Delta Financial Corporation (NASDAQ: DFC), a consumer finance company specializing in fixed-rate non-conforming mortgages, announced today that its common stock now trades on the NASDAQ Global Market. Delta retains its ticker symbol "DFC," the first three-lettered symbol to trade on the NASDAQ. Since 2003, Delta traded on the American Stock Exchange under the same ticker symbol. As of the close of trading yesterday, Delta had a market capitalization of approximately $209 million.
“We are enthusiastic about our move to the NASDAQ,” said Hugh Miller, Delta president and chief executive officer. “It is particularly important that Delta, and its distinct business model, gain the broad recognition of a NASDAQ-listed company at this point in time, given our solid performance in an otherwise turbulent financial sector.”
“Specifically, Delta’s business model is to originate predominantly fixed-rate loans, retain the majority of the loans it originates and originate loans through a diversified origination platform in which approximately 50 percent of its loan production comes from its own retail franchise,” Miller continued.
The listing on the NASDAQ is the latest in a series of positive events for Delta such as:
On March 20, 2007, the Company announced that its Board of Directors approved a quarterly cash dividend of $0.05 per common share. The dividend is payable on April 6, 2007 to stockholders of record at the close of business on March 29, 2007.
On March 15, 2007, the Company announced it securitized $950 million of mortgage loans through its subsidiary, Renaissance Mortgage Acceptance Corp. - the Renaissance Home Equity Loan Trust 2007-1. The securitization was co-lead managed by Citigroup and Banc of America Securities LLC and co-managed by RBS Greenwich Capital, JPMorgan and Deutsche Bank Securities. Standard & Poor's Ratings Services and Moody's Investors Services, Inc. rated the securities.
On March 7, 2007, the Company reported record fourth quarter and full-year 2006 loan origination volume of $1.1 billion and $4.0 billion, respectively. Additionally, net income for the fourth quarter was $8.0 million, or $0.33 per diluted share, compared to net income of $5.7 million, or $0.27 per diluted share, for the comparable period last year. For the twelve months ended December 31, 2006, the Company reported net income of $29.8 million, or $1.28 per diluted share, compared to net income of $18.0 million, or $0.84 per diluted share, for 2005.
About the Company
Founded in 1982, Delta Financial Corporation is a Woodbury, New York-based specialty consumer finance company that originates, securitizes and sells non-conforming mortgage loans. The Company’s loans are primarily fixed rate and secured by first mortgages on one- to four-family residential properties. The Company originates non-conforming loans through a network of approximately 3,200 independent brokers and the Company’s retail offices. Since 1991, Delta has completed 50 asset-backed securitizations, collateralized by approximately $18.0 billion in mortgage loans.
Important Information Regarding Forward-Looking Statements. Certain statements contained in this press release, which are not historical fact, may be deemed to be "forward-looking" statements under the federal securities laws, and involve risk and uncertainties. Forward-looking statements relate to, among other things, our future loan production, the advantages of our emphasis on originating fixed-rate loans, future product offerings, our underwriting capabilities, the advantages of the Company’s retail platform, the market’s view of the Company and its mortgage loans, our ability to consummate the securitization, pricing and timing of future securitizations, the structure and ratings for the securitization, and profitability. There are many important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general trading conditions on the NASDAQ and other U.S. securities markets, as well as adverse changes in our business and financial results that could reduce demand for our securities, the availability of funding at favorable terms and conditions, including without limitation, the availability of warehouse, residual and other credit facilities; our ability or inability to continue to access the securitization and whole-loan markets at favorable terms and conditions; our ability to continue to originate mortgage loans; competition; loan losses, loan prepayment rates, delinquency and default rates; repurchase obligations, early payment default, costs and potential liabilities associated with litigation, our regulatory settlements with state and federal agencies and other regulatory compliance matters and changes (legislative or otherwise) affecting mortgage lending activities and the real estate market; general economic conditions, including interest rate risk, future residential real estate values, and demand for our products and services; the state of the housing market; and other risks identified in our filings with the Securities and Exchange Commission, including those discussed in our Form 10-K under the captions “Business–Forward Looking Statements” and “Risk Factors” and our Form 10-Q under the caption “Risk Factors.” We disclaim any obligation to update or revise any of the forward-looking information contained in this press release at any future date, except as required under applicable securities laws.