,699.3   $1,826.5   $1,681.3
       Borrowings from
        FHLB and other
        borrowings          $85.0     $149.1    $117.4      $99.3      $68.1
       ROPES                $41.0      $42.9     $47.0      $48.3      $60.5
       Senior notes        $193.0     $176.8    $176.9     $176.9     $179.0
       Total shareholders'
        equity              $40.1      $39.4    $143.4     $165.5     $187.5
     Asset Quality
       Other real estate
        owned and other
        repossessed
        assets, net         $13.3       $8.8     $11.8      $14.6      $12.8
       Non-accrual loans    $85.4      $78.5     $81.3      $90.8      $72.6
       Allowance for loan
        and lease losses    $64.8      $63.6     $57.8      $50.1      $49.4
       Ratio of the loan
        loss allowance to
        gross loans held
        for investment      5.10%      5.39%     4.69%      3.82%      3.78%
       Ratio of the loan
        loss allowance to
        non-accrual loans  75.87%     81.02%    71.14%     55.21%     77.67%
       Charge-offs           $7.6      $61.5     $20.4      $62.9       $7.9
       Recoveries             4.1        1.2       0.5        0.5        0.8
         Net Charge-offs     $3.5      $60.3     $19.9      $62.4       $7.1
     Performance and
      Valuation
       Return on average
        shareholders'
        equity              3.14%   -457.76%   -62.16%    -42.56%    -32.42%
       Return on average
        assets              0.06%    -19.06%    -4.11%     -3.20%     -2.84%
       After-tax profit
        margin              1.95%        n/a       n/a        n/a        n/a
       Shareholders' equity
        to total assets     1.95%      1.85%     6.33%      6.88%      8.20%
       Book value per
        share               $1.25      $1.23     $4.47      $5.12      $5.65
       Tangible book value
        per share           $1.35      $1.37     $4.71      $5.52      $6.17
     Full Time Equivalent
      Employees               404        428       536        566        591
       Cash Flow Information:
       Earnings before
        interest, taxes,
        depreciation and
        amortization
        (EBITDA)             $7.1     $(35.4)   $(24.8)    $(28.5)    $(19.5)
       Pre-tax interest
        coverage ratio       1.1x     (10.0x)    (4.6x)     (4.7x)     (3.3x)
       Ratio of earnings to
        fixed charges        1.0x      (0.7x)     0.1x       0.1x       0.2x
       Capital Ratios
       Risk-based Capital   8.40%      6.59%     9.35%      9.31%     10.33%
       Risked-based Tier 1
        Capital             6.04%      3.54%     5.23%      5.97%      7.18%
       Tier 1 FDIC Leverage
        Ratio               6.11%      3.46%     5.47%      6.50%      8.25%
     Loan Portfolio
       Multifamily real
        estate             $268.9     $281.3    $310.5     $294.2     $248.2
       Commercial real
        estate              156.8      151.6     169.5      183.4      179.4
       Asset-based loans    742.9      752.9     832.9      844.7      810.3
       Loan participations  108.9      123.5     150.6      172.9      183.7
       Mortgage warehouse
        lines               131.5       50.6      33.8       52.1       69.5
       Film and television
        production loans    113.7       83.7      76.7       75.2       24.9
       Other                 36.9       28.6      17.9       18.2       61.3
         Total Core
          Loans           1,559.6    1,472.2   1,591.9    1,640.7    1,577.3
         Non Core Loans      90.2       95.1      99.9      119.1      127.1
           Gross Loans   $1,649.8   $1,567.3  $1,691.8   $1,759.8   $1,704.4
     Yield on earning
      assets at SPB        10.04%     10.40%    10.65%     11.18%     10.15%
     Cost of borrowings
      at SPB                6.61%      6.66%     6.50%      6.21%      5.85%
     Net interest margin
      at SPB                4.11%      4.47%     4.82%      5.69%      4.89%
 
     Deconsolidation of ICG
     During the fourth quarter of 2000, the Company reduced its ownership
 percentage in ICG from 63.2% to 38.5% through the sale of a part of its equity
 interest to ICG and certain management members of ICG.  The income from ICG is
 accounted for by the equity method of accounting beginning with the quarter
 ended December 31, 2000.  For the three months ended March 31, 2001, the
 equity in net income of ICG was $912,000.  As a result of the deconsolidation
 of ICG, certain components of the Company's first quarter results of
 operations are not comparable to the same period of the prior year.
 Therefore, the following proforma statements of operations present the
 Company's results of operations as if ICG had been accounted for as an equity
 investment for all periods presented.
 
 
                          IMPERIAL CREDIT INDUSTRIES, INC.
       CONSOLIDATED PROFORMA STATEMENTS OF OPERATIONS - ICG UNDER THE EQUITY
                                       METHOD
                         (Dollars in thousands - unaudited)
 
                                                          Three Months Ended
                                                               March 31,
                                                            2001        2000
     Interest Income:
       Interest on loans and leases.                     $43,268     $45,533
       Interest on investments.                            5,020       7,213
       Interest on other finance activities                  330         614
         Total interest income                            48,618      53,360
     Interest Expense:
       Interest on deposits                               26,589      24,293
       Interest on other borrowings.                       1,701       1,457
       Interest on long term debt.                         5,740       6,378
         Total interest expense                           34,030      32,128
         Net interest income                              14,588      21,232
       Provision for loan and lease losses                 4,625      24,019
         Net interest income (expense) after provision
          for loan and lease losses                        9,963      (2,787)
     Fee and Other Income:
       Gain on sale of loans and leases                      102         133
       Asset management fees                                 842         861
       Loan servicing income                               1,368       1,526
       Gain (loss) on sale of securities                     130        (602)
       Equity in net income of Imperial Capital Group        912         640
       Mark to market losses on securities and loans
        held for sale                                     (1,822)     (1,773)
       Rental income                                       1,912         120
       Other income                                        2,595       2,544
         Total fee and other income                        6,039       3,449
     Noninterest Expenses:
       Personnel expense                                   6,826       9,093
       Commission expense                                    487         804
       Amortization of servicing rights                      106         136
       Occupancy expense                                   1,034       1,140
       Net expenses of other real estate owned                92         556
       Legal and professional services                     1,499       1,198
       Lawsuit (recoveries) settlements                       (1)         13
       Collection costs                                    1,662         484
       Telephone and other communications                    364         555
       Amortization of goodwill, net                        (722)        607
       Real property expense                                 914          18
       General and administrative expense                  3,815       4,334
         Noninterest expenses                             16,076      18,938
       Acquisition costs                                      --       9,397
         Total expenses                                   16,076      28,335
         Loss from continuing operations before income
          taxes, minority interest and extraordinary item    (74)    (27,673)
       Income taxes                                           --     (10,835)
       Minority interest in income of consolidated
        subsidiaries                                          32          32
         Loss from continuing operations                    (106)    (16,870)
       Operating losses from discontinued operations
        of AMN, net of income taxes                         (200)         --
         Loss before extraordinary item                     (306)    (16,870)
       Extraordinary item-Gain on early extinguishments
        of debt, net of income taxes                         618         947
         Net income (loss)                                  $312    $(15,923)
 
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 SOURCE  Imperial Credit Industries, Inc.

RELATED LINKS

http://www.icii.com