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MARGARETTEN FINANCIAL EARNS $6.3 MILLION FOR 1992 SECOND QUARTER; DECLARES QUARTERLY DIVIDEND

 MARGARETTEN FINANCIAL EARNS $6.3 MILLION FOR 1992 SECOND QUARTER;
 DECLARES QUARTERLY DIVIDEND
 PERTH AMBOY, N.J., July 23 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG), a leading residential mortgage banker, today reported net income for the second quarter ended June 30, 1992, of $6.3 million, or $0.42 per share, a 40 percent increase over the $4.5 million earned in the second quarter of 1991. No per-share amount was reported for the quarter ended June 30, 1991, as it was prior to the company's initial public offering in January 1992.
 For the six months ended June 30, 1992, Margaretten reported a 141 percent increase in net income to $12.3 million from $5.1 million for the prior year's six-month period. On a per-share basis, the company earned $0.82 in the first six months of 1992. No comparable per-share figure is available for 1991.
 Margaretten also announced that its board of directors has declared its second regular quarterly cash dividend of $0.04 per share. The dividend will be payable on Sept. 16, 1992, to shareholders of record as of Aug. 19, 1992.
 Total revenues for the three months ended June 30, 1992, were $42.5 million, an increase of 29 percent, from $32.9 million for the same period in 1991. Increases in net interest income, servicing and sale of servicing rights contributed to the revenue growth. For the first six months of 1992, revenues increased 59 percent to $88.1 million from $55.3 million in 1991. All areas contributed to the strong growth in revenues for the first six months of 1992.
 Total loans closed and purchased during the second quarter of 1992 were $1.501 billion, an increase of 21 percent from $1.244 billion in 1991. Total loans closed and purchased during the first six months of 1992 increased 65 percent to $3.331 billion as compared to $2.016 billion for the same period in 1991.
 The servicing portfolio was $5.2 billion at June 30, 1992, as compared to $2.8 billion at June 30, 1991. Margaretten sold the servicing rights on 61 percent of its retail mortgage production for the quarter ended June 30, 1992, as compared to 78 percent for the prior year's quarter. For the first six months of 1992, the company sold the servicing rights on 49 percent of its retail mortgage production, decreasing from 81 percent for the same period of 1991.
 "We are on target with respect to our goals for loan volume and servicing portfolio growth from production, and expect the second half of 1992 to meet our objectives," said Felix M. Beck, chairman and chief executive officer.
 As the company previously announced on July 1, 1992, Margaretten is in negotiations to purchase NationsBanc Mortgage Company of Virginia. The assets of NationsBanc consist primarily of $7.5 billion of residential mortgage servicing rights and a 200-plus employee mortgage loan servicing operation with related assets.
 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
 (In thousands, except per share data)
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Revenue:
 Mortgage origination $15,232 $15,172 $40,632 $25,650
 Net interest income 10,649 7,170 20,030 11,201
 Sale of servicing rights 12,533 8,021 19,642 13,372
 Servicing 4,057 2,581 7,763 5,090
 Total 42,471 32,944 88,067 55,313
 Cost and expenses 31,841 25,319 67,185 46,648
 Inc. before income taxes 10,630 7,625 20,882 8,845
 Income taxes 4,353 3,145 8,553 3,732
 Net income 6,277 4,480 12,329 5,113
 Earnings per share(A) $0.42 -- $0.82 --
 (A) -- Earnings per share for the 1992 periods were based on 15,122,656 total shares outstanding after initial public offering in January 1992. Primary earnings per share for the six months ended June 30, 1992, was $0.85, based on 14,573,233 weighted average shares outstanding. No per-share amount was applicable to the 1991 periods, which was prior to the initial public offering.
 Operating Statistics
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Total loan production
 (in millions) $1,501 $1,244 $3,331 $2,016
 Retail closings 1,250 1,090 2,811 1,735
 Wholesale purchases 251 154 520 281
 Average loan size 117,000 109,000 118,000 109,000
 Total loan applications
 (units) 15,984 14,203 39,441 29,036
 Retail 13,270 12,622 33,833 25,314
 Wholesale 2,714 1,581 5,608 3,722
 Servicing portfolio --
 ending balance
 Millions of dollars 5,241 2,781 5,241 2,781
 Units 63,643 42,061 63,643 42,061
 Servicing rights - retail
 Retained (pct.) 33 18 45 15
 Released (pct.) 61 78 49 81
 Jumbo (pct.) 6 4 6 4
 As of June 30
 1992 1991
 Delinquency rate (pct.) -- -- 3.70 4.57
 Foreclosure rate (pct.) -- -- 0.74 0.89
 Wtd. avg. coupon rate (pct.) -- -- 9.11 9.98
 -0- 7/23/92
 /CONTACT: Michele Katz 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 DIV


CK -- NY007 -- 2227 07/23/92 07:31 EDT
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Date:Jul 23, 1992
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