Origen Financial Announces Second Quarter 2013 Results

SOUTHFIELD, Mich., Aug. 29, 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 net income of $173,000, or approximately $0.01 per share of common stock outstanding, for the quarter ended June 30, 2013, as compared to a net loss of $2.8 million, or $0.11 per share, for the second quarter of 2012. For the six months ended June 30, 2013 a net loss of $1.7 million or $0.06 per share was realized as compared to net income of $1.1 million, or $0.04 per share for the six months ended June 30, 2012, as restated. The 2012 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 August 29, 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 September 9, 2013.  The dividend will be paid on September 16, 2013 and will approximate $3.6 million.

Net interest income, before loan losses and impairment, decreased by approximately 15 percent for the second quarter 2013 to $4.0 million from $4.7 million for the second quarter 2012 and decreased approximately 15 percent to $8.0 million for 2013 year to date versus $9.4 million for 2012.  Such decrease is the result of the continued runoff of the Company's static loan portfolio. The second quarter 2013 provision for loan losses was $2.3 million versus $4.9 million for the prior year quarter, a decrease of approximately 53 percent. The provision for loan losses for 2013 year to date was $5.6 million as compared to $10.1 million for the prior year to date, a decrease of approximately 45 percent.

Non-interest expenses, including $1.7 million of loan servicing expense, were $2.5 million for the second quarter 2013, as compared to $3.0 million, including $2.0 million of loan servicing expense, for the year ago quarter, a decrease of approximately 17 percent.  Year to date 2013 non-interest expenses, including $3.5 million of loan servicing expense, were $5.1 million as compared to $5.9 million, including $4.1 million of loan servicing expense, for the prior year to date, a decrease of approximately 14 percent.

Earnings Call and Webcast

A conference call has been scheduled for Friday, August 30, at 11:00 a.m. Eastern Time to discuss second quarter results and current operations.  The call may be accessed by dialing 888-438-5524 or 719-325-2458.  A replay will be available through September 6, 2013 by dialing 877-870-5176 or 858-384-5517 pass code 3181831. 

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.

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SOURCE Origen Financial, Inc.