United Financial Mortgage Corp. Reports Second Quarter Results OAK
BROOK, Ill., Dec. 16 /PRNewswire-FirstCall/ -- United Financial
Mortgage Corp. (or the "Company") today announced results for its
second quarter and six months ended October 31, 2003. Second
Quarter Results Revenues for the quarter ended October 31, 2003
increased 55% to $17,133,691 from $11,075,873 for the quarter ended
October 31, 2002. Net income rose 48% to $1,322,883, or $0.32 per
diluted share, for the most recent quarter, as compared with
$894,888, or $0.22 per diluted share, for the corresponding period
last year. Six Month Results Revenues for the six months ended
October 31, 2003 increased 131% to $39,569,845 from $17,126,424 for
the corresponding period of 2002. Six-month net income rose to
$3,111,902 or $0.76 per diluted share, as compared to $1,226,509,
or $.31 per diluted share for the same period last year. Servicing
Portfolio As of October 31, 2003, the mortgage loans in the
Company's loan-servicing portfolio had an unpaid principal balance
of $1.1 billion, up from $214 million as of the same date last
year. Income from loan servicing increased by $426,942 to $503,465
for the quarter ended October 31, 2003, from $76,523 for the same
period last year. The weighted average coupon rate of the
underlying mortgage loans in the portfolio was approximately 5.4%
as of October 31, 2003. Steve Khoshabe, President and Chief
Executive Officer of the Company, commented: "As both the Company
and the industry experience a significant decrease in loan
production, especially when combined with the reduction in overall
mortgage financings we typically see this time of year, we continue
to focus on building our conventional loan-servicing portfolio as a
strategy to manage the risks associated with the cyclical nature of
our business. We believe that building our servicing portfolio
during a period of historically low interest rates will allow us to
create a profitable long-term revenue stream." Mr. Khoshabe added,
"Although the rise in interest rates has resulted in a decrease in
the number of mortgage applications, it has presented the company
with an opportunity to increase market share. We believe that as a
result of the industry-wide consolidation that has already begun,
we will have the opportunity to attract experienced mortgage
professionals. This opportunity, combined with our strategy of
controlling costs, expanding both organically and through
acquisitions, and continuing to selectively build our servicing
portfolio, set against the backdrop of our recent public offering
should leave us well positioned for future growth." About United
Financial Mortgage Corp. United Financial Mortgage Corp. is a
mortgage banker principally engaged in originating retail and
wholesale mortgages for single-family residences of one to four
units. The Company, which is authorized to engage in the mortgage
banking business in 36 states, is headquartered in Oak Brook,
Illinois and has offices in several other states. The Company's web
site (http://www.ufmc.com/) allows consumers to get information on
the many different types of mortgage loans offered by the Company,
calculate mortgage payments, and apply online for a mortgage. This
press release contains, and future oral and written statements may
contain, forward-looking statements within the meaning of such term
in the Private Securities Litigation Reform Act of 1995 with
respect to the Company's business, financial condition, results of
operations, plans, objectives and future performance.
Forward-looking statements, which may be based upon beliefs,
expectations and assumptions of management and on information
currently available to management, are generally identifiable by
the use of words such as "believe," "expect," "anticipate," "plan,"
"intend," "estimate," "may," "will," "would," "could," "should" or
other similar expressions. Additionally, all statements in this
document, including forward-looking statements, speak only as of
the date they are made, and the Company undertakes no obligation to
update any statement in light of new information or future events.
