DIAMOND BAR, Calif. -- First Mortgage Corp. showed a drop in net income for the fiscal year ended March 31 to $4.99 million, or 83 cents a share, from $5.26 million, or 89 cents a share.
Revenues reached a record $28.99 million, a 10.7% increase over revenues of $26.19 million for fiscal 1993. The company attributed the decline in earnings despite a revenue gain to the sharp increase in interest rates in its fiscal fourth quarter.
Loan-origination income grew by 0.6% for the year, loan-servicing income climed 20.6%, and interest income gained 12.1%. Gains on sale of loans increased 11.9%.
The yearend and fourth-quarter per-share results reflect a five-for-four stock split effected Aug. 2, 1993, and options granted in July 1993.
The decline in fourth-quarter market conditions resulted in a decrease in revenues to $5,239,000 from $7 million for the year-ago quarter.
The loan servicing portfolio grew to $1.5 billion at fiscal yearend, up by 13%.
"Our robust results through the first three quarters of the fiscal year were substantially offset by the nationwide decline in mortgage banking business due to the rise in interest rates that began in our third fiscal quarter and then increased precipitously during the fourth quarter of the fiscal year," said Clement Ziroli, chairman, president, and chief executive.