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Origen Financial Announces First Quarter 2008 Results
Origen Financial Announces First Quarter 2008 Results
SOUTHFIELD, Mich., May 9 /PRNewswire-FirstCall/ -- Origen Financial, Inc.
(Nasdaq: ORGN), a real estate investment trust that originates and services
manufactured housing loans, today announced a net loss of $25.0 million, or
$0.98 per share, for the quarter ended March 31, 2008, compared with net
income of $1.7 million, or $0.07 per share, for the quarter ended March 31,
2007. No dividend was declared by Origen's Board of Directors for the first
quarter.
Highlights for Quarter
-- Loan origination volume decreased 47 percent to $41.4 million versus a
year ago.
-- Loans processed for third parties totaled $29.8 million for the quarter
as compared to $22.8 million for the year ago quarter, an increase of
31 percent.
-- Total revenue increased 16 percent to $29.9 million versus
$25.7 million for the prior year quarter.
-- Non-performing loans as a percent of average outstanding loan principal
balances increased to 0.6 percent at March 31, 2008, from 0.5 percent a
year ago.
-- Origen's loan warehouse facility with Citigroup Global Markets Realty
Corporation was paid off with proceeds from the sale of un-securitized
loans.
Financial Summary
-- Interest income was $24.0 million for the first quarter 2008, an
increase of 15 percent, primarily due to an 18 percent increase over
the same period a year ago in average interest earning assets.
-- Non-interest income, excluding a loss on the sale of loans, associated
hedge costs and a lower of cost or market adjustment on loans held for
sale, increased 20 percent over the prior year's first quarter to
$5.9 million.
-- Interest expense for the first quarter 2008 increased by 28 percent to
$16.5 million from $12.9 million from last year's first quarter as a
result of increased borrowings relating to the funding of securitized
loans and borrowings to meet liquidity needs.
-- The provision for credit losses was $3.0 million for the first quarter
2008 compared with $1.8 million for the same quarter 2007. The increase
was primarily the result of a 20 percent growth in the loan portfolio.
Loan charge-offs for the 2008 quarter, at $2.4 million, were $300,000
less than charge-offs for the year ago quarter.
-- First quarter 2008 non-interest expenses of $9.3 million were virtually
unchanged from the year ago quarter, but included approximately
$700,000 of extraordinary legal and professional fees.
-- A loss on the sale of un-securitized loans and the costs to terminate
related hedge positions reduced non-interest income by $25.5 million,
as un-securitized loans funded on our loan warehouse facility were
liquidated to pay off that facility.
-- An impairment of $248,000 on a purchased loan pool was incurred, also a
result of the sale of un-securitized loans.
-- A lower of cost or market adjustment to loans held for sale resulted in
a charge to earnings of $395,000.
Portfolio Performance
At March 31, 2008, loans more than 60 days delinquent were 1.0 percent of
the owned loan portfolio compared to 0.9 percent at December 31, 2007. The
increase was due solely to the sale of approximately $176 million of
performing loans during the first quarter 2008.
Ronald A. Klein, Origen's Chief Executive Officer, stated, "As previously
disclosed, due to worsening conditions in the credit markets and the lack of a
profitable securitization exit we were forced to sell our un-securitized loan
portfolio at a substantial loss and cease originating loans for our owned
portfolio. This sale does not reflect on the credit performance or long term
realizable value of Origen's loan portfolio as our credit performance
continues to be outstanding. Our delinquent loan dollars declined from year
end 2007 to first quarter end 2008. We saw a further reduction in delinquency
during April. Absent the loan sale we would have been profitable for the
first quarter 2008."
Mr. Klein further stated, "Subsequent to quarter end we obtained a new
credit facility to pay off our supplemental advance facility and announced an
agreement to sell our loan servicing rights to Green Tree Servicing LLC. We
will continue to manage our $1 billion securitized loan portfolio and other
assets to preserve shareholder value, as part of a plan to be presented to our
shareholders at the 2008 annual meeting."
Earnings Call and Webcast
A conference call and webcast have been scheduled for May 12, 2008, at
11:00 a.m. ET to discuss first quarter results. The call may be accessed on
Origen's web site at http://www.origenfinancial.com or by dialing
877-856-1956. A replay will be available through May 21, 2008 by dialing
888-203-1112, passcode 1770654. You may also access the replay on Origen's
website for 90 days after the event.
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, with significant operations inFort Worth, Texas.
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)
March 31, December 31,
2008 2007
Assets
Cash and Equivalents $4,477 $10,791
Restricted Cash 15,253 16,290
Investment Securities 9,781 32,393
Loans Receivable, Held for
Investment 1,019,773 1,193,916
Loans Receivable, Held for Sale 5,246 -
Servicing Advances 5,731 6,298
Servicing Rights 2,069 2,146
Furniture, Fixtures and
Equipment, Net 3,086 2,974
Repossessed Houses 5,406 4,981
Other Assets 14,554 14,412
Total Assets $1,085,376 $1,284,201
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Warehouse Financing $46,470 $173,072
Securitization Financing 858,507 884,650
Repurchase Agreements - 17,653
Note Payable-Related Party 14,739 14,593
Other Liabilities 56,270 45,848
Total Liabilities 975,986 1,135,816
Equity 109,390 148,385
Total Liabilities and Equity $1,085,376 $1,284,201
ORIGEN FINANCIAL, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in thousands, except for share data)
(Unaudited)
Three Months Ended
March 31,
2008 2007
Interest Income
Total Interest Income $23,966 $20,824
Total Interest Expense 16,474 12,920
Net Interest Income Before Loan Losses and
Impairment 7,492 7,904
Provision for Loan Losses 3,030 1,788
Impairment of Purchased Loan Pool 248 -
Net Interest Income After Loan Losses and
Impairment 4,214 6,116
Non-interest Income (Loss)
Servicing Income 4,869 4,152
Losses on Sale of Loans (21,659) -
Other (3,117) 741
Total Non-interest Income (Loss) (19,907) 4,893
Non-interest Expenses:
Total Personnel 5,873 6,546
Total Loan Origination & Servicing 456 481
State Taxes 196 70
Total Other Operating 2,728 2,195
Total Non-interest Expenses 9,253 9,292
Net Income (Loss) Before Income Taxes (24,946) 1,717
Income Tax Expense 46 12
Net Income (Loss) $(24,992) $1,705
Weighted Average Common Shares
Outstanding, Basic 25,409,874 25,209,207
Weighted Average Common Shares
Outstanding, Diluted 25,409,874 25,291,465
Earnings Per Share on Basic Average
Shares Outstanding $(0.98) $0.07
Earnings Per Share on Diluted Average
Shares Outstanding $(0.98) $0.07
SOURCE Origen Financial, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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