Delta Financial's CEO Discusses the Company's 2005 Accomplishments and Distinct Business Model at the Annual Stockholder Meeting.

WOODBURY, N.Y. -- Delta Financial Corporation (Amex: DFC) held its annual stockholder meeting this morning at the Huntington Hilton in Melville, NY.

President and Chief Executive Officer, Hugh Miller, reviewed some of Delta's 2005 results including growing loan originations by 47 percent over 2004 to a record $3.8 billion, while decreasing cost to originate by 14 percent. He also noted the strong growth in the Company's on-balance sheet loan portfolio, which doubled to $4.6 billion at the end of 2005 from $2.3 billion at the end of 2004. Mr. Miller credited the Company's accomplishments to the "successful execution of our core business model, which is what distinguishes us in the sector" and cited the Company's strategy of securitizing the majority of the loans it originates, its diversified origination platform and its focus on fixed-rate products as the most significant features of the Company's unique business model.

Mr. Miller cited the Company's strategic decision to transition to portfolio accounting and build the Company's on-balance sheet loan portfolio by securitizing the vast majority of loans originated as "yielding a more consistent and predictable stream of earnings, reducing the volatility associated with gain-on-sale accounting, and essentially locking in future streams of income." Mr. Miller continued, "In 2006 we expect to generate at least $40 million in net interest income, net of provision for loan losses and net of taxes, exclusively from our $4.6 billion loan portfolio outstanding at the end of 2005."

Turning to the Company's strategy of originating predominantly fixed-rate mortgage loans, which represented approximately 80 percent of the Company's total loan originations in 2005, Mr. Miller noted, "We have found that fixed-rate mortgage loans prepay slower and perform better than adjustable-rate mortgages. This increases the length of time loans remain in our on-balance sheet loan portfolio and are paying, which increases the amount of net interest income these loans may generate, equating to greater profitability for Delta." Mr. Miller said.

Lastly, Mr. Miller called the Company's origination platform "one the most diversified in the sector" as nearly 50 percent of loans originated by the Company come from the retail channel. He also credited the retail channel with providing the benefit of a "lower net cost to originate" as the Company has "larger more centralized loan origination centers instead of smaller multiple branches or storefronts." As a result of the large percentage of loans that come from the retail channel, the Company is able to defer net origination fees on its balance sheet rather than net origination costs.

"We truly believe comparing our Company to others in the sector is like comparing 'apples and oranges.' We believe there are few companies in our sector as well positioned as Delta to prosper in 2006 as our unique business model provides us with many competitive advantages," Mr. Miller said in concluding the meeting.

During the annual meeting, stockholders re-elected Class I Directors Richard Blass, Delta's executive vice president and chief financial officer and Arnold B. Pollard, chief executive officer of CE Group, to new three-year terms. The stockholders also elected Class II Director, John Adamovich Jr., senior vice president and chief financial officer of Aeroflex Incorporated, and Class III Director, William Addas, managing director at Deutsche Bank, for the remainder of their three-year terms. Stockholders also voted to ratify KPMG LLP as the Company's independent auditors for 2006.

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 Company's loans are primarily secured by first mortgages on one- to four-family residential properties. The Company originates non-conforming loans primarily in 34 states. Loans are originated through a network of approximately 3,000 independent brokers and the Company's retail offices. Since 1991, the Company has completed 47 asset-backed securitizations, collateralized by approximately $15.7 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 earnings, profitability, net interest income, growth, loan production, cost to originate, the advantages of the Company's retail platform and emphasis on originating fixed-rate loans. 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, warehouse, residual and other credit facilities; our ability or inability to continue to access the securitization and whole-loan markets at favorable terms and conditions; competition; loan losses, loan prepayment rates, delinquency and default rates; 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, demand for our products and services; 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 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.