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MARGARETTEN FINANCIAL REPORTS 51% RISE IN 1992 EARNINGS; DECLARES REGULAR QUARTERLY DIVIDEND

 PERTH AMBOY, N.J., Jan. 28 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG), a leading residential mortgage banker, today reported net income for the fourth quarter ended Dec. 31, 1992, of $6.8 million, or $0.45 per share, as compared to $6.6 million earned in the fourth quarter of 1991. No per share amount was reported for the 1991 fourth quarter, which was prior to Margaretten's initial public offering in January 1992.
 For the twelve months ended Dec. 31, 1992, Margaretten's net income was $25.8 million, or $1.71 per share. This represented an increase of approximately 51 percent over the $17.1 million earned in the year ended Dec. 31, 1991. No comparable per share figure is available for 1991.
 Margaretten also announced that its board of directors has declared its fourth regular quarterly cash dividend of $0.04 per share. The dividend will be payable on March 24, 1993, to shareholders of record as of Feb. 24, 1993.
 The company attributed the increases in fourth quarter and twelve month earnings primarily to significantly higher revenues due to greater volume of mortgages both for home purchases and refinances. Total revenues for the quarter ended Dec. 31, 1992 were $56.3 million, an increase of 43 percent from $39.3 million for the same period in 1991. For the twelve months ended Dec. 31, 1992, revenues rose 52 percent to $193.3 million from $127.4 million in the comparable 1991 period.
 Total sources of production (including correspondent purchases of $66 million) equalled $2.4 billion during the fourth quarter of 1992, an increase of 70 percent over the $1.4 billion volume for the fourth quarter of 1991. For the twelve months ended Dec. 31, 1992, total sources of production (including correspondent purchases of $338 million) increased 71 percent to approximately $7.8 billion, as compared to $4.6 billion for the year ended Dec. 31, 1991. Refinances represented 42 percent of retail closings for the full year 1992, versus 22 percent in 1991.
 The servicing portfolio was $14.4 billion at Dec. 31, 1992, compared with $3.9 billion a year earlier. The servicing portfolio growth reflected a higher


level of servicing retention on retail loan production in addition to the company's acquisition of NationsBanc Mortgage Corporation of Virginia on Sept. 1, 1992. Margaretten sold the servicing rights on 18 percent of its retail mortgage production for the quarter ended Dec. 31, 1992, compared to 43 percent for the prior year's quarter. For the twelve months ended Dec. 31, 1992, the company sold the servicing rights on 36 percent of its retail mortgage production, down significantly from 64 percent for the same period of 1991.
 Felix M. Beck, chairman and chief executive officer, stated, "Margaretten has met or exceeded its targets for profitability, loan production and servicing growth in 1992. Our outlook for 1993 is that our core retail operations will have another solid year, while our newer wholesale and correspondent operations will show strong growth in volume. As a result, although the mortgage banking industry is anticipating a lower level of refinance activity and greater seasonality in 1993, we expect Margaretten's volume from all sources of production to increase for the year as a whole."
 Mr. Beck also noted, "Our company dramatically increased its servicing portfolio late in 1992. Therefore, we expect servicing fees will account for a substantially greater proportion of total revenues in 1993, and this should have a positive impact on earnings for the year."
 Margaretten Financial Corporation, through its mortgage banking subsidiary, Margaretten & Company, Inc., engages in the origination, purchase, sale and servicing of residential mortgage loans. Its retail division maintains 63 branches and satellite offices in 18 states, and its wholesale division operates primarily in California, Texas and the Pacific Northwest.
 MARGARETTEN FINANCIAL CORPORATION AND SUBSIDIARIES
 Consolidated Statements Of Income
 (In thousands, except per share data)
 Period ended Three Months Year
 December 31, 1992 1991 1992 1991
 Revenue:
 Mortgage origination $26,203 $20,467 $91,587 $56,680
 Net interest income 13,641 8,470 44,014 27,755
 Sale of servicing rights 4,710 6,687 30,948 31,290
 Servicing 11,761 3,651 26,714 11,627
 Total revenue 56,315 39,275 193,263 127,352
 Cost and expenses 45,981 29,931 150,819 101,975
 Income before
 income taxes 10,334 9,344 42,444 25,377
 Income taxes 3,521 2,768 16,637 8,287
 Net income $ 6,813 $ 6,576 $25,807 $17,090
 Earnings per share (A) $ 0.45 -- $ 1.71 --
 (A) Earnings per share for the 1992 periods were based on
 15,122,656 total shares outstanding after initial public offering in
 January 1992. Primary earnings per share for the year ended
 Dec. 31, 1992 was $1.74, based on 14,890,505 weighted average shares
 outstanding. No per share amounts were applicable to the 1991
 periods, which were prior to the initial public offering.
 MARGARETTEN FINANCIAL CORPORATION AND SUBSIDIARIES
 Operating Statistics
 Period ended Three Months Year
 December 31, 1992 1991 1992 1991
 Total sources of
 production
 (in millions) $ 2,362 $ 1,392 $ 7,800 $ 4,556
 Retail closings $ 1,700 $ 1,178 $ 5,972 $ 3,852
 Wholesale purchases $ 596 $ 196 $ 1,490 $ 607
 Correspondent
 purchases $ 66 $ 18 $ 338 $ 97
 Average loan size $117,000 $114,000 $118,000 $111,000
 Total loan applications
 (units) 17,901 18,374 84,242 61,333
 Retail 13,537 15,580 68,166 53,299
 Wholesale 4,364 2,794 16,076 8,034
 Total loan applications
 (in millions) $ 2,098 $ 2,327 $ 10,241 $ 7,240
 Retail $ 1,491 $ 1,772 $ 7,692 $ 5,818
 Wholesale $ 607 $ 555 $ 2,549 $ 1,422
 Servicing Rights -- Retail
 Retained (in percent) 74 51 57 31
 Released (in percent) 18 43 36 64
 Jumbo (in percent) 8 6 7 5
 As of
 Period ended 12/31/92 12/31/91
 Servicing Portfolio --
 Ending Balance
 Millions of dollars $ 14,445 $ 3,902
 Units 208,156 52,337
 Delinquency Rate (in percent) 5.10 4.70
 Foreclosure Rate (in percent) 1.11 0.86
 Weighted Average Coupon Rate (in percent) 8.97 9.66
 NOTE: Margaretten Financial Corporation is engaged in residential mortgage banking. The above operating statistics do not constitute all factors impacting the quarterly and annual financial results of the company. All figures above are unaudited and may be adjusted in the reported financial statements of the company, which are provided by the company quarterly. The company makes no commitment to update this information for changes in circumstances or events which occur subsequent to the date of this release.
 -0- 1/28/93
 /CONTACT: Edward Nebb or Michele Katz of Morgen-Walke Associates 212-986-5900, for Margaretten Financial Corporation/
 (MRG)


CO: Margaretten Financial Corporation ST: New Jersey IN: FIN SU: ERN

LD -- NY007 -- 0002 01/28/93 07:16 EST
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