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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

| **R** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                SECURITIES EXCHANGE ACT OF 1934** |
|-------|---------------------------------------------------------------------------------------------------------------------------|

**For      the Quarterly Period Ended March 31, 2006**

**OR**

| **£** | **TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF                  THE SECURITIES EXCHANGE ACT OF                  1934** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

**For      the Transition Period from _____ to _____**

|   | **ITLA                CAPITAL CORPORATION**                           |   |
|--------|-----------------------------------------------------------------------|--------|
|   | (Exact                Name of Registrant as Specified in its Charter) |   |

| Delaware                                                                                     |   | 95-4596322                                       |
|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or                Organization) |   | (IRS                Employer Identification No.) |
|                                                                                         |   |                                             |
| 888                Prospect St., Suite 110, La Jolla, California                             |   | 92037                                            |
| (Address                of Principal Executive Offices)                                      |   | (Zip                Code)                        |

| (858)                551-0511                                                            |
|------------------------------------------------------------------------------------------|
| (Registrant’s                Telephone Number, Including Area                Code) |

| Indicate                by check mark whether the registrant (1) has filed all reports required                to                be filed by Section 13 or 15(d) of the Securities Exchange Act of                1934                during the preceding 12 months (or for such shorter period that the                registrant was required to file such reports), and (2) has been subject                to                such filing requirements for the past 90 days. Yes R                No                £. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Indicate                by check mark whether the registrant is a large accelerated filer,                an                accelerated filer, or a non-accelerated filer. See definition of                “accelerated filer” in Rule 12b-2 of the Exchange Act. Large Accelerated                Filer £                Accelerated Filer R                Non-Accelerated Filer £                                                                                                               |
|  Indicate                by check mark whether the Registrant is a shell company (as                defined in Rule 12b-2 of the Exchange Act). Yes £                No                R.                                                                                                                                                                                                                                                                                                                             |
|  Number                of shares of common stock of the registrant: 5,549,477 outstanding                as of                May 3, 2006.                                                                                                                                                                                                                                                                                                                                                                                 |

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**Table          of Contents**

**ITLA      CAPITAL CORPORATION **

**FORM      10-Q**

**FOR      THE THREE MONTHS ENDED MARCH 31, 2006**

**TABLE      OF CONTENTS**

| **PART                I - FINANCIAL INFORMATION** |                                                                                                                         |
|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
| Item                1.                            | Financial                Statements                                                                                          | 3 |
|                                              | Consolidated                Balance Sheets March 31, 2006 (Unaudited) and                December 31, 2005                   | 3 |
|                                              | Consolidated                Statements of Income - Three Months Ended                March 31, 2006 and 2005 (Unaudited)     | 4 |
|                                              | Consolidated                Statements of Cash Flows - Three Months Ended                March 31, 2006 and 2005 (Unaudited) | 5 |
|                                              | Notes                to the Unaudited Consolidated Financial                Statements                                       | 6 |
| Item                2.                            | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations    | 12 |
| Item                3.                            | Quantitative                and Qualitative Disclosures about Market                Risk                                     | 21 |
| Item                4.                            | Controls                and Procedures                                                                                       | 21 |
|                                              |                                                                                                                         |   |
| **PART                II - OTHER INFORMATION**    |                                                                                                                         |
| Item                1.                            | Legal                Proceedings                                                                                             | 22 |
| Item                1A.                           | Risk                Factors                                                                                                  | 22 |
| Item                2.                            | Unregistered                Sales of Equity Securities and Use of                Proceeds                                    | 22 |
| Item                3.                            | Defaults                Upon Senior Securities                                                                               | 22 |
| Item                4.                            | Submission                of Matters to a Vote of Security                Holders                                            | 22 |
| Item                5.                            | Other                Information                                                                                             | 22 |
| Item                6.                            | Exhibits                                                                                                                     | 22 |
|                                              | Signatures                                                                                                                   | 23 |
|                                              | Certifications                                                                                                               |   |
| Exhibit              31.1                         |                                                                                                                         |   |
| Exhibit              31.2                         |                                                                                                                         |   |
| Exhibit              32                           |                                                                                                                         |   |

**Forward      Looking Statements**

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**Table          of Contents**

