Origen Financial Announces Second Quarter 2010 Results

SOUTHFIELD, Mich., Aug. 12 /PRNewswire-FirstCall/ -- Origen Financial, Inc. (Pink Sheets: ORGN) ("Origen"), a real estate investment trust that manages residual interests in securitized manufactured housing loan portfolios, today announced a net loss of approximately $3.7 million or $0.14 per share, for the quarter ended June 30, 2010, as compared to a net loss of approximately $2.5 million, or $0.10 cents per share, for the second quarter of 2009.  For the six months year to date, Origen realized a net loss of approximately $8.0 million, or $0.31 per share, as compared to a net loss of approximately $2.0 million, or $0.08 per share, for the same period in 2009.  Origen's Board of Directors did not declare a dividend on its common stock for the second quarter of 2010.

The second quarter 2010 provision for loan losses was approximately $6.1 million versus approximately $5.0 million for the prior year quarter, an increase of 22 percent.  Year to date, the loan loss provision totaled approximately $14.0 million as compared to a provision of approximately $9.0 million for the first six months of 2009, an increase of 56 percent.  The aging of Origen's static loan portfolio as loans enter the peak years for delinquencies and defaults, as well as overall economic conditions, especially the increased unemployment rate, has increased the level of loan loss reserves needed and has resulted in increased loan loss provisions. Non-interest expenses, including loan servicing fees, totaled $4.1 million for the second quarter 2010 and $8.4 million for the six months year to date, representing decreases of 29 percent and 24 percent, respectively, from the year ago periods.

Net cash flows from operations and the sale of securities enabled Origen to pay down $9.2 million of principal on related party debt during the quarter.  Year to date through June 30, 2010, principal pay downs totaled $12.2 million.

Ronald A. Klein, chief executive officer, stated, "Our strong cash flows allowed us to continue to reduce our related party debt during the quarter.  Subsequent to quarter end, we paid down an additional $1 million of the debt, and we anticipate liquidating the balance of the debt prior to year end."

Earnings Call

A conference call has been scheduled for Friday, August 13, 2010, at 11:00 a.m. Eastern Time to discuss second quarter results.  The call may be accessed by dialing 888-417-8525.  A replay will be available through August 20, 2010 by dialing 877-870-5176 passcode 8215249.

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 with the Securities and Exchange Commission. 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






(Unaudited)




June 30,


December 31,


2010


2009

Assets




Cash and Equivalents

$                                2,728


$                                3,827

Restricted Cash

10,463


10,419

Investment Securities

2,173


8,727

Loans Receivable

759,290


808,360

Furniture, Fixtures and Equipment, Net

151


197

Repossessed Houses

8,475


7,918

Other Assets

6,481


6,834

Total Assets

$                            789,761


$                            846,282





LIABILITIES AND STOCKHOLDERS' EQUITY





Liabilities




Securitization Financing

654,092


689,762

Note Payable-Related Party

3,580


15,638

Derivative Liabilities

43,246


33,065

Other Liabilities

12,917


13,711

Total Liabilities

713,835


752,176





Equity

75,926


94,106





Total Liabilities and Equity

$                            789,761


$                            846,282



ORIGEN FINANCIAL, INC.

CONSOLIDATED STATEMENT OF EARNINGS

(Dollars in thousands, except for share data)

(Unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2010


2009


2010


2009

Interest Income








Total Interest Income

$          18,040


$          21,042


$          36,958


$          42,747

Total Interest Expense

11,668


12,959


23,250


26,047

Net Interest Income Before Loan Losses and Impairment

6,372


8,083


13,708


16,700

Provision for Loan Losses

6,114


4,964


13,998


8,984

Impairment of Purchased Loan Pool

260


212


382


212

Net Interest Income After Loan Losses and Impairment

(2)


2,907


(672)


7,504

Non-interest Income (Loss)








Losses on Assets Held for Sale

(242)


-


(242)


-

Other

651


440


1,348


1,549

Total Non-interest Income (Loss)

409


440


1,106


1,549

Non-interest Expenses








Total Personnel

611


1,731


1,368


2,846

Total Loan Origination & Servicing

2,599


2,920


5,272


5,947

State Taxes

141


59


196


118

Total Other Operating

770


1,094


1,533


2,066

Total Non-interest Expenses

4,121


5,804


8,369


10,977

Income (Loss) Before Income Taxes

(3,714)


(2,457)


(7,935)


(1,924)

Income Tax Expense

16


19


43


39

Net Income (Loss)

(3,730)


(2,476)


(7,978)


(1,963)

















Weighted Average Common Shares Outstanding, Basic

25,926,149


25,926,149


25,926,149


25,926,149

Weighted Average Common Shares Outstanding, Diluted

25,926,149


25,926,149


25,926,149


25,926,149

Basic Earnings Per Common Share:








Income (Loss) From Continuing Operations

$             (0.14)


$             (0.10)


$             (0.31)


$             (0.08)

Income From Discontinued Operations

-


-


-


-

Net Income (Loss)

$             (0.14)


$             (0.10)


$             (0.31)


$             (0.08)



SOURCE Origen Financial, Inc.



RELATED LINKS
http://www.origenfinancial.com

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