ITLA Capital Corp. in La Jolla, Calif., said first-quarter earnings declined 59% from a year earlier, to $5.7 million, because of the termination of a lucrative tax-refund loan deal with Household Finance Inc.
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Noninterest income dropped from $13.4 million in the first quarter of 2004 to a loss of $20,000, said the $2.4 billion-asset company, which owns Imperial Capital Bank. Net interest income fell 5.2%, to $21.7 million, it said Monday.
Under a lucrative agreement entered into in late 2002, ITLA originated tax-refund anticipation loans for Household, which then bought them from it. Household ended the relationship last June; it now partners with HSBC USA, whose parent company bought it in 2003.
