Origen Financial Announces Fourth Quarter and Full Year 2009 Results
SOUTHFIELD, Mich., March 18 /PRNewswire-FirstCall/ -- 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 a net loss of $2.3 million, or $0.09 per share, for the quarter ended December 31, 2009, as compared to a net loss of $4.4 million, or $0.17 cents per share, for the fourth quarter of 2008. A net loss of $8.6 million, or $0.33 per share was realized for the full year 2009 versus a net loss of $35.4 million or $1.38 per share for the full year of 2008. Origen’s Board of Directors did not declare a common stock dividend payment for the fourth quarter of 2009.
An Asset Management and Disposition Plan (“the Plan”) was approved by Origen’s shareholders in June 2008 and detailed in its proxy filing dated May 22, 2008. Under the Plan, the Company ceased originating loans for its own account, sold its loan servicing-related assets effective July 1, 2008 and sold its loan origination platform and insurance operations effective July 31, 2008. Origen’s only remaining business is the management of retained interests in its securitized loan portfolios. In December 2008, the Company voluntarily delisted its common stock from the NASDAQ Global Market and also deregistered the stock under the Securities Exchange Act of 1934.
Costs associated with the execution of the Plan were significant contributing factors to the 2008 net loss. Such costs included a $25.5 million loss on the sale of un-securitized loans and related hedge termination costs, and approximately $10.7 million of costs, including severance payments, change of control costs, losses on fixed asset disposition and the acceleration of non-cash stock compensation expense.
For the fourth quarter 2009, net interest income before loan losses and impairment decreased by approximately 10 percent to $8.0 million from $8.9 million for the fourth quarter 2008 and increased for the full year 2009 by approximately 4 percent to $31.5 million from $30.3 million in 2008. The full year increase was primarily attributable to an approximately 17 percent decrease in interest expense versus an approximately 10 percent decrease in interest income. The disproportionate decrease in interest expense was largely due to an approximately 47 percent decrease in related party debt.
The fourth quarter 2009 provision for loan losses was $5.4 million versus $6.7 million for the prior year quarter, a decrease of approximately 19 percent. The loan loss provision for the full year of 2009 was $21.1 million, as compared to $17.7 million for 2008, an increase of approximately 19 percent.
Non-interest expenses, including expenses from discontinued operations and $2.8 million of loan servicing expense, were $5.1 million for the fourth quarter 2009, as compared to $7.1 million, including $3.3 million of loan servicing expense, for the year ago quarter, a decrease of approximately 28 percent. Full year non-interest expenses, including expenses from discontinued operations and including $11.5 million of loan servicing fees expense, for 2009 were $20.8 million versus $41.0 million, including $7.1 million of loan servicing fees expense, for 2008, a reduction of approximately 49 percent. For the full year of 2008, $8.7 million of loan servicing fees were collected by the Company and recorded as non-interest income prior to the sale of servicing rights to a third party in July 2008. Excluding the loan servicing fees paid to the third party, non-interest expenses, including expenses from discontinued operations, were $9.3 million in 2009 as compared to $33.9 million in 2008, a decrease of approximately 73 percent. Such decrease reflects the impact of significantly reduced operations under the Plan.
Ronald A. Klein, chief executive officer, stated, “We are generally pleased with the loan portfolio performance in 2009, especially in light of the economic environment. While fourth quarter 2009 loan performance worsened, particularly for California loans, we have seen improvement thus far in 2010 and we are hopeful that some stabilization is returning to the housing market.”
Earnings Call and Webcast
A conference call and webcast have been scheduled for Friday, March 19, 2010, at 11:00 a.m. Eastern Time to discuss fourth quarter and year-end results and current operations. The call may be accessed on Origen’s web site at www.origenfinancial.com or by dialing 888-490-2763. A replay will be available through March 26, 2010 by dialing 888-203-1112 pass code 1840382.
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. |
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Financial Tables Follow ... |
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ORIGEN FINANCIAL, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
ASSETS
(Unaudited)
December 31, December 31,
2009 2008
---- ----
Assets
Cash and Equivalents $3,827 $14,118
Restricted Cash 10,419 12,927
Investment Securities 8,727 9,739
Loans Receivable 808,360 911,947
Furniture, Fixtures and Equipment,
Net 197 401
Repossessed Houses 7,918 4,543
Other Assets 6,834 11,858
----- ------
Total Assets $846,282 $965,533
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Securitization Financing 689,762 775,120
Note Payable-Related Party 15,638 29,351
Derivative Liabilities 33,065 57,887
Other Liabilities 13,711 24,980
------ ------
Total Liabilities 752,176 887,338
------- -------
Equity 94,106 78,195
------ ------
Total Liabilities and Equity $846,282 $965,533
======== ========
ORIGEN FINANCIAL, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in thousands, except for share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Interest Income
Total Interest Income $20,138 $22,931 $82,159 $90,827
Total Interest Expense 12,098 13,993 50,706 60,732
------ ------ ------ ------
Net Interest Income
Before Loan Losses and
Impairment 8,040 8,938 31,453 30,095
Provision for Loan
Losses 5,373 6,724 21,112 17,745
Impairment of Purchased
Loan Pool 275 153 644 749
--- --- --- ---
Net Interest Income
After Loan Losses and
Impairment 2,392 2,061 9,697 11,601
Non-interest Income
(Loss)
Losses on Loans Held for
Sale - - - (22,377)
Other 573 618 2,465 (353)
--- --- ----- ----
Total Non-interest
Income (Loss) 573 618 2,465 (22,730)
Non-interest Expenses
Total Personnel 753 2,240 4,319 18,936
Total Loan Origination &
Servicing 2,751 3,465 11,537 7,336
Investment Impairment 913 32 1,002 32
State Taxes (143) 97 34 475
Other Operating 872 1,019 3,860 6,487
--- ----- ----- -----
Total Non-interest Expenses 5,146 6,853 20,752 33,266
----- ----- ------ ------
Loss From Continuing
Operations Before Income
Taxes (2,181) (4,174) (8,590) (44,395)
Income Tax Expense
(Benefit) 95 (13) 152 61
-- --- --- --
Loss From Continuing
Operations (2,276) (4,161) (8,742) (44,456)
Income (Loss) From
Discontinued Operations,
Net of Tax - (264) 175 9,092
--- ---- --- -----
Net Loss $(2,276) $(4,425) $(8,567) $(35,364)
======= ======= ======= ========
Weighted Average Common
Shares Outstanding,
Basic 25,926,149 25,926,149 25,926,149 25,689,639
========== ========== ========== ==========
Weighted Average Common
Shares Outstanding,
Diluted 25,926,149 25,926,149 25,926,149 25,689,639
========== ========== ========== ==========
Basic and Fully Diluted
Earnings (Loss) Per
Common Share:
Loss From Continuing
Operations $(0.09) $(0.16) $(0.33) $(1.73)
Income From Discontinued
Operations - (0.01) - 0.35
--- ----- --- ----
Net Loss Per common Share $(0.09) $(0.17) $(0.33) $(1.38)
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SOURCE Origen Financial, Inc.
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