Delta Delays 10-Q Filing

Delta Financial Corp., Woodbury, N.Y., has filed a form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission for its second-quarter 10-Q.The company said it has begun to negotiate to add new sources of capital, and that the results would materially affect its financial condition. However, it said it expects to file the 10-Q within five days. In its filing, Delta said it expected to report second-quarter 2007 net income of $777,000 ($0.03 per share), compared with $7.2 million ($0.31 per share) a year earlier. Part of the reason for the decline was a $3.9 million noncash decrease in net interest income as a result of changes in prepayment assumptions. Prepayments are occurring slower than previously anticipated. The $3.9 million is now recognized as deferred revenue. Delta's provision for loan losses increased by $6.3 million during the second quarter. The increase, except for a specific provision for impaired loans, corresponds to the performance and seasoning of loans held for investment, Delta said.