Origen Financial Announces Third Quarter 2013 Results

SOUTHFIELD, Mich., Dec. 16, 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 $1.0 million, or approximately $0.04 per share of common stock outstanding, for the quarter ended September 30, 2013, as compared to a net loss of $1.9 million, or $0.07 per share, for the third quarter of 2012. For the nine months ended September 30, 2013 a net loss of $2.7 million or $0.11 per share was realized as compared to a net loss of $1.3 million, or $0.05 per share for the nine months ended September 30, 2012. The results for the nine months ended September 30, 2012 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 December 16, 2013, Origen's Board of Directors declared a dividend on common stock of $0.14 per share to be paid to holders of Origen's common stock of record on December 26, 2013.  The dividend will be paid on December 31, 2013 and will approximate $3.6 million.

Net interest income, before loan losses and impairment, decreased by approximately 23 percent for the third quarter 2013 to $3.7 million from $4.8 million for the third quarter 2012 and decreased approximately 15 percent to $11.7 million for 2013 year-to-date versus $13.7 million for 2012.  Such decrease is the result of the continued runoff of the Company's static loan portfolio. The third quarter 2013 provision for loan losses was $2.6 million versus $4.1 million for the prior year quarter, a decrease of approximately 37 percent. The provision for loan losses for 2013 year-to-date was $8.3 million as compared to $14.1 million for the prior year-to-date, a decrease of approximately 41 percent.  Such decreases are also a result of the declining loan balances of the static portfolio, as well as improvements in delinquency levels and increased recovery percentages on the dispositions of foreclosures and repossessions.

Non-interest expenses, including $1.7 million of loan servicing expense, were $2.5 million for the third quarter 2013, as compared to $2.7 million, including $1.9 million of loan servicing expense, for the year ago quarter, a decrease of approximately 7 percent.  Year-to-date 2013 non-interest expenses, including $5.2 million of loan servicing expense, were $7.6 million as compared to $8.6 million, including $6.0 million of loan servicing expense, for the prior year-to-date, a decrease of approximately 12 percent.

Earnings Call and Webcast

A conference call has been scheduled for Tuesday, December 17, at 4:00 p.m. Eastern Time to discuss third quarter results and current operations.  The call may be accessed by dialing 888-438-5535 or 719-325-2308.  A replay will be available through December 24, 2013 by dialing 877-870-5176 or 858-384-5517 pass code 9117920. 

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…

SOURCE Origen Financial, Inc.