Accredited Home Lenders Holding Co., a San Diego mortgage lender specializing in sub-prime loans, came out Feb. 14 with fourth-quarter and year-end earnings for the period ended Dec. 31.
Net income for 2006 was $57.7 million, or $2.48 per share, a drop of 63 percent from 2005 net income of $155.4 million, or $7.07 per diluted share.
Accredited had a net loss for the fourth quarter of $37.8 million, compared to a net income of $43.3 million for the like period in 2005. Fourth-quarter loss per diluted share was $1.49, compared to earnings per diluted share of $2.48 the previous year.
Chief Executive Officer James Konrath called the fourth-quarter results “dissatisfying,” but said that, in the fourth quarter, the company absorbed the bulk of the impact of its merger with Aames Investment Corp.
Accredited announced the merger in June. Under the deal, Aames became a wholly owned subsidiary of Accredited.
Also as a result of the merger, operating expenses ballooned from $79.6 million in the fourth quarter of 2005 to $120.2 million in the fourth quarter of 2006.
San Diego-based Accredited Home Lenders Holding Co. is traded on the Nasdaq as LEND and closed on Feb. 14 at $25.63, up 62 cents from the previous session.
, Andy Killion