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MARGARETTEN FINANCIAL REPORTS 81 PERCENT RISE IN NINE-MONTH EARNINGS; DECLARES REGULAR QUARTERLY DIVIDEND

 MARGARETTEN FINANCIAL REPORTS 81 PERCENT RISE IN NINE-MONTH
 EARNINGS; DECLARES REGULAR QUARTERLY DIVIDEND
 PERTH AMBOY, N.J., Oct. 22 /PRNewswire/ -- Margaretten Financial Corporation (NYSE:MRG), a leading residential mortgage banker, today reported net income for the third quarter ended September 30, 1992, of $6.7 million, or $0.44 per share. These results were consistent with an outlook recently given by the company and represent approximately a 23 percent increase over the $5.4 million earned in the third quarter of 1991. The year-earlier net income was bolstered by the favorable resolution of certain tax matters that resulted in an unusually low tax rate for the quarter. No per share amount was reported for the 1991 third quarter, which was prior to Margaretten's initial public offering in January 1992.
 For the nine months ended September 30, 1992, Margaretten's net income was $19.0 million, or $1.26 per share. This represented an increase of nearly 81 percent over the $10.5 million earned in the same nine months of 1991. No comparable per share figure is available for 1991.
 Margaretten also announced that its board of directors has declared its third regular quarterly cash dividend of $0.04 per share. The dividend will be payable on Dec. 16, 1992, to shareholders of record as of Nov. 18, 1992.
 The company attributed the increases in third quarter and nine month earnings primarily to significantly higher revenues due to greater volume of mortgages both for home purchases and refinances. Total revenues for the quarter ended Sept. 30, 1992 were $48.9 million, an increase of 49 percent from $32.8 million for the same period in 1991. For the first nine months of 1992, revenues rose 55 percent to $136.9 million from $88.1 million in the comparable 1991 period.
 Total loans closed and purchased during the third quarter of 1992 amounted to $1.8 billion, an increase of 72 percent over the $1.1 billion volume for the third quarter of 1991. For the first nine months of this year, total loans closed and purchased were $5.2 billion, up 68 percent over the $3.1 billion produced in the same period in 1991. Approximately 40 percent of the 1992 year-to-date mortgage volume consisted of refinances, versus approximately 16 percent for the 1991 nine month period.
 The servicing portfolio was $13.1 billion at Sept. 30, 1992, compared with $3.3 billion a year earlier. The servicing portfolio growth reflected a net increase of over $2 billion primarily from internal production sources, and the addition of servicing acquired as a result of Margaretten's purchase of NationsBanc Mortgage Corporation of Virginia on Sept. 1, 1992. Margaretten sold the servicing rights on 33 percent of its retail mortgage production for the quarter ended Sept. 30, 1992, compared to 67 percent for the prior year's quarter. For the first nine months of 1992, the company sold the servicing rights on 44 percent of its retail mortgage production, down from 74 percent for the same period of 1991.
 Felix M. Beck, chairman and chief executive officer, stated, "The 1992 third quarter benefited from increases in revenues from mortgage origination, net interest income and loan servicing. At the same time, sales of servicing rights decreased, consistent with our goal of increasing retention of servicing rights and our long-term strategy of generating sustainable, quality earnings."
 "Production has been robust throughout 1992, and Margaretten expects to exceed previous mortgage volume estimates for the full year by about 20 percent. While refinance activity has contributed significantly to industry-wide volume this year, we also have maintained a solid commitment to our core home purchase business. Thus, we are in a strong position to benefit from a rise in home buying as the U.S. economy recovers," Mr. Beck noted.
 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, Texas and the Pacific Northwest.
 MARGARETTEN FINANCIAL CORPORATION AND SUBSIDIARIES (NYSE:MRG)
 Consolidated Statements of Income
 (In thousands, except per share data)
 Three Months Ended Nine Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 Revenue:
 Mortgage origination $24,752 $10,563 $65,384 $36,213
 Net interest income 10,343 8,084 30,373 19,285
 Sale of servicing rights 6,596 11,231 26,238 24,603
 Servicing 7,190 2,886 14,953 7,976
 Total revenue 48,881 32,764 136,948 88,077
 Cost and expenses 37,653 25,576 104,838 72,044
 Income before
 income taxes 11,228 7,188 32,110 16,033
 Income taxes 4,563 1,787 13,116 5,519
 Net income $ 6,665 $ 5,401 $18,994 $10,514
 Earnings per share (a) $ 0.44 -- $ 1.26 --
 (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 nine months ended Sept. 30, 1992 was $1.29, based on 14,757,711 weighted average shares outstanding. No per share amounts were applicable to the 1991 periods, which were prior to the initial public offering.
 MARGARETTEN FINANCIAL CORPORATION AND SUBSIDIARIES (NYSE:MRG)
 Operating Statistics
 Period Ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Total loan production
 (in millions) $ 1,835 $ 1,069 $ 5,166 $ 3,085
 Retail closings $ 1,461 $ 939 $ 4,272 $ 2,674
 Wholesale purchases $ 374 $ 130 $ 894 $ 411
 Average loan size $121,000 $112,000 $119,000 $110,000
 Total loan applications
 (units) 26,900 13,923 66,341 42,959
 Retail 20,796 12,405 54,629 37,719
 Wholesale 6,104 1,518 11,712 5,240
 Total loan applications
 (in millions) $ 3,336 $ 1,590 $ 8,143 $ 4,913
 Retail $ 2,398 $ 1,333 $ 6,201 $ 4,046
 Wholesale $ 938 $ 257 $ 1,942 $ 867
 Servicing Rights -- Retail
 Retained (percent) 59 28 50 22
 Released (percent) 33 67 44 44
 Jumbo (percent) 8 5 6 4
 As of
 9/30/92 9/30/91
 Servicing Portfolio --
 Ending Balance
 Millions of dollars $ 13,110 $ 3,330
 Units 198,935 46,692
 Delinquency Rate (percent) 4.81 5.22
 Foreclosure Rate (percent) 1.06 0.86
 Weighted Average
 Coupon Rate (percent) 9.25 9.83
 -0- 10/21/92
 /CONTACT: 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


TM -- NY009 -- 3257 10/22/92 07:21 EDT
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Date:Oct 22, 1992
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