RBMG Cites Record Operating Earnings

Resource Bancshares Mortgage Group Inc., Columbia, S.C., has reported net income of $13.1 million ($0.56 per share) for the second quarter.Excluding a $1.5 million pretax gain from the sale of the retail production, the company's operating earnings were a record $12.2 million ($0.52 per share), compared with $7.4 million ($0.35 per share) a year ago. The company's total agency-eligible mortgage loan pipeline was $1.8 billion at June 30, compared with $1.5 billion a year earlier, and its agency-eligible servicing portfolio totaled $9.4 billion, up from $7.2 billion a year earlier. The earnings increase for the second quarter was mainly attributable to a $19.2 million increase in net gain on sale of loans and a $1.5 million gain on sale of the retail production platform. The company said the gain-on-sale increase for loans "are primarily due to increased production and gains derived from the growing subprime and commercial mortgage operations, neither of which contributed significantly to the comparable periods of the prior year."