BATON ROUGE, La. -- United Companies Financial Corp. reported net income of $9.8 million for the three months ended Sept. 30, a significant increase over the $2.1 million earned in the third quarter of 1992.
The earnings were equal to $1.94 a share, against 46 cents a share for the third quarter of 1992.
The $9.8 million earned in this quarter, coupled with $6.4 million in the second quarter, has nearly offset the $17.6 million writedown taken in the first quarter as part of management's decision to divest its Foster Mortgage division, the company said. It has decided to concentrate on its core mortgage lending and insurance operations.
"The growth in earnings in these past two quarters is reflective of increased production in our continuing lines of business, and was largely fueled by a 61% rise in home equity mortgage loan production for the year to date," said J. Terrell Brown, president and chief executive.
United Companies has been trying to sell Foster Mortgage, but negotiations with a number of potential buyers have fallen through in recent months.
Production of home equity loans was $358.3 million for the year to date, exceeding the $222.9 million originated in the first nine months last year and surpassing the record of $301.2 million produced in all of 1992.
Title insurance premiums were $14.5 million, a 102% rise over the level in the first nine months of 1992.
