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FLEET MORTGAGE GROUP REPORTS THIRD QUARTER NET INCOME OF $24.9 MILLION

 COLUMBIA, S.C., Oct. 20 /PRNewswire/ -- Fleet Mortgage Group (NYSE: FLG) today reported net income of $24.9 million, or $.50 per share, for the quarter ended Sept. 30, 1993, it was announced by Andrew D. Woodward Jr., chairman and chief executive officer. This compares to $29.4 million of net income for the third quarter of 1992.
 "We are particularly pleased with results for the third quarter which reflect continued strength in our production revenues despite a substantial increase in amortization expense related to our capitalized servicing assets. Our servicing hedge program, instituted during the third quarter, produced a net gain of $13.7 million," Woodward said.
 Mortgage production revenue was $45.1 million for the third quarter, up 32 percent from $34.0 million for the same quarter last year. The company produced $6.0 billion in residential mortgage loans for the third quarter of 1993, compared to $4.4 billion during the third quarter of 1992. The pipeline of loans in process stood at $4.7 billion at Sept. 30, 1993.
 Net loan servicing revenue, which continued to be adversely affected by prepayments in the mortgage servicing portfolio, increased from $60.9 million in the third quarter of 1992, to $62.1 million. During the quarter, amortization ofc?hased mortgage servicing rights (PMSRs) and excess servicing rights (ESRs) of $56 million was charged to income but offset, in part, by $13.7 million of hedge gains. Additionally, $17 million was charged against the provision for future impairment of these assets established in the second quarter.
 The company's mortgage servicing portfolio totalled $68.5 billion at Sept. 30, 1993, compared to $62.3 billion a year earlier, an increase of 10 percent.
 For the first nine months of 1993, Fleet Mortgage Group earned $16.3 million, or $.33 per share, versus $81.3 million earned in the comparable 1992 period. Net income for the first nine months of 1993 was adversely affected by charges taken during the second quarter related to the establishment of a provision for future impairment of mortgage servicing assets.
 Fleet Mortgage Group, Inc. located in Columbia, S.C., is a leading originator and servicer of mortgage loans. Its subsidiaries, Fleet Mortgage Corp. and Fleet Real Estate Funding Corp., originate mortgage loans through 91 branches in 37 states. The company also acquires new mortgage loans from other lenders through its extensive correspondent network.
 FLEET MORTGAGE GROUP, INC.
 Consolidated Statements of Earnings
 For the Quarter and Nine Months ended Sept. 30
 ($ in thousands, except per share amounts)
 Third Quarter Nine Months
 1993 1992 1993 1992
 Net Loan Servicing Revenue $62,084 60,852 $164,956 181,291
 Net Mortgage Production
 Revenue 45,083 34,036 115,658 76,265
 Net Interest Income 13,921 15,804 34,440 47,288
 Gain on Sale of Servicing -- -- 21,683 8,485
 Net Gain on Options 13,718 -- 13,718 --
 Other 4,379 4,623 12,798 13,233
 Total Revenue 139,185 115,315 363,253 326,562
 Operating Expenses 48,494 40,057 142,043 117,000
 Amortization of Purchased
 Mortgage Servicing Rights 50,847 26,475 195,416 75,087
 Total Expenses 99,341 66,532 337,459 192,087
 Earnings Before Income Taxes 39,844 48,783 25,794 134,475
 Income Taxes 14,974 19,345 9,529 53,155
 Net Earnings $24,870 29,438 $16,265 81,320
 Net Earnings Per Share(A) $ 0.50 0.40 $ 0.33 0.40
 Weighted Average Shares
 Outstanding(A) 49,545,000 49,545,000
 (A) Earnings per share for the 1992 periods are based on net earnings from the date of the initial public offering through Sept. 30, 1992, divided by the weighted average shares outstanding (49,545,000) subsequent to the initial public offering. For all periods presented, there were no dilutive securities.
 (B) Certain prior period amounts have been reclassified to conform to the 1993 presentation.
 Financial Highlights
 Third Quarter Nine Months
 1993 1992 1993 1992
 Residential Loan Activity ($ billions)
 Retail $2.6 1.7 7.0 5.3
 Wholesale 3.4 2.7 8.9 8.1
 Total Loan Production 6.0 4.4 15.9 13.4
 Servicing Acquisitions -- -- 5.5 --
 Total Activity $6.0 4.4 21.4 13.4
 Sept. 30,
 1993 1992
 Servicing Portfolio ($ billions)(A) $68.5 62.3
 Number of Loans (thousands)(A) 1,081.8 1,033.3
 Delinquency Ratio
 (30 days and over) 7.0pct. 6.3pct.
 Foreclosure 0.6pct. 0.8pct.
 Total Delinquency Ratio 7.6pct. 7.1pct.
 (A) Includes $3.7 billion of bulk servicing acquisitions not yet transferred to the company at Sept. 30, 1993.
 -0- 10/20/93
 /CONTACT: Charles T. Conway Jr., director-Corporate Communications, of Fleet Mortgage Group, 803-929-7910/
 (FLG)


CO: Fleet Mortgage Group, Inc. ST: South Carolina IN: FIN SU: ERN

SB-MM -- CH003 -- 4557 10/20/93 12:08 EDT
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