Walker & Dunlop 3Q profit down, loan originations up 104%
Multifamily lender Walker & Dunlop (WD) posted a profit of $6.1 million, or 28 cents a share, during the third quarter as loan originations grew 104% year-over-year. Comparatively, the company recorded a profit of $7.1 million, or 48 cents a share, in the third quarter of 2010. On a pro forma basis, the company's recent third-quarter profit is up from $4.4 million a year earlier. Walker & Dunlop said results for year-ago third quarter of all of last year have been "normalized for tax expenses because of the change in our tax status due to our initial public offering in December." Based on these calculations, the company's third-quarter profit jumped 39% from 2010. Loan originations grew 104%, hitting $906.7 million in 3Q, up from $444.4 million last year. Total revenue also increased 50%, hitting $33.4 million in the third quarter, up from $22.2 million in the third quarter of 2010. The company noted that gains from mortgage banking activity hit $21.6 million in the third quarter, up 75% from $12.3 million a year earlier. Gains from mortgage servicing rights also hit $11.9 million in the third quarter, a 64% jump from $7.2 million a year earlier. Write to Kerri Panchuk.