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."
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.
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.
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SOURCE Origen Financial, Inc.