SOUTHFIELD, Mich., May 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 net income of $0.5 million or $0.02 per share, for the quarter ended March 31, 2009, as compared to a net loss of $25.0 million, or $0.98 cents per share, for the first quarter of 2008. The first quarter 2008 net loss included a loss on the sale of un-securitized loans of $21.7 million and a loss on the termination of a related hedge position of $4.1 million. Origen's Board of Directors did not declare a common stock dividend payment for the first quarter of 2009. The first quarter 2009 provision for loan losses was $4.0 million versus $3.0 million for the prior year quarter, an increase of 33 percent. Overall economic conditions, including the increased unemployment rate and the deterioration of the housing market, as well as the aging of the company's loan portfolio as loans begin to enter the peak years for delinquencies and defaults, has increased the level of loan loss reserves needed, and has resulted in increased loan loss provisions. As previously reported, the company ceased originating loans for its own account in March 2008, and pursuant to the execution of the Asset Management and Disposition Plan ("the Plan") as approved by the company's shareholders in June 2008 and detailed in the proxy filing dated May 22, 2008, the company sold its loan servicing-related assets effective July 1, 2008 and its loan origination platform and insurance operations effective July 31, 2008. The company's only remaining business is the management of retained interests in the securitized loan portfolios. In December 2008, the company voluntarily delisted its common stock from the NASDAQ Global Market and also deregistered the stock under the Securities Exchange Act of 1934. Since December 31, 2007, the company has reduced its workforce by 96 percent and has dramatically reduced the operating and overhead costs associated with on-going operations. Net cash flows from operations exceeded Plan projections for the first quarter 2009, enabling the company to reduce principal on its related party debt by $2.4 million during the quarter. An additional $1 million principal payment was made in April 2009, reducing the outstanding balance to $26.6 million. Ronald A. Klein, Origen's Chief Executive Officer, stated, "We are very pleased with our first quarter performance. While we have been impacted by the increase in the nation's unemployment rate we continue to see strong performance in our loan portfolio. We ended the first quarter with fewer defaults than we experienced in the fourth quarter of 2008 and our 30+ delinquency rate also declined during the quarter. Cashflow was strong in the quarter which enabled us to repay an additional $2.4 million of debt during the quarter and we reduced our debt by an additional $1 million during April." Earnings Call and Webcast A conference call and webcast have been scheduled for Wednesday, May 13, 2009, at 11:00 a.m. Eastern Time to discuss first quarter operations. The call may be accessed on Origen's web site at http://www.origenfinancial.com/ or by dialing 877-723-9522. A replay will be available through May 20, 2009 by dialing 888-203-1112 passcode 7318485. You may also access the replay on Origen's website for 90 days following 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. ORGN-E 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, 2009 2008 ---- ---- Assets Cash and Equivalents $15,608 $14,118 Restricted Cash 13,054 12,927 Investment Securities 9,739 9,739 Loans Receivable 886,354 911,947 Furniture, Fixtures and Equipment, Net 371 401 Repossessed Houses 5,503 4,543 Other Assets 9,542 11,858 ----- ------ Total Assets $940,171 $965,533 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Securitization Financing $753,065 $775,120 Note Payable-Related Party 27,048 29,351 Derivative Liabilities 53,620 57,887 Other Liabilities 23,707 24,980 ------ ------ Total Liabilities 857,440 887,338 ------- ------- Equity 82,731 78,195 ------ ------ Total Liabilities and Equity $940,171 $965,533 ======== ======== ORIGEN FINANCIAL, INC. CONSOLIDATED STATEMENT OF OPERATIONS (Dollars in thousands, except for share data) (Unaudited) Three Months Ended March 31, --------- 2009 2008 ---- ---- Interest Income Total Interest Income $21,705 $23,966 Total Interest Expense 13,089 16,474 ------ ------ Net Interest Income Before Loan Losses and Impairment 8,616 7,492 Provision for Loan Losses 4,021 3,030 Impairment of Purchased Loan Pool - 248 --- --- Net Interest Income After Loan Losses and Impairment 4,595 4,214 Non-interest Income (Loss) Servicing Income - 4,869 Losses on Loans Held for Sale - (21,659) Other 1,110 (3,117) ----- ------ Total Non-interest Income (Loss) 1,110 (19,907) Non-interest Expenses Total Personnel 1,115 5,873 Total Loan Origination & Servicing 3,027 456 State Taxes 58 196 Total Other Operating 972 2,728 --- ----- Total Non-interest Expenses 5,172 9,253 ----- ----- Income (Loss) Before Income Taxes 533 (24,946) --- ------- Income Tax Expense 20 46 --- --- Net Income (Loss) $513 $(24,992) ==== ======== Weighted Average Common Shares Outstanding, Basic 25,926,149 25,409,874 ========== ========== Weighted Average Common Shares Outstanding, Diluted 25,926,149 25,409,874 ========== ========== Earnings (Loss) Per common share: Basic $0.02 $(0.98) ===== ====== Diluted $0.02 $(0.98) ===== ====== 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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