Origen Financial Announces Fourth Quarter And Full Year 2013 Results

SOUTHFIELD, Mich., Feb. 19, 2014

On February 19, 2014, Origen's Board of Directors declared a dividend on common stock of $0.08 per share to be paid to holders of Origen's common stock of record on March 3, 2014.  The dividend will be paid on March 13, 2014 and will approximate $2.1 million.

Net interest income, before loan losses and impairment, decreased by approximately 20 percent for the fourth quarter 2013 to $3.5 million from $4.3 million for the fourth quarter 2012 and decreased approximately 16 percent to $15.2 million for the full year 2013 versus $18.0 million for 2012.  Such decrease is the result of the continued runoff of the Company's securitized loan portfolio and the corresponding reduction in bonds payable. The fourth quarter 2013 provision for loan losses was $1.9 million versus $3.3 million for the prior year quarter, a decrease of approximately 42 percent. The provision for loan losses for the full year 2013 was $10.2 million as compared to $17.4 million for 2012, also a decrease of approximately 42 percent.  Such decreases are a result of the declining loan balances, as well as improvements in delinquency levels and increased recovery percentages on the dispositions of foreclosures and repossessions.  The Company also recorded a reversal of a prior impairment on a purchased loan portfolio in the fourth quarter 2013.  The reversal approximated $1.0 million and was the result of improved cash flows on the purchased loan portfolio. Such portfolio was originally recorded as a loan pool purchased with evidence of deterioration of credit quality.

Non-interest expenses, including $1.6 million of loan servicing expense, were $2.6 million for the fourth 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 4 percent.  Full year 2013 non-interest expenses, including $6.8 million of loan servicing expense, were $10.3 million as compared to $11.4 million, including $7.9 million of loan servicing expense, for the prior year, a decrease of approximately 11 percent.

Earnings Call and Webcast

A conference call has been scheduled for Thursday, February 20, 2014 at 11:00 a.m. Eastern Time to discuss fourth quarter and full year 2013 results and current operations.  The call may be accessed by dialing 888-539-3612 or 719-325-2420.  A replay will be available through February 27, 2014 by dialing 877-870-5176 or 858-384-5517 pass code 5610581. 

Forward-Looking Statements