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 Delta’s strengths as a 
      lender. He credited the Company’s fortitude in 
      taking the road less traveled, referring to the Company’s 
      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 Company’s 
      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 Delta’s seasoned 
      and long-tenured management team has been through and understands the 
      cycles of this business, which is a key component to the Company’s 
      success, particularly in this turbulent environment.
    
    
      Mr. Miller listed Delta’s 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 Delta’s 
      success in the secondary market, specifically the Company’s 
      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 Company’s success 
      everyday and, of course you, our shareholders.”
    
    
      At the annual meeting, stockholders re-elected Sidney A. Miller, Delta’s 
      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 Company’s 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 Company’s 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 “Business–Forward 
      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.