The forward-looking statements are subject to various risks and
uncertainties. Such risks and uncertainties include, but are not
limited to, changes in demand for mortgage loans due to
fluctuations in the real estate market, interest rates or the
market in which the Company sells its mortgage loan; the negative
impact of economic slowdowns or recessions; and other risks
disclosed from time to time in the Company's SEC reports and
filings. -- FINANCIAL TABLES FOLLOW -- UNITED FINANCIAL MORTGAGE
CORP. Balance Sheets October 31, 2003 and 2002 (Unaudited) October
31, October 31, 2003 2002 ASSETS Cash and due from financial
institutions $751,649 $1,758,534 Interest-bearing deposits in
financial institutions 3,484,194 2,593,381 Total cash and cash
equivalents 4,235,843 4,351,915 Restricted cash 490,118 1,103,096
Certificates of deposit 1,243,403 1,225,609 Loans held for sale
152,107,800 141,276,713 Notes receivable-related parties 21,147
66,093 Mortgage servicing rights, net 11,506,754 2,669,724
Leasehold improvements and equipment, net 1,087,792 295,762 Prepaid
expenses and other assets 1,670,632 843,481 Total assets
$172,363,489 $151,832,393 LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities Warehouse lines of credit $146,979,389 $137,838,626
Note payable 350,000 350,000 Accrued expenses and other liabilities
9,027,013 4,058,159 Total liabilities 156,356,402 142,246,785
Shareholders' equity Preferred stock, 5,000,000 authorized, no par
value, Series A redeemable shares, 63 issued and outstanding at
October 31, 2003 and 2002 respectively (aggregate liquidation
preference of $315,000) 315,000 315,000 Common stock, no par value,
20,000,000 shares authorized, 4,101,629 and 4,095,029 shares issued
at October 31, 2003 and 2002, respectively 6,649,533 6,633,903
Retained earnings 9,364,139 2,907,952 16,328,677 9,856,855 Treasury
stock, 176,700 and 158,900 shares at October 31, 2003 and 2002,
respectively, at cost (321,590) (271,247) Total shareholders'
equity 16,007,087 9,858,608 Total liabilities and shareholders'
equity $172,363,489 $151,832,393 UNITED FINANCIAL MORTGAGE CORP.
Statements of Income Six months and three months ended October 31,
2003 and 2002 (Unaudited) Six Months Six Months Three Months Three
Months Ended Ended Ended Ended October 31, October 31, October 31,
October 31, 2003 2002 2003 2002 Revenues Gain on sale of loans
$34,370,445 $14,754,254 $14,551,417 $9,680,819 Loan servicing
income 725,463 130,836 503,465 76,523 Interest income 4,281,011
2,179,835 2,038,560 1,277,842 Other income 192,926 61,499 40,249
40,689 Total revenues 39,569,845 17,126,424 17,133,691 11,075,873
Expenses Salaries and commissions 26,493,786 11,221,681 10,692,229
7,452,379 Selling and administrative 5,411,482 2,651,287 3,120,273
1,400,847 Interest expense 2,280,984 1,135,697 1,010,937 692,878
Depreciation 191,777 73,575 100,134 38,288 Total expenses
34,378,029 15,082,240 14,923,573 9,584,392 Income before income
taxes and cumulative effect of change in accounting principle
5,191,816 2,044,184 2,210,118 1,491,481 Income taxes 2,079,914
817,675 887,235 596,593 Income before cumulative effect of change
in accounting principle 3,111,902 1,226,509 1,322,883 894,888
Cumulative effect of change in accounting principle, net of tax --
86,821 -- -- Net income $3,111,902 $1,313,330 $1,322,883 $894,888
Basic earnings per common share before cumulative effect of change
in accounting principle $.79 $.31 $.34 $.23 Per share cumulative
effect of a change in accounting principle -- .02 -- -- Basic
earnings per common share $.79 $.33 $.34 $.23 Diluted earnings per
common share before cumulative effect of change in accounting
principle $.76 $.31 $.32 $.22 Per share cumulative effect of a
change in accounting principle -- .02 -- -- Diluted earnings per
common share $.76 $.33 $.32 $.22 DATASOURCE: United Financial
Mortgage Corp. CONTACT: Steve Khoshabe, President & Chief
Executive Officer, United Financial Mortgage, +1-630-571-7222, or
fax, +1-630-571-2623, or ; or Dave Gentry, Aurelius Consulting
Group, Inc., +1-407-644-4256, or fax, +1-407-644-0758, or , for
United Financial Mortgage Corp. Web site: http://www.ufmc.com/
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