**PART      I - FINANCIAL INFORMATION**

| **ITLA                CAPITAL CORPORATION AND                SUBSIDIARIES**                                                                                                                                                           |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                BALANCE SHEETS**                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                  |   |   |   |   |   |
|                                                                                                                                                                                                                                  |   | **March                31,** |   |   |   |
|                                                                                                                                                                                                                                  |   | **2006** |   | **December                31,** |   |
|                                                                                                                                                                                                                                  |   | **(unaudited)** |   | **2005** |   |
|                                                                                                                                                                                                                                  |   | **(in                thousands, except share data)** |   |
| **Assets**                                                                                                                                                                                                                            |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                              |   | $ | 109,429 |   | $ | 93,747 |   |
| Investment                securities available-for-sale, at fair value                                                                                                                                                                |   |   | 93,877 |   |   | 92,563 |   |
| Investment                securities held-to-maturity, at amortized cost                                                                                                                                                              |   |   | 222,984 |   |   | 233,880 |   |
| Stock                in Federal Home Loan Bank                                                                                                                                                                                        |   |   | 45,306 |   |   | 43,802 |   |
| Loans,                net (net of allowance for loan losses of $45,452 and $43,817 as                of March 31, 2006 and December 31, 2005, respectively)                                                                           |   |   | 2,615,335 |   |   | 2,523,480 |   |
| Interest                receivable                                                                                                                                                                                                    |   |   | 17,010 |   |   | 16,287 |   |
| Other                real estate owned, net                                                                                                                                                                                           |   |   | 6,240 |   |   | 3,960 |   |
| Premises                and equipment, net                                                                                                                                                                                            |   |   | 7,254 |   |   | 6,718 |   |
| Deferred                income taxes                                                                                                                                                                                                  |   |   | 12,750 |   |   | 12,717 |   |
| Goodwill                                                                                                                                                                                                                              |   |   | 3,118 |   |   | 3,118 |   |
| Other                assets                                                                                                                                                                                                           |   |   | 21,424 |   |   | 20,924 |   |
| Total                assets                                                                                                                                                                                                           |   | $ | 3,154,727 |   | $ | 3,051,196 |   |
|                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                                                                                                                                                         |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                                                                                                          |   |   |   |   |   |   |   |
| Deposit                accounts                                                                                                                                                                                                       |   | $ | 1,809,527 |   | $ | 1,735,428 |   |
| Federal                Home Loan Bank advances and other borrowings                                                                                                                                                                   |   |   | 1,024,550 |   |   | 992,557 |   |
| Accounts                payable and other liabilities                                                                                                                                                                                 |   |   | 30,053 |   |   | 32,130 |   |
| Junior                subordinated debentures                                                                                                                                                                                         |   |   | 86,600 |   |   | 86,600 |   |
| Total                liabilities                                                                                                                                                                                                      |   |   | 2,950,730 |   |   | 2,846,715 |   |
|                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| Commitments                and contingencies                                                                                                                                                                                          |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| Shareholders’                equity:                                                                                                                                                                                            |   |   |   |   |   |   |   |
| Preferred                stock, 5,000,000 shares authorized, none issued                                                                                                                                                              |   |   | — |   |   | — |   |
| Contributed                capital - common stock, $.01 par value; 20,000,000 shares authorized,                8,982,998 and 8,978,998 issued as of March 31, 2006 and December                31, 2005,                respectively |   |   | 78,222 |   |   | 78,004 |   |
| Retained                earnings                                                                                                                                                                                                      |   |   | 225,595 |   |   | 220,095 |   |
| Accumulated                other comprehensive loss, net                                                                                                                                                                              |   |   | (358 | ) |   | (364 | ) |
|                                                                                                                                                                                                                                  |   |   | 303,459 |   |   | 297,735 |   |
| Less                treasury stock, at cost 3,709,476 and 3,576,695 shares as of March                31, 2006 and December 31, 2005, respectively                                                                                    |   |   | (99,462 | ) |   | (93,254 | ) |
|                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| Total                shareholders' equity                                                                                                                                                                                             |   |   | 203,997 |   |   | 204,481 |   |
|                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| Total                liabilities and shareholders' equity                                                                                                                                                                             |   | $ | 3,154,727 |   | $ | 3,051,196 |   |

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**Table          of Contents**

| **ITLA                CAPITAL CORPORATION AND                SUBSIDIARIES** |   |
|-----------------------------------------------------------------------------|--------|
| **CONSOLIDATED                STATEMENTS OF INCOME**                        |   |
| **(Unaudited)**                                                             |   |
|                                                                        |   |   |   |
|                                                                        |   | **For                the Three Months Ended March 31,** |   |
|                                                                        |   |   |   |   |   |
|                                                                        |   | **2006** |   | **2005** |   |
|                                                                        |   | **(in                thousands, except per share data)** |   |
| Interest                income:                                             |   |   |   |   |   |   |   |
| Loans,                including fees                                        |   | $ | 47,137 |   | $ | 31,911 |   |
| Cash                and investment securities                               |   |   | 4,291 |   |   | 4,841 |   |
|                                                                        |   |   |   |   |   |   |   |
| Total                interest income                                        |   |   | 51,428 |   |   | 36,752 |   |
|                                                                        |   |   |   |   |   |   |   |
| Interest                expense:                                            |   |   |   |   |   |   |   |
| Deposit                accounts                                             |   |   | 17,198 |   |   | 9,498 |   |
| Federal                Home Loan Bank advances and other borrowings         |   |   | 9,362 |   |   | 3,832 |   |
| Junior                subordinated debentures                               |   |   | 1,958 |   |   | 1,680 |   |
|                                                                        |   |   |   |   |   |   |   |
| Total                interest expense                                       |   |   | 28,518 |   |   | 15,010 |   |
|                                                                        |   |   |   |   |   |   |   |
| Net                interest income before provision for loan losses         |   |   | 22,910 |   |   | 21,742 |   |
|                                                                        |   |   |   |   |   |   |   |
| Provision                for loan losses                                    |   |   | 750 |   |   | 750 |   |
|                                                                        |   |   |   |   |   |   |   |
| Net                interest income after provision for loan losses          |   |   | 22,160 |   |   | 20,992 |   |
|                                                                        |   |   |   |   |   |   |   |
| Non-interest                income:                                         |   |   |   |   |   |   |   |
| Late                and collection fees                                     |   |   | 223 |   |   | 73 |   |
| Other                                                                       |   |   | 494 |   |   | (93 | ) |
|                                                                        |   |   |   |   |   |   |   |
| Total                non-interest income                                    |   |   | 717 |   |   | (20 | ) |
|                                                                        |   |   |   |   |   |   |   |
| Non-interest                expense:                                        |   |   |   |   |   |   |   |
| Compensation                and benefits                                    |   |   | 6,020 |   |   | 5,891 |   |
| Occupancy                and equipment                                      |   |   | 1,806 |   |   | 1,651 |   |
| Other                                                                       |   |   | 4,211 |   |   | 3,688 |   |
|                                                                        |   |   |   |   |   |   |   |
| Total                general and administrative                             |   |   | 12,037 |   |   | 11,230 |   |
|                                                                        |   |   |   |   |   |   |   |
| Real                estate owned expense, net                               |   |   | 106 |   |   | — |   |
| Gain                on sale of other real estate owned, net                 |   |   | — |   |   | (11 | ) |
|                                                                        |   |   |   |   |   |   |   |
| Total                real estate owned expense, net                         |   |   | 106 |   |   | (11 | ) |
|                                                                        |   |   |   |   |   |   |   |
| Total                non-interest expense                                   |   |   | 12,143 |   |   | 11,219 |   |
|                                                                        |   |   |   |   |   |   |   |
| Income                before provision for income taxes                     |   |   | 10,734 |   |   | 9,753 |   |
| Provision                for income taxes                                   |   |   | 4,402 |   |   | 4,102 |   |
|                                                                        |   |   |   |   |   |   |   |
| NET                INCOME                                                   |   | $ | 6,332 |   | $ | 5,651 |   |
|                                                                        |   |   |   |   |   |   |   |
| Basic                earnings per share                                     |   | $ | 1.13 |   | $ | 0.97 |   |
|                                                                        |   |   |   |   |   |   |   |
| Diluted                earnings per share                                   |   | $ | 1.10 |   | $ | 0.93 |   |
|                                                                        |   |   |   |   |   |   |   |
| Dividends                declared per share of common stock                 |   | $ | 0.15 |   | $ | — |   |

