United Financial Mortgage Corp. Reports First Quarter Results *
Servicing Portfolio Reaches $1.5 Billion * Steve Khoshabe and
Anthony Schweiger added to Board of Directors OAK BROOK, Ill.,
Sept. 9 /PRNewswire-FirstCall/ -- United Financial Mortgage Corp.
(AMEX:UFM)(the "Company") today announced results for the first
quarter ended July 31, 2004. First Quarter Results Revenues for the
quarter ended July 31, 2004 decreased $6.9 million to $15.6 million
from $22.4 million for the quarter ended July 31, 2003. Net income
was $.9 million, or $.15 per diluted share (based on 6,148,940
fully diluted shares outstanding) for the most recent quarter, as
compared with $1.8 million, or $.43 per diluted share (based on
4,123,196 fully diluted shares outstanding), for the corresponding
period last year. Mortgage Banking Business As of July 31, 2004,
the mortgage loans in the Company's mortgage loan- servicing
portfolio had an aggregate unpaid principal balance of $1.5
billion, up from $939 million from the same date last year. Income
from mortgage loan- servicing increased by $561 thousand to $783
thousand for the quarter ended July 31, 2004, a 253% increase from
the same period last year. The weighted average coupon interest
rate of the mortgage loans in the loan-servicing portfolio was
approximately 5.4% as of July 31, 2004. The Company funded $471
million in mortgage loans during the quarter ended July 31, 2004, a
$547 million decrease compared to the quarter ended July 31, 2003.
Commenting on mortgage operations in the Company's first quarter,
Steve Khoshabe, President and Chief Executive Officer of the
Company stated, "Despite facing the continued challenges of today's
mortgage environment, we were able to deliver solid earnings and
grow our book value to $4.97 per share." Mr. Khoshabe added, "We
continue to implement our growth strategy of increasing our
servicing portfolio, growing our core origination platform, and
diversifying our business. During the first quarter, we opened two
new retail offices in offices in Chicago, Illinois and Wilmington,
North Carolina and a wholesale operations center in Charlotte,
North Carolina. In addition, we have also added six retail branch
offices through our acquisition of Vision Mortgage Group, Inc.
"With our balanced approach of continuing to selectively build our
mortgage loan-servicing portfolio, expanding both organically and
through acquisitions, controlling costs, and diversifying our
business, we believe we are well-positioned for continued growth in
fiscal 2005." Other News At the Company's annual meeting held on
September 8, 2004, all proposals submitted to the shareholders of
the Company were approved. Accordingly, the Board of Directors of
the Company is now comprised of seven directors. The new directors
are Messrs. Steve Khoshabe, the Company's President and Chief
Executive Officer and Anthony Schweiger. Mr. Schweiger will serve
as the Company's Audit Committee Chairmen and qualifies as an audit
committee financial expert in accordance with applicable laws.
Currently, Mr. Schweiger serves as the President and Chief
Executive Officer of The Tomorrow Group, LLC, a governance and
management consulting firm. Since 1992, he has been a director and
the Governance Chair of Radian Group Inc., a NYSE traded global
provider of credit enhancement products. He also serves on Radian's
Audit and Executive Committees. Since 2001, Mr. Schweiger has
served as a director of Paragon Technologies, Inc., an American
Stock Exchange traded provider of automated solutions for material
flow applications. He has also been an investor and director of
Input Technologies, LLC, a supplier of human-to- machine interface
products and services since February 1998. From 1983 until 1993,
Mr. Schweiger served as Chief Executive Officer of Meridian
Mortgage Corporation. In his capacity as a consultant, Mr.
Schweiger advises various service and technology businesses on
governance, operational and strategic issues. Mr. Schweiger is a
graduate of the Wharton School of Finance & Commerce at the
University of Pennsylvania. About United Financial Mortgage Corp.
