Delta Reports 3Q Loss

Delta Financial Corp., Woodbury, N.Y., has reported a net loss of $1.8 million ($0.09 per share) for the third quarter, compared with net income of $41.6 million ($2.24 per share) a year earlier.While third-quarter 2003 earnings were positively affected by an income tax benefit of $30.5 million, the earnings for the third quarter of 2004 were negatively affected by a switch in Delta's securitization structure from gain-on-sale accounting to portfolio accounting. The company originated a record $682.0 million of subprime mortgages during the third quarter, up 30% from $524.8 million a year earlier. The cost to originate as a percentage of loan production fell from 3.1% to 2.7% during that time frame. Company executives said Delta should return to profitability by the first quarter of 2005. Delta can be found online at http://www.deltafinancial.com.