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**Table          of Contents**

| **ITLA                CAPITAL CORPORATION AND                SUBSIDIARIES**                                       |   |
|-------------------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                                          |   |
| **(Unaudited)**                                                                                                   |   |
|                                                                                                              |   | **For                the Three Months Ended****March                31,** |   |
|                                                                                                              |   | **2006** |   | **2005** |   |
|                                                                                                              |   | **(in                thousands)** |   |
| Cash                Flows From Operating Activities:                                                              |   |   |   |   |   |   |   |
| Net                Income                                                                                         |   | $ | 6,332 |   | $ | 5,651 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities:   |   |   |   |   |   |   |   |
| Depreciation                and amortization of premises and equipment                                            |   |   | 657 |   |   | 548 |   |
| Amortization                of premium on purchased loans                                                         |   |   | 975 |   |   | 440 |   |
| Accretion                of deferred loan origination fees, net of costs                                          |   |   | (851 | ) |   | (745 | ) |
| Provision                for loan losses                                                                          |   |   | 750 |   |   | 750 |   |
| Other,                net                                                                                         |   |   | (448 | ) |   | 1,834 |   |
| Increase                in interest receivable                                                                    |   |   | (723 | ) |   | (1,693 | ) |
| (Increase)                decrease in other assets                                                                |   |   | (500 | ) |   | 2,956 |   |
| (Decrease)                increase in accounts payable and other liabilities                                      |   |   | (2,909 | ) |   | 4,589 |   |
|                                                                                                              |   |   |   |   |   |   |   |
| Net                cash provided by operating activities                                                          |   |   | 3,283 |   |   | 14,330 |   |
|                                                                                                              |   |   |   |   |   |   |   |
| Cash                Flows From Investing Activities:                                                              |   |   |   |   |   |   |   |
| Purchases                of investment securities available-for-sale                                              |   |   | (11,095 | ) |   | (12,886 | ) |
| Proceeds                from maturity and calls of investment securities                available-for-sale        |   |   | 9,783 |   |   | 266 |   |
| Proceeds                from the maturity and redemption of investment securities                held-to-maturity |   |   | 10,870 |   |   | 12,088 |   |
| Purchase                of stock in Federal Home Loan Bank                                                        |   |   | (991 | ) |   | (3,558 | ) |
| Purchase                of loans                                                                                  |   |   | (103,558 | ) |   | (192,125 | ) |
| Decrease                (increase) in loans, net                                                                  |   |   | 8,549 |   |   | (967 | ) |
| Proceeds                from sale of other real estate owned                                                      |   |   | — |   |   | 81 |   |
| Cash                paid for capital expenditures                                                                 |   |   | (1,193 | ) |   | (713 | ) |
|                                                                                                              |   |   |   |   |   |   |   |
| Net                cash used in investing activities                                                              |   |   | (87,635 | ) |   | (197,814 | ) |
|                                                                                                              |   |   |   |   |   |   |   |
| Cash                Flows From Financing Activities:                                                              |   |   |   |   |   |   |   |
| Proceeds                and excess tax benefits from exercise of employee stock                options            |   |   | 150 |   |   | 1,550 |   |
| Cash                paid to acquire treasury stock                                                                |   |   | (6,208 | ) |   | (9,530 | ) |
| Increase                in deposit accounts                                                                       |   |   | 74,099 |   |   | 33,784 |   |
| Net                repayments of short-term borrowings                                                            |   |   | (37,226 | ) |   | (54,000 | ) |
| Proceeds                from long-term borrowings                                                                 |   |   | 89,869 |   |   | 136,332 |   |
| Repayments                of long-term borrowings                                                                 |   |   | (20,650 | ) |   | (1,100 | ) |
|                                                                                                              |   |   |   |   |   |   |   |
| Net                cash provided by financing activities                                                          |   |   | 100,034 |   |   | 107,036 |   |
|                                                                                                              |   |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                               |   |   | 15,682 |   |   | (76,448 | ) |
| Cash                and cash equivalents at beginning of period                                                   |   |   | 93,747 |   |   | 87,580 |   |
|                                                                                                              |   |   |   |   |   |   |   |
| Cash                and cash equivalents at end of period                                                         |   | $ | 109,429 |   | $ | 11,132 |   |
|                                                                                                              |   |   |   |   |   |   |   |
| Supplemental                Cash Flow Information:                                                                |   |   |   |   |   |   |   |
| Cash                paid during the period for interest                                                           |   | $ | 32,041 |   | $ | 15,204 |   |
| Cash                paid during the period for income taxes                                                       |   | $ | 2,156 |   | $ | 1,332 |   |
| Non-Cash                Investing and Financing Transactions:                                                     |   |   |   |   |   |   |   |
| Loans                transferred to other real estate owned                                                       |   | $ | 2,280 |   | $ | 70 |   |
| Cash                dividends declared but not yet paid                                                           |   | $ | 832 |   | $ | — |   |
|                                                                                                              |   |   |   |   |   |   |   |

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**Table          of Contents**

