Florida
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1-13219
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65-0039856
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item
2.02.
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Results of Operations and Financial Condition. |
The news release of the Registrant dated May 5, 2011, announcing its results for the first quarter 2011 is attached hereto as Exhibit 99.1. The information in Exhibit 99.1 attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Item
9.01.
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Financial Statements and Exhibits. |
(a) – (c) Not applicable.
(d) Exhibits:
99.1 Text of a press release by the Registrant dated May 5, 2011.
OCWEN FINANCIAL CORPORATION
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||
(Registrant)
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||
Date:
May 5, 2011
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By:
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/s/ John Van Vlack
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John Van Vlack | ||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer (On behalf of the Registrant and as its principal financial officer) |
Ocwen Financial Corporation®
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FOR IMMEDIATE RELEASE
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FOR FURTHER INFORMATION CONTACT:
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John P. Van Vlack
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Executive Vice President, Chief Financial Officer &
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Chief Accounting Officer
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T: (561) 682-7721
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E: John.VanVlack@Ocwen.com
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●
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Completed 24,502 loan modifications of which 14% were HAMP modifications which exceeded the upper end of guidance of 19,000 to 22,000.
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●
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Generated cash flow from operations for the first quarter of 2011 of $368.1 million.
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●
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Made voluntary prepayments of $162.5 million on the SSTL which along with the mandatory repayment reduced the outstanding principal balance to $26.3 million as of March 31, 2011.
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●
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Reduced servicing advances by $294.2 million, or 14%.
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Residential Servicing Statistics (Dollars in thousands)
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||||||||||||||||||||
At or for the three months ended
|
||||||||||||||||||||
March 31, 2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
March 31,
2010 |
||||||||||||||||
Total unpaid principal balance of loans and REO serviced
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$ | 70,542,961 | $ | 73,886,391 | $ | 76,140,022 | $ | 55,244,576 | $ | 49,677,999 | ||||||||||
Non-performing loans and REO serviced as a % of total UPB (1)
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24.7 | % | 27.3 | % | 27.2 | % | 26.2 | % | 25.3 | % | ||||||||||
Prepayment speed (average CPR)
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13.9 | % | 12.6 | % | 12.6 | % | 13.1 | % | 12.4 | % |
(1)
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Non-performing loans exclude those serviced under special servicing agreements where we have no obligation to advance.
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Segment Results (Dollars in thousands) (UNAUDITED)
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||||||||
For the three months ended March 31,
|
2011
|
2010
|
||||||
Servicing
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||||||||
Revenue
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$ | 110,869 | $ | 75,453 | ||||
Operating expenses
|
39,783 | 30,787 | ||||||
Income from operations
|
71,086 | 44,666 | ||||||
Other expense, net
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(36,306 | ) | (12,161 | ) | ||||
Income before income taxes
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34,780 | 32,505 | ||||||
Corporate Items and Other
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||||||||
Revenue
|
471 | 536 | ||||||
Operating expenses
|
1,570 | 4,581 | ||||||
Loss from operations
|
(1,099 | ) | (4,045 | ) | ||||
Other income, net
|
808 | 2,985 | ||||||
Loss before income taxes
|
(291 | ) | (1,060 | ) | ||||
Corporate Eliminations
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||||||||
Revenue
|
(334 | ) | (403 | ) | ||||
Operating expenses
|
(154 | ) | (191 | ) | ||||
Loss from operations
|
(180 | ) | (212 | ) | ||||
Other income, net
|
180 | 212 | ||||||
Income (loss) before income taxes
|
— | — | ||||||
Consolidated income before income taxes
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$ | 34,489 | $ | 31,445 |
For the three months ended March 31,
|
2011
|
2010
|
||||||
Revenue
|
||||||||
Servicing and subservicing fees
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$ | 102,505 | $ | 66,480 | ||||
Process management fees
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7,796 | 7,906 | ||||||
Other revenues
|
705 | 1,200 | ||||||
Total revenue
|
111,006 | 75,586 | ||||||
Operating expenses
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||||||||
