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PLAZA HOME MORTGAGE ANNOUNCES RECORD 1992 RESULTS; GEOGRAPHIC EXPANSION EXPECTED TO LEAD GROWTH IN 1993

 LOS ANGELES, Jan. 27 /PRNewswire/ -- Plaza Home Mortgage Corp. (NASDAQ: PHMC) today posted record net income and loan origination results for the fiscal year ended Dec. 31, 1992.
 Plaza's reported net income in 1992 advanced 57 percent to $14.5 million, or $1.34 per share, compared with the $9.3 million in the previous year. Earnings per share have been presented as if the company's initial public offering had been completed on Jan. 1, 1992. Annual earnings per share on an average number of shares outstanding basis for 1992 were $1.89. Loan originations increased 49 percent to $5.6 billion from $3.8 billion in the year-earlier period.
 In the fourth quarter, Plaza's net income was off slightly at $3.3 million, compared with $3.4 million in the year-earlier period. Loan originations for the quarter rose 28 percent to $1.4 billion. The dip in earnings from the year-ago quarter was partly attributed to corporate infrastructure improvements, including staffing expenses required to develop information systems in anticipation of continued company expansion.
 Jack French, chairman and chief executive officer, said, "Geographic expansion and increasing branch productivity continue to be the driving forces in Plaza's growth. Approximately 87 percent of 1992's increase in earnings and loan originations were generated by the 12 loan offices that existed at year-end 1991, five of which were opened during the year 1991. With the seven offices we added in 1992 -- three in new states -- and three additional new offices in new states opening in the first quarter 1993, we are optimistic about 1993. Our capacity to fund loans is approximately double last year's, enabling us to accommodate the growth we envision in 1993 and beyond."
 Plaza operates 19 mortgage loan branch offices in California, Florida, Oregon and Arizona. The company announced earlier it will open offices in Seattle-Tacoma; Houston; and Massachusetts serving five New England-area states in the next few weeks.
 "Our Dec. 31, 1992 loan servicing portfolio had grown to $2.7 billion compared with $1.7 billion a year ago, a trend we intend to continue," French added. "We expect to retain about 40 percent of the servicing rights from our loan originations in 1993 compared with 25 percent in 1992, if interest rates stay within a moderate range.
 "Our goal is to originate between $5.5 billion and $8.5 billion in loans in 1993, and achieve 15 percent annualized growth in earnings over last year," French said. "A key growth strategy in 1993 will be aggressive geographic expansion nationally to increase market penetration and gain market share.
 "We have the corporate infrastructure in place to manage the growing number of loan production offices and the projected increase in loan production volume from wholesale, retail and correspondent channels," French explained. "Geographic expansion allows us to leverage that infrastructure to achieve strong operating results.
 "As part of our commitment to building company strength through broad and diverse access to mortgage markets, we have increased the focus on our correspondent channel and accordingly have created a new position of Manager Correspondent Division. The person named to this post will be responsible for developing business with small mortgage banking companies, banks, and S & Ls, primarily outside of California. This channel represents a cost-effective opportunity to build national presence and gain access to additional markets boosting our origination capabilities.
 "Additionally, we expect Option One, our recently formed subsidiary, to begin to bring innovative and more flexible mortgage products to the market in February. We are excited about Option One's potential, and our goal is to originate $225 million to $250 million in loans in 1993 and make a positive contribution to Plaza's overall results in the third quarter. Option One was created to offer mortgages to home buyers and refinance customers who are creditworthy but do not fall within traditional loan qualification standards of institutional secondary mortgage purchasers."
 Plaza Home Mortgage is a mortgage banking company specializing in the origination, sale and servicing of one- to four-family residential mortgage loans. Plaza conducts mortgage banking activities through its 19 loan origination offices in four states and is ranked the eighth largest mortgage loan originator in California, and the 20th largest nationwide. Plaza's savings and loan subsidiary has its single savings branch in Santa Ana, Calif.
 Plaza completed its initial public offering in October 1992, selling 4,438,500 shares at $6.50.
 For information on Salick by fax, dial 800-PRO-INFO, ext. 131
 PLAZA HOME MORTGAGE CORP.
 Selected Financial Highlights
 (unaudited)
 (amounts in thousands, except per share data)
 Three Months Ended Twelve Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Selected Statement
 of Operations Data:
 Interest income $6,792 $6,079 $26,585 $22,117
 Interest expense 3,551 3,853 15,915 16,316
 Net interest income
 before provision
 for estimated loan
 losses 3,241 2,226 10,670 5,801
 Provision for
 estimated loan
 losses 406 906 2,064 1,172
 Net interest income
 after provision
 for estimated loan
 losses 2,835 1,320 8,606 4,629
 Servicing fee
 income 1,786 988 6,254 2,972
 Net gain on sales
 of loans and
 servicing rights 8,157 8,396 36,928 25,457
 Other income (loss) (135) (291) (711) (210)
 General and
 administrative
 expense 6,997 4,721 26,277 17,130
 Earnings before
 income taxes 5,646 5,692 24,800 15,718
 Income taxes 2,334 2,341 10,252 6,464
 Net earnings $3,312 $3,351 $14,548 $9,254
 Average shares
 outstanding 10,657,018 6,693,400 7,692,374 6,693,400
 Earnings per
 share $0.31 $0.50 $1.89 $1.38
 Selected Operating
 Data:
 Mortgage loan
 orginations $1,412,241 $1,101,796 $5,577,500 $3,751,192
 Selected Balance Sheet
 and Other Data:
 Mortgage loans
 held for sale $307,121 $305,697
 Total assets $354,825 $330,033
 Deposit accounts $230,846 $165,915
 Short-term debt $50,744 $124,824
 Stockholders' equity $56,548 $16,893
 Number of loans
 delinquent for 30
 days or more
 (excluding foreclosures)
 as a percent of total
 loans serviced 1.57 pct 1.93 pct
 Mortgage loan servicing
 portfolio $2,701,057 $1,678,476
 -0- 1/27/93
 /CONTACT: James M. Weld, president and COO of Plaza Home Mortgage, 714-564-3010; or Regina K. Ryan (New York) or John H. Shaw (Los Angeles) of Financial Relations Board, 818-783-2400, for Plaza Home Mortgage/
 (PHMC)


CO: Plaza Home Mortgage Corp. ST: California IN: FIN SU: ERN

LS-MS -- LA040 -- 9980 01/27/93 19:59 EST
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