**ITLA      CAPITAL CORPORATION AND SUBSIDIARIES **

**NOTES      TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1 - BASIS OF PRESENTATION**

**NOTE      2 - ACCOUNTING FOR STOCK-BASED COMPENSATION**

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**Table          of Contents**

|                                                                                                                                                                       |   | **For                    the Three Months Ended****March                    31, 2005** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                       |   | **(in                    thousands, except per share data)**                           |   |
|                                                                                                                                                                       |   |                                                                                   |   |
| Net                    income, as reported                                                                                                                                 |   | $                                                                                      | 5,651  |   |
| Less:                    Stock-based employee compensation expense determined under the                    fair value                    method, net of tax benefit of $43 |   |                                                                                   | 66     |   |
| Pro                    forma net income                                                                                                                                    |   | $                                                                                      | 5,585  |   |
| Earnings                    per share:                                                                                                                                     |   |                                                                                   |   |   |
| Basic                    - as reported                                                                                                                                     |   | $                                                                                      | 0.97   |   |
| Basic                    - pro forma                                                                                                                                       |   | $                                                                                      | 0.96   |   |
| Diluted                    - as reported                                                                                                                                   |   | $                                                                                      | 0.93   |   |
| Diluted                    - pro forma                                                                                                                                     |   | $                                                                                      | 0.91   |   |

|                                      |   | **Weighted-Average                  Assumptions****for                  Option Grants** |
|-------------------------------------------|--------|-----------------------------------------------------------------------------------------|
|                                      |   | **2006                  (1)**                                                           |   | **2005** |
|                                      |   |                                                                                    |   |   |
| Dividend                  Yield           |   | —                                                                                 |   | 0.00% |
| Expected                  Volatility      |   | —                                                                                 |   | 34.14% |
| Risk-Free                  Interest Rates |   | —                                                                                 |   | 3.95% |
| Expected                  Lives           |   | —                                                                                 |   | Seven                  Years |

| (1) | The                Company did not grant any stock options during the three months ended                March 31, 2006. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

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**Table          of Contents**

**NOTE      3 - EARNINGS PER SHARE**

|                                                    |   |                                                     |    |
|---------------------------------------------------------|--------|----------------------------------------------------------|---------|
|                                                    |   |   **Net                Income**                |    | **Weighted-****Average                Shares****Outstanding** |   | **Per****Share****Amount** |   |
|                                                    |   | **(in                thousands, except per share data)** |    |
| **For                the Three Months Ended March 31,** |   |                                                     |    |   |   |   |   |
| **2006**                                                |   |                                                     |    |   |   |   |   |
| Basic                EPS                                |   | $                                                        | 6,332   |   |   | 5,625 |   | $ | 1.13 |   |
| Effect                of dilutive stock options         |   |                                                     | — |   |   | 139 |   |   | (0.03 | ) |
| Diluted                EPS                              |   | $                                                        | 6,332   |   |   | 5,764 |   | $ | 1.10 |   |
|                                                    |   |                                                     |    |   |   |   |   |   |   |   |
| **2005**                                                |   |                                                     |    |   |   |   |   |   |   |   |
| Basic                EPS                                |   | $                                                        | 5,651   |   |   | 5,805 |   | $ | 0.97 |   |
| Effect                of dilutive stock options         |   |                                                     | — |   |   | 301 |   |   | (0.04 | ) |
| Diluted                EPS                              |   | $                                                        | 5,651   |   |   | 6,106 |   | $ | 0.93 |   |

**NOTE      4 - COMPREHENSIVE INCOME**

|                                                                                                                                                                                                                                                         |   | **Three                Months Ended** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                                                                                                                                                                                         |   | **March                31,**          |   |
|                                                                                                                                                                                                                                                         |   | **2006**                              |   | **2005** |   |
|                                                                                                                                                                                                                                                         |   | **(in                thousands)**     |   |
|                                                                                                                                                                                                                                                         |   |                                  |   |   |   |
| Net                Income                                                                                                                                                                                                                                    |   | $                                     | 6,332  |   | $ | 5,651 |   |
| Other                comprehensive income (loss):                                                                                                                                                                                                            |   |                                  |   |   |   |   |   |
| Change                in unrealized gains (losses) on investment securities available-for-sale,                net of tax (expense) benefit of $(4) and $244 for the three months                ended                March 31, 2006 and 2005, respectively. |   |                                  | 6      |   |   | (371 | ) |
|                                                                                                                                                                                                                                                         |   |                                  |   |   |   |   |   |
| Total                Comprehensive Income                                                                                                                                                                                                                    |   | $                                     | 6,338  |   | $ | 5,280 |   |

**NOTE      5 - IMPAIRED LOANS RECEIVABLE **

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**Table          of Contents**

**NOTE      6 - RESIDUAL INTEREST IN SECURITIZATION**

|                                                                    |   | **March                31,****2006**      |      | **December                31,****2005** |   |
|-------------------------------------------------------------------------|--------|-------------------------------------------|-----------|-----------------------------------------|--------|
|                                                                    |   | **(dollars                in thousands)** |      |
|                                                                    |   |                                      |      |
| **Fair                value of retained interest**                      |   | **$**                                     | **3,037** |                                    | **$**  | **3,570** |   |
| **Weighted                average life (in years) - securities**        |   |                                      | **0.54**  |                                    |   | **0.56** |   |
| **Weighted                average life (in years) - residual interest** |   |                                      | **2.76**  |                                    |   | **2.92** |   |
| **Weighted                average annual prepayment speed**             |   |                                      | **40.0**  | **%**                                   |   | **40.0** | **%** |
| Impact                of 10% adverse change                             |   | $                                         | (10       | )                                       | $      | (22 | ) |
| Impact                of 25% adverse change                             |   | $                                         | (30       | )                                       | $      | (34 | ) |
| **Weighted                average annual discount rate**                |   |                                      | **15.0**  | **%**                                   |   | **13.0** | **%** |
| Impact                of 10% adverse change                             |   | $                                         | (111      | )                                       | $      | (117 | ) |
| Impact                of 25% adverse change                             |   | $                                         | (269      | )                                       | $      | (284 | ) |
| **Weighted                average lifetime credit losses**              |   |                                      | **20.3**  | **%**                                   |   | **14.3** | **%** |
| Impact                of 10% adverse change                             |   | $                                         | (121      | )                                       | $      | (79 | ) |
| Impact                of 25% adverse change                             |   | $                                         | (308      | )                                       | $      | (211 | ) |

