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FIRST MORTGAGE CONTINUES RECORD GROWTH IN THIRD QUARTER, NINE MONTHS; REPORTS HIGHER REVENUES, INCOME FROM ALL OPERATIONS

 DIAMOND BAR, Calif., Feb. 9 /PRNewswire/ -- First Mortgage Corp. (NASDAQ: FMOR) today reported record revenues and net income for the fiscal third quarter and nine months ended Dec. 31, 1992.
 Nine months revenues rose 50 percent to $18,582,000, compared with revenues of $12,364,000, in the fiscal 1992 period. Net income grew 91 percent to $3,882,000, or $0.82 a share, vs. net income of $2,028,000, or $0.54 a share, in the prior period.
 Third quarter revenues were up 25 percent at $6,064,000, compared with revenues of $4,847,000 in the fiscal 1992 quarter. Net income was $1,139,000, or 11 percent higher than income of $1,024,000 in the fiscal 1992 quarter.
 Clement Ziroli, chairman and president, said that loan origination revenues, loan administration revenues and gain on sale of mortgage loans again reached new highs in the fiscal 1993 third quarter and nine-month period. "In the third quarter, loan origination income rose 46 percent, loan administration income rose 22 percent, and gain on sale of mortgage loans rose 10 percent, compared with the 1992 quarter," he said. "Increases for the nine- month period were 34 percent, 27 percent and 87 percent, respectively."
 Ziroli said that he was particularly pleased with the third quarter results because "the third quarter of fiscal 1993 compared to a very good quarter last year."
 He noted that third quarter earnings of $0.24 per share were lower than last year's $0.27 because more than 1 million more common shares were outstanding in the fiscal 1993 quarter, principally the result of First Mortgage's initial public offering in April 1992.
 At Dec. 31, 1992, the company was servicing $1.259 billion in mortgage loans compared with $949 million at Dec. 31, 1991, he said. Loan administration income represents the total of loan servicing fees, late charges and other fees earned by the company for administering the loans in its servicing portfolio.
 Ziroli said that during the nine months of fiscal 1993, net cash provided by operating activities, retained earnings and proceeds of approximately $5.3 million from the initial public offering were used to reduce a portion of First Mortgage's outstanding debt under its mortgage warehousing lines of credit, resulting in a net decrease in cash of approximately $2.8 million. The company recently negotiated an increase in its warehousing lines of credit with banks, which are used to fund new mortgage loans, to $46.5 million from $41.5 million.
 The company entered the fiscal fourth quarter with cash and cash equivalents totaling $931,000 and working capital of $14.5 million, Ziroli said. The current ratio is 1.38, and the company has no long- term debt, he said. Stockholders' equity was $16,804,000 at Dec. 31, 1992, compared with equity of $7,570,000 at Dec. 31, 1991, Ziroli said.
 First Mortgage Corp. is a mortgage banking company that originates, purchases, sells and services first deed of trust loans for owner-occupied one- to four-family residences. The company operates through a network of 13 branch offices in California and one office in Reno, Nev.
 FIRST MORTGAGE CORP.
 Statements of Income
 (Unaudited)
 (Dollars in thousands, except per share data)
 Three Months Ended Nine Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenues:
 Loan origination
 income $1,709 $1,168 $4,945 $3,704
 Loan administration
 income 1,383 1,131 3,895 3,068
 Gain on sale of
 trust deed notes
 receivable 2,303 2,088 8,216 4,399
 Interest on trust
 deed notes
 receivable, net of
 related interest
 expense 643 444 1,447 1,114
 Other income 26 16 79 79
 Total revenues 6,064 4,847 18,582 12,364
 Expenses:
 Compensation and
 related expenses 2,478 2,024 7,461 5,523
 Occupancy 150 124 443 383
 Provision for
 foreclosure 2 (4) 44 1
 General and
 administrative 1,496 962 4,035 3,007
 Total expenses 4,126 3,106 11,983 8,914
 Income before
 provision for
 income taxes 1,938 1,741 6,599 3,450
 Provision for
 income taxes 799 717 2,717 1,422
 Net income $1,139 $1,024 $3,882 $2,028
 Net income per share $0.24 $0.27 $0.82 $0.54
 Weighted average
 shares
 outstanding 4,785,000 3,750,000 4,714,800 3,750,000
 -0- 2/9/93
 /CONTACT: Bruce Norman, executive VP and COO of First Mortgage, 714-595-1996; or Tom Wick of Financial Relations Board, 818-783-2400, for First Mortgage
 (FMOR)


CO: First Mortgage Corp. ST: California IN: FIN SU: ERN

KJ-LS -- LA008 -- 4409 02/09/93 07:05 EST
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Date:Feb 9, 1993
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