Stonegate Mortgage Corp., a non-bank mortgage company, reported a significant increase in revenue during the first quarter.
Total revenues during the first quarter hit $32.6 million, an increase of $27.6 million or 555% from the first quarter of 2016.
The company explained the increase in revenues was predominantly the result of a lower negative change in the fair value of the company’s mortgage servicing rights for the first quarter, compared to the first quarter of 2016, partially offset by a decrease in gains on mortgage loans held for sale.
The company’s net loss also dropped during the first quarter, hanging at just $4.3 million, or $0.16 per diluted share. This is down from Stonegate Mortgage’s net loss of $37.5 million or $1.45 per diluted share during the first quarter of 2016.
On an adjusted basis, net loss for the first quarter came in at $2.4 million, or $0.08 per diluted share, after excluding pre-tax mortgage servicing rights valuation adjustments of $1.2 million and certain other pre-tax non-cash expense items and other non-routine expenses. This is still down from the adjusted net loss of $3.1 million, or $0.12 per diluted share, in the first quarter of 2016.
The company’s total origination volume dipped slightly from $1.94 billion during the first quarter of 2016 to $1.51 billion in the first quarter of 2017. Likewise, the servicing portfolio also dropped from $18.07 billion in the first quarter or 2016 to $17.42 billion in the first quarter of 2017.
The company's positive earnings is the latest in a series of good news for the company. Last week, Home Point Financial Corp.’s $211 million acquisition of Stonegate Mortgage came one step closer to being finalized after Stonegate’s shareholders “overwhelmingly approved” the deal during a special meeting.