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**Table          of Contents**

**NOTE      7 - NEW ACCOUNTING PRONOUNCEMENTS**

**NOTE      8 - BUSINESS SEGMENT INFORMATION**

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**Table          of Contents**

|                                                    |   | **Lending**                       |   |                         |   |             |   |             |    |
|---------------------------------------------------------|--------|-----------------------------------|--------|------------------------------|--------|------------------|--------|------------------|---------|
|                                                    |   | **Operations**                    |   | **All                Other** |   | **Eliminations** |   | **Consolidated** |    |
|                                                    |   | **(in                thousands)** |   |
| **For                the three months ended March 31,** |   |                              |   |                         |   |             |   |             |    |
| **2006**                                                |   |                              |   |                         |   |             |   |             |    |
| Revenues                from external customers         |   | $                                 | 51,928 |                         | $      | 217              |   | $                | — |   | $ | 52,145 |   |
| Total                interest income                    |   |                              | 51,262 |                         |   | 166              |   |             | — |   |   | 51,428 |   |
| Total                interest expense                   |   |                              | 26,560 |                         |   | 1,958            |   |             | — |   |   | 28,518 |   |
| Net                income                               |   |                              | 7,798  |                         |   | (1,466           | )      |             | — |   |   | 6,332 |   |
|                                                    |   |                              |   |                         |   |             |   |             |    |   |   |   |   |
| **2005**                                                |   |                              |   |                         |   |             |   |             |    |   |   |   |   |
| Revenues                from external customers         |   | $                                 | 36,167 |                         | $      | 565              |   | $                | — |   | $ | 36,732 |   |
| Total                interest income                    |   |                              | 35,741 |                         |   | 1,011            |   |             | — |   |   | 36,752 |   |
| Total                interest expense                   |   |                              | 13,330 |                         |   | 1,680            |   |             | — |   |   | 15,010 |   |
| Net                income                               |   |                              | 6,831  |                         |   | (1,180           | )      |             | — |   |   | 5,651 |   |

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**Table          of Contents**

**Item      2. Management’s Discussion and Analysis of Financial      Condition and Results of Operations**

**Application      of Critical Accounting Policies and Accounting Estimates**

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**Table          of Contents**

**RESULTS      OF OPERATIONS**

**Three      Months Ended March 31, 2006 Compared to Three Months Ended March 31,      2005**

**Executive      Summary**

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**Table          of Contents**

**Net      Interest Income and Margin**

|                                                                               |   | **For                the Three Months Ended March 31,** |      |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-----------|
|                                                                               |   | **2006**                                                |      | **2005** |   |
|                                                                               |   | **Average                Balance**                      |      | **Income/****Expense** |   | **Yield/****Rate** |   | **Average                Balance** |   | **Income/****Expense** |   | **Yield/****Rate** |   |
|                                                                               |   | **(dollars                in thousands)**               |      |
| **Assets**                                                                         |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |
| Cash                and investment securities                                      |   | $                                                       | 407,871   |   | $ | 4,291 |   |   | 4.27 | % | $ | 417,975 |   | $ | 4,841 |   |   | 4.70 | % |
| Loans                receivable:                                                   |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real                estate loans                                                   |   |                                                    | 2,463,807 |   |   | 45,453 |   |   | 7.48 | % |   | 1,572,057 |   |   | 26,864 |   |   | 6.93 | % |
| Other                loans                                                         |   |                                                    | 82,222    |   |   | 1,684 |   |   | 8.31 | % |   | 251,410 |   |   | 5,047 |   |   | 8.14 | % |
| Total                loans receivable                                              |   |                                                    | 2,546,029 |   |   | 47,137 |   |   | 7.51 | % |   | 1,823,467 |   |   | 31,911 |   |   | 7.10 | % |
|                                                                               |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest earning assets                                       |   |                                                    | 2,953,900 |   | $ | 51,428 |   |   | 7.06 | % |   | 2,241,442 |   | $ | 36,752 |   |   | 6.65 | % |
| Non-interest                earning assets                                         |   |                                                    | 65,495    |   |   |   |   |   |   |   |   | 48,070 |   |   |   |   |   |   |   |
| Allowance                for loan losses                                           |   |                                                    | (44,684   | ) |   |   |   |   |   |   |   | (35,885 | ) |   |   |   |   |   |   |
| Total                assets                                                        |   | $                                                       | 2,974,711 |   |   |   |   |   |   |   | $ | 2,253,627 |   |   |   |   |   |   |   |
|                                                                               |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Shareholders’ Equity**                      |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing deposit accounts:                                  |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing demand                                             |   | $                                                       | 36,146    |   | $ | 247 |   |   | 2.77 | % | $ | 68,860 |   | $ | 361 |   |   | 2.13 | % |
| Money                market and passbook                                           |   |                                                    | 200,345   |   |   | 1,912 |   |   | 3.87 | % |   | 164,218 |   |   | 986 |   |   | 2.44 | % |
| Time                certificates                                                   |   |                                                    | 1,465,748 |   |   | 15,039 |   |   | 4.16 | % |   | 1,196,498 |   |   | 8,151 |   |   | 2.76 | % |
| Total                interest bearing deposit accounts                             |   |                                                    | 1,702,239 |   |   | 17,198 |   |   | 4.10 | % |   | 1,429,576 |   |   | 9,498 |   |   | 2.69 | % |
| FHLB                advances and other borrowings                                  |   |                                                    | 934,677   |   |   | 9,362 |   |   | 4.06 | % |   | 498,535 |   |   | 3,832 |   |   | 3.12 | % |
| Junior                subordinated debentures                                      |   |                                                    | 86,600    |   |   | 1,958 |   |   | 9.17 | % |   | 86,600 |   |   | 1,680 |   |   | 7.87 | % |
|                                                                               |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                interest bearing liabilities                                  |   |                                                    | 2,723,516 |   | $ | 28,518 |   |   | 4.25 | % |   | 2,014,711 |   | $ | 15,010 |   |   | 3.02 | % |
| Non-interest                bearing demand accounts                                |   |                                                    | 14,508    |   |   |   |   |   |   |   |   | 17,126 |   |   |   |   |   |   |   |
| Other                non-interest bearing liabilities                              |   |                                                    | 31,607    |   |   |   |   |   |   |   |   | 25,813 |   |   |   |   |   |   |   |
| Shareholders’                equity                                          |   |                                                    | 205,080   |   |   |   |   |   |   |   |   | 195,977 |   |   |   |   |   |   |   |
| Total                liabilities andshareholders’                equity      |   | $                                                       | 2,974,711 |   |   |   |   |   |   |   | $ | 2,253,627 |   |   |   |   |   |   |   |
| Net                interest spread *(1)*                                           |   |                                                    |      |   |   |   |   |   | 2.81 | % |   |   |   |   |   |   |   | 3.63 | % |
|                                                                               |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income before provision for                loan losses |   |                                                    |      |   | $ | 22,910 |   |   |   |   |   |   |   | $ | 21,742 |   |   |   |   |
| Net                interest margin *(2)*                                           |   |                                                    |      |   |   |   |   |   | 3.15 | % |   |   |   |   |   |   |   | 3.93 | % |
|                                                                               |   |                                                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

