Finally, an impact quarter for Impac Commercial Holdings, Inc. (AMEX: ICH).

The company turned the corner in the first quarter, with net income of $1.4 million (14 cents per share), compared to a net loss of $220,000 (-3 cents) in the same time period last year. At last, stockholders will reap rewards for hanging in there with a first-quarter cash dividend of 12.5 cents per share.

Why the smile of fortune? According to ICH, a real estate investment trust (REIT) specializing in property finance, its new focus on commercial mortgage-backed securities (CMBS) and the sale of "non-strategic" assets were responsible for the turnaround. ICH deals in commercial mortgages and securities backed by these mortgages.

The REIT’s Conduit Operations segment includes three divisions – condominium, commercial mortgage and correspondent and bulk purchase. Its long-term operations group buys and invests in adjustable-rate commercial mortgage loans and related securities.

During the first quarter of 2000, ICH substantially completed repositioning its investment portfolio with the acquisition of approximately $70 million of CMBS.

"The repositioning of the investment portfolio is now substantially complete," said Wesley Edens, CEO. "Despite the difficult period associated with the redirection of the company during 1999, we believe that 2000 will be a profitable year, and that going forward, the company will be well-positioned to achieve excellent risk adjusted returns.

"In addition, completion of a successful tender offer should further enhance stockholder value as well as provide immediate liquidity to certain stockholders," Edens added.

As are REIT boards across the country, ICH’s board of directors has undertaken a stock repurchase program for up to 2 million shares, or 20 percent of the outstanding issue, at a premium ($5.75 versus the April 20 closing price of $4.81).

Last year, ICH lost 75 cents per share, resulting in a steadily faltering stock price. With a 52-week range of $4 ⁹/16 to $7 ¹/4, Impac now is in the low $5s and holding steady.

Don’t get too excited, though. The company was careful to shield its announcement from criticism by not directly disclosing comparative quarterly revenue. Instead, the company represented its first-quarter data versus the last-quarter of 1999 in such a way that comparative statistics were not easily understood.

Until ICH sends out a more clear picture of their revenue and earnings, they shouldn’t expect much buy-in from analysts and investors.