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Origen Financial Announces Fourth Quarter And Full Year 2012 Results

     Origen Financial Announces Fourth Quarter And Full Year 2012 Results

PR Newswire

SOUTHFIELD, Mich., Feb. 20, 2013

SOUTHFIELD, Mich., Feb. 20, 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 $70,000 for the quarter ended
December31, 2012, as compared to a net loss of $3.1 million, or $0.12 per
common share, as restated for the fourth quarter of 2011. For the full year
the Company recorded a net loss of $1.4 million, or $0.05 per common share as
compared to a net loss of $10.5 million, or $0.41 per common share as
restated, for the year ago period.

As reported in the Company's third quarter 2012 earnings press release, the
restatement of 2011 results was necessitated by interest rate calculation
errors by the Bank of New York Mellon in its capacity as indenture trustee for
Origen Manufactured Housing Contract Trust 2006-a and Origen Manufactured
Housing Contract Trust 2007-a ("the Issuers") which resulted in higher rates
on the Issuer's Class A-2 notes than that prescribed by the related
indentures. The restatement resulted in a reduction of interest expense of
approximately $0.3 million for the fourth quarter 2011 and approximately $1.3
million for the full year 2011. Such restatements had no impact on cash
payments to the Company relating to its residual interests in the affected
securities.

On February 20, 2013, Origen's Board of Directors declared a common stock
dividend of $0.08 per share to be paid to holders of Origen's common stock of
record on March 4, 2013. The dividend will be paid on March 11, 2013 and will
approximate $2.1 million. The cash dividend will represent a return of
capital.

For the fourth quarter 2012, net interest income before loan losses and
impairment decreased by approximately 12 percent to $4.3 million from $4.9
million for the fourth quarter 2011, as restated. Net interest income before
loan losses and impairment for the full year 2012 decreased by approximately
21 percent to $18.1 million from $22.9 million for the full year 2011, as
restated. 

Non-interest income for the fourth quarter 2012 increased $0.7 million to $1.6
million from $0.9 million for the year ago quarter, an increase of
approximately 78 percent. For the full year 2012, non-interest income was
$9.4 million as compared to $3.7 million for the full year 2011, an increase
of $5.7 million, or approximately 154 percent. The termination of certain
interest rate swaps in May 2012 resulted in gains of approximately $6.2
million, which combined with monthly swap cash settlements prior to the
terminations, resulted in total income from derivatives of $7.4 million, as
compared to derivative income of $3.0 million for the full year of 2011, for a
total increase in derivative income of $4.4 million. The balance of the
increase in non-interest income was attributable to $1.4 million in cash
payments from AMBAC, as financial guarantor for Origen Manufactured Housing
Contract Trust 2007-a and Origen Manufactured Housing Contract Trust 2007-b
("the Trusts"). Such payments represented partial settlement of claims under
an assurance obligation by AMBAC and were distributed by the trustee to the
bondholders of the Trusts. The Company received no cash from the AMBAC
payments.

The fourth quarter 2012 provision for loan losses was $3.3 million versus $6.0
million for the prior year quarter, a decrease of approximately 45 percent.
The full year 2012 provision for loan losses was $17.4 million as compared to
$24.1 million for the year ago period, a decrease of approximately 28
percent. Decreases in provisions for loan losses reflect 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 $1.9 million of loan servicing expense, were
$2.7 million for the fourth quarter 2012, as compared to $3.0 million,
including $2.2 million of loan servicing expense, for the year ago quarter, a
decrease of approximately 10 percent. Full year 2012 non-interest expenses
were $11.4 million, including $7.9 million of loan servicing expense versus
the prior year total of $12.9 million, including $9.0 million of loan
servicing expense, a reduction of $1.5 million, or approximately 12 percent
from the year ago period.

Earnings Call and Webcast

A conference call has been scheduled for Thursday, February 21, 2013, at 11:00
a.m. Eastern Time to discuss fourth quarter and full year 2012 results and
current operations. The call may be accessed by dialing 888-510-1786 or
719-325-2429. A replay will be available through February 28, 2013 by dialing
877-870-5176 or 858-384-5517 pass code 4310532.

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
                                    December 31,         December 31,
                                    2012                 2011 (as restated)
Assets
 Cash and Equivalents           $        826  $          
                                                         3,740
 Restricted Cash                11,110               9,767
 Investment Securities          1,442                1,707
 Loans Receivable               543,420              628,708
 Furniture, Fixtures and        33                   49
Equipment, Net
 Repossessed Houses             2,180                2,512
 Derivative Assets              -                    472
 Other Assets                   4,233                4,677
Total Assets                        $    563,244     $       
                                                         651,632
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
 Securitization Financing       491,720              559,420
 Derivative Liabilities         37,454               41,662
 Other Liabilities              10,935               9,963
Total Liabilities                   540,109              611,045
Equity                              23,135               40,587
Total Liabilities and Equity        $    563,244     $       
                                                         651,632





ORIGEN FINANCIAL, INC.
CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in thousands, except for share data)
                   (Unaudited)                    (Unaudited)
                   Three Months Ended             Twelve Months Ended
                   December 31,                   December 31,
                   2012            2011 (as       2012           2011(as
                                   restated)                     restated)
Interest Income
 Total Interest  $         $        $        $      
Income                 13,253                           
                                   15,038         55,486         63,435
 Total Interest  8,929           10,106         37,440         40,545
Expense
Net Interest
Income Before Loan 4,324           4,932          18,046         22,890
Losses and
Impairment
 Provision for   3,280           5,975          17,415         24,079
Loan Losses
 Impairment of
Purchased Loan     -               -              -              -
Pool
Net Interest
Income (Loss)      1,044           (1,043)        631            (1,189)
After Loan Losses
and Impairment
Non-interest
Income (Loss)
 Gain on         -               782            7,377          3,008
Derivative
 Income from     1,368           -              1,368          -
Financial Guaranty
 Other           195             141            606            651
Total Non-interest 1,563           923            9,351          3,659
Income
Non-interest
Expenses
 Total Personnel 359             367            1,428          1,544
 Total Loan
Origination &      1,861           2,151          7,870          9,042
Servicing
 State Taxes     78              37             279            217
 Other Operating 420             440            1,782          2,118
Total Non-interest 2,718           2,995          11,359         12,921
Expenses
Net Loss Before    (111)           (3,115)        (1,377)        (10,451)
Income Taxes
 Income Tax      (41)                                          53
Expense (Benefit)
                   $         $        $        $      
 Net Loss                                         
                   (70)           (3,115)       (1,377)       (10,504)
Weighted Average
Common Shares      25,926,149      25,926,149     25,926,149     25,926,149
Outstanding, Basic
and Diluted
 Net Loss Per    $         $        $        $      
Common Share                                          
                   (0.00)         (0.12)        (0.05)        (0.41)



SOURCE Origen Financial, Inc.

Website: http://www.origenfinancial.com
Contact: W. Anderson Geater, Chief Financial Officer, Origen Financial,
+1-248-746-7010; or Han Huie, Financial Relations Board, +1-312-981-8542,
hhuie@mww.com