*(1)*
*Average      yield on interest earning assets minus average rate paid on interest bearing      liabilities. *

*(2)*
*Net      interest income divided by total average interest earning assets.*

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**Table          of Contents**

|                                                      |   | **For                the Three Months Ended****March                31, 2006 and 2005** |   |
|-----------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|
|                                                      |   | **Increase                (Decrease) Due to:**                                          |   |
|                                                      |   | **Rate**                                                                                |   | **Volume** |   | **Total** |   |
|                                                      |   | **(in                thousands)**                                                       |   |
| Interest                and fees earned from:             |   |                                                                                    |   |   |   |   |   |
| Cash                and investment securities             |   | $                                                                                       | (435   | ) | $ | (115 | ) | $ | (550 | ) |
| Loans                                                     |   |                                                                                    | 1,936  |   |   | 13,290 |   |   | 15,226 |   |
|                                                      |   |                                                                                    |   |   |   |   |   |   |   |   |
| Total                increase in interest income          |   |                                                                                    | 1,501  |   |   | 13,175 |   |   | 14,676 |   |
|                                                      |   |                                                                                    |   |   |   |   |   |   |   |   |
| Interest                paid on:                          |   |                                                                                    |   |   |   |   |   |   |   |   |
| Deposit                accounts                           |   |                                                                                    | 5,645  |   |   | 2,055 |   |   | 7,700 |   |
| FHLB                advances and other borrowings         |   |                                                                                    | 1,417  |   |   | 4,113 |   |   | 5,530 |   |
| Junior                subordinated debentures             |   |                                                                                    | 278    |   |   | — |   |   | 278 |   |
|                                                      |   |                                                                                    |   |   |   |   |   |   |   |   |
| Total                increase in interest expense         |   |                                                                                    | 7,340  |   |   | 6,168 |   |   | 13,508 |   |
|                                                      |   |                                                                                    |   |   |   |   |   |   |   |   |
| Increase                (decrease) in net interest income |   | $                                                                                       | (5,839 | ) | $ | 7,007 |   | $ | 1,168 |   |

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**Table          of Contents**

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**Table          of Contents**

**Provision      for Loan Losses**

| · | the                  risk characteristics of various classifications of                  loans; |
|--------|-------------------------------------------------------------------------------------------------|

| · | general                  portfolio trends relative to asset and portfolio size; |
|--------|---------------------------------------------------------------------------------|

| · | asset                  categories; |
|--------|------------------------------------|

| · | potential                  credit and geographic concentrations; |
|--------|------------------------------------------------------------------|

| · | delinquency                  trends and nonaccrual loan levels; |
|--------|-----------------------------------------------------------------|

| · | historical                  loss experience and risks associated with changes in economic,                  social and                  business conditions; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the                  underwriting standards in effect when the loan was                  made. |
|--------|------------------------------------------------------------------------------------------------|

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**Table          of Contents**

**Non-Interest      Income**

**Non-Interest      Expense**

**FINANCIAL      CONDITION**

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**Table          of Contents**

**CREDIT      RISK**

**Nonperforming      Assets, Other Loans of Concern and Allowance for Loan      Losses**

|                                                                                                 |   | **March                31,****2006**      |   | **December                31,****2005** |   |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                 |   | **(dollars                in thousands)** |   |
| Nonaccrual                loans:                                                                     |   |                                      |   |                                    |   |
| Real                estate                                                                           |   | $                                         | 4,207  |                                    | $      | 6,117 |   |
| Franchise                                                                                            |   |                                      | 7,344  |                                    |   | 7,366 |   |
| Entertainment                finance                                                                 |   |                                      | 10,379 |                                    |   | 10,780 |   |
| Total                nonaccrual loans                                                                |   |                                      | 21,930 |                                    |   | 24,263 |   |
| Other                real estate owned, net                                                          |   |                                      | 6,240  |                                    |   | 3,960 |   |
| Total                nonperforming assets                                                            |   |                                      | 28,170 |                                    |   | 28,223 |   |
| Performing                troubled debt restructurings                                               |   |                                      | 20,541 |                                    |   | 10,758 |   |
| Total                nonperforming assets and performing troubled debt                restructurings |   | $                                         | 48,711 |                                    | $      | 38,981 |   |
|                                                                                                 |   |                                      |   |                                    |   |   |   |
| Nonaccrual                loans to total loans                                                       |   |                                      | 0.83   | %                                       |   | 0.95 | % |
| Allowance                for loan losses to nonaccrual loans                                         |   |                                      | 207.26 | %                                       |   | 180.59 | % |
| Nonperforming                assets to total assets                                                  |   |                                      | 0.89   | %                                       |   | 0.92 | % |

