SOURCE: Genesis Financial, Inc.

October 06, 2006 12:57 ET

Genesis Financial, Inc. Reports Third Quarter Results

SPOKANE, WA -- (MARKET WIRE) -- October 6, 2006 -- Genesis Financial, Inc. (PINKSHEETS: GFNL) announces third quarter and year to date operating results. Genesis Financial, Inc. reported operating profits of $175,847 for the third quarter of 2006 bringing the year to date operating profits to $329,650. Basic income per share for the second quarter is $.055 and for the year to date is $.104.

Third quarter revenues increased $271,329 or 99% while operating expenses increased by $154,315 or 25%. Federal income tax expense increased by $79,609 for the quarter ended September 30, 2006.

The Company also had an increase in deferred interest income from the sales of contracts of $314,748 or $.100 per weighted average share outstanding for the nine months ended September 30, 2006 bringing the total deferred interest income to $542,475 or $.172 per share.

As previously reported, Genesis Financial, Inc. negotiated a settlement on loans made on property in Idaho that had been jointly developed into a mitigation wetlands bank with the original borrower and a subsequent joint venture partner. The loan had gone into default and Genesis Financial, Inc. was in the process of foreclosure. Under the settlement Genesis was to receive 52.5% of $3,000 ($1,575 per credit) upon the sale of each credit. The mitigation bank has been approved for 1,376 credits with a possible increase to 2,500 credits. The sale of the mitigation credits will result in pre-tax income of between $2,167,200 and $3,937,500 over the life of the mitigation bank should all of the credits be developed and sold.

Genesis Financial, Inc. received payment on the sale of 26.07 credits in the quarter ended September 30, 2006.

This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which can be identified by the use of forward looking terminology such as "may," "will," "intend," "expect," "anticipate," "estimate," "continue," or the negatives thereof of comparable terminology. The Company's actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors, including, but not limited to, economic conditions, product demand, competitive products and pricing, and/or state and federal regulations.

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  • Contact Information
    John Coghlan or Michael Kirk
    509-462-1468