May 18, 2007 at 07:00 AM EDT
Delta Financial's CEO Credits Business Model for Company's Strength at Annual Shareholder Meeting

Delta Financial Corporation (NASDAQ: DFC) conducted its 2006 annual shareholder meeting yesterday morning at the Huntington Hilton in Melville, NY.

President and Chief Executive Officer, Hugh Miller, speaking at the meeting, focused on Deltas strengths as a lender. He credited the Companys fortitude in taking the road less traveled, referring to the Companys distinct business model, specifically its focus on originating primarily fixed-rate mortgage loans, its decision not to originate a material amount of riskier mortgage products, its diversified origination platform with almost 50 percent retail originations, and its decision to retain the majority of the loans it originates.

During the meeting Mr. Miller highlighted the importance of the Companys 25-year focus on originating predominantly fixed-rate loans. He explained that rather than attempt to quickly gain market share, we maintained our guidelines and originated loan products that made sense for us and our borrowers, which precluded Delta from having to significantly contract its product offerings. Mr. Miller also explained that Deltas seasoned and long-tenured management team has been through and understands the cycles of this business, which is a key component to the Companys success, particularly in this turbulent environment.

Mr. Miller listed Deltas achievements in 2006, including the growth in its year-over-year origination volume and in its on-balance sheet loan portfolio, as well as its record low 2006 full-year cost to originate of two percent. In addition, Delta increased its warehouse lines of credit by $500 million in 2006, and most recently in 2007 by another $750 million. The Company currently has available lines of credit totaling $2.5 billion through RBS Greenwich Capital, Citigroup, Bank of America, JPMorgan Chase and Deutsche Bank at the same attractive financing rates it had in place at the end of 2006.

Additionally, Mr. Miller noted Deltas success in the secondary market, specifically the Companys 2006 average whole-loan premium of 3.7 percent, which he said, to our knowledge, was the highest in the sector.

With solid first quarter 2007 results, Mr. Miller shared his outlook for the remainder of 2007 and said, Although it remains a challenging environment, we firmly believe the remaining competitive landscape - especially in the wholesale channel - will allow us to capitalize on both short-and long-term opportunities in the market.

Mr. Miller concluded the meeting with appreciation for everyone that has contributed to the success of Delta Financial, and said, I sincerely thank our Board of Directors for their guidance and wisdom, my fellow members of the management team, our employees across the country who contribute to our Companys success everyday and, of course you, our shareholders.

At the annual meeting, stockholders re-elected Sidney A. Miller, Deltas chairman; John Adamovich, Jr., Senior Vice President and Chief Financial Officer of Aeroflex Incorporated; and Martin D. Payson, Board Chairman of the Nassau Health Care Corporation; to new three-year terms as Class II Directors. Stockholders also voted to ratify the appointment of BDO Seidman, LLP as the Companys independent registered public accounting firm for the fiscal year ending December 31, 2007.

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 loans the Company originates are primarily fixed rate, and are 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 Companys retail offices. Since 1991, Delta has completed 51 asset-backed securitizations, collateralized by approximately $18.9 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 projections as to our future loan production, loan portfolio size, emphasis on originating fixed-rate loans, future product offerings, the pricing of whole-loan sales. 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, 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 on favorable terms and conditions; 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, future tax rates 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 BusinessForward Looking Statements and Risk Factors 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.

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