TAMPA, Fla., Feb. 28 /PRNewswire/ -- IMC Mortgage Company
(Nasdaq-NNM: IMCC) (IMC) announced today record results for the quarter and
year ended December 31, 1996.
Year End 1996
Pro forma net income of $17.9 million was reported for the year ended
December 31, 1996 compared to pro forma net income of $4.0 million for the
year ended December 31, 1995, representing an increase for the year of 345%.
The associated annual pro forma earnings per share is $0.94 for 1996 and $0.25
for 1995 on weighted average fully diluted shares outstanding of 19.5 million
and 15.9 million, respectively. (All per share figures are adjusted for the
2:1 stock split paid on Feb. 13, 1996.)
Fourth Quarter 1996
Net income of $6.6 million was reported for the three month period ended
December 31, 1996 compared to net income of $1.2 million for the three months
ended December 31, 1995. The associated earnings per share for the fourth
quarter of 1996 and 1995 is $0.28 and $0.08 on weighted average fully diluted
shares of 23.7 million and 15.9 million, respectively. (All per share figures
are adjusted for the 2:1 stock split paid on Feb. 13, 1996.)
Loan Origination Volume
Loans originated or purchased during 1996 totaled $1.78 billion
representing an increase of 185% from $622 million of loans purchased during
1995. Loans originated through IMC's network of mortgage brokers grew to
$121 million during 1996, up 81% from $67 million in 1995. Loans originated
through IMC's retail offices expanded to $68 million for 1996, six times the
$11 million contribution from the retail division in 1995.
For the fourth quarter of 1996 loans originated or purchased were
$624 million, representing an increase of 180% from $223 million reported for
the fourth quarter of 1995. Of the total loan volume for 1996 fourth quarter,
loans originated through the IMC's network of mortgage brokers were
$44 million resulting in a 43% increase from the previous quarter's total of
$31 million and a 158% increase from the total of $17 million reported for the
fourth quarter of 1995. The company's retail offices contributed $33 million
to loan volume for the fourth quarter of 1996, a 53% increase from $22 million
for the third quarter of 1996 and approximately three times the $11 million
from this origination channel for all of 1995.
Origination expansion
IMC has completed five acquisitions to date. Equitystars, an original IMC
Partner, was purchased during 1996 and is headquartered in Rhode Island.
During 1997, two IMC Partners have been acquired, Mortgage America,
headquartered in Michigan and Equity Mortgage which is based in Maryland.
American Mortgage Reduction, headquartered in Maryland, and CoreWest Banc,
located in California, were also acquired in 1997.
IMC originates and purchases residential mortgage loans through a network
of correspondents and mortgage brokers, and through its retail offices. As of
December 31, 1996, IMC had a network of 374 approved correspondents and
1,693 approved mortgage brokers. At year end 1996, the company had a total of
17 retail origination locations. During January and February of 1997,
49 retail branches were added through the acquisition of four non-conforming
mortgage lenders for a current total of 66 locations.
Securitization Activity
IMC completed four asset backed securitizations for a total of
$935 million during 1996. An offering for $310 million was completed in
October with the associated revenues recognized in the fourth quarter 1996
statement of operations. To date IMC has offered nine securitizations for a
combined total of $1.7 billion including an issue for $325 million which
closed in January of 1997.
Serviced Loan Portfolio
The serviced loan portfolio as of December 31, 1996 was $2.15 billion, an
increase from $536 million at the end of 1995. The percent of loans
delinquent more than 30 days including loans in foreclosure or bankruptcy was
6.77% at December 31, 1996. This was an expected increase from 5.4% at the
end of the third quarter of the year. Loan losses for the twelve months ended
December 31, 1996 were .08% of the year-end serviced loan portfolio. These
delinquency and loss rates are in line with management's expectations.
IMC Mortgage Company is a Tampa-based specialty consumer finance company
engaged in purchasing, originating, servicing and selling home equity loans
secured primarily by first liens on one- to four family residential
properties. The company has wholesale and retail operations in the US and
began limited operations in early 1996 in the United Kingdom through a joint
venture.
IMC MORTGAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Three months ended Twelve months ended
December 31 December 31
1996 1995 1996 1995
REVENUES
Gain on sale of
loans, net $11,501,295 $4,565,205 $42,071,971 $15,133,811
Net Warehouse
interest income 5,184,683 680,136 12,928,687 1,877,760
Servicing fees 2,534,614 688,132 6,749,995 1,543,339
Other 925,947 329,462 3,903,638 1,117,903
Total revenues 20,146,539 6,262,935 65,654,291 19,672,813
EXPENSES
Operating expenses 9,254,844 2,811,313 31,658,934 8,617,063
Other interest
expense 500,620 158,091 2,321,413 297,743
Sharing of
proportionate
value of equity -- 1,287,040 2,555,000 4,204,000
Total expenses 9,755,464 4,256,444 36,535,347 13,118,806
Income before
income taxes 10,391,075 2,006,491 29,118,944 6,554,007
Provision for
Income taxes 3,792,492 -- 4,206,000 --
Net income $6,598,583 $2,006,491 $24,912,944 $6,554,007
Pro forma data
(after giving
effect to
provision for
income taxes):
Income before
income taxes $10,391,075 $2,006,491 $29,118,944 $6,554,007
Pro forma Provision
for income taxes
(actual for three
months ended
December 31, 1996) 3,792,492 772,116 11,190,000 2,522,000
Pro forma net income $6,598,583 $1,234,375 $17,928,944 $4,032,007
Pro forma net income
per common share:
Primary $0.28 $0.08 $0.94 $0.25
Fully diluted $0.28 $0.08 $0.92 $0.25
Weighted average
number of shares
outstanding:
Primary 23,507,830 15,871,504 19,165,304 15,871,504
Fully diluted 23,675,758 15,871,504 19,531,984 15,871,504.
Adjusted for 2:1 stock split paid February 13, 1997.
IMC MORTGAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
December 31, 1996 December 31, 1995
ASSETS
Cash and cash
equivalents $13,289,128 $5,133,718
Securities purchased
under agreements to resell 659,490,000 138,058,262
Mortgage loans held for sale 914,586,703 193,002,835
Interest-only and
residual certificates 86,246,674 14,072,771
Other assets 33,735,680 4,283,848
Total assets $1,707,348,185 $354,551,434
LIABILITIES AND STOCKHOLDERS' EQUITY
Warehouse finance
facilities $895,132,545 $189,819,046
Term debt 47,430,295 11,120,642
Accrued and other liabilities 14,387,602 8,802,902
Securities sold but
not yet purchased 661,061,161 139,200,000
Total liabilities 1,618,011,603 348,942,590
Total stockholders' equity 89,336,582 5,608,844
Total liabilities and
stockholders' equity $1,707,348,185 $354,551,434
SOURCE IMC Mortgage Company
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CONTACT:
Jean S. Schwindt, CFA, Vice president of
Investor Relations, 813-915-2515, or Stuart D. Marvin, Chief
Financial Officer, 813-915-2548, both of IMC Mortgage Company
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