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AMERICAN RESIDENTIAL HOLDING CORP. ACHIEVES 49 PERCENT NET EARNINGS INCREASE FOR 1992

 LA JOLLA, Calif., Feb. 16 /PRNewswire/ -- American Residential Holding Corp., (NASDAQ: AMRS) parent corporation of American Residential Mortgage Corp., the nation's fifth largest independent mortgage banking originator, reported today that net income for 1992 increased by 49 percent over 1991 figures, from $13.2 million to $19.7 million. This represents an earnings per share of $2.03 for 1992, compared with $1.41 per share for the prior year, an increase of 44 percent.
 Fourth quarter earnings decreased slightly from 1991. The company posted $4.6 million, or $.46 per share, for the quarter ended Dec. 31, 1992, in contrast to $4.7 million, or $.51 per share, a year earlier.
 All earnings per share amounts give effect to the company's initial public offering on Aug. 14, 1992.
 "The strong results generated in 1992 reflect the continuing growth in our two core businesses: loan originations and mortgage servicing," said Chief Executive Officer John Robbins in announcing the results. Loan originations grew 89 percent to $5.5 billion and the owned servicing portfolio was $9.7 billion at Dec. 31, 1992, a 76 percent increase over the $5.5 billion owned a year ago. Robbins said "The growth in the company's servicing portfolio is significant not only because of its positive impact on servicing income but also because it increases the company's off-balance-sheet value -- the value of the servicing portfolio which accounting rules currently prohibit us from booking as an asset."
 Strong origination and servicing volumes increased gross revenues to $109.2 million for all of 1992 compared to $70.5 million for 1991. These increases were partially offset by volume-related increases in operating expenses, increased amortization of capitalized and purchased servicing and a 1992 fourth-quarter loss on sales of loans in the secondary market.
 The company has been able to recognize some of what otherwise would be off-balance-sheet value in its servicing portfolio through strategic sales of servicing contracts from the portfolio. Gains from these sales were $21.4 million in 1992 compared to $8.1 million in 1991. Robbins said, "While the company achieved excellent prices on increased sales of servicing rights during 1992, we retained $3.8 billion in originated servicing, 73 percent over the $2.2 billion retained in 1991."
 In commenting about the company's prospects for 1993, Robbins stated that "We expect the company to continue to grow in both originations and servicing. However loan originations should be more seasonal than they were in 1992, with volumes peaking in the summer months. Sale of servicing gains will help to offset seasonal fluctuations in origination income. We launched our acquisition program with the purchase of a $727 million servicing portfolio from California Federal Bank in the fourth quarter of 1992 and are continuously exploring other strategic acquisition and expansion possibilities. We want to take full advantage of consolidation opportunities within the mortgage banking industry."
 American Residential Holding Corp. through its subsidiary, American Residential Mortgage Corp., has 58 branch offices throughout the United States. In 1992. it originated $5.5 billion in home loans and serviced and subserviced a loan portfolio of $9.9 billion at Dec. 31, 1992.
 Consolidated statements of income and financial highlights are attached.
 AMERICAN RESIDENTIAL HOLDING CORP.
 Consolidated Statements of Income
 (In thousands, except per share amounts)
 Fourth Quarter Year
 Periods Ended Dec. 31, 1992 1991 1992 1991
 Mortgage origination
 income:
 Origination fees $9,459 $5,654 $31,662 $18,428
 Secondary marketing
 gains (loss) (1,659) 3,888 10,939 9,406
 Total mortgage
 origination income 7,800 9,542 42,601 27,834
 Servicing income 10,346 4,617 34,651 11,953
 Less amortization of
 capitalized
 servicing (5,035) (1,105) (13,546) (2,634)
 Servicing income, net 5,311 3,512 21,105 9,319
 Subservicing income 1,182 4,354 7,925 13,990
 Total servicing income 6,493 7,866 29,030 23,309
 Sale of servicing
 gains 11,487 654 21,363 8,059
 Interest income, net 5,263 3,872 15,781 11,226
 Other 90 69 378 109
 Total revenue 31,133 22,003 109,153 70,537
 Total operating
 expenses (24,015) (14,728) (76,571) (50,250)
 Income before taxes
 and extraordinary
 item 7,118 7,275 32,582 20,287
 Taxes (2,520) (2,938) (12,894) (8,193)
 Extraordinary item 0 408 0 1,137
 Net income $4,598 $4,745 $19,688 $13,231
 Fully diluted E.P.S. $.46 $.70 $2.47 $1.85
 Average shares
 outstanding 9,928 6,758 7,966 6,758
 Fully diluted
 Pro Forma E.P.S.(a) $.46 $.51 $2.03 $1.41
 Pro Forma average
 shares outstanding 9,928 9,899 9,928 9,899
 (a) All Pro Forma earnings per share amounts reflect the initial public offering on Aug. 14, 1992, as if shares were outstanding for all periods shown with adjustments to income prior to the offering reducing warehouse borrowings by the amount of IPO proceeds.
 AMERICAN RESIDENTIAL HOLDING CORP.
 Financial Highlights
 (Dollar amounts in millions)
 Year ended Dec. 31, 1992 1991
 Loan originations $5,544 $2,931
 Average loan size $.122 $.118
 Ending servicing portfolio(a) $9,658 $5,488
 Weighted average loan rate 8.7 pct 9.6 pct
 Balance sheet:
 Cash and equivalents $28 $9
 Loans held for sale $556 $284
 Capitalized servicing rights $44 $32
 Total assets $655 $339
 Warehouse line of credit $497 $261
 Total shareholders' equity $88 $33
 Return on average equity (after tax) 35.1 pct 53.9 pct
 (a) Excludes warehouse loans and subservicing contracts.
 NOTE: 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 their release.
 -0- 2/16/93
 /CONTACT: Judith A. Berry, 619-535-4425, Clay Strittmatter, 619-535-4433, or Kasey Emmel, 619-535-4310, all of American Residential Holding Corp./
 (AMRS)


CO: American Residential Holdings Corp. ST: California IN: FIN SU: ERN

MS-EH -- SD006 -- 6803 02/16/93 12:46 EST
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Date:Feb 16, 1993
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