Origen Financial Announces First Quarter 2012 Results

^{Published on 2012-06-05 13:05:32 - Market Wire}
 

Origen Financial Announces First Quarter 2012 Results -- SOUTHFIELD, Mich., June 5, 2012 /PRNewswire/ --

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SOUTHFIELD, Mich., June 5, 2012 /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 net income of $3.6 million, or $0.14 per share, for the quarter ended March 31, 2012, as compared to a net loss of $2.8 million, or $0.11 per share, for the first quarter of 2011. The first quarter 2012 net income was primarily the result of the fair market valuation on March 31, 2012 of assets relating to certain of Origen's interest rate swap transactions with Citibank, N.A. which were terminated on May 2, 2012. The termination of these transactions resulted in gains of approximately $6.2 million.  Excluding such gains, Origen's net loss for the quarter approximated $2.6 million, or $0.10 per share.

On June 4, 2012, Origen's Board of Directors declared a dividend on common stock of $0.38 per share to be paid to holders of Origen's common stock of record on June 15, 2012.  The dividend will be paid on June 22, 2012 and will approximate $9.9 million.  The cash dividend will represent a return of capital for tax purposes. In addition to funds from normal operations, the dividend includes the proceeds from the interest rate swap termination transactions of approximately $7.2 million, including the return of deposits of $500,000.

For the first quarter 2012, net interest income before loan losses and impairment decreased by approximately 34 percent to $4.4 million from $6.7 million, for the first quarter 2011.  Such decrease is the result of the continued runoff of the Company's static loan portfolio. The first quarter 2012 provision for loan losses was $5.2 million versus $6.8 million for the prior year quarter, a decrease of approximately 24 percent.

Non-interest expenses, including $2.1 million of loan servicing expense, were $2.9 million for the first quarter 2012, as compared to $3.6 million, including $2.4 million of loan servicing expense, for the year ago quarter, a decrease of approximately 19 percent. 

Ronald A. Klein, chief executive officer, stated, "We saw improvement in loan performance during the first quarter, as compared to fourth quarter 2011, both in delinquencies and defaults, and cash flow remained steady.  Performance in April 2012 was mixed but there was a decline in defaults during May 2012.  In May 2012 we terminated certain of our interest rate swap agreements with Citibank, N.A.  In evaluating the ongoing risks associated with such transactions, management and the Board determined that terminating the swaps would best preserve value for Origen's shareholders."

Earnings Call and Webcast

A conference call has been scheduled for Wednesday, June 6, 2012, at 11:00 a.m. Eastern Time to discuss first quarter results and current operations.  The call may be accessed by dialing 877-317-6789 or 412-317-6789.  A replay will be available through June 13, 2012 by dialing 877-870-5176 or 858-384-5517 pass code 10014383. 

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.

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