SOUTHFIELD, Mich., Nov. 12 /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 $4.3
million or $0.17 per share, for the quarter ended September 30,
2009, as compared to a net loss of approximately $1.2 million, or
$0.04 cents per share, for the third quarter of 2008. For the nine
months year to date, Origen realized a net loss of approximately
$6.3 million, or $0.24 per share, as compared to a net loss of
approximately $30.9 million, or $1.21 per share, for the same
period in 2008. Origen's Board of Directors did not declare a
dividend on its common stock for the third quarter of 2009. The
third quarter 2009 provision for loan losses was approximately $6.8
million versus approximately $4.6 million for the prior year
quarter, an increase of 48 percent. Year to date, the loan loss
provision totaled approximately $15.7 million as compared to a
provision of approximately $11.0 million for the first nine months
of 2008, an increase of 43 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, we ceased originating loans for
own account in March 2008, and pursuant to the execution of the
Asset Management and Disposition Plan ("the Plan") as approved by
our shareholders in June 2008 and detailed in our proxy filing
dated May 22, 2008, we sold our loan servicing-related assets
effective July 1, 2008 and sold our loan origination platform and
insurance operations effective July 31, 2008. Our only remaining
business is the management of retained interests in our securitized
loan portfolios. In December 2008, we voluntarily delisted our
common stock from the NASDAQ Global Market and also deregistered
the stock under the Securities Exchange Act of 1934. Since December
31, 2007, we have reduced our workforce by 96 per cent and have
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 $4.8 million of
principal on related party debt during the quarter. Year to date
through September 30, 2009, principal pay downs totaled $9.7
million. Subsequent to quarter end, additional principal payments
of $1.9 million were made. Ronald A. Klein, Origen's Chief
Executive Officer, stated, "Our portfolio performance continues to
be impacted by the ongoing increase in the national employment rate
and issues in the housing market. This has necessitated an increase
to our loan loss reserves. Notwithstanding these difficulties, our
cash flows have continued to be strong and have significantly
exceeded our monthly cash expenses. This has allowed us to repay an
additional $6.7 million of our related party debt since the end of
the second quarter 2009." Earnings Call and Webcast A conference
call and webcast have been scheduled for Friday, November 13, 2009,
at 11:00 a.m. Eastern Time to discuss third quarter results. The
call may be accessed by dialing 888-747-4626. A replay will be
available through February 13, 2009 by dialing 888-203-1112
passcode 1090634. 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) September 30, December
31, 2009 2008 ---- ---- Assets Cash and Equivalents $6,113 $14,118
Restricted Cash 11,393 12,927 Investment Securities 9,749 9,739
Loans Receivable 831,394 911,947 Furniture, Fixtures and Equipment,
Net 238 401 Repossessed Houses 7,673 4,543 Other Assets 7,683
11,858 ----- ------ Total Assets $874,243 $965,533 ========
======== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities
Securitization Financing 709,280 775,120 Note Payable-Related Party
19,866 29,351 Derivative Liabilities 40,712 57,887 Other
Liabilities 15,603 24,980 ------ ------ Total Liabilities 785,461
887,338 ------- ------- Equity 88,782 78,195 ------ ------ Total
Liabilities and Equity $874,243 $965,533 ======== ======== ORIGEN
FINANCIAL, INC. CONSOLIDATED STATEMENT OF EARNINGS (Dollars in
thousands, except for share data) (Unaudited) Three Months Ended
Nine Months Ended September 30, September 30, -------------
------------- 2009 2008 2009 2008 ---- ---- ---- ---- Interest
Income Total Interest Income $19,274 $23,471 $62,021 $67,896 Total
Interest Expense 12,561 14,222 38,608 46,739 ------ ------ ------
------ Net Interest Income Before Loan Losses and Impairment 6,713
9,249 23,413 21,157 Provision for Loan Losses 6,755 4,649 15,739
11,021 Impairment of Purchased Loan Pool 158 329 370 596 --- ---
--- --- Net Interest Income After Loan Losses and Impairment (200)
4,271 7,304 9,540 Non-interest Income (Loss) Servicing Income - - -
1,303 Losses on Loans Held for Sale - - - (22,377) Other 363 991
1,637 (3,919) --- --- ----- ------ Total Non-interest Income (Loss)
363 991 1,637 (24,993) Non-interest Expenses Total Personnel 720
7,254 3,566 16,696 Total Loan Origination & Servicing 2,838
3,252 8,751 3,871 Investment Impairment 89 - 89 - State Taxes 59 96
176 378 Total Other Operating 919 1,452 2,925 5,470 --- ----- -----
----- Total Non-interest Expenses 4,625 12,054 15,507 26,415 -----
------ ------ ------ Income (Loss) From Continuing Operations
Before Income Taxes (4,462) (6,792) (6,566) (41,868) Income Tax
Expense 17 12 56 75 --- --- --- --- Income (Loss) From Continuing
Operations (4,479) (6,804) (6,622) (41,943) Income From
Discontinued Operations Net of Income taxes 151 5,631 331 11,004
--- ----- --- ------ Net Income (Loss) $(4,328) $(1,173) $(6,291)
$(30,939) ======= ======= ======= ======== Weighted Average Common
Shares Outstanding, Basic 25,926,149 25,926,149 25,926,149
25,610,227 ========== ========== ========== ========== Weighted
Average Common Shares Outstanding, Diluted 25,926,149 25,926,149
25,926,149 25,610,227 ========== ========== ========== ==========
Basic Earnings Per Common Share: Income (Loss) From Continuing
Operations $(0.17) $(0.26) $(0.25) $(1.64) Income From Discontinued
Operations - 0.22 0.01 0.43 --- ---- ---- ---- Net Income (Loss)
$(0.17) $(0.04) $(0.24) $(1.21) ====== ====== ====== ====== 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 September 30, 2008. DATASOURCE: Origen Financial,
Inc. CONTACT: W. Anderson Geater, Chief Financial Officer of Origen
Financial, +1-248-746-7010; or Leslie Loyet of Financial Relations
Board, +1-312-640-6672, , for Origen Financial Web Site:
http://www.origenfinancial.com/
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