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    LOS ANGELES, Oct. 26 /PRNewswire/ -- Plaza Home Mortgage Corp. (NASDAQ: PHMC) today announced earnings for the third quarter and nine months ended Sept. 30, 1993.
    Net income for the third quarter was reported at $4.1 million, or $0.37 per share, compared with $4.3 million, or $0.38 per share, in the year-earlier period.  Net income in the nine-month period was $10.3 million, or $0.93 per share, vs. $11.2 million, or $1.01 per share a year ago (per share data is adjusted to give effect to the October 1992, initial public offering).
    The third quarter results reflected more than $400,000 in one-time costs, and estimated non-recurring labor and overhead expenses associated with the successful Oct. 1 consolidation in Albuquerque, N.M., of the Plaza loan servicing portfolio with the Sandia Mortgage portfolio (acquired June 25).
    Jack French, chairman and chief executive officer, said, "I am confident that with the consolidation of the two loan servicing portfolios in Albuquerque completed, on time and on budget, the efficiencies achieved will enable Plaza to attain its goal of significantly lowered servicing costs.  Our goal is for Plaza to continue to reduce its per-loan servicing costs down to the $65 to $70 range in the second quarter, 1994, from $88 in this past quarter and $101 earlier this year."
   Plaza loan originations in the third quarter and nine-month period jumped 57 percent to $2.2 billion and 33 percent to $5.6 billion, respectively, from $1.4 billion and $4.2 billion a year ago.  The Sept. 30 loan servicing portfolio climbed to $7.3 billion from $2.6 billion a year earlier.
    "Overall, I am pleased with the strong increase in loan originations resulting from our ambitious expansion program nationwide," French said. Plaza has loan offices in 12 states, and loan originations outside of California contributed 33 percent of loan production in the third quarter compared with only 9 percent a year ago.
    "As the production of the 17 loan origination offices Plaza has opened in the past 12 months continues to ramp up to optimal levels," French added, "our bottom line will strengthen.  Plaza has been investing in building the infrastructure necessary to support a rapid rate of company growth, and I am satisfied we have the people and systems in place to sustain the continued growth I envision in 1994.
    "With production reaching record levels, Plaza intends to continue building its loan servicing portfolio in the months ahead.  We acquired the Sandia portfolio not only to increase our portfolio size, but for the strategic value the Albuquerque servicing platform provides. Vigorous growth in our loan origination channels is firmly established, and loan servicing operations are beginning to achieve important efficiencies," French concluded.  "Plaza is well positioned to attain increasing growth and profitability in the months ahead."
    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 34 loan origination offices in 12 states, and is ranked the sixth- largest mortgage loan originator in California, the 18th-largest nationwide.  Financial highlights follow.
    For information on Plaza by fax, dial 800-PRO-INFO, ext. 132.
                       PLAZA HOME MORTGAGE CORP.
                     Selected Financial Highlights
      (Amounts in thousands, except per share and loan count data)
                         Three Months Ended       Nine Months Ended
                             Sept. 30,                 Sept. 30,
                          1993       1992          1993        1992
    Selected Statement of
     Operations Data:
    Interest income    $11,050      $6,375       $25,805     $19,793
    Interest expense     6,700       3,921        14,400      12,363
    Net interest income
     before provision
     for estimated loan
     losses              4,350       2,454        11,405       7,430
    Provision for
     estimated loan
     losses              1,109         315         2,286       1,657
    Net interest income
     after provision for
     estimated loan
     losses              3,241       2,139         9,119       5,773
    Servicing fee income 5,209       1,826         8,959       4,541
    Amortization of
     PMSR               (2,245)        (28)       (2,629)        (73)
    Net gain (loss)
     on sales of loans  (1,703)      3,072        (2,756)     13,522
    Net gain on sales of
     bulk servicing
     rights             13,791       7,198        35,017      15,248
    Real estate operations
     and other            (815)       (278)       (1,517)       (577)
    General and
     expense            10,523      6,669         28,597      19,280
    Earnings before
     income taxes        6,955      7,260         17,596      19,154
    Income taxes         2,890      2,996          7,298       7,918
    Net earnings        $4,065     $4,264        $10,298     $11,236
    Adjusted average shares
     outstanding(a) 11,131,800 11,131,800     11,131,800  11,131,800
    Adjusted net earnings
     per share(a)        $0.37      $0.38          $0.93       $1.01
    Selected Operating Data:
     Mortgage loan
      originations  $2,230,699 $1,355,333     $5,631,208  $4,165,259
    Mortgage loan
     originations by
     Wholesale            74.2 pct   77.0 pct       76.7 pct    73.3 pct
     Retail               14.4 pct   12.8 pct       13.7 pct    12.7 pct
     Correspondent         9.3 pct   10.2 pct        8.3 pct    14.0 pct
     Option One            2.1 pct    0.0 pct        1.3 pct     0.0 pct
     Total               100.0 pct  100.0 pct      100.0 pct   100.0 pct
    Mortgage loan
     originations by type:
      conforming          62.6 pct   70.1 pct       67.7 pct    71.1 pct
     Conventional non-
      conforming          32.4 pct   27.4 pct       27.8 pct    26.8 pct
     Government            5.0 pct    2.5 pct        4.5 pct     2.1 pct
     Total               100.0 pct  100.0 pct      100.0 pct   100.0 pct
                       PLAZA HOME MORTGAGE CORP.
                 Selected Balance Sheet and Other Data
                                                    Sept. 30,
                                                1993         1992
    Mortgage loans held for sale              $621,570     $329,561
    Total assets                              $759,907     $374,387
    Deposit accounts                          $532,308     $246,202
    Short-term debt                            $74,620      $77,278
    Long-term debt                             $30,280           $0
    Stockholders' equity                       $71,710      $28,128
    Mortgage loan servicing portfolio
     -- principle balance                   $7,263,085   $2,565,337
    Mortgage loan servicing portfolio
     -- loan count                              64,567       17,788
    Mortgage loan servicing portfolio
     -- weighted average coupon                   7.82 pct     8.23 pct
    Mortgage loan servicing portfolio
     -- weighted average servicing fee            0.31 pct     0.32 pct
    (a)  Adjusted to give effect to the Initial Public Offering as if it had occurred on Jan. 1, 1992.  No effect given to the dilutive effect of stock options or convertible preferred stock.
    -0-             10/26/93
    CONTACT:  Pam Albo (investor relations) of Plaza Home Mortgage, 714-564-3002; John Shaw (LA), 818-783-2400, Sue Caulton (SF), 415-986-1591, Regina Ryan (NY), 212-661-8030, of The Financial Relations Board

-- LA055 -- X293 10/26/93
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Publication:PR Newswire
Date:Oct 26, 1993

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