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FLEET MORTGAGE GROUP REPORTS EARNINGS OF $29.4 MILLION IN THE THIRD QUARTER

 FLEET MORTGAGE GROUP REPORTS EARNINGS OF
 $29.4 MILLION IN THE THIRD QUARTER
 COLUMBIA, S.C., Oct. 21 /PRNewswire/ -- Fleet Mortgage Group (NYSE: FLG) today reported net income of $29.4 million for the third quarter ended Sept. 30, it was announced by Andrew D. Woodward, Jr., chairman and chief executive officer. This compares to $19.5 million for the third quarter of 1991. (The 1991 results included a post-tax gain of $5 million from the sale of mortgage servicing rights.)
 Earnings per share from the time of Fleet Mortgage Group's initial public offering on Aug. 7, 1992, through Sept. 30, 1992, were 40 cents per share. On a pro forma basis, if the public offering had been closed on July 1, 1992, the company would have reported earnings per share of 59 cents for the quarter. The pro forma calculation uses the earnings for the full quarterly period and the total number of shares outstanding at the end of the period.
 Loan servicing revenue, which was affected by increased prepayments in the mortgage servicing portfolio, increased $6.6 million from the third quarter 1991 to $60.8 million in the third quarter 1992. Mortgage production revenue was $46.7 million for the third quarter, up 173 percent from the $17.1 million received in the third quarter 1991. "Lower mortgage interest rates continue to provide for strong mortgage loan production," Woodward said. Fleet Mortgage produced $4.4 billion in residential mortgage loans for the third quarter of 1992, compared to $3.2 billion for the same quarter last year.
 Woodward said that the company's mortgage servicing portfolio totaled $62.3 billion at Sept. 30, 1992, compared to $54.7 billion a year earlier, an increase of 14 percent.
 For the nine months of 1992, Fleet Mortgage Group earned $81.3 million, a 45 percent increase over the $56 million earned in the comparable period of 1991. This performance reflects record loan production, $13.3 billion, up 58 percent from last year's comparable figure of $8.4 billion. For these nine months, mortgage production revenue totaled $118.6 million, a 167 percent increase over 1991, while mortgage servicing revenue totaled $181.3 million, up $19.5 million.
 Fleet Mortgage Group sold 9,545,000 shares of common stock in a public offering on Aug. 7, 1992. The remaining 40 million shares, representing approximately 81 percent of the company's outstanding common stock, are owned by Fleet Financial Group.
 Fleet Mortgage Group's portfolio of mortgage loans serviced is the second largest in the nation. The company continues to be one of the industry's leading producers of single-family mortgage loans, originating loans through 92 branches located in 35 states and acquiring new mortgage loans from other lenders through its extensive correspondent network.
 FLEET MORTGAGE GROUP, INC.
 Statement of Earnings
 For the Quarter and Nine Months Ended Sept. 30
 (in thousands, except per share amounts)
 Third Quarter Nine Months
 1992 1991 1992 1991
 Net Loan Servicing Revenue $60,832 $54,218 $181,291 $161,794
 Mortgage Production Revenue 46,691 17,126 118,606 44,351
 Net Interest Income 15,804 11,662 47,288 26,403
 Gain on Sale of Servicing --- 8,400 8,485 30,900
 Other 6,723 3,712 18,338 10,980
 Total Revenues 130,050 95,118 374,008 274,428
 Operating Expenses 54,814 39,511 164,446 112,348
 Amortization of Purchased
 Mortgage Servicing Rights 26,475 22,884 75,087 68,456
 Total Expenses 81,289 62,395 239,533 180,804
 Earnings Before Taxes 48,761 32,723 134,475 93,624
 Taxes 19,323 13,213 53,155 37,614
 Net Earnings $29,438 $19,510 $81,320 $56,010
 Net Earnings Per Share(a) 40 cents 40 cents
 Weighted Average Shares
 Outstanding (a) 49,545 49,545
 (a) For the period Aug. 7 through Sept. 30, 1992. Fleet Mortgage Group's initial public offering was on Aug. 7, 1992.
 FLEET MORTGAGE GROUP, INC.
 Financial Highlights
 Third Quarter Nine Months
 1992 1991 1992 1991
 Loan production
 ($ billions)
 Retail 1.7 0.9 5.2 2.2
 Correspondent 2.7 2.3 8.1 6.2
 Total 4.4 3.2 13.3 8.4
 Sept. 30
 1992 1991
 Servicing portfolio
 ($billions) 62.3 54.7
 Number of loans serviced
 (thousands) 1,033 958
 Delinquency ratio
 (30 days and over) 6.3 pct. 6.6 pct.
 Foreclosure 0.8 pct. 0.7 pct.
 Total delinquency ratio 7.1 pct. 7.3 pct.
 -0- ? 10/21/92
 /CONTACT: Charles T. Conway, Jr. of Fleet Mortgage Group, Inc., 401-278-6240/
 (FLG) CO: Fleet Mortgage group ST: Rhode Island, South Carolina IN: FIN SU: ERN


CH -- NE018 -- 3107 10/21/92 16:40 EDT
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Date:Oct 21, 1992
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