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COUNTRYWIDE CREDIT INDUSTRIES INC. THIRD QUARTER EARNINGS UP 182 PERCENT

 COUNTRYWIDE CREDIT INDUSTRIES INC.
 THIRD QUARTER EARNINGS UP 182 PERCENT
 PASADENA, Calif., Dec. 3 /PRNewswire/ -- Countrywide Credit Industries Inc. (NYSE: CCR), the nation's largest independent mortgage banker, today announced that unaudited net earnings for the third fiscal quarter ended Nov. 30, 1991, were $17.2 million, up 182 percent over last year's comparable quarter when net earnings were $6.1 million. Revenues (net of interest expense) for the third fiscal quarter were $67.4 million vs. $34.8 million in the comparable quarter of the prior year.
 For the quarter ended Nov. 30, 1991, primary earnings per share were $0.56, based on 28,927,000 weighted average shares outstanding, and fully diluted earnings per share were $0.52, based on 33,203,000 weighted average shares outstanding.
 For the quarter ended Nov. 30, 1990, primary earnings per share were $0.30, based on 17,356,000 weighted average shares outstanding, and fully diluted earnings per share were $0.27, based on 23,545,000 weighted average shares outstanding.
 Countrywide's board of directors declared a cash dividend of $0.11 per common share for the quarter ended Nov. 30, 1991, payable Jan. 17, 1992, to shareholders of record on Jan. 3, 1992.
 "While the company's third quarter results set an all time record and represent the seventh consecutive quarter of uninterrupted earnings growth, even more significant are the company's recent successes in strengthening its capital base, market share and counter-cyclical sources of revenue," stated David S. Loeb, chairman.
 During the quarter, the company added $162 million of equity through the issuance of 6.2 million new common shares. This offering, combined with the March 1991 issuance of 3.7 million common shares, brings the company's shareholders' equity (including preferred stock) to over $420 million. "Countrywide's expanded equity base gives the company a significant advantage over its undercapitalized competition," said Loeb. "The equity will allow Countrywide to continue to capture market share and further expand its servicing portfolio."
 Loeb continued, "Since the beginning of the fiscal year, the company's monthly home purchase loan production has almost doubled and refinance-related originations have tripled. This increased loan production provided a substantial source of valuable lower-coupon servicing rights and contributed to the expansion of the servicing portfolio to approximately $23 billion. The growth of the serving portfolio is very important to sustaining future earnings growth, since servicing rights generate substantial returns to the company, and since earnings from the portfolio are counter-cyclical to loan origination earnings. Therefore, the company's long-term strategy continues to be to expand its servicing portfolio and thereby enhance its ability to significantly offset potential declines in origination earnings which may occur with rising interest rates.
 Management believes that the recent upgrades of the company's credit ratings by Moody's and Standard & Poor's reflect the soundness of Countrywide's strategy and improved capitalization. These improved ratings allowed Countrywide Funding Corp., the company's major subsidiary, to re-enter the commercial paper market in November. The access to this market should have a positive impact on the company's overall cost of debt. Most recently, Standard & Poor's improved its outlook of Countrywide to "Positive" from "Stable" based on the company's improved capitalization and financial flexibility.
 Countrywide Credit Industries Inc. originates, purchases, sells and services mortgage loans. The company's mortgage loans are principally first-lien mortgage loans secured by single (one-to-four) family residences. The company's common stock is publicly traded on the New York Stock Exchange and the Pacific Stock Exchange under the symbol "CCR." The company's preferred stock is publicly traded on the New York Stock Exchange under the symbol "CCRp."
 -0- 12/3/91
 /CONTACT: Karel Carnohan, 818-304-7523, or Laura Lippman, 818-304-4422, both of Countrywide Credit Industries Inc./
 (CCR CCRp) CO: Countrywide Credit Industries Inc. ST: California IN: SU: ERN


EH-CH -- LA012 -- 8592 12/03/91 08:02 EST
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Publication:PR Newswire
Date:Dec 3, 1991
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