Origen Financial Announces Second Quarter 2011 Results

Aug 22, 2011, 16:05 ET from Origen Financial, Inc.

SOUTHFIELD, Mich., Aug. 22, 2011 /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 a net loss of $3.5 million, or $0.13 per share, for the quarter ended June 30, 2011, as compared to a net loss of $4.1 million, or $0.16 per share, for the second quarter of 2010, as restated, an improvement of approximately 15 percent.  Year to date the Company recorded a net loss of approximately $6.3 million as compared to a net loss of $9.3 million, as restated, for the year ago period, an improvement of approximately 32 percent.

On August 18, 2011, Origen's Board of Directors declared a common stock dividend of $0.09 per share to be paid to holders of Origen's common stock of record on September 2, 2011.  The dividend will be paid on September 13, 2011 and will approximate $2.3 million. The cash dividend will represent a return of capital.

For the second quarter 2011, net interest income before loan losses and impairment decreased by approximately 12 percent to $5.3 million from $6.0 million, as restated for the second quarter 2010.  Year to date net interest income before loan losses and impairment decreased by approximately 3 percent to $12.0 million from $12.3 million.  As disclosed in the Company's first quarter 2011 press release, the Company sold its retained ownership, during the second quarter 2011, of Origen Manufactured Housing Contract Trust Collateralized Notes, Series 2004-B, Class B-2, with proceeds totaling approximately $3.0 million.  Proceeds from this sale were included in the Company's common stock dividend paid on June 22, 2011.  

The second quarter 2011 provision for loan losses was $6.4 million versus $6.1 million for the prior year quarter, an increase of approximately 5 percent.  The year to date 2011 provision for loan losses was $13.2 million as compared to $14.0 million for the year ago period, a decrease of approximately 6 percent.

Non-interest expenses, including $2.3 million of loan servicing expense, were $3.2 million for the second quarter 2011, as compared to $4.1 million, including $2.6 million of loan servicing expense, for the year ago quarter, a decrease of approximately 22 percent.  Year to date 2011 non-interest expenses were $6.8 million, including $4.7 million of loan servicing expense, a reduction of $1.6 million, or approximately 19 percent from the year ago period.

Ronald A. Klein, chief executive officer, stated, "While our cash flow was strong during the quarter, the weak housing market continues to impact our loan pools as recovery rates remain low.  Overall loan performance was stable, however we did see a small increase in delinquency in some of our pools as our borrowers remain challenged by the high unemployment rate and the weak economy."

Earnings Call and Webcast

A conference call has been scheduled for Tuesday, August 23, 2011, at 11:00 a.m. Eastern Time to discuss second quarter results and current operations.  The call may be accessed by dialing 888-609-5673 or 913-312-1482.  A replay will be available through August 30, 2011 by dialing 877-870-5176 or 858-384-5517 pass code 9424711.  

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






June 30,


December 31,


2011


2010

Assets




    Cash and Equivalents

$     3,567


$            2,595

    Restricted Cash

11,605


9,981

    Investment Securities

1,848


1,996

    Loans Receivable

670,743


716,900

    Furniture, Fixtures and Equipment, Net

86


106

    Repossessed Houses

5,248


6,705

    Other Assets

5,738


5,818

Total Assets

$ 698,835


$        744,101





LIABILITIES AND STOCKHOLDERS' EQUITY





Liabilities




    Securitization Financing

594,389


627,334

    Derivative Liabilities

35,334


37,090

    Other Liabilities

13,292


12,702

Total Liabilities

643,015


677,126





Equity

55,820


66,975





Total Liabilities and Equity

$ 698,835


$        744,101



ORIGEN FINANCIAL, INC.

CONSOLIDATED STATEMENT OF EARNINGS

(Dollars in thousands, except for share data)












(Unaudited)




(Unaudited)


Three Months Ended



Six Months Ended


June 30,


Increase (Decrease)

June 30,


2011


2010 (as restated)


$

%

2011


2010 (as restated)

Interest Income










  Total Interest Income

$      16,069


$                  18,040


$     (1,971)

-10.9%

$      32,774


$                  36,958

  Total Interest Expense

10,806


12,051


(1,245)

-10.3%

20,819


24,641

Net Interest Income Before Loan Losses and Impairment

5,263


5,989


(726)

-12.1%

11,955


12,317

  Provision for Loan Losses

6,443


6,114


329

5.4%

13,232


13,998

  Impairment of Purchased Loan Pool

-


260


(260)

N/A

-


382

Net Interest Income (Loss) After Loan Losses and Impairment

(1,180)


(385)


(795)

-206.5%

(1,277)


(2,063)

Non-interest Income (Loss)










  Other

934


448


486

108.5%

1,792


1,193

Total Non-interest Income

934


448


486

108.5%

1,792


1,193

Non-interest Expenses










  Total Personnel

331


611


(280)

-45.8%

828


1,368

  Total Loan Origination & Servicing

2,301


2,599


(298)

-11.5%

4,673


5,272

  State Taxes

45


141


(96)

-68.1%

124


196

  Other Operating

543


770


(227)

-29.5%

1,158


1,533

Total Non-interest Expenses

3,220


4,121


(901)

-21.9%

6,783


8,369

Net Loss Before Income Taxes

(3,466)


(4,058)


592

14.6%

(6,268)


(9,239)

  Income Tax Expense (Benefit)

14


16


(2)

-12.5%

29


43

  Net Loss

$      (3,480)


$                  (4,074)


$          594

14.6%

$      (6,297)


$                  (9,282)











Weighted Average Common Shares Outstanding, Basic and Diluted

25,926,149


25,926,149


-

0.0%

25,926,149


25,926,149











  Net Loss Per common Share

$        (0.13)


$                    (0.16)


$         0.02

14.6%

$        (0.24)


$                    (0.36)



SOURCE Origen Financial, Inc.



RELATED LINKS

http://www.origenfinancial.com