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MARGARETTEN FINANCIAL EARNS $6.1 MILLION FOR 1991 FIRST QUARTER; DECLARES INITIAL QUARTERLY DIVIDEND

 MARGARETTEN FINANCIAL EARNS $6.1 MILLION FOR 1991 FIRST QUARTER;
 DECLARES INITIAL QUARTERLY DIVIDEND
 PERTH AMBOY, N.J., April 23 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG), a leading residential mortgage banker, today reported net income for the first quarter ended March 31, 1992, of $6.1 million, or $0.40 per share. The latest results represented nearly a 10-fold increase over the $633,000 earned in the first quarter of 1991. No per share amount was reported for the year-ago period, which was prior to the company's initial public offering in January 1992.
 The sharp rise in earnings was largely attributable to substantial increases in all components of revenues, primarily due to robust mortgage origination volume. Total revenues amounted to $45.6 million for the 1992 first quarter, increasing 103 percent from the comparable end of $0.04 per share. The dividend will be payable on June 17, 1992, to shareholders of record as of May 20, 1992.
 Felix M. Beck, chairman and chief executive officer, said, "Margaretten's strong first quarter performance benefited from the high level of demand for residential mortgages, but also reflects strategic decisions to position the company for long-term growth. We have continued to reinforce the efficiency of our retail origination network, expanded our wholesale operations, and significantly increased our mortgage servicing business."
 Total loans closed and purchased during the first three months of 1992 were $1.8 billion. This represented an increase of 137 percent over Margaretten's volume of $772 million for the first quarter of 1991.
 The servicing portfolio was $4.6 billion at March 31, 1992, compared with $2.6 billion at March 31, 1991. During the recent quarter, the company retained the servicing rights on 56 percent of its retail mortgage production, increasing from 11 percent in the same 1991 period.
 "While Margaretten and all mortgage bankers experienced a flood of refinance applications in recent months, we continued to emphasize our core business of financing home purchases. As a result, home purchase applications totaled over 12,000, or $1.3 billion, during the 1992 first quarter. This represented an increase of 20 percent in number of applications, and 25 percent on dollar volume, over the 1991 first quarter. Dollar volume has been increasing as a faster rate than application numbers, due to a rise in average loan size. These factors have positive implications for our continued profitable growth during 1992," added Beck.
 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 58 branch offices in 18 states, and its wholesale division operates primarily in California and Texas.
 MARGARETTEN FINANCIAL CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income
 (Unaudited -- in thousands, except per share data)
 Three months ended March 31 1992 1991
 Revenue:
 Mortgage origination $25,400 $10,478
 Net interest income 9,381 4,072
 Sale of servicing rights 7,109 5,351
 Servicing 3,706 2,509
 Cost and expenses 45,596 22,410
 Income before income taxes 10,252 1,220
 Income taxes 4,200 587
 Net income 6,052 633
 Earnings per share(A) $0.40 --
 (A) Earnings per share for the 1992 period was based on 15,122,656 total shares outstanding after initial public offering in January 1992. Primary earnings per share for the 1992 period was $0.43, based on 14,023,810 weighted average share outstanding. No per share amount was applicable to the 1991 period, which was prior to the initial public offering.
 MARGARETTEN FINANCIAL CORPORATION AND SUBSIDIARIES
 Operating Statistics
 Three months ended March 31 1992 1991
 Total Loan Production (in million) $1,830 $772
 Retail closings 1,561 645
 Wholesale purchases 269 127
 Average loan size 119,000 109,000
 Total loan applications (units) 23,457 14,833
 Retail 20,563 12,692
 Wholesale 2,894 2,141
 Total loan applications (in millions) 2,849 1,714
 Retail 2,321 1,368
 Wholesale 528 346
 Servicing Portfolio -- Ending Balance
 Millions of dollars 4,628 2,648
 Units 58,515 41,482
 Servicing Rights -- Retail (pct.)
 Retained 56 11
 Released 37 85
 Jumbo 7 4
 Delinquency rate (pct.) 3.44 4.64
 Foreclosure rate 0.86 0.97
 Weighted average coupon rate 9.36 10.08
 Margaretten Financial Corporation is engaged in residential mortgage banking. The above data reflect current operating statistics and do not constitute all factors impacting the quarterly and annual financial results of the company. All figures are unaudited and may be adjusted in the reported financial statements of the company, which will be 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- 4/23/92
 /CONTACT: Bruce Schnelwar, senior vice president and CFO of Margaretten Financial, 908-324-4183, or David Walke or Edward Nebb of Morgen-Walke Associates, 212-986-5900, for Margaretten Financial/
 (MRG) CO: Margaretten Financial Corporation ST: New Jersey IN: FIN SU: ERN


PS-SM -- NY006 -- 1613 04/23/92 07:33 EDT
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Date:Apr 23, 1992
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