Origen Financial Announces Final First Quarter 2010 Results

SOUTHFIELD, Mich., May 13 /PRNewswire-FirstCall/ -- Origen Financial, Inc. (Pink Sheets: ORGN), a real estate investment trust that manages residual interests in securitized manufactured housing loan portfolios, today announced a net loss of $4.2 million or $0.16 per share, for the quarter ended March 31, 2010, as compared to net income of $0.5 million, or $0.02 per share, for the first quarter of 2009.  Origen's Board of Directors did not declare a common stock dividend payment for the first quarter of 2010.

Net interest income before loan losses and impairments decreased from the year ago quarter by $1.3 million, or 15%, to $7.3 million, as our static loan portfolio was reduced by principal pay downs and defaults.  The first quarter 2010 provision for loan losses was $7.9 million versus $4.0 million for the prior year quarter, an increase of 97% percent.  The aging of our loan portfolio as loans begin to enter the peak years for delinquencies and defaults, and a continuing difficult economic environment, have increased the level of loan loss reserves needed, resulting in increased loan loss provisions, primarily due to the performance of our later transactions with heavy California concentrations.  

Non-interest expenses for the quarter were $4.2 million, including $2.7 million of loan servicing expenses primarily paid to Green Tree Servicing, LLC.  Total non-interest expenses decreased $1.0 million, or 19% from the first quarter 2009.  

Ronald A. Klein, Chief Executive Officer, stated, "We are seeing continued improvement in overall loan delinquencies during 2010. Our cash flows remain strong and we reduced our related party debt an additional $3.0 million during the first quarter 2010 and an additional $1.0 million in mid-April 2010. Furthermore, as reported in our preliminary earnings release of May 3, 2010, we utilized proceeds from the sale of a mortgage bond to reduce the debt balance an additional $6.2 million in late April 2010.  We anticipate a further reduction of $1.0 million later in May which will result in a remaining balance of $4.8 million and expect the related party debt to be fully paid before the maturity date of April 2011."

Earnings Call and Webcast

A conference call has been scheduled for Friday, May 14, 2010, at 11:00 a.m. Eastern Time to discuss first quarter operations.  The call may be accessed by dialing 888-417-8531.  A replay will be available through May 21, 2010 by dialing 888-203-1112, passcode 1302541.  

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.

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SOURCE Origen Financial, Inc.