Mortgage lender Walker & Dunlop (WD) posted a profit in the third quarter and said revenue soared 110% above year-ago levels.
The company’s revenue surge is attributed to its expanding origination and servicing portfolios.
During the period, Walker & Dunlop finalized its acquisition of commercial real estate lender CWCapital, expanding its activity levels on the origination side.
Loan originations for the period hit $2.2 billion, up 141% from a year earlier, while revenue reached $70.1 million, up from $33.4 million in the third quarter of 2011.
The company’s servicing portfolio also rose 113% over last year, hitting $33.9 billion in 3Q as servicing fees grew 52% to $13.3 million.
The company’s income on GAAP calculations also hit $7.1 million, or 28 cents a share, up 17% from a year ago. Meanwhile, its adjusted income hovered at $14.3 million, or 56 cents a share, which is 135% higher than year-ago levels.
The addition of CWCapital is already having a significant financial impact on Walker & Dunlop’s quarterly earnings, its CEO said.
“The acquisition of CWCapital in September is yet another transformative strategic move for our company,” said Willy Walker, Walker & Dunlop’s chairman, president and CEO.
“Although the third-quarter results reflect only one month of the combined entity’s financial performance, the impact from CWCapital has been immediate and profound. We worked tirelessly throughout the summer to begin integrating the two firms, and although not complete, we are well on our way to bringing these two great firms together in a rapid and effective manner.”
