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MARGARETTEN FINANCIAL REPORTS FIRST QUARTER EARNINGS; DECLARES REGULAR QUARTERLY DIVIDEND

 PERTH AMBOY, N.J., April 29 /PRNewswire/ Margaretten Financial Corporation (NYSE: MRG), a leading residential mortgage banker, today reported net income for the first quarter ended March 31, 1993, of $6.0 million, or $0.40 per share, as compared to $6.1 million, or $0.40 per share earned in the first quarter of 1992.
 Margaretten also announced that its board of directors has declared its regular quarterly cash dividend of $0.04 per share. The dividend will be payable on June 23, 1993, to shareholders of record as of May 26, 1993.
 Felix M. Beck, chairman and chief executive officer, commented, "We have experienced the much publicized surge in new mortgage applications which began in mid-February, and this augurs well for production results in the second quarter. Moreover, during the month of March alone, Margaretten received $1.6 billion in loan applications, an all-time record. This volume was more than double March 1992 loan applications of $758 million and rose more than 55 percent from the strong level of $1.0 billion reached in February 1993."
 Total revenue was $42.7 million for the latest quarter compared to $32.9 million for the quarter ended March 31, 1992. Cost and expenses equaled $32.6 million for the three months ended March 31, 1993 compared to $22.7 million for the first quarter of 1992. Revenues reflected lower origination volume in the quarter, and an increase in the sale of servicing rights and servicing income from the larger servicing portfolio. Expenses reflected increased amortization related to the larger amount of capitalized servicing rights.
 Loan applications totaled $3.2 billion for the three months ended March 31, 1993, a 12% increase over first quarter 1992 loan applications of $2.8 billion. Wholesale applications increased more than 90 percent to $1.0 billion in the first quarter of 1993, up from $528 million in the year-ago period. In addition, wholesale applications represented 31 percent of total loan applications for the three months ended March 31, 1993 compared to 19 percent for the first quarter of 1992.
 Total sources of production equalled $1.7 billion during the first quarter of 1993, as compared to $1.9 billion for the first quarter of 1992. Total sources of production include retail closings and wholesale and correspondent purchases. Retail closings amounted to $1.0 billion, or 61 percent of total sources of production as compared to $1.6 billion or 84 percent of total production in the 1992 first quarter. Refinances represented 36 percent of retail closings for the three-month period, down from 53 percent for the three months ended March 31, 1992.
 Wholesale loan production totaled $291 million or 18 percent of total sources of production, versus $269 million or 15 percent for the year-ago period. Correspondent purchases equaled $350 million or 21 percent of total sources of production. Correspondent purchases for the first quarter of 1992 were $24 million.
 The servicing portfolio was $14.7 billion at March 31, 1993, compared to $4.6 billion one year prior, reflecting the company's acquisition of NationsBanc Mortgage Corporation of Virginia on Sept. 1, 1992 as well as growth from retention of servicing on loan production. At March 31, 1993, the servicing portfolio had a weighted average coupon of 8.86 percent, as compared to 9.36 percent at March 31, 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 and Georgia.
 MARGARETTEN FINANCIAL CORPORATION
 AND SUBSIDIARIES
 Consolidated Statements of Income
 (In thousands, except per share data)
 Periods ended March 31 Three Months
 1993 1992
 Revenue:
 Mortgage origination $ 8,188 $12,728
 Net interest income 10,631 9,381
 Servicing 13,775 3,706
 Sale of servicing rights 10,149 7,109
 Total revenue 42,743 32,924
 Cost and expenses 32,643 22,672
 Income before income taxes 10,100 10,252
 Income taxes 4,141 4,200
 Net income $ 5,959 $ 6,052
 Earnings per share (a) $ 0.40 $ 0.40
 Note: (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 shares outstanding.
 MARGARETTEN FINANCIAL CORPORATION
 AND SUBSIDIARIES
 Operating Statistics
 Periods ended March 31 Three Months
 1993 1992
 Total sources of production
 (in millions) $ 1,653 $ 1,854
 Retail closings $ 1,012 $ 1,561
 Wholesale purchases $ 291 $ 269
 Correspondent purchases $ 350 $ 24
 Average loan size $114,000 $119,000
 Total loan applications
 (units) 26,456 23,457
 Retail 19,455 20,563
 Wholesale 7,001 2,894
 Total loan applications
 (in millions) $ 3,198 $ 2,849
 Retail $ 2,193 $ 2,321
 Wholesale $ 1,005 $ 528
 Servicing Rights -- Retail
 Retained (pct.) 33 57
 Released (pct.) 61 37
 Jumbo (pct.) 6 6
 As of
 03/31/93 03/31/92
 Servicing Portfolio --
 Ending Balance
 Millions of dollars $ 14,706 $ 4,628
 Units 208,855 58,515
 Delinquency Rate (pct.) 4.17 3.44
 Foreclosure Rate (pct.) 1.17 0.86
 Weighted Average Coupon Rate (pct.) 8.86 9.36
 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- 4/29/93
 /CONTACT: Michele Katz or Edward Nebb, both of Morgen-Walke Associates, 212-986-5900, for Margaretten Financial Corporation/
 (MRG)


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

TM -- NY011 -- 2405 04/29/93 07:33 EDT
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