Origen Financial Announces First Quarter 2013 Results
PR Newswire
SOUTHFIELD, Mich., May 14, 2013
SOUTHFIELD, Mich. , May 14, 2013 /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 $1.9 million , or $0.07 per common share, for the quarter ended March 31, 2013, as compared to net income, as restated, of $3.9 million , or $0.15 per common share for the first quarter of 2012. The first quarter 2012 net income was the result of the termination of interest rate swap transactions which resulted in gains of approximately $6.2 million . Absent such gains, Origen's first quarter 2012 results would have reflected a net loss of $2.4 million , or $0.09 per common share.
On May 14, 2013 , Origen's Board of Directors declared a common stock dividend of $0.09 per share to be paid to holders of Origen's common stock of record on May 27 , 2013. The dividend will be paid on June 3, 2013 and will approximate $2.3 million . The cash dividend will represent a return of capital.
For the first quarter 2013, net interest income before loan losses and impairment decreased by approximately 15 percent to $4.0 million from $4.7 million for the first quarter 2012. Non-interest income for the first quarter 2013 totaled $133,000 versus $7.3 million for first quarter 2012 reflecting the prior year gain on termination of interest rate swap transactions. The first quarter 2013 provision for loan losses was $3.3 million versus $5.2 million for the prior year quarter, a decrease of approximately 37 percent. The decrease in provision for loan losses reflects the declining balances of the Company's static loan portfolio and improvements in recoveries on dispositions of foreclosed and repossessed properties.
Non-interest expenses, including $1.8 million of loan servicing expenses, were $2.6 million for the first quarter 2013, as compared to $2.9 million , including $2.1 million of loan servicing expense, for the year ago quarter, a decrease of approximately 10 percent. Loan servicing expenses constituted approximately 69 percent and 72 percent of total non-interest expenses, respectively, for first quarter 2013 and 2012.
Earnings Call and Webcast
A conference call has been scheduled for Wednesday, May 15, 2013 , at 11:00 a.m. Eastern Time to discuss first quarter 2013 results and current operations. The call may be accessed by dialing 888-438-5525 or 719-325-2420. A replay will be available through May 22, 2013 by dialing 877-870-5176 or 858-384-5517 pass code 5399689.
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 | |||
| | | | |
| | (Unaudited) | | |
| | March 31, | | December 31, |
| | 2013 | | 2012 |
| Assets | | | |
| Cash and Equivalents | $ 1,544 | | $ 826 |
| Restricted Cash | 10,468 | | 11,110 |
| Investment Securities | 1,379 | | 1,442 |
| Loans Receivable | 522,389 | | 543,420 |
| Furniture, Fixtures and Equipment, Net | 48 | | 33 |
| Repossessed Houses | 2,437 | | 2,180 |
| Other Assets | 4,148 | | 4,233 |
| Total Assets | $ 542,413 | | $ 563,244 |
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| | | | |
| Liabilities | | | |
| Securitization Financing | 475,349 | | 491,720 |
| Derivative Liabilities | 35,537 | | 37,454 |
| Other Liabilities | 10,400 | | 10,935 |
| Total Liabilities | 521,286 | | 540,109 |
| | | | |
| Equity | 21,127 | | 23,135 |
| | | | |
| Total Liabilities and Equity | $ 542,413 | | $ 563,244 |
| ORIGEN FINANCIAL, INC. | |||
| CONSOLIDATED STATEMENT OF EARNINGS | |||
| (Dollars in thousands, except for share data) | |||
| | |||
| | | | |
| | | | |
| | (Unaudited) | ||
| | Three Months Ended | ||
| | March 31, | ||
| | 2013 | | 2012 (as restated) |
| Interest Income | | | |
| Total Interest Income | $ 12,540 | | $ 14,501 |
| Total Interest Expense | 8,580 | | 9,786 |
| Net Interest Income Before Loan Losses and Impairment | 3,960 | | 4,715 |
| Provision for Loan Losses | 3,312 | | 5,154 |
| Net Interest Income (Loss) After Loan Losses and Impairment | 648 | | (439) |
| Non-interest Income (Loss) | | | |
| Realized Gain on Derivative | - | | 6,278 |
| Other | 133 | | 982 |
| Total Non-interest Income | 133 | | 7,260 |
| Non-interest Expenses | | | |
| Total Personnel | 356 | | 331 |
| Total Loan Origination & Servicing | 1,790 | | 2,069 |
| State Taxes | 73 | | 86 |
| Other Operating | 408 | | 453 |
| Total Non-interest Expenses | 2,627 | | 2,939 |
| Net Income (Loss) Before Income Taxes | (1,846) | | 3,882 |
| Income Tax Expense | 7 | | 18 |
| Net Income (Loss) | $ (1,853) | | $ 3,864 |
| | | | |
| Weighted Average Common Shares Outstanding, Basic and Diluted | 25,926,149 | | 25,926,149 |
| | | | |
| Net Income (Loss) Per Common Share | $ (0.07) | | $ 0.15 |
SOURCE Origen Financial, Inc.
