Origen Financial, Inc. : May 14 2013 - Origen Financial Inc Announces 1st Qtr 2013 Results

o R l G E

At Origen Financial: W. Anderson Geater Chief Financial Officer [phone]

FOR IMMEDIATE RELEASE TUESDAY, MAY 14, 2013

At Financial Relations Board:

HanHuie
[phone] [e-mail]

ORIGEN FINANCIAL ANNOUNCES FIRST QUARTER 2013 RESULTS

SOUTHFIELD, MI -May 14, 2013- Origen Financial, Inc. (Pink Sheets: ORGN) ("Origen" or the "Company''), a rea1 estate investment trust that manages residua!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 of2012. The first quarter 2012 net
income was the result of the termination of interest rate swap transactions which resulted in gains of approximate1y $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 ofDirectors 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 retum of capitai.
For the first quarter 2013, net interest income before loan losses and impairment decreased by approximately 15 percent to $4.0 million fì·om $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 ofinterest 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 ofthe Company's static 1oan pmtfolio and improvements in recoveries on dispositions of foreclosed and repossessed propetties.
Non-interest expenses, including $1.8 million of loan servicing expenses, were $2.6 million for the first qumter 2013, as compared to $2.9 million, including $2.1 million ofloan servicing expense, for the yem· ago qumter, a decrease of approximately 10 percent. Loan servicing expenses constituted approximately 69 percent and 72 percent oftotal non-interest expenses, respectively, for first qumter 2013 and 2012.

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Origen Financial, Inc. Add l

Earnings Cali and Webcast

A conference cali has been scheduled for Wednesday, May 15,2013, at 11:00 a.m. Eastem Time to discuss first quarter 2013 results and current operations. The cali 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 ofthe 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 "wili," "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 lmown and unlmown risks and uncetiainties, both generai and specific to the matters discussed in this press release. These risks and uncertainties may cause Origen's actual results to be materialiy different from any future results expressed or implied by such fotward-looking statements. Such risks and uncetiainties 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 ofthe date hereof and Origen expressly disclaims any obligation to provide public updates, revisions or arnendments to any forward­ looking statements made herein to reflect changes in Origen's expectations or future events.

About Origen Financial, Inc.

Origen is an internaliy managed and internaliy advised company that has elected to be taxed as a rea!estate investment trust. Origen is based in Southfield, Michigan.

For more information about Origen, please visit http://www.origen{inancial.com.

Financia! Tables Follow...

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Origen Financial, lnc.

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ORIGEN FINANCIAL, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands)

ASSETS

Assets

(Unaudìted)

March 31, December 31,

2013 2012

Cash and Equivalents $ 1,544 $ 826

Restricted Cash 10,468 11,110

lnvestment Securities 1,379 1,442

Loans Receivable 522,389 543,420

Furniture, Fixtures and Equipment, Nel 48 33

Repossessed Houses 2,437 2,180

Other Assets 4,148 4,233

Total Assets $ 542,413 $ 563,244

LIABILITIES ANO 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

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Origen Flnanclal, lnc.

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ORIGEN FINANCIAL, INC. CONSOLIDATED STATEMENT OF EARNINGS

(Do/lars in thousands,except for share data)

(Unaudited) Three Months Ended

March 31,

lnterest Incarne Tatallnterest Incarne Totallnterest Expense

Net lnterest Incarne Before Laan Lasses and lrnpairrnent

Pravision far Loan Losses

Nellnterest Incarne (Loss) After Loan Losses and lrnpairment

Non-lnterest Incarne (Loss) Realized Gain on Derivative Other

Telai Non-interest Incarne

Nan-interest Expenses

Total Personnel

Total Loan Orìginatian & Servicing

State Taxes

2013

$ 12,540

---··-···1',580-

3,960

---- ' 1 -

648

133

133

356

1,790

73

gQ_"!_?s restated)

$ 14,501

" ---·-···--"·94,:7165-·

--------------- _154 -·

(439)

6,278

982

". -- "" --· -- ·- }. ?.

331

2,069

86

Other Operating

1_(! _1 -

Total Non-interest Expenses

Net Incarne (Lass) Befare Incarne Taxes

Incarne Tax Expense

--·---(

2,627

1;846

7

---··--· 2,939-

3,882

18

NelIncarne (Lass)

$ (1.853)

$ 3,864-

Weighted Average Common Shares Outstanding, Basic and Diluted =-- .J. J1 "" ==-·25,926,.., 49

NelIncarne (Loss) Per Common Share

$ _j0.07) $

0.15

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