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TMFZ News TMSF Holdings, Inc. Reports Third-Quarter Results

LOS ANGELES--(BUSINESS WIRE)--TMSF Holdings, Inc. (OTCBB:TMFZ), today announced results of operations for its fiscal year 2006 third quarter, ended September 30, 2006.

Revenues for the Company and its wholly owned subsidiary, The Mortgage Store Financial, Inc., for the third quarter of 2006 totaled $23.8 million, a 17.4% increase from $20.3 million for the three months ended September 30, 2005.

Net income for the third quarter of 2006 totaled $1.4 million, or $0.09 per basic and diluted share, compared to $3.2 million, or $0.21 per basic share, $0.20 diluted, for the third quarter of 2005. Net income in the third quarter of 2006 includes a $2.8 million provision for impairment of mortgage loans versus a $0.4 million impairment provision during the third quarter of 2005.

Net income as a percentage of total revenues declined to 5.8% in the 2006 third quarter compared to 15.7% in the corresponding period of 2005. The net income was negatively impacted by significantly higher loss provision recorded during the quarter and generally higher interest cost on the company’s warehouse lines of credit.

The dollar value of the Company’s mortgage originations for the quarter ended September 30, 2006, increased 15.8% over the corresponding period of 2005, while the industry-wide dollar value of one-to-four family residential loan originations declined approximately 28% over the same period, according to the Mortgage Bankers Association. For the nine months ended September 30, 2006, the Company’s loan originations grew 15.4% compared to the corresponding period of 2005. Industry-wide, originations declined by approximately 16% in the same time period.

“While we are pleased that we outperformed the industry in increasing loan originations during the quarter, our primary objectives for the immediate future are to increase gross premiums earned on loans sold, to reduce loan problems and reserves related thereto, and to increase operating efficiency through increased technology,” commented Raymond Eshaghian, CEO of TMSF Holdings, Inc. and President of The Mortgage Store Financial, Inc.

“This most recent quarter was negatively impacted by a large increase in the loan loss provision,” Mr. Eshaghian concluded. “This, we feel, was an appropriate and necessary response to a mortgage industry environment that is experiencing significant changes, with higher interest rates, a slowdown in new housing, higher delinquencies and far greater scrutiny being paid by investors to compliance provisions in the loan portfolios we sell.”

Management of TMSF Holdings will hold a conference call to discuss financial results for the third quarter and nine months of fiscal year 2006, ended September 30, on Monday, November 20, at 11:30 a.m. Pacific Time (2:30 p.m. ET).

To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 800-399-7496. There is no pass code required for this call.

If you are unable to participate in the call at this time, a replay will be available on Monday, November 20, at approximately 1:30 p.m. PT, through Monday, November 27, at 9:00 p.m. PT. To access the replay dial 800-642-1687 and enter the conference ID number 2217960.

A replay of the conference call will also be made available on the TMSF Holdings web site www.TMSFHoldings.com.

About TMSF Holdings

TMSF Holdings, Inc. is a financial holding company that through its wholly owned subsidiary, The Mortgage Store Financial, Inc., is engaged in nationwide mortgage banking. The goal of The Mortgage Store Financial, Inc. is to become a national leader in the mortgage banking industry by continuing to expand its geographic coverage and maximizing the volume of business from existing clients while adopting innovative processes to improve its profitability.

Information Regarding Forward-Looking Statements

Certain statements contained in this news release may be deemed to be forward-looking statements under federal securities laws, and TMSF intends that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the `safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. Such factors include, but are not limited to, (i) the condition of the U.S. economy and financial system, (ii) the stability of residential property values, (iii) the potential effect of new state or federal laws or regulations, (iv) the effect of increasing competition in TMSF’s sector, (v) the interest rate environment, (vi) TMSF's ability to maintain adequate financing facilities, and (vii) the risks identified in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and its other periodic filings with the Securities and Exchange Commission.