Onity Group Announces Second Quarter 2024 Results
Onity Group Inc. (NYSE: ONIT) reported strong Q2 2024 results, with $11 million in net income and $1.33 diluted EPS. The company achieved an adjusted pre-tax income of $32 million, primarily driven by its servicing segment, resulting in a 28% annualized adjusted pre-tax return on equity. Onity added $19 billion in total servicing, including $12 billion in subservicing. The company's debt-to-equity ratio improved to 3.88 to 1. In July, Onity entered a letter of intent to acquire reverse mortgage assets from Waterfall Asset Management, including a $3 billion projected UPB servicing portfolio. The transaction, expected to close in H2 2024, will be financed through $51.7 million in new preferred stock issued to Waterfall.
Onity Group Inc. (NYSE: ONIT) ha riportato risultati solidi per il secondo trimestre del 2024, con un utile netto di 11 milioni di dollari e un EPS diluiti di 1,33 dollari. L'azienda ha raggiunto un reddito netto rettificato ante imposte di 32 milioni di dollari, principalmente grazie al suo segmento di servizi, risultando in un ritorno sul capitale netto rettificato ante imposte annualizzato del 28%. Onity ha aggiunto 19 miliardi di dollari nel totale dei servizi, inclusi 12 miliardi di dollari in subservicing. Il rapporto debito/capitale netto dell'azienda è migliorato fino a 3,88 a 1. A luglio, Onity ha firmato una lettera di intenti per acquisire beni legati ai mutui inversi da Waterfall Asset Management, inclusi un portafoglio di servizi previsto di 3 miliardi di dollari. La transazione, prevista per la chiusura nel secondo semestre del 2024, sarà finanziata tramite 51,7 milioni di dollari in nuove azioni privilegiate emesse a Waterfall.
Onity Group Inc. (NYSE: ONIT) informó resultados sólidos para el segundo trimestre de 2024, con 11 millones de dólares en ingresos netos y un EPS diluido de 1.33 dólares. La compañía alcanzó un ingreso ajustado antes de impuestos de 32 millones de dólares, impulsado principalmente por su segmento de servicios, lo que resultó en un retorno ajustado anualizado sobre el capital del 28%. Onity agregó 19 mil millones de dólares en servicios totales, incluidos 12 mil millones de dólares en subservicing. La relación deuda-capital de la empresa mejoró a 3.88 a 1. En julio, Onity firmó una carta de intención para adquirir activos de hipotecas inversas de Waterfall Asset Management, incluidos un portafolio de servicios proyectado de 3 mil millones de dólares. Se espera que la transacción se cierre en la segunda mitad de 2024 y se financiará a través de 51.7 millones de dólares en nuevas acciones preferentes emitidas a Waterfall.
Onity Group Inc. (NYSE: ONIT)가 2024년 2분기 강력한 실적을 발표했으며, 1100만 달러의 순이익과 1.33달러의 희석 주당순이익(시가배당금)을 기록했습니다. 회사는 주로 서비스 부문에 힘입어 3200만 달러의 조정된 세전 수익을 달성하여 연간화된 조정 세전 자기자본 수익률이 28%에 달했습니다. Onity는 190억 달러의 총 서비스를 추가했으며, 여기에는 120억 달러의 하청 서비스가 포함됩니다. 회사의 부채 대비 자기자본 비율은 3.88대 1로 개선되었습니다. 7월에 Onity는 Waterfall Asset Management로부터 역모기지 자산을 인수하기 위한 의향서를 체결하였으며, 여기에는 30억 달러의 예상 UPB 서비스 포트폴리오가 포함됩니다. 이 거래는 2024년 하반기에 완료될 것으로 예상되며, Waterfall에 발행된 5170만 달러의 새로운 우선주로 자금이 조달될 예정입니다.
Onity Group Inc. (NYSE: ONIT) a annoncé de solides résultats pour le deuxième trimestre 2024, avec 11 millions de dollars de résultat net et un BPA dilué de 1,33 dollar. L'entreprise a réalisé un revenu ajusté avant impôt de 32 millions de dollars, principalement grâce à son segment de services, entraînant un retour sur fonds propres ajusté annualisé de 28%. Onity a ajouté 19 milliards de dollars de services totaux, dont 12 milliards de dollars en sous-traitance. Le ratio d'endettement de l'entreprise s'est amélioré à 3,88 pour 1. En juillet, Onity a signé une lettre d'intention pour acquérir des actifs de prêt hypothécaire inversé de Waterfall Asset Management, y compris un portefeuille de services projeté de 3 milliards de dollars. La transaction, prévue pour se clore au second semestre 2024, sera financée par 51,7 millions de dollars d'actions privilégiées nouvelles émises à Waterfall.
Onity Group Inc. (NYSE: ONIT) hat starke Ergebnisse für das zweite Quartal 2024 gemeldet, mit 11 Millionen Dollar Nettogewinn und einem verwässerten EPS von 1,33 Dollar. Das Unternehmen erzielte ein bereinigtes Einkommen vor Steuern von 32 Millionen Dollar, das hauptsächlich durch seinen Dienstleistungssektor bedingt war, was zu einer jährlichen bereinigten Vorsteuer-Rendite von 28% führte. Onity fügte 19 Milliarden Dollar in Gesamtdienstleistungen hinzu, darunter 12 Milliarden Dollar in Subdienstleistungen. Die Verschuldungsquote des Unternehmens verbesserte sich auf 3,88 zu 1. Im Juli trat Onity in eine Absichtserklärung ein, um Reverse-Hypothekenvermögen von Waterfall Asset Management zu erwerben, einschließlich eines 3 Milliarden Dollar geschätzten UPB-Dienstleistungsportfolios. Die Transaktion, die voraussichtlich in der zweiten Jahreshälfte 2024 abgeschlossen wird, wird durch 51,7 Millionen Dollar neue Vorzugsaktien, die an Waterfall ausgegeben werden, finanziert.
- Net income of $11 million and diluted EPS of $1.33
- Adjusted pre-tax income of $32 million, with 28% annualized adjusted pre-tax return on equity
- $19 billion in total servicing additions, including $12 billion in subservicing
- Improved debt-to-equity ratio to 3.88 to 1
- Planned acquisition of reverse mortgage assets with $3 billion projected UPB
- Total ending servicing UPB of $304 billion, up 6% from December 31, 2023
- Originations volume of $7 billion, up 51% compared to Q1 2024
- Improved total liquidity to $231 million as of June 30, 2024
- Book value per share improved to $57 as of June 30, 2024
- Unfavorable MSR fair value adjustments due to elevated hedge costs
Onity Group's Q2 2024 results demonstrate a solid performance with some notable highlights. The company reported
The
The debt-to-equity ratio of 3.88:1, while improved, is still relatively high for the financial services sector. This leverage level could be a concern in a rising interest rate environment or during economic downturns. However, the improvement in this metric is a positive sign of the company's efforts to strengthen its balance sheet.
The planned acquisition of reverse mortgage assets from Waterfall Asset Management is an interesting strategic move. If completed, it would add approximately
Overall, Onity's Q2 results and strategic initiatives paint a picture of a company on an upward trajectory, but investors should keep a close eye on the sustainability of these improvements and the execution of the proposed acquisition.
Onity Group's Q2 2024 results reveal interesting trends in the mortgage servicing and origination market. The
The growth in total servicing UPB to