Compensation and benefits
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14,787 | 12,777 | ||||||
Amortization of mortgage servicing rights
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8,923 | 6,375 | ||||||
Servicing and origination
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1,922 | 591 | ||||||
Technology and communications
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6,872 | 5,664 | ||||||
Professional services
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2,384 | 3,255 | ||||||
Occupancy and equipment
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4,130 | 4,446 | ||||||
Other operating expenses
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2,181 | 2,069 | ||||||
Total operating expenses
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41,199 | 35,177 | ||||||
Income from operations
|
69,807 | 40,409 | ||||||
Other income (expense)
|
||||||||
Interest income
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2,169 | 3,645 | ||||||
Interest expense
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(37,543 | ) | (12,471 | ) | ||||
Gain on trading securities
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— | 765 | ||||||
Loss on loans held for resale, net
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(904 | ) | (1,038 | ) | ||||
Equity in earnings of unconsolidated entities
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130 | 735 | ||||||
Other, net
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830 | (600 | ) | |||||
Other expense, net
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(35,318 | ) | (8,964 | ) | ||||
Income before income taxes
|
34,489 | 31,445 | ||||||
Income tax expense
|
12,425 | 10,574 | ||||||
Net income
|
22,064 | 20,871 | ||||||
Net loss (income) attributable to non-controlling interest in subsidiaries
|
10 | (11 | ) | |||||
Net income attributable to Ocwen Financial Corporation
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$ | 22,074 | $ | 20,860 | ||||
Earnings per share attributable to Ocwen Financial Corporation
|
||||||||
Basic
|
$ | 0.22 | $ | 0.21 | ||||
Diluted
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$ | 0.21 | $ | 0.20 | ||||
Weighted average common shares outstanding
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||||||||
Basic
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100,762,446 | 99,975,881 | ||||||
Diluted
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107,777,775 | 107,324,415 |
March 31,
2011
|
December 31,
2010
|
|||||||
Assets
|
||||||||
Cash
|
$ | 129,087 | $ | 127,796 | ||||
Restricted cash – for securitization investors
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1,005 | 727 | ||||||
Loans held for resale, at lower of cost or fair value
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25,153 | 25,803 | ||||||
Advances
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174,842 | 184,833 | ||||||
Match funded advances
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1,639,811 | 1,924,052 | ||||||
Loans, net – restricted for securitization investors
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65,112 | 67,340 | ||||||
Mortgage servicing rights, net
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184,571 | 193,985 | ||||||
Receivables, net
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50,279 | 69,518 | ||||||
Deferred tax assets, net
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137,551 | 138,716 | ||||||
Goodwill
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12,810 | 12,810 | ||||||
Premises and equipment, net
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5,110 | 5,475 | ||||||
Investments in unconsolidated entities
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11,588 | 12,072 | ||||||
Other assets
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128,868 | 158,282 | ||||||
Total assets
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$ | 2,565,787 | $ | 2,921,409 | ||||
Liabilities and Equity
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||||||||
Liabilities
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||||||||
Match funded liabilities
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$ | 1,289,129 | $ | 1,482,529 | ||||
Secured borrowings – owed to securitization investors
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60,841 | 62,705 | ||||||
Lines of credit and other secured borrowings
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77,710 | 246,073 | ||||||
Servicer liabilities
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2,067 | 2,492 | ||||||
Debt securities
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82,554 | 82,554 | ||||||
Other liabilities
|
123,019 | 140,239 | ||||||
Total liabilities
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1,635,320 | 2,016,592 | ||||||
Equity
|
||||||||
Ocwen Financial Corporation stockholders’ equity
|
||||||||
Common stock, $.01 par value; 200,000,000 shares authorized; 100,937,283 and 100,726,947 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively
|
1,009 | 1,007 | ||||||
Additional paid-in capital
|
468,963 | 467,500 | ||||||
Retained earnings
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467,530 | 445,456 | ||||||
Accumulated other comprehensive loss, net of income taxes
|
(7,281 | ) | (9,392 | ) | ||||
Total Ocwen Financial Corporation stockholders’ equity
|
930,221 | 904,571 | ||||||
Non-controlling interest in subsidiaries
|
246 | 246 | ||||||
Total equity
|
930,467 | 904,817 | ||||||
Total liabilities and equity
|
$ | 2,565,787 | $ | 2,921,409 |