Capital Alliance Income Trust Ltd. Announces Continued Strong Earnings for the Fourth Quarter and Full Year 1998.SAN FRANCISCO--(BUSINESS WIRE)--April 16, 1999-- Capital Alliance Income Trust, Ltd. (AMEX AMEX See: American Stock Exchange :CAA Caa See CCC. ), a home mortgage real estate investment trust, announced continued strong earnings of $259,447 for its 1998 fourth quarter and $1,003,706 for the 1998 full year. The earnings represent increases of 96.9% and 87.3% over the $131,778 and $535,789 in earnings experienced for the same periods, respectively, in 1997. Thomas B. Swartz, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , noted that, "Capital Alliance's strong earnings reflect not only the increased capitalization of the Company in the 1998 periods as a result of its 1997 IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , but also the Company's ability to maintain earnings during adverse market and industry conditions as experienced in the fourth quarter of 1998. Those conditions specifically included the Asian financial crisis which precipitated severe liquidity problems for many mortgage lenders, a reduction in the premiums on whole loan sales, and substantial write-downs of securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. mortgage assets by many firms due to 'gains-on-sale' accounting revisions. "A broad decline in the market values of substantially all of the non-conforming residential mortgage lenders resulted. While Capital Alliance had no liquidity problems or any 'gains-on-sale' accounting problem, its shares nevertheless suffered -- although not to the same extent as many in the industry." Dennis R. Konczal, the company's chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. noted that, "Capital Alliance is expanding its wholesale origination capacity to capitalize on opportunities presented by the current state of the non-conforming residential mortgage market." Capital Alliance is a specialty residential mortgage finance company which invests primarily in high-yielding, non-conforming residential mortgage loans on one-to-four unit properties located primarily in California and other Western states. It also originates loans for sale to investors on a whole loan basis through Capital Alliance Funding Corporation, a taxable subsidiary. Certain oral and written statements of the management of CAIT CAIT Center for the Application of Information Technologies (established at Western Illinois University) CAIT CDMA Air Interface Tester CAIT Computer-Aided Inspection and Test CAIT Computer-Aided Instructional Trainers included in this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The accuracy of such statements cannot be guaranteed, as they are subject to a variety of risks. |
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