In a turnaround from a disappointing fourth quarter, Newport Beach-based Impac Mortgage Holdings Inc. said Tuesday that it was increasing its quarterly dividend as results improved this year.
Impac cited better performance of its investment portfolio and a more profitable mortgage operation compared to the fourth quarter.
The company, which is a real estate investment trust that buys and sells mortgage loans, said mortgage prepayment levels in 2006 have decreased, which has bolstered its investments.
Impac plans to pay a quarterly dividend of 25 cents a share. The company’s dividend was 20 cents per share in the fourth quarter, which it slashed sharply from 45 cents per share in the third quarter.
Shares of Impac have slumped amid rising interest rates and a slowdown in the mortgage market.
At $8.64 on Tuesday, the company’s stock is down from a 52-week high of $22.32.
Impac shares were up about 9% in afterhours trading following the dividend announcement.
The company said its 2006 plans include growing its commercial unit, which invests in mortgage loans on apartment, office and industrial buildings.
