COLUMBIA, S.C. - Resource Bancshares Mortgage Group Inc. reported that its net income in the first quarter fell to $1 million, or 8 cents a share, compared with $5.3 million, or 42 cents a share, in the same 1994 quarter.
The decline came primarily as a result of a 66% reduction in sales of purchased mortgage servicing rights. Net income per share was retroactively adjusted for a 5% stock dividend declared this March 24.
"Although the company's first-quarter results are dramatically lower than in the comparable period of 1994," said Lee Shelton, vice chairman and managing director, "we are encouraged by what we consider an improving mortgage loan environment and continue to be optimistic about the future.
"We are reminded, too, that the first quarter of 1994 was the most significant quarter in terms of revenue and earnings in the company's history. It was during this time period that the industry was riding the crest of the refinancing boom."
Net interest income was $794,000, a 71% decrease, resulting from a 60% decline in mortgage production.
The gain on sales of purchased mortgage servicing rights, which includes deferred loan administrative fees and deferred gains on sales of mortgage loans, was $1.8 million in the first quarter, a decrease of 83%. Purchased mortgage servicing rights sales totaled $372.3 million, down 66%.
Loan servicing fees totaled $5.9 million in the first quarter, an increase of 271%, as the portfolio doubled, to about $4 billion. The additions carried relatively high servicing fees.
In the first three months of 1995, the company bought $474.1 million of residential mortgage loans, compared with $1.2 billion in the 1994 quarter.
"Our vision for the future has led us to establish additional wholesale branches in Ohio, Texas, and Illinois, bringing the total of our wholesale branches to seven," Mr. Shelton said.
He added that the company has established a retail division headed by Joseph P. Sheridan, formerly of Fleet Mortgage Group.