First Mortgage reports fourth-quarter revenues and earnings; loan pipeline quadruples during the past 90 days as decline in rates leads to favorable outlook

Business Wire, June 1, 1995

DIAMOND BAR, Calif.--(BUSINESS WIRE)--June 1, 1995--First Mortgage Corp. (NASDAQ:FMOR) Thursday reported financial results for the fourth quarter and fiscal year ended March 31, 1995.

The company's fourth-quarter net income increased to $384,000, or 7 cents per share, compared with $207,000, or 3 cents per share, for the fourth quarter of fiscal year 1994. Fourth-quarter revenues were $4,063,000, compared with revenues of $5,239,000 for the year-ago quarter.

Due to high interest rates and difficult market conditions that prevailed through the first three quarters of fiscal year 1995, First Mortgage's annual revenues were $12,946,000, compared with revenues of $28,985,000 for fiscal year 1994.

The company reported a net loss for the year of $548,000, or 9 cents per share, compared with net income of $4,989,000, or 83 cents per share for fiscal year 1994.

First Mortgage originated and purchased $174.5 million in new mortgage loans during fiscal year 1995. Approximately 68 percent of new loan production was in FHA and VA loans. The company's loan servicing portfolio grew to $1.534 billion at fiscal year end from $1.495 billion at the end of the previous fiscal year.

During the quarter the company purchased 5,000 shares of its common stock through a stock repurchase program announced on March 3, 1994. Since announcement of the plan, the company has repurchased 98,300 shares of its common stock.

"First Mortgage is in a strong competitive position following the tough market conditions that caused a severe shake-out in the mortgage banking industry during the last year. We expect to maintain profitability and resume our record of growth if interest rates remain stable or continue to decline," said Clement Ziroli, the company's chairman, president and chief executive officer.

Ziroli noted that First Mortgage experienced large-scale gains in its new loan pipeline during the last three months. "Our loan inventory quadrupled during the past 90 days to $44.1 million, and fundings nearly doubled during the period to $15.8 million. Business has definitely revitalized as rates have declined," Ziroli said.

At fiscal year end, First Mortgage had total assets of approximately $42.3 million, total liabilities of approximately $20.2 million, and shareholders' equity of approximately $22.1 million.

Ziroli concluded by stating, "First Mortgage is emerging from this very challenging high-rate period as a vibrant company with a strong balance sheet, growing loan portfolio and lean cost structure. If the rate environment remains stable, we expected to perform well in fiscal year 1996."

First Mortgage is a mortgage banking company that originates, purchases, sells and services first-deed-of-trust loans for owner-occupied one-to-four family residences. The company operates through a network of 15 offices in California, Nevada, Oregon and Washington.

For more information on First Mortgage Corp. via facsimile at no cost, call 800/PRO-INFO and dial client code 100. -0-