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Origen Financial Announces Fourth Quarter and Full Year 2011 Results

 

SOUTHFIELD, Mich., March 15, 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 a net loss of $3.4 million, or $0.13 per share, for the quarter ended December 31, 2011, as compared to a net loss of $5.7 million, or $0.22 per share, for the fourth quarter of 2010, an improvement of approximately 40 percent. For the full year the Company recorded a net loss of approximately $11.8 million, as compared to a net loss of $16.6 million, for the year ago period, an improvement of approximately 29 percent.

On March 14, 2012, Origen's Board of Directors declared a common stock dividend of $0.15 per share to be paid to holders of Origen's common stock of record on March 26, 2012. The dividend will be paid on April 2, 2012 and will approximate $3.9 million. The cash dividend will represent a return of capital.

For the fourth quarter 2011, net interest income before loan losses and impairment increased by approximately 12 percent to $4.6 million from $4.1 million for the fourth quarter 2010. Year to date net interest income before loan losses and impairment decreased by approximately 8 percent to $21.6 million from $23.6 million.

The fourth quarter 2011 provision for loan losses was $6.0 million versus $6.9 million for the prior year quarter, a decrease of approximately 13 percent. The full year 2011 provision for loan losses was $24.1 million as compared to $26.6 million for the year ago period, a decrease of approximately 9 percent.

Non-interest expenses, including $2.2 million of loan servicing expense, were $3.0 million for the fourth quarter 2011, as compared to $3.7 million, including $2.5 million of loan servicing expense, for the year ago quarter, a decrease of approximately 19 percent. Full year 2011 non-interest expenses were $12.9 million, including $9.0 million of loan servicing expense versus the prior year total of $16.0 million, including $10.3 million of loan servicing expense, a reduction of $3.1 million, or approximately 19 percent from the year ago period.

Earnings Call and Webcast

A conference call has been scheduled for Friday, March 16, 2012, at 11:00 a.m. Eastern Time to discuss fourth quarter and full year 2011 results and current operations. The call may be accessed by dialing 877-317-6789 or 412-317-6789. A replay will be available through March 23, 2012 by dialing 877-870-5176 or 858-384-5517 pass code 10011625.

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










December 31,


December 31,


2011


2010

Assets




    Cash and Equivalents

$            3,740


$            2,595

    Restricted Cash

9,767


9,981

    Investment Securities

1,707


1,996

    Loans Receivable

628,708


716,900

    Furniture, Fixtures and Equipment, Net

49


106

    Repossessed Houses

2,512


6,705

    Other Assets

5,149


5,818

Total Assets

$        651,632


$        744,101





LIABILITIES AND STOCKHOLDERS' EQUITY





Liabilities




    Securitization Financing

560,724


627,334

    Derivative Liabilities

41,662


37,090

    Other Liabilities

9,963


12,702

Total Liabilities

612,349


677,126





Equity

39,283


66,975





Total Liabilities and Equity

$        651,632


$        744,101



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,


2011


2010 (as restated)


2011


2010 (as restated)

Interest Income








  Total Interest Income

$      15,038


$                  17,071


$      63,435


$                  71,641

  Total Interest Expense

10,397


13,016


41,849


48,029

Net Interest Income Before Loan Losses and Impairment

4,641


4,055


21,586


23,612

  Provision for Loan Losses

5,975


6,941


24,079


26,606

  Impairment of Purchased Loan Pool

-


-


-


382

Net Interest Income (Loss) After Loan Losses and Impairment

(1,334)


(2,886)


(2,493)


(3,376)

Non-interest Income (Loss)








  Other

924


871


3,659


2,760

Total Non-interest Income

924


871


3,659


2,760

Non-interest Expenses








  Total Personnel

367


615


1,544


2,494

  Total Loan Origination & Servicing

2,151


2,472


9,042


10,312

  Investment Impairment

-


26


-


26

  State Taxes

37


(74)


217


167

  Other Operating

441


698


2,118


2,971

Total Non-interest Expenses

2,996


3,737


12,921


15,970

Net Loss Before Income Taxes

(3,406)


(5,752)


(11,755)


(16,586)

  Income Tax Expense (Benefit)

10


(40)


53


8

  Net Loss

$      (3,416)


$                  (5,712)


$    (11,808)


$                (16,594)









Weighted Average Common Shares Outstanding, Basic and Diluted

25,926,149


25,926,149


25,926,149


25,926,149









  Net Loss Per Common Share

$        (0.13)


$                    (0.22)


$        (0.46)


$                    (0.64)



SOURCE Origen Financial, Inc.

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RELATED LINKS
http://www.origenfinancial.com