STEUBENVILLE, Ohio - Rymac Mortgage Investment Corp. reported fourth-quarter net income of $98,000, reversing a year-earlier loss of $7.7 million.

Per-share income rose to 1 cent, after a $1.48 loss.

For all of, 1994, the company reported net income of $805,000, or 15 cents a share, against a net loss of $25.6 million, or $4.92 a share, in 1993.

Rymac said its 1993 results were severely affected by the unprecedentedly high level and extended duration of prepayments on residential mortgages collateralizing the company's assets.

Prepayment activity slowed drastically in 1994, and produced a stabilization of the company's cash flow and the market value of its assets. However, the historically high prepayment levels during all of 1992 and 1993 and into the first quarter of 1994 have permanently reduced cash flow and earnings, the company said.

The results for 1993's fourth quarter reflect downward adjustments to the carrying value of assets totaling $7.6 million, or $1.46 per share. For the entire year of 1993, downward adjustments in carrying value were $25.6 million, or $4.91 a share. The company's valuation adjustments for the fourth quarter and full year of 1994 were only $285,000, it said.

As previously reported, the company has had no outstanding borrowing obligations since Nov. 30, 1994, and maintains a cash reserve of about $5 million. The company intends to makes its initial investment in tax sale certificates during 1995's second quarter.

Rymac also said it was engaged in discussions regarding several business combinations that would effectively utilize its substantial tax-loss carry forward of about $35 million.

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