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MARGARETTEN FINANCIAL REPORTS $7.5 MILLION IN SECOND QUARTER EARNINGS; DECLARES REGULAR QUARTERLY DIVIDEND

 PERTH AMBOY, N.J., July 29 /PRNewswire/ -- Margaretten Financial Corporation (NYSE: MRG), a leading residential mortgage banker, today reported earnings for the 1993 second quarter of $7.5 million, or $0.50 per share, up 19.4 percent from $6.3 million, or $0.42 per share, in the same period last year.
 For the six months ending June 30, 1993, the company reported net income of $13.5 million, or $0.90 per share, as compared to $12.3 million, or $0.82 per share, in the first six months of 1992.
 Margaretten also announced that its board of directors has declared its regular quarterly dividend of $0.04 per share, payable on September 22, 1993 to shareholders of record as of August 25, 1993.
 Margaretten's second quarter earnings reflected increased mortgage origination revenues, higher net interest income and increases in servicing revenue, coupled with reduced servicing sales. Costs increased largely because of higher amortization expenses applied to purchased servicing rights, and higher costs associated with increased production. Total revenue for the second quarter was $53.7 million, up from $30.1 million for the 1992 second quarter. For the six month period, total revenue was $96.5 million, compared to $63.0 million for the first half of last year. Costs and expenses increased by $21.6 million and $31.6 million for the quarter and six months, respectively, over the corresponding 1992 periods.
 "Our performance in the 1993 second quarter met our objectives for higher loan production from a diversity of sources, including retail, wholesale and correspondent activities," said Felix M. Beck, chairman and CEO. "The increase in our retention of servicing rights compared favorably with prior years' levels, although the amount of servicing sales in our earnings mix may vary from quarter to quarter." Loan applications totaled $3.0 billion for the 1993 second quarter, an increase of 54.1 percent over the same period last year. For the six months, the Company processed $6.2 billion in applications, up 29.3 percent from the first half of last year.
 Total sources of production for the quarter amounted to $3.1 billion, more than double the second quarter of 1992. Total sources of production include retail closings and wholesale and correspondent purchases. For the six month period, total sources of production equaled $4.8 billion, of which 61.3 percent were retail, 21.6 percent were wholesale, and 17.1 percent were correspondent. Refinancings represented 49.0 percent of retail closings for the quarter, and 45.0 percent for the six months.
 Margaretten's servicing portfolio was $15.3 billion at June 30, 1993, an increase of $10.0 billion over the June 30, 1992 figure. Portfolio growth for the recently completed periods is largely attributable to a substantial acquisition of servicing rights in the third quarter of 1992, as well as retention of retail and wholesale production. At June 30, 1993, the servicing portfolio had a weighted average coupon of 8.63 percent, as compared to 9.11 percent at June 30, 1992.
 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 64 branches and satellite offices in 18 states, and its Wholesale Division operates primarily in California, the Pacific Northwest, Texas, Arizona, Georgia and Ohio.
 MARGARETTEN FINANCIAL CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Income
 (In thousands, except per share data)
 Three Months Ended Six Months Ended
 Periods ended June 30 1993 1992 1993 1992
 Revenue:
 Mortgage
 origination $17,121 $ 2,858 $25,309 $15,586
 Net interest income 14,232 10,649 24,863 20,030
 Servicing 11,942 4,057 25,717 7,763
 Sale of servicing
 rights 10,412 12,533 20,561 19,642
 Total Revenue $53,707 $30,097 $96,450 $63,021
 Costs and expenses:
 SG&A $10,685 $6,850 $20,776 $14,617
 Commissions 8,255 4,858 12,081 11,397
 Salaries and benefits 9,067 6,780 18,728 14,216
 Purchase servicing
 amortization 13,041 979 22,106 1,909
 Total costs
 and expenses $41,048 $19,467 $73,691 $42,139
 Income before income
 taxes 12,659 10,630 22,759 20,882
 Income taxes 5,165 4,353 9,306 8,553
 Net Income $ 7,494 $ 6,277 $13,453 $12,329
 Earnings per share (a) $ 0.50 $ 0.42 $ 0.90 $ 0.82
 NOTE: (a) Earnings per share for the six months ended June 30, 1992 was based on 15,122,656 total shares outstanding after the initial public offering in January 1992. Primary earnings per share for the 1992 period was $0.85, based on 14,573,233 weighted average shares outstanding.
 MARGARETTEN FINANCIAL CORPORATION AND SUBSIDIARIES
 Operating Statistics
 Three Months Ended Six Months Ended
 Periods ended June 30 1993 1992 1993 1992
 Total Sources of Production
 (in millions) $3,130 $1,540 $4,783 $3,394
 Retail closings 1,923 1,250 2,935 2,811
 Wholesale purchases 740 251 1,031 520
 Correspondent purchases 467 39 817 63
 Average loan size $115,000 $116,000 $115,000 $118,000
 Total loan applications
 (units) 25,916 15,984 52,372 39,441
 Retail 19,912 13,270 39,367 33,833
 Wholesale 6,004 2,714 13,005 5,608
 Total loan applications
 (in millions) $3,018 $1,958 $6,216 $4,807
 Retail 2,226 1,482 4,419 3,803
 Wholesale 792 476 1,797 1,004
 Servicing Rights
 -- Retail (pct.) 56 36 46 46
 Retained (pct.) 36 58 46 48
 Released (pct.) 8 6 8 6
 Jumbo
 As of 6/30/93 6/30/92
 Servicing Portfolio --
 Ending Balance
 Millions of dollars $15,267 $5,241
 Units 210,844 63,643
 Delinquency Rate (pct.) 4.15 3.70
 Foreclosure Rate (pct.) 1.26 0.74
 Weighted Average Coupon Rate (pct.) 8.63 9.11
 NOTE: Margaretten Financial Corporation is engaged in residential mortgage banking. The above operating statistics do not constitute all factors impacting the quarterly and annual financial results of the company. All figures above are unaudited and may be adjusted in the reported financial statements of the company, which are 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- 7/29/93
 /CONTACT: Edward Nebb or Jeff Majtyka, both of Morgen-Walke Associates, 212-850-5600, for Margaretten Financial Corporation/
 (MRG)


CO: Margaretten Financial Corporation ST: New Jersey IN: SU:

TM -- NY006 -- 7087 07/29/93 07:55 EDT
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