DIAMOND BAR, Calif. - First Mortgage Corp. reported improved results for its first fiscal quarter, which ended June 30.
Revenues in the quarter rose 91%, to $5.5 million, from the same period last year. Net income for the quarter was $1 million, compared with a loss the year before of $618,000.
Net income for the first fiscal quarter this year included a gain of about $454,000 attributable to FAS 122, an amendment to an accounting rule requiring originated servicing to be recognized on the books.
"Despite continued sluggishness in the housing market in California, our major geographic area of operations, First Mortgage has achieved a major turnaround in performance as interest rates have declined," said Clement Ziroli, president, chief executive, and chairman, in a prepared statement.
Due largely to a decline in interest rates compared to the first fiscal quarter last year and the adoption of FAS 122, First Mortgage gained $2.4 million on the sale of mortgage loans, versus a $471,000 loss for the comparable quarter in 1994.
First Mortgage operates in California and other western states.
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BATON ROUGE, La. - United Companies Financial Corp. reported an increase in earnings for the second quarter. Net income was a record $16.4 million, a 12% gain from last year.
The second-quarter gain was to a level 8% above the previous record, in the third quarter of 1994.
United's home equity loan production was $363.2 million in the second quarter, its largest ever for home equity loans.
"The company achieved new records of loan production, loan sales, and profitability during the second quarter of 1995," said J. Terrell Brown, chairman and chief executive, in a prepared statement. "In addition, there is continued improvement in our asset quality statistics."