Origen Financial Announces Fourth Quarter And Full Year 2013 Results

Feb 19, 2014, 16:00 ET from Origen Financial, Inc.

SOUTHFIELD, Mich., Feb. 19, 2014 /PRNewswire/ -- Origen Financial, Inc. (Pink Sheets: ORGN) ("Origen" or the "Company"), a real estate investment trust that manages residual interests in securitized manufactured housing loan portfolios, today announced net income of $587,000, or approximately $0.02 per share of common stock outstanding, for the quarter ended December 31, 2013, as compared to a net loss of $70,000 for the fourth quarter of 2012. For the year ended December 31, 2013 a net loss of $2.1 million or $0.08 per share was realized as compared to a net loss of $1.4 million, or $0.05 per share for the twelve months ended December 31, 2012. The results for 2012 include a gain of approximately $6.2 million relating to the termination of certain of Origen's interest rate swap transactions with Citibank, N.A.

On February 19, 2014, Origen's Board of Directors declared a dividend on common stock of $0.08 per share to be paid to holders of Origen's common stock of record on March 3, 2014.  The dividend will be paid on March 13, 2014 and will approximate $2.1 million.

Net interest income, before loan losses and impairment, decreased by approximately 20 percent for the fourth quarter 2013 to $3.5 million from $4.3 million for the fourth quarter 2012 and decreased approximately 16 percent to $15.2 million for the full year 2013 versus $18.0 million for 2012.  Such decrease is the result of the continued runoff of the Company's securitized loan portfolio and the corresponding reduction in bonds payable. The fourth quarter 2013 provision for loan losses was $1.9 million versus $3.3 million for the prior year quarter, a decrease of approximately 42 percent. The provision for loan losses for the full year 2013 was $10.2 million as compared to $17.4 million for 2012, also a decrease of approximately 42 percent.  Such decreases are a result of the declining loan balances, as well as improvements in delinquency levels and increased recovery percentages on the dispositions of foreclosures and repossessions.  The Company also recorded a reversal of a prior impairment on a purchased loan portfolio in the fourth quarter 2013.  The reversal approximated $1.0 million and was the result of improved cash flows on the purchased loan portfolio. Such portfolio was originally recorded as a loan pool purchased with evidence of deterioration of credit quality.

Non-interest expenses, including $1.6 million of loan servicing expense, were $2.6 million for the fourth quarter 2013, as compared to $2.7 million, including $1.9 million of loan servicing expense, for the year ago quarter, a decrease of approximately 4 percent.  Full year 2013 non-interest expenses, including $6.8 million of loan servicing expense, were $10.3 million as compared to $11.4 million, including $7.9 million of loan servicing expense, for the prior year, a decrease of approximately 11 percent.

Earnings Call and Webcast

A conference call has been scheduled for Thursday, February 20, 2014 at 11:00 a.m. Eastern Time to discuss fourth quarter and full year 2013 results and current operations.  The call may be accessed by dialing 888-539-3612 or 719-325-2420.  A replay will be available through February 27, 2014 by dialing 877-870-5176 or 858-384-5517 pass code 5610581. 

Forward-Looking Statements

This press release contains various "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and Origen intends that such forward-looking statements will be subject to the safe harbors created thereby. The words "will," "may," "could," "expect," "anticipate," "believes," "intends," "should," "plans," "estimates," "approximate" and similar expressions identify these forward-looking statements. These forward-looking statements reflect Origen's current views with respect to future events and financial performance, but involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These risks and uncertainties may cause Origen's actual results to be materially different from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the foregoing assumptions and those risks referenced under the headings entitled "Factors That May Affect Future Results" or "Risk Factors" contained in Origen's filings. The forward-looking statements contained in this press release speak only as of the date hereof and Origen expressly disclaims any obligation to provide public updates, revisions or amendments to any forward- looking statements made herein to reflect changes in Origen's expectations or future events.

About Origen Financial, Inc.

Origen is an internally managed and internally advised company that has elected to be taxed as a real estate investment trust. Origen is based in Southfield, Michigan.

For more information about Origen, please visit http://www.origenfinancial.com.

Financial Tables Follow…

 

ORIGEN FINANCIAL, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

ASSETS

December 31,

December 31,

2013

2012

Assets

     Cash and Equivalents

$               774

$               826

     Restricted Cash

8,516

11,110

     Investment Securities

1,191

1,442

     Loans Receivable, Net

463,254

543,420

     Furniture, Fixtures and Equipment, Net

35

33

     Repossessed Houses, Net

1,401

2,180

     Other Assets

3,612

4,233

Total Assets

$        478,783

$        563,244

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

     Securitization Financing

423,369

491,720

     Derivative Liabilities

29,552

37,454

     Other Liabilities

8,557

10,935

Total Liabilities

461,478

540,109

Equity

17,305

23,135

Total Liabilities and Equity

$        478,783

$        563,244

 

ORIGEN FINANCIAL, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars in thousands, except for share data)

(Unaudited)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2013

2012

2013

2012

Interest Income

   Total Interest Income

$           11,189

$            13,253

$          47,670

$          55,486

   Total Interest Expense

7,714

8,929

32,476

37,440

Net Interest Income Before Loan Losses and Impairment

3,475

4,324

15,194

18,046

   Provision for Loan Losses

1,906

3,280

10,169

17,415

   Reversal of Prior Impairment on Purchased Loan Pool

(1,017)

-

(1,017)

-

Net Interest Income (Loss) After Loan Losses and Impairment

2,586

1,044

6,042

631

Non-interest Income

   Gain on Derivative

-

-

-

6,278

   Other

626

1,563

2,105

3,073

Total Non-interest Income

626

1,563

2,105

9,351

Non-interest Expenses

   Total Personnel

342

359

1,376

1,428

   Total Loan Servicing Expenses

1,589

1,861

6,764

7,870

   State Taxes

49

78

253

279

   Other Operating

633

420

1,857

1,782

Total Non-interest Expenses

2,613

2,718

10,250

11,359

Net Income (Loss) Before Income Taxes

599

(111)

(2,103)

(1,377)

   Income Tax Expense (Benefit)

12

(41)

34

-

   Net Income (Loss)

$                 587

$                  (70)

$           (2,137)

$           (1,377)

Weighted Average Common Shares Outstanding, Basic and Diluted

25,926,149

25,926,149

25,926,149

25,926,149

   Net Income (Loss) Per Common Share

$                0.02

$               (0.00)

$             (0.08)

$             (0.05)

SOURCE Origen Financial, Inc.



RELATED LINKS

http://www.origenfinancial.com