BNC Mortgage Inc. Reports Fourth Quarter Operations Results and Record Fourth Quarter Loan Production.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)--Aug. 5, 1998--BNC Mortgage Inc. (Nasdaq:BNCM BNCM Bayesian Network Causal Model ) Wednesday Wednesday: see week. reported fourth quarter results from operations. The company has a June June: see month. 30 fiscal year end. Net earnings were reported at $2.2 million or $0.36 per share 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. for the fourth quarter ended June 30, 1998. Fourth quarter net earnings increased 43%, or $654,000, compared with $1.5 million for the quarter ended March 31, 1998. The company originated a record $252.3 million in mortgage loans and its mortgage loan sales for cash increased to a record $232.7 million for the fourth quarter ended June 30, 1998. All of the company's gain on sale of mortgage loans is cash; the company does not currently conduct securitizations. "We are very pleased with our operating results for the fourth quarter," noted 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
"Our wholesale subprime branch efforts have substantially increased their volume even in light of increased competition. Our new wholesale prime division, which commenced operations in the Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, market in January January: see month. 1998, added $22.0 million loan production in the quarter. Also contributing to our record growth is the company's geographic expansion into new states and the addition of several seasoned, senior level sales personnel," added Monahan. Three Months Ended June 30, 1998 For the three months ended June 30, 1998, mortgage loan production increased 61% to $252.3 million from $156.6 million for the corresponding 1997 fiscal period. For the three months ended June 30, 1998, mortgage loan sales increased 45.6% to $232.7 with a cash gain on sale of $9.3 million up from $7.3 million, for the same fiscal quarter a year ago. For the quarter ended June 30, 1998, total revenues increased 29.2% to $13.7 million from $10.6 million for the same period a year earlier, primarily due to the increase in cash gain on sale of mortgage loans and increased interest income. For the quarter ended June 30, 1998, total expenses increased 56.3% to $10.0 million from $6.4 million for the same quarter a year ago. For the three months ended June 30, 1998, net earnings were $2.2 million compared with $2.5 million for the corresponding 1997 fiscal period. The decrease in fourth quarter net earnings compared with the same quarter a year ago is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to compression of margins which are primarily due to an increase in average yield spread premiums 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. paid to brokers and increased compensation paid to account executives. The fourth quarter yield spread premium increased to 1.20% as a percentage of loan production compared with 0.82% a year ago. However, the fourth quarter yield spread premium paid to brokers decreased to 1.20% from 1.35% and 1.48% for the prior two quarters, respectively. "We will continue to follow our business plan of originating loans with strong collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although , prudent credit risk and to sell our production monthly for cash. More than 80% of originations were in our three highest credit grades and our weighted average loan-to-value continues to be low with a 75.96% rate for the quarter. Further, we have been successful in increasing our prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. periods and seek to continue to sell our loan production on a forward basis to lock-in (standard) lock-in - When an existing standard becomes almost impossible to supersede because of the cost or logistical difficulties involved in convincing all its users to switch something different and, typically, incompatible. cash gain on sale of mortgage loans," noted Monahan. Year Ended June 30, 1998 For the year ended June 30, 1998, mortgage loan production, mortgage loan sales and cash gain on sale of mortgage loans, increased 48.1%, 43.2% and 39.3%, respectively, over fiscal 1997 levels. Mortgage loan production increased to $788.5 million for the year ended June 30, 1998 up from $532.6 million for fiscal 1997. For the year ended June 30, 1998, mortgage loan sales increased to $744.4 million from $519.9 million for fiscal 1997. Cash gain on sale of mortgage loans increased to $30.5 million for the year ended June 30, 1998, from $21.9 million for fiscal 1997. Net earnings decreased to $7.2 million for the year ended June 30, 1998 from $7.5 million for fiscal 1997. 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 is a specialty finance company based in Irvine which originates and sells primarily non-conforming residential mortgage loans secured by one-to-four family residences. The company recently established a wholesale prime division to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. loans that meet the credit guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. of 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. . The company originates its loans primarily through a nationwide network of approximately 3,200 independent mortgage brokers and subsequently sells the loans for cash on a monthly basis to institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . The company currently supports its mortgage brokers with 116 account executives and originates mortgage loans in 42 states through 53 origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real locations. Except for the 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. that involve risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to, changes in the performance of the financial markets, change in the demand for and market acceptance of the company's products, changes in the mortgage lending industry or changes in general economic conditions, including interest rates; the impact of competition; changes in the value of real estate; the ability to maintain and increase sources of funding, and other risks disclosed from time to time in the company's SEC reports and filings. -0- BNC Mortgage Inc. Fourth Quarter Report AT&T Teleconference Service August 6, 1998 2:00 p.m. -- Pacific Time Zone Host: Kelly Monahan Teleconference Dial-In Number: 800/288-8975 Questions will be accepted during the Teleconference Note: To hear the complete conference on tape, you may dial as follows: (USA) 800/475-6701 ACCESS CODE: 401290 between 3:30 p.m. August 6 and 11:59 p.m. August 13, 1998. (International) 320/365-3844 ACCESS CODE: 401290 between 3:30 p.m. August 6 and 11:59 p.m. August 13, 1998. -0-
BNC MORTGAGE, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
For the three months For the year
ended June 30, ended June 30,
1998 1997 1998 1997
Revenues:
Gain on sale of
mortgage loans $9,317 $7,312 $30,458 $21,855
Loan origination
income 1,745 1,638 5,399 5,473
Interest income 2,269 1,564 7,860 5,182
Other Income 327 92 676 250
Total revenues 13,658 10,606 44,393 32,760
Expenses:
Employees salaries
and commissions 5,678 3,526 18,828 11,052
General and
administrative
expenses 2,802 1,803 8,028 5,543
Interest expense 1,572 1,117 5,486 3,693
Total expenses 10,052 6,446 32,342 20,288
Income before income
taxes 3,606 4,160 12,051 12,472
Income tax expense 1,426 1,645 4,815 4,930
Net income $2,180 $2,515 $7,236 $7,542
Net income per share:
Basic earnings per
share $ 0.37 $ 0.60 $ 1.55 $ 1.80
Diluted earnings
per share $ 0.36 $ 0.60 $ 1.51 $ 1.80
Weighted average number
of shares outstanding
- basic 5,934 4,182 4,654 4,187
Weighted average number
of shares outstanding
- diluted 6,072 4,182 4,796 4,187
BNC MORTGAGE, INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
June 30,
1998 1997
Assets:
Cash and cash equivalents $25,890 $ 8,268
Restricted cash 638 ---
Mortgage loans held for sale 98,717 55,145
Prepaid expenses and other assets 1,646 537
Deferred income taxes 1,319 1,154
Property and equipment, net 1,533 609
Total assets $129,743 $ 65,713
Liabilities and Stockholders Equity:
Warehouse line-of-credit $ 96,022 $ 54,625
Accounts payable and accrued
liabilities 2,880 1,358
Income taxes payable (10) 526
Total liabilities 98,892 56,509
Stockholders equity:
Preferred stock --- 1,575
Common stock 7 7
Additional paid in capital 16,192 ---
Retained earnings 14,652 7,622
Total stockholders equity 30,851 9,204
Total liabilities and
stockholders equity $129,743 $65,713
CONTACT: BNC Mortgage Inc., Irvine
Kelly W. Monahan, President
949/260-6000
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