UCFC Reports 82% Drop in Earnings

United Companies Financial Corp., Baton Rouge, La., has reported net income of $4.3 million ($0.13 per share) for the second quarter, down 82% from $23.8 million ($0.73 per share) a year ago.Home equity loan production totaled $802.5 million for the quarter, up 14% from $703.4 million a year ago, while total loan production was $968.6 million, up from $756.9 million, UCFC said. The earnings figure fell within the $3-5 million range the company predicted July 21 when it announced the retention of Salomon Smith Barney to assist in seeking a "strategic partnership." The falloff in earnings was attributed partly to a prepayment-related $10 million charge to the value of UCFC's interest-only and residual certificates. As a result of the July 21 announcement, UCFC's ratings were placed under review by Standard & Poor's and Duff & Phelps Credit Rating Co. UCFC's website address is http://www.unitedcompanies.com.