United Financial Mortgage Corp. is an independent originator and
servicer of residential and commercial mortgage loans. The Company
is headquartered in Oak Brook, Illinois and has 37 retail offices
and 7 wholesale operations centers across 14 states. For additional
information, please visit the Company's web site at
http://www.ufmc.com/. 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. A number of
factors, many of which are beyond the ability of the Company to
control or predict, could cause actual results to differ materially
from those in its forward-looking statements. These factors
include, among others, the following: (i) 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 loans; (ii) the Company's access to funding sources and
its ability to renew, replace or add to its existing credit
facilities on terms comparable to the current terms; (iii)
assumptions underlying the value of the Company's retained mortgage
loan-servicing rights; (iv) the negative impact of economic
slowdowns or recessions; (v) management's ability to manage the
Company's growth and planned expansion; (vi) the effect of the
competitive pressures from other lenders or suppliers of credit in
the Company's market; (vii) changes in government regulations that
affect the Company's business; (viii) the Company's ability to
expand origination volume while reducing overhead; (ix) the impact
of new state or federal legislation or court decisions restricting
the activities of lenders or suppliers of credit in the Company's
market; (x) other risk factors disclosed from time to time in the
Company's filings with the Securities and Exchange Commission; and
(xi) the inability of the Company to manage the risks associated
with the foregoing as well as anticipated. These risks and
uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such
statements. Additional information concerning the Company and its
business, including additional factors that could materially affect
the Company's financial results, is included in the Company's
filings with the Securities and Exchange Commission. For Further
Information Contact: Steve Khoshabe, President & Chief
Executive Officer, United Financial Mortgage Corp., 815 Commerce
Drive, Suite 100, Oak Brook, IL 60523, (630) 571-7222, Fax: (630)
571-2623, Dave Gentry, Aurelius Consulting Group, Inc., Maitland
City Plaza, 225 S. Swoope Avenue, Suite 214, Maitland, FL 32751,
(407) 644-4256, Fax: (407) 644-0758, -- FINANCIAL TABLES FOLLOW --
UNITED FINANCIAL MORTGAGE CORP. BALANCE SHEETS As of July 31,
(Unaudited) 2004 2003 ASSETS Cash and due from financial
institutions $0 $1,610,280 Interest-bearing deposits in financial
institutions 11,132,042 6,931,693 Total cash and cash equivalents
11,132,042 8,541,973 Restricted cash 1,516,690 779,440 Certificates
of deposit 437,182 428,857 Loans held for sale 160,247,491
215,967,931 Notes receivable-related parties 12,051 25,617 Mortgage
servicing rights, net 18,272,844 9,514,331 Leasehold improvements
and equipment, net 1,178,613 1,106,516 Goodwill 574,990 99,505
Prepaid expenses and other assets 2,555,875 1,118,806 Total assets
$195,927,778 $237,582,976 LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities Warehouse lines of credit $155,617,244 $ 212,742,927
Note payable -- 350,000 Accrued expenses and other liabilities
9,722,972 9,807,090 Total liabilities 165,340,216 222,900,017
Shareholders' equity Preferred stock, 5,000,000 authorized, no par
value, Series A redeemable shares, 63 issued and outstanding at
July 31, 2004 and 2003 (aggregate liquidation preference of
$315,000) 315,000 315,000 Common stock, no par value, 20,000,000
shares authorized, 6,140,843 shares issued at July 31, 2004 and
4,100,929 at July 31, 2003 18,687,023 6,648,293 Retained earnings
11,907,129 8,041,256 30,909,152 15,004,549 Treasury stock, 176,700
shares at July 31, 2004 and 2003, at cost (321,590) (321,590) Total
shareholders' equity 30,587,562 14,682,959 Total liabilities and
shareholders' equity $195,927,778 $237,582,976 UNITED FINANCIAL
MORTGAGE CORP. STATEMENTS OF INCOME For the three months ended July
31, (Unaudited) 2004 2003 Revenues Gain on sale of loans, net
$12,286,143 $19,819,029 Loan servicing income, net 782,686 221,998
Interest income 2,441,478 2,242,451 Other income 50,172 152,678
Total revenues 15,560,479 22,436,156 Expenses Salaries and
commissions 9,829,064 15,801,557 Selling and administrative
3,112,453 2,291,208 Interest expense 1,011,278 1,270,048
Depreciation 76,877 91,643 Total expenses 14,029,672 19,454,456
Income before income taxes 1,530,807 2,981,700 Income taxes 612,323
1,192,680 Net income 914,484 1,789,020 Preferred stock dividends 0
0 Net income for common stockholders $914,484 $1,789,020 Basic
earnings per common share $.15 $.46 Diluted earnings per common
share $.15 $.43 Weighted average shares outstanding 5,964,143
3,889,174 DATASOURCE: United Financial Mortgage Corp. CONTACT:
Steve Khoshabe, President & Chief Executive Officer, United
Financial Mortgage Corp., +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 Mortgage
Web site: http://www.ufmc.com/
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