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**Table          of Contents**

|                                                                                  |   | **For                the****Three****Months                Ended****March                31,****2006** |    | **For                the****Year****Ended****December                31,****2005** |   | **For                the****Three                Months Ended****March                31,****2005** |   |
|---------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                  |   | **(dollars                in thousands)**                                                              |    |
|                                                                                  |   |                                                                                                   |    |                                                                               |   |                                                                                                |   |
| Balance                at beginning of period                                         |   | $                                                                                                      | 43,817  |                                                                               | $      | 35,483                                                                                              |   | $ | 35,483 |   |
| Provision                for loan losses                                              |   |                                                                                                   | 750     |                                                                               |   | 10,250                                                                                              |   |   | 750 |   |
| Charge-offs                                                                           |   |                                                                                                   | — |                                                                               |   | (2,430                                                                                              | )      |   | (508 | ) |
| Recoveries                                                                            |   |                                                                                                   | 885     |                                                                               |   | 514                                                                                                 |   |   | 192 |   |
| Net                recoveries (charge-offs)                                           |   |                                                                                                   | 885     |                                                                               |   | (1,916                                                                                              | )      |   | (316 | ) |
|                                                                                  |   |                                                                                                   |    |                                                                               |   |                                                                                                |   |   |   |   |
| Balance                at end of period                                               |   | $                                                                                                      | 45,452  |                                                                               | $      | 43,817                                                                                              |   | $ | 35,917 |   |
|                                                                                  |   |                                                                                                   |    |                                                                               |   |                                                                                                |   |   |   |   |
| Allowance                for loan losses as a percentage of                loans, net |   |                                                                                                   | 1.71    | %                                                                                  |   | 1.71                                                                                                | %      |   | 1.78 | % |

**Liquidity**

**Capital      Resources**

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**Table          of Contents**

**Item      3. Quantitative and Qualitative Disclosures About Market      Risk**

**Item      4. Controls and Procedures**

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**Table          of Contents**

**PART      II - OTHER INFORMATION**

**Item      1.** **Legal      Proceedings**

**Item      1A.**
 **Risk      Factors**

**Item      2.**
**Unregistered      Sales of Equity Securities and Use of Proceeds**

|     **Period**                                     |   |    **Total                Number of Shares Purchased** |    |    **Average                Price Paid per Share** |   | **Total                Number of Shares Purchased as Part of Publicly Announced Plans or                Programs** |   | **Maximum                Number of Shares that May Yet Be Purchased Under the Plans or                Programs****(1)** |    |
|------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|---------|-------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|---------|
|  January                1, 2006 toJanuary                31, 2006 |   |                                                                  | 23,493  |                                                              | $      | 48.75                                                                                                              |   |                                                                                                                    | 23,493  |   |   | 223,503 |   |
| February                1, 2006 to February                28, 2006    |   |                                                                  | 54,370  |                                                              |   | 46.29                                                                                                              |   |                                                                                                                    | 54,370  |   |   | 169,133 |   |
| March                1, 2006 toMarch                31, 2006           |   |                                                                  | 54,918  |                                                              |   | 46.37                                                                                                              |   |                                                                                                                    | 54,918  |   |   | 393,961 |   |
|  Total                                                            |   |                                                                  | 132,781 |                                                              | $      | 46.76                                                                                                              |   |                                                                                                                    | 132,781 |   |   | 393,961 |   |

**Item      3**
**.**
 
**DefaultsUpon      Senior Securities**

**Item      4**
**.**
**Submission      of Matters to a Vote of Security Holders**

**Item      5**
**.**
**Other      Information**

**Item      6**
**.**
**Exhibits      **

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**Table          of Contents**

**SIGNATURES**

|                              | **ITLA                CAPITAL CORPORATION**         |   |
|-----------------------------------|-----------------------------------------------------|--------|
|                              |                                                |   |
| Date:                May 10, 2006 | /s/                George W. Haligowski             |   |
|                              | George                W. Haligowski                 |   |
|                              | Chairman                of the Board, President and |   |
|                              | Chief                Executive Officer              |   |

| Date:                May 10, 2006 | /s/                Timothy M. Doyle            |   |
|-----------------------------------|------------------------------------------------|--------|
|                              | Timothy                M. Doyle                |   |
|                              | Executive                Managing Director and |   |
|                              | Chief                Financial Officer         |   |

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**Table          of Contents**

