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NORTH AMERICAN MORTGAGE COMPANY REPORTS RECORD SECOND QUARTER EARNINGS OF $13.1 MILLION, UP 67 PERCENT; NET INCOME PER SHARE UP 54 PERCENT

 SANTA ROSA, Calif., July 19 /PRNewswire/ -- North American Mortgage Company (NYSE: NAC), the nation's sixth largest originator of home loans, announced today that net income for its second quarter ended June 30, 1993, was a company record $13.1 million, a 67 percent increase over net income of $7.8 million for the quarter ended June 30, 1992. Net income per share increased 54 percent to $0.88 per share for the second quarter, also a company record, from $0.57 for the comparable 1992 period.
 Total revenues for the quarter were $81.1 million, a 56 percent increase over revenues of $52.1 million for the second quarter of 1992. This significant increase is primarily due to increased loan origination fee income associated with the company's record loan production for the quarter, larger gains on sales of servicing due to higher volumes of servicing sales and higher loan administration revenues associated with the company's growing loan servicing portfolio. Total expenses for the quarter were $60.5 million, a 54 percent increase over 1992 second quarter expenses of $39.3 million. This increase was primarily associated with higher personnel and other loan production related costs.
 John F. Farrell, Jr., chairman of the board and chief executive officer, said, "The results for the second quarter reflect the record production volume of $4.52 billion that we achieved during the period. These three months were the three highest loan production months in the company's history. In addition, our high production volumes, our growing loan servicing portfolio and our improving loan servicing efficiencies have enabled us to reduce our per loan cost to produce and our per loan cost to service, further adding to our overall profitability."
 At June 30, 1993, the company had an owned loan servicing portfolio of $13.6 billion, a 52 percent increase compared with the portfolio at June 30, 1992. The portfolio had a weighted average coupon of 7.53 percent on June 30, 1993 and a delinquency rate, including foreclosures, of 2.14 percent. In the second quarter, the company sold servicing rights amounting to 41 percent of its loan production, up from 37 percent in the second quarter of 1992. "We sold more servicing during the quarter than we had originally planned, since we had an opportunity to sell at prices we considered favorable to the company," noted Terrance G. Hodel, president and chief operating officer. "However, we remain committed to further expanding our servicing portfolio by retaining more of our production." For the six months ended June 30, 1993, net income was $21.5 million, a company record and a 50 percent increase over the $14.4 million for the 1992 six month period. Net income per share for the six months was a record $1.50 per share, a 43 percent increase over 1992 net income per share of $1.05 for the six month period. Total revenues for the six month period were $141.1 million, a 49 percent increase over 1992 six month revenues of $94.5 million. Expenses for the period were $107.6 million, a 51 percent increase over expenses of $71.1 million for the 1992 period. The increased revenues and expenses were primarily attributable to higher loan related revenues and expenses and larger gains on sales of servicing.
 North American Mortgage Company is primarily engaged in the mortgage banking business and, accordingly, originates, acquires, sells and services mortgage loans which are principally first-lien mortgage loans secured by single family residences. The company is a leading residential lender in California, Texas, Hawaii, Colorado, New Mexico and the Washington D.C. area. Headquartered in Santa Rosa, the company operates 50 origination offices located in 14 states.
 North American Mortgage Company
 Consolidated Statement of Income
 For the Quarters and Six Months Ended June 30
 (In thousands, except per share amounts)
 (Unaudited)
 Second Quarter Six Months
 1993 1992 1993 1992
 Revenues
 Loan Admin. Fees, net $ 8,573 $ 6,262 $16,483 $12,728
 Loan Origination Fees 30,824 18,098 48,863 33,678
 Gain on Sales of Loans 12,228 12,108 21,166 16,244
 Interest Income, net 5,974 5,109 11,133 9,405
 Gains on Sales
 of Servicing 21,707 8,985 40,280 19,363
 Other Income 1,775 1,492 3,128 3,060
 Total Revenues 81,081 52,054 141,053 94,478
 Total Expenses 60,461 39,281 107,564 71,124
 Income Before Taxes 20,620 12,773 33,489 23,354
 Income Tax Expense 7,533 4,956 12,021 8,996
 Net Income $13,087 $ 7,817 $21,468 $14,358
 Net Income Per Share $0.88 $0.57 $1.50 $1.05
 Net Income Per Share-
 Assuming Full Dilution $0.86 $0.57 $1.46 $1.05
 Weighted Average
 Shares Outstanding 14,831 13,704 14,295 13,704
 NOTE: Net income and net income per share for 1992 have been adjusted to give effect to the company's initial public offering and the acquisition of the business of IMCO Realty Services -- a California Limited Partnership, which was completed in July 1992.
 NORTH AMERICAN MORTGAGE COMPANY
 Operating Statistics
 For the Quarter and Six Months Ended June 30
 (Unaudited)
 Second Quarter Six Months
 1993 1992 1993 1992
 Loan Originations $ 4,517 $ 2,689 $ 7,054 $ 5,092
 (millions)
 Servicing Sales as a
 Percent of Originations 41 37 53 40
 Owned Servicing
 Portfolio (millions) $13,627 $ 8,947 -- --
 Servicing Portfolio
 No. of Loans 135,096 100,017 -- --
 Average Loan Size
 Serviced $100,870 $89,453 -- --
 Servicing Delinquency
 Percent (30 days & Over) 1.67 2.26 -- --
 Foreclosure Percent 0.47 0.49 -- --
 Servicing Portfolio Weighted
 Average Coupon
 (in percents) 7.53 8.74 -- --
 -0- 7/19/93
 /CONTACT: Martin Hughes, executive vice president of North American Mortgage Company 707-523-5049; or Andrew Baer or Thomas J. Davies of Kekst and Company, 212-593-2655, for North American Mortgage Company/
 (NAC)


CO: North American Mortgage Company ST: California IN: FIN SU: ERN

SH -- NY020 -- 2957 07/19/93 10:10 EDT
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Date:Jul 19, 1993
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