BNC Mortgage Inc. Reports First Quarter Operating Results.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Oct. 26, 1999-- BNC (hardware) BNC - A connector for coaxial cable such as that used for some video connections and RG58 "cheapernet" connections. A BNC connector has a bayonet-type shell with two small knobs on the female connector which lock into spiral slots in the male connector when it is twisted Mortgage Inc. (Nasdaq:BNCM BNCM Bayesian Network Causal Model ) Tuesday Tuesday: see week. reported earnings and loan production for the three months ended Sept. 30, 1999. Net earnings for the quarter ended Sept. 30, 1999, were $1.2 million or $0.23 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $2.5 million or $0.42 per diluted share for the quarter ended Sept. 30, 1998. The decrease in net earnings resulted primarily from a reduction in the cash gain on sale of mortgage loans during the period due to secondary market conditions. "While secondary marketing conditions for subprime loans Subprime Loan A loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Notes: Subprime loans tend to have a rate that is 0.1% to 0.6% higher than the prime rate. has not fully recovered to prior year levels, we are pleased with the increases in quarterly earnings during calendar year 1999. "Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of have increased 21 percent from the $0.19 per share reported in the preceding quarter ended June June: see month. 30, 1999 and 92 percent from $0.12 per share in the March 30, 1999 quarter to $0.23 for the quarter ended Sept. 30, 1999," commented Kelly Kel·ly , Ellsworth Born 1923. American abstract painter and sculptor whose works are characterized by flat color areas with sharply defined edges. Kelly, Emmett 1898-1979. W. Monahan Monahan is a name of Gaelic origin, derived from manacháin, meaning "little monk".[1], and may refer to the following: People with the surname Monahan
Mortgage loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. were $432.9 million for the three months ended Sept. 30, 1999, as compared with $283.4 million in the corresponding 1998 period. Subprime mortgage loan production increased 23 percent to a company record high of $312.1 million for the three months ended Sept. 30, 1999, as compared with $253.1 million in the corresponding 1998 period. In addition, prime mortgage loan production increased to $120.8 million for the three months ended Sept. 30, 1999 compared with $30.3 million for the corresponding 1998 period. "Despite the waning of the mortgage refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. boom, the company originated record subprime loan production levels during the quarter ended Sept. 30, 1999. The increase in prime loans is primarily due to the additional loan production from Mortgage Logic.com Inc. which commenced operations in Febuary 1999. Our prime originations have been affected by the recent interest rate hikes. "In addition to our increased subprime production levels, we are also pleased with the progress of the company's internet and technology initiatives," added Monahan. The company introduced its new Web site located at www.bncmortgage.com and released "ePrequalifier," a new online loan prequalification tool for mortgage brokers. By the end of calendar 1999, the company will introduce "eQualifier" which will allow our 5,050 approved mortgage brokers to submit loans electronically through a secure internet site, access the borrowers credit and obtain an automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. decision based upon BNC's underwriting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . This business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. wholesale operation will cater to the company's primary customer, the mortgage brokers. Three Months Ended Sept. 30, 1999 Compared with Sept. 30, 1998 Net earnings were $1.2 million or $0.23 per diluted share for the quarter ended Sept. 30, 1999, compared with $2.5 million or $0.42 per diluted share for the quarter ended Sept. 30, 1998. For the quarter ended Sept. 30, 1999, total mortgage loan production increased 53 percent to $432.9 million from $283.4 million for the corresponding 1998 quarter. For the quarter ended Sept. 30, 1999, mortgage loan sales increased 57 percent to $442.4 million with a cash gain on sale of $7.5 million compared with mortgage loan sales of $282.4 million with a cash gain on sale of $11.5 million for the same fiscal quarter a year ago. The reduction in cash gain on sale between periods was due to decreased cash premiums paid for subprime mortgage loans in the secondary market. For the quarter ended Sept. 30, 1999, total revenues decreased 9 percent to $14.0 million from $15.4 million for the corresponding 1998 period, primarily due to a decrease in cash gain on sale of mortgage loans. For the quarter ended Sept. 30, 1999, total expenses increased 6 percent to $12.0 million from $11.3 million for the corresponding 1998 period. "During the quarter ended Sept. 30, 1999, the company repurchased an additional 50,000 shares of stock pursuant to the company's $5 million common stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. . "The company is pleased to report that it repurchased 833,629 shares or 14.19 percent of the issued shares of stock for an aggregate amount of $4.5 million, at an average price of $5.42 per share," commented Peter R. Evans Ev·ans , Herbert McLean 1882-1971. American anatomist who isolated four pituitary hormones and discovered vitamin E (1922). , chief financial officer. "These repurchases reflect our continued confidence in the long term potential of the company," added Monahan. BNC Mortgage is a specialty finance company engaged in the business of originating, purchasing and selling, on a whole loan basis for cash, conforming con·form v. con·formed, con·form·ing, con·forms v.intr. 1. To correspond in form or character; be similar. 