**EXHIBIT      INDEX**

| **Regulation                S-K Exhibit Number** |   | **Document**                                                                                                                                   |   | **Reference                to Prior Filling or Exhibit Number Attached                Hereto** |
|--------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|
|                                             |   |                                                                                                                                           |   |                                                                                           |
| 3.1                                              |   | Certificate                of Incorporation                                                                                                    |   | **                                                                                             |
| 3.2                                              |   | Bylaws,                as amended                                                                                                              |   | ****                                                                                           |
| 4                                                |   | Instruments                Defining the Rights of Security Holders, Including                Indentures                                        |   | **********                                                                                     |
| 10.1                                             |   | 2005                Re-Designated, Amended and Restated Stock Option Plan For Nonemployee                Directors (“NEDP”)        |   | ******                                                                                         |
| 10.2                                             |   | Amended                and Restated 2005 Re-Designated, Amended and Restated Employee Stock                Incentive Plan (“ESIP”) |   | *********                                                                                      |
| 10.3a                                            |   | Nonqualified                (Non-Employer Securities) Deferred Compensation Plan                                                               |   | *********                                                                                      |
| 10.3b                                            |   | Nonqualified                (Employer Securities Only) Deferred Compensation Plan                                                              |   | *********                                                                                      |
| 10.4                                             |   | Supplemental                Salary Savings Plan                                                                                                |   | *                                                                                              |
| 10.5                                             |   | Data                Processing Agreement                                                                                                       |   | *                                                                                              |
| 10.6a                                            |   | Amended                and Restated Employment Agreement with George W.                Haligowski                                              |   | *********                                                                                      |
| 10.6b                                            |   | Non-Competition                and Non-Solicitation Agreement with George W. Haligowski                                                        |   | *********                                                                                      |
| 10.7                                             |   | Change                in Control Severance Agreement with Norval L. Bruce                                                                      |   | *********                                                                                      |
| 10.8                                             |   | Change                in Control Severance Agreement with Timothy M. Doyle                                                                     |   | *********                                                                                      |
| 10.9                                             |   | Change                in Control Severance Agreement with Lyle C. Lodwick                                                                      |   | *********                                                                                      |
| 10.10                                            |   | Change                in Control Severance Agreement with Maria P. Kunac                                                                       |   | *********                                                                                      |
| 10.11                                            |   | Recognition                and Retention Plan                                                                                                  |   | **                                                                                             |
| 10.12                                            |   | Voluntary                Retainer Stock and Deferred Compensation Plan for Outside                Directors                                    |   | *****                                                                                          |
| 10.13                                            |   | Amended                and Restated Supplemental Executive Retirement Plan                                                                     |   | *********                                                                                      |
| 10.14                                            |   | ITLA                Capital Corporation Rabbi Trust Agreement                                                                                  |   | ***                                                                                            |
| 10.15                                            |   | Amended                and Restated Salary Continuation Plan                                                                                   |   | *********                                                                                      |
| 10.16                                            |   | Form                of Incentive Stock Option Agreement under ESIP                                                                             |   | *******                                                                                        |
| 10.17                                            |   | Form                of Non-Qualified Stock Option Agreement under the ESIP                                                                     |   | *******                                                                                        |
| 10.18                                            |   | Form                of Non-Qualified Stock Option Agreement under the NEDP                                                                     |   | ********                                                                                       |
| 10.19                                            |   | Description                of Named Executive Officer Salary, Bonus and Perquisite Arrangements                for 2006                        |   | ***********                                                                                    |
| 10.20                                            |   | Description                of Director Fee Arrangements                                                                                        |   | ***********                                                                                    |
| 11                                               |   | Statement                Regarding Computation of Per Share Earnings                                                                           |   | Not                Required                                                                    |
| 15                                               |   | Letter                Regarding Unaudited Interim Financial Information                                                                        |   | None                                                                                           |
| 18                                               |   | Letter                Regarding Change in Accounting Principles                                                                                |   | None                                                                                           |
| 19                                               |   | Report                Furnished to Security Holders                                                                                            |   | None                                                                                           |
| 22                                               |   | Published                Report Regarding Matters Submitted to Vote of Security                Holders                                         |   | None                                                                                           |
| 23.1                                             |   | Consent                of Experts                                                                                                              |   | Not                Required                                                                    |
| 24                                               |   | Power                of Attorney                                                                                                               |   | None                                                                                           |
| 31.1                                             |   | Rule                13a-14(a)/15d-14(a) Certification of Chief Executive                Officer                                                |   | 31.1                                                                                           |
| 31.2                                             |   | Rule                13a-14(a)/15d-14(a) Certification of Chief Financial                Officer                                                |   | 31.2                                                                                           |
| 32                                               |   | Section                1350 Certifications of Chief Executive Officer and Chief Financial                Officer                               |   | 32                                                                                             |

| *                                                   | Filed                as an exhibit to Imperial’s Registration Statement on Form S-1 (File No.                33-96518) filed with the Commission on September 1, 1995, pursuant                to                Section 5 of the Securities Act of 1933. |
|-----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *                *                                  | Filed                as an exhibit to the Company’s Registration Statement on Form S-4 (File                No. 333-03551) filed with the Commission on May 10, 1996, pursuant                to                Section 5 of the Securities Act of 1933.  |
| *                *                *                 | Filed                as an exhibit to the Company’s Form 10-K for the year ended December 31,                1999 (File No. 0-26960).                                                                                                                     |
| *                *                * *               | Filed                as an exhibit to the Company’s Form 10-Q for the quarter ended June 30,                2000 (File No. 0-26960).                                                                                                                      |
| *                *                * * *             | Filed                as an exhibit to Amendment No. Two to the Company’s Registration Statement                on Form S-4 (File No. 333-03551) filed with the Commission on June                19,                1996.                                 |
| *                *                * * * *           | Filed                as an appendix to the Company’s definitive proxy materials filed on June                27, 2005.                                                                                                                                    |
| *                *                * * * * *         | Filed                as an exhibit to the Company’s Current Report on Form 8-K filed on August                9, 2005.                                                                                                                                    |
| *                *                * * * * * *       | Filed                as an exhibit to the Company’s Current Report on Form 8-K filed on                November 4, 2005.                                                                                                                                  |
| *                *                * * * * * * *     | Filed                as an exhibit to the Company’s Current Report on Form 8-K filed on                February 24, 2006.                                                                                                                                 |
| *                *                * * * * * * * *   | The                Company hereby agrees to furnish the SEC, upon request, copies of                the                instruments defining the rights of the holders of each issue of the                Company's long-term debt.                             |
| *                *                * * * * * * * * * | Filed                as an exhibit to the Company’s Form 10-K for the year ended December 31,                2005.                                                                                                                                        |