SOUTHFIELD, Mich., Sept. 6, 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 $3.0 million, or $0.12 per share, for the quarter ended June30, 2012, as compared to a net loss of $3.5 million, or $0.13 per share, for the second quarter of 2011. Net income for the six months ended June 30, 2012 was $0.6 million, or $0.02 per share, as compared to a net loss of $6.3 million, or $0.24 per share for the six months ended June 30, 2011. The 2012 year to date results include a first quarter gain of approximately $6.2 million relating to the termination of certain of Origen's interest rate swap transactions with Citibank, N.A.
On September 6, 2012, Origen's Board of Directors declared a dividend on common stock of $0.12 per share to be paid to holders of Origen's common stock of record on September 17, 2012. The dividend will be paid on September 25, 2012 and will approximate $3.1 million. The cash dividend will represent a return of capital for tax purposes.
Net interest income, before loan losses and impairment, decreased by approximately 15 percent for the second quarter 2012 to $4.5 million from $5.3 million the second quarter 2011 and decreased approximately 26 percent to $8.9 million for 2012 year to date versus $12.0 million for 2011. Such decrease is the result of the continued runoff of the Company's static loan portfolio. The second quarter 2012 provision for loan losses was $4.9 million versus $6.4 million for the prior year quarter, a decrease of approximately 23 percent. The provision for loan losses for 2012 year to date was $10.1 million as compared to $13.2 million for the prior year to date, a decrease of approximately 23 percent.
Non-interest expenses, including $2.0 million of loan servicing expense, were $3.0 million for the second quarter 2012, as compared to $3.2 million, including $2.3 million of loan servicing expense, for the year ago quarter, a decrease of approximately 6 percent. Year to date 2012 non-interest expenses, including $4.1 million of loan servicing expense, were $5.9 million as compared to $6.8 million, including $4.7 million of loan servicing expense, for the prior year to date, a decrease of approximately 13 percent.
Earnings Call and Webcast
A conference call has been scheduled for Friday, September 7, 2012, at 1:00 p.m. Eastern Time to discuss second quarter results and current operations. The call may be accessed by dialing 888-359-3613 or 719-325-2490. A replay will be available through September 14, 2012 by dialing 877-870-5176 or 858-384-5517 pass code 9043943.
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 | |||
June 30, | December 31, | ||
2012 | 2011 | ||
Assets | |||
Cash and Equivalents | $ 2,341 | $ 3,740 | |
Restricted Cash | 9,464 | 9,767 | |
Investment Securities | 1,572 | 1,707 | |
Loans Receivable | 586,279 | 628,708 | |
Furniture, Fixtures and Equipment, Net | 43 | 49 | |
Repossessed Houses | 2,575 | 2,512 | |
Derivative Assets | - | 472 | |
Other Assets | 4,735 | 4,677 | |
Total Assets | $ 607,009 | $ 651,632 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Liabilities | |||
Securitization Financing | 529,748 | 560,724 | |
Derivative Liabilities | 40,453 | 41,662 | |
Other Liabilities | 9,526 | 9,963 | |
Total Liabilities | 579,727 | 612,349 | |
Equity | 27,282 | 39,283 | |
Total Liabilities and Equity | $ 607,009 | $ 651,632 | |
ORIGEN FINANCIAL, INC. | |||||||
CONSOLIDATED STATEMENT OF EARNINGS | |||||||
(Dollars in thousands, except for share data) | |||||||
(Unaudited) | (Unaudited) | ||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2012 | 2011 | 2012 | 2011 | ||||
Interest Income | |||||||
Total Interest Income | $ 14,194 | $ 16,069 | $ 28,695 | $ 32,774 | |||
Total Interest Expense | 9,728 | 10,806 | 19,812 | 20,819 | |||
Net Interest Income Before Loan Losses and Impairment | 4,466 | 5,263 | 8,883 | 11,955 | |||
Provision for Loan Losses | 4,907 | 6,443 | 10,062 | 13,232 | |||
Impairment of Purchased Loan Pool | - | - | - | - | |||
Net Interest Income (Loss) After Loan Losses and Impairment | (441) | (1,180) | (1,179) | (1,277) | |||
Non-interest Income (Loss) | |||||||
Gain on Derivative | - | 29 | 6,278 | - | |||
Other | 424 | 905 | 1,406 | 1,792 | |||
Total Non-interest Income | 424 | 934 | 7,684 | 1,792 | |||
Non-interest Expenses | |||||||
Total Personnel | 393 | 331 | 724 | 828 | |||
Total Loan Origination & Servicing | 2,005 | 2,301 | 4,074 | 4,673 | |||
State Taxes | 85 | 45 | 171 | 124 | |||
Other Operating | 482 | 543 | 934 | 1,158 | |||
Total Non-interest Expenses | 2,965 | 3,220 | 5,903 | 6,783 | |||
Net Loss Before Income Taxes | (2,982) | (3,466) | 602 | (6,268) | |||
Income Tax Expense (Benefit) | 12 | 14 | 30 | 29 | |||
Net Loss | $ (2,994) | $ (3,480) | $ 572 | $ (6,297) | |||
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 | $ (0.12) | $ (0.13) | $ 0.02 | $ (0.24) | |||
SOURCE Origen Financial, Inc.
