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

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

Mr. Miller cited the Company's strategic decision to transition toportfolio accounting and build the Company's on-balance sheet loanportfolio 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, andessentially locking in future streams of income." Mr. Millercontinued, "In 2006 we expect to generate at least $40 million in netinterest income, net of provision for loan losses and net of taxes,exclusively from our $4.6 billion loan portfolio outstanding at theend of 2005."

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

Lastly, Mr. Miller called the Company's origination platform "onethe most diversified in the sector" as nearly 50 percent of loansoriginated by the Company come from the retail channel. He alsocredited the retail channel with providing the benefit of a "lower netcost to originate" as the Company has "larger more centralized loanorigination centers instead of smaller multiple branches orstorefronts." As a result of the large percentage of loans that comefrom the retail channel, the Company is able to defer net originationfees on its balance sheet rather than net origination costs.

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

During the annual meeting, stockholders re-elected Class IDirectors Richard Blass, Delta's executive vice president and chieffinancial officer and Arnold B. Pollard, chief executive officer of CEGroup, to new three-year terms. The stockholders also elected Class IIDirector, John Adamovich Jr., senior vice president and chieffinancial officer of Aeroflex Incorporated, and Class III Director,William Addas, managing director at Deutsche Bank, for the remainderof their three-year terms. Stockholders also voted to ratify KPMG LLPas the Company's independent auditors for 2006.

About the Company

Founded in 1982, Delta Financial Corporation is a Woodbury, NewYork-based specialty consumer finance company that originates,securitizes and sells non-conforming mortgage loans. The Company'sloans are primarily secured by first mortgages on one- to four-familyresidential properties. The Company originates non-conforming loansprimarily in 34 states. Loans are originated through a network ofapproximately 3,000 independent brokers and the Company's retailoffices. Since 1991, the Company has completed 47 asset-backedsecuritizations, collateralized by approximately $15.7 billion inmortgage loans.

Important Information Regarding Forward Looking Statements.Certain statements contained in this press release, which are nothistorical fact, may be deemed to be "forward-looking" statementsunder the federal securities laws, and involve risk and uncertainties.Forward-looking statements relate to, among other things, ourprojections as to our future earnings, profitability, net interestincome, growth, loan production, cost to originate, the advantages ofthe Company's retail platform and emphasis on originating fixed-rateloans. There are many important factors that could cause our actualresults to differ materially from those indicated in theforward-looking statements. Such factors include, but are not limitedto, the availability of funding at favorable terms and conditions,including without limitation, warehouse, residual and other creditfacilities; our ability or inability to continue to access thesecuritization and whole-loan markets at favorable terms andconditions; competition; loan losses, loan prepayment rates,delinquency and default rates; costs and potential liabilitiesassociated with litigation, our regulatory settlements with state andfederal agencies and other regulatory compliance matters and changes(legislative or otherwise) affecting mortgage lending activities andthe real estate market; general economic conditions, includinginterest rate risk, future residential real estate values, demand forour products and services; and other risks identified in our filingswith the Securities and Exchange Commission, including those discussedin our Form 10-K under the captions "Business-Forward LookingStatements" and "Risk Factors" and our Form 10-Q under the caption"Risk Factors." We disclaim any obligation to update or revise any ofthe forward-looking information contained in this press release at anyfuture date, except as required under applicable securities laws.