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FIRST MORTGAGE CONTINUES RECORD GROWTH IN SECOND QUARTER, SIX MONTHS

FIRST MORTGAGE CONTINUES RECORD GROWTH IN SECOND QUARTER, SIX MONTHS

Net Income Up 128 Percent in Quarter; 173 Percent in Six Months;

Record Results in Loan Origination Revenues, Loan Administration
 Income, and Gain on Sale of Mortgage Loans
 DIAMOND BAR, Calif., Nov. 5 /PRNewswire/ -- First Mortgage Corp. (NASDAQ-NMS: FMOR) today reported record revenues and net income for the fiscal second quarter and six months ended Sept. 30, 1992.
 Second quarter revenues grew 60 percent to $6,314,000, compared with revenues of $3,936,000 in the fiscal 1992 second quarter. Net income was $1,412,000, or $0.30 a share, a 128 percent increase over net income of $619,000, or $0.17 a share, in the fiscal 1992 quarter.
 Six-month revenues totaled $12,518,000, a 67 percent increase over revenues of $7,517,000 in the fiscal 1992 period. Net income grew 173 percent to $2,743,000, or $0.59 a share, vs. $1,004,000, or $0.27 a share, in the fiscal 1992 period.
 Clement Ziroli, chairman and president, said that loan origination revenues, loan administration revenues and gain on sale of mortgage loans all reached record levels in the second quarter. "Loan origination revenues rose by half to more than $1.6 million, loan administration revenues increased 27 percent, to approximately $1.3 million, and gain on the sale of the mortgage loans we originate into the secondary market doubled, from approximately $1.5 million to $3 million," he said.
 The volume of mortgage loans originated increased 42 percent to $107,900,000 in the 1993 second quarter from $75,900,000 in the 1992 quarter, Ziroli said. "We ended the second quarter with over $130 million in pending loan applications in the pipeline, the highest level in the company's history," he said.
 Ziroli noted that although interest rates declined slightly during the period, a substantial number of the loans originated and sold by First Mortgage closed at higher rates as borrowers elected to pay the higher rates to reduce loan origination fees. These higher- rate loans sold for premium prices in the secondary market, he said.
 He said that at Sept. 30, 1992, the company serviced $1.117 billion in mortgage loans, compared with $873 million at Sept. 30, 1991, a gain of 35 percent in the loan servicing portfolio. "This gain reflects our corporate strategy of retaining the servicing rights to virtually every loan we originate to ensure a reliable long-term stream of loan administration revenues," Ziroli said. Loan administration revenue represents the loan servicing fees, late charges and other fees earned by the company for administering the loans in its servicing portfolio.
 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 Six Months Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Revenues:
 Loan origination
 income $1,633 $1,098 $3,236 $2,536
 Loan administration
 income 1,276 1,004 2,512 1,937
 Gain on sale of
 trust deed notes
 receivable 3,034 1,449 5,913 2,311
 Interest on trust
 deed notes
 receivable, net of
 related interest
 expense 343 348 804 670
 Other income 28 37 53 63
 Total revenues 6,314 3,936 12,518 7,517
 Expenses:
 Compensation and
 related expenses 2,440 1,824 4,983 3,499
 Occupancy 149 115 293 259
 Provision for
 foreclosure 22 4 42 5
 General and
 administrative 1,304 940 2,539 2,045
 Total expenses 3,915 2,883 7,857 5,808
 Income before
 provision for
 income taxes 2,399 1,053 4,661 1,709
 Provision for
 income taxes 987 434 1,918 705
 Net income $1,412 $619 $2,743 $1,004
 Net income per share $0.30 $0.17 $0.59 $0.27
 Weighted average
 shares
 outstanding 4,785,000 3,750,000 4,677,750 3,750,000
 -0- 11/5/92
 /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


JB-LS -- LA013 -- 2885 11/05/92 09:08 EST
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Date:Nov 5, 1992
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