SOUTHFIELD, Mich., Aug. 14 /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 approximately $2.5
million or $0.10 per share, for the quarter ended June 30, 2009, as
compared to a net loss of approximately $4.8 million, or $0.19
cents per share, for the second quarter of 2008. For the six months
year to date, Origen realized a net loss of approximately $2.0
million, or $0.08 per share, as compared to a net loss of
approximately $29.8 million, or $1.17 per share, for the same
period in 2008. Origen's Board of Directors did not declare a
dividend on its common stock for the second quarter of 2009. The
second quarter 2009 provision for loan losses was approximately
$5.0 million versus approximately $3.3 million for the prior year
quarter, an increase of 52 percent. Year to date, the loan loss
provision totaled approximately $9.0 million as compared to a
provision of approximately $6.4 million for the first six months of
2008, an increase of 41 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.
As previously reported, the Company ceased originating loans for
its own account in March 2008, and pursuant to the execution of the
Asset Management and Disposition Plan ("the Plan") as approved by
Origen's shareholders in June 2008 and detailed in the Company's
proxy filing dated May 22, 2008, Origen 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 the Company's securitized loan portfolios. In
December 2008, Origen voluntarily delisted its common stock from
the NASDAQ Global Market and also deregistered the stock under the
Securities Exchange Act of 1934. Since December 31, 2007, the
Company has reduced its workforce by 96 percent and has
dramatically reduced the operating and overhead costs associated
with on-going operations. Net cash flows from operations and the
use of excess liquidity enabled Origen to pay down $2.5 million of
principal on related party debt during the quarter. Year to date
through June 30, 2009, principal pay downs totaled $4.9 million.
Subsequent to quarter end, additional principal payments of $3.6
million were made. Ronald A. Klein, Origen's Chief Executive
Officer, stated, "While we have been impacted by the nation's
ongoing increase in job losses, our loan portfolio continues to
perform well. Delinquencies 30 days and greater ended July at 2.3
percent which is down from June and lower than December 2008.
However, we have experienced increased defaults and lower recovery
rates on our California loans due to the almost tripling of the
unemployment rate in the state versus a year ago. We are continuing
to work with our loan servicer to maximize recovery rates in
California and elsewhere." Mr. Klein added, "The market for new
manufactured houses continues to decline and the lack of available
financing for manufactured housing has negatively impacted
prepayment speeds on our loans. Nevertheless, our cash flow
continues to be strong and since the end of the first quarter we
have repaid an additional $6.1 million of our related party debt."
Earnings Call and Webcast A conference call and webcast have been
scheduled for Monday, August 17, 2009, at 10:00 a.m. Eastern Time
to discuss second quarter results. The call may be accessed by
dialing 888-204-4517. A replay will be available through November
17, 2009 by dialing 888-203-1112 passcode 5493522. 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, 2009 2008 ---- ---- Assets
Cash and Equivalents $9,069 $14,118 Restricted Cash 13,006 12,927
Investment Securities 9,739 9,739 Loans Receivable 859,993 911,947
Furniture, Fixtures and Equipment, Net 282 401 Repossessed Houses
5,988 4,543 Other Assets 7,905 11,858 ----- ------ Total Assets
$905,982 $965,533 ======== ======== LIABILITIES AND STOCKHOLDERS'
EQUITY Liabilities Securitization Financing 730,183 775,120 Note
Payable-Related Party 24,619 29,351 Derivative Liabilities 37,432
57,887 Other Liabilities 17,363 24,980 ------ ------ Total
Liabilities 809,597 887,338 ------- ------- Equity 96,385 78,195
------ ------ Total Liabilities and Equity $905,982 $965,533
======== ======== 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, --------
-------- 2009 2008 2009 2008 ---- ---- ---- ---- Interest Income
Total Interest Income $21,042 $20,554 $42,747 $44,425 Total
Interest Expense 12,959 16,043 26,047 32,517 ------ ------ ------
------ Net Interest Income Before Loan Losses and Impairment 8,083
4,511 16,700 11,908 Provision for Loan Losses 4,964 3,342 8,984
6,372 Impairment of Purchased Loan Pool 212 19 212 267 --- -- ---
--- Net Interest Income After Loan Losses and Impairment 2,907
1,150 7,504 5,269 Non-interest Income (Loss) Servicing Income - 657
- 1,305 Losses on Loans Held for Sale - (718) - (22,377) Other 326
941 1,274 (2,395) --- --- ----- ------ Total Non-interest Income
(Loss) 326 880 1,274 (23,467) Non-interest Expenses Total Personnel
1,731 5,503 2,846 9,646 Total Loan Origination & Servicing
2,920 268 5,913 627 State Taxes 59 104 118 293 Total Other
Operating 1,089 1,906 2,005 4,069 ----- ----- ----- ----- Total
Non-interest Expenses 5,799 7,781 10,882 14,635 ----- ----- ------
------ Income (Loss) From Continuing Operations Before Income Taxes
(2,566) (5,751) (2,104) (32,833) Income Tax Expense 19 29 39 62 --
-- -- -- Income (Loss) From Continuing Operations (2,585) (5,780)
(2,143) (32,895) Income From Discontinued Operations Net of Income
taxes 109 1,006 180 3,129 --- ----- --- ----- Net Income (Loss)
$(2,476) $(4,774) $(1,963) $(29,766) ======= ======= =======
======== Weighted Average Common Shares Outstanding, Basic
25,926,149 25,491,187 25,926,149 25,450,530 ========== ==========
========== ========== Weighted Average Common Shares Outstanding,
Diluted 25,926,149 25,491,187 25,926,149 25,450,530 ==========
========== ========== ========== Basic Earnings Per Common Share:
Income (Loss) From Continuing Operations $(0.10) $(0.23) $(0.08)
$(1.29) Income From Discontinued Operations - 0.04 - 0.12 - ---- -
---- Net Income (Loss) $(0.10) $(0.19) $(0.08) $(1.17) ======
====== ====== ====== Notes: *Prior to July 1, 2008, loan servicing
fees were netted out of loan interest income and recorded as
servicing fee income to Origen; beginning July 1, 2008, loan
servicing fees were paid to Green Tree Servicing and recorded as
non-interest expense. *For explanations of 2008 results of
operations see the Company's annual report on Form 10-K and Form
10-K/A for the year ended December 31, 2008 and the Company's
quarterly report on Form 10-Q for the quarter ended June 30, 2008.
DATASOURCE: Origen Financial, Inc. CONTACT: W. Anderson Geater,
Chief Financial Officer of Origen Financial, Inc., +1-248-746-7010,
; or Leslie Loyet of Financial Relations Board, +1-312-640-6672,
Web Site: http://www.origenfinancial.com/
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