2. and non-conforming, residential mortgage loans secured by one-to-four family residences. Mortgage Logic.com is a mortgage lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. specializing in borrowers with conforming credit that generally satisfy the underwriting standards such as those utilized by FNMA FNMA abbr. Federal National Mortgage Association Noun 1. FNMA - a federally chartered corporation that purchases mortgages Fannie Mae, Federal National Mortgage Association and FHLMC See Federal Home Loan Mortgage Corporation. . Mortgage Logic currently originates loans in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . It is anticipated that expansion plans will include several western states. Except for historical information contained herein, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. in Section 21E of the Securities Exchange Act of 1934, as amended and involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements can be identified by the use of words "anticipate", "may," "will," "expect," "intend," "could," "would," and "remain," "continue," or the negative or other variations thereof or comparable terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or . The company's actual results could differ materially from those anticipated in the forward-looking statements based on changes in the company's business strategy. Contacts: BNC Mortgage Inc., Irvine Kelly W. Monahan, President Peter R. Evans, Chief Financial Officer 949/260-6000 bncmortgage.com BNC Mortgage First Quarter Report via AT&T Teleconference -- Oct. 27, 1999 -- 8:00 a.m. -- Pacific Time Zone Hosts: Kelly W. Monahan, president and Peter R. Evans, CFO See Chief Financial Officer. Teleconference Dial-In Number: 800/260-0702 Questions will be accepted during the Teleconference. Note: To hear a play-back of the complete conference on tape, you may dial in as follows: (USA) No. 800/475-6701 ACCESS CODE: 477740 between 9:30 a.m. Oct. 27, 1999 and 11:59 p.m. Nov. 3, 1999 (International) No. 320/365-3844 ACCESS CODE: 477740 between 9:30 a.m. Oct. 27, 1999 and 11:59 p.m. Nov. 3, 1999
BNC MORTGAGE INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
Three
Months Ended
Sept. 30,
1999 1998
Revenues:
Gain on sale of mortgage loans $7,504 $11,482
Loan origination income 2,660 1,652
Interest income 3,513 1,903
Other Income 344 374
Total revenues 14,021 15,411
Expenses:
Employees' salaries and commissions 6,180 6,823
General and administrative expenses 3,239 3,214
Interest expense 2,629 1,295
Total expenses 12,048 11,332
Income before income taxes 1,973 4,079
Income tax expense 793 1,628
Net income $ 1,180 $ 2,451
Net income per share basic $ 0.23 $ 0.42
Net income per share diluted $ 0.23 $ 0.42
Weighted average number of shares
outstanding -- basic 5,129 5,884
Weighted average number of shares
outstanding -- diluted 5,129 5,884
BNC MORTGAGE INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
Sept. 30, 1999 June 30, 1999
ASSETS
Cash and cash equivalents $ 30,445 $ 29,867
Restricted cash 1,109 1,105
Mortgage loans held for sale 129,914 141,749
Property and equipment, net 1,891 1,882
Intangible assets, net 1,443 1,468
Deferred income taxes 2,424 2,424
Other assets 3,246 3,484
Total assets $ 170,472 $ 181,979
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
Warehouse line-of-credit $ 129,335 $ 142,163
Accounts payable & accrued
liabilities 4,638 4,955
Accrued income taxes 2,705 1,945
Total Liabilities 136,678 149,063
Stockholders' Equity:
Preferred stock --- ---
Common stock 5 5
Additional paid in capital 11,678 11,980
Retained earnings 22,111 20,931
Total stockholders' equity 33,794 32,916
Total liabilities &
stockholders' equity $ 170,472 $ 181,979
BNC MORTGAGE INC.
SELECTED FINANCIAL DATA
(In thousands)
Three Three
Months Ended Months Ended
Sept. 30, June 30,
1999 1998 1999
Loan Production
Subprime $ 312,126 $ 253,024 $ 257,595
Prime 120,801 30,334 196,905
Total Production $ 432,927 $ 283,358 $ 454,500
Operating Expenses
Subprime $ 8,006 $ 9,496 $ 7,543
Prime 1,413 541 1,551
Total $ 9,419 $ 10,037 $ 9,094
Operating Expenses
as a % of Loan Production
Subprime 2.57% 3.75% 2.93%
Prime 1.17% 1.78% 0.79%
Total 2.18% 3.54% 2.00%
BNC MORTGAGE INC.
SELECTED FINANCIAL DATA continued
(In thousands)
Three Three
Months Ended Months Ended
Sept. 30, June 30,
1999 1998 1999
Loan Sales
Subprime $ 319,334 $ 252,845 $ 234,700
Prime 123,114 29,525 193,602
Total Loan Sales $ 442,448 $ 282,370 $ 428,302
Premiums as a % of
Loan Sales:
Subprime
Gross Sales Premiums 3.52% 5.61% 3.82%
Yield Spread Premium
Paid to Brokers/Lenders (1.27) (1.20) (0.98)
Net Sales Premiums 2.25 4.41 2.84
Origination Fees received 0.68 0.65 0.84
2.93% 5.06% 3.68%
Prime
Gross Sales Premiums 0.98% 1.11% 1.31%
Yield Spread Premium
Paid to Brokers/Lenders (0.72) 0.02 (1.07)
Net Sales Premiums 0.26 1.13 0.24
Origination Fees received 0.39 0.01 0.42
0.65% 1.14% 0.66%
Total
Gross Sales Premiums 2.82% 5.14% 2.68%
Yield Spread Premium
Paid to Brokers/Lenders (1.12) (1.07) (1.02)
Net Sales Premiums 1.70 4.07 1.66
Origination Fees received 0.60 0.59 0.65
2.30% 4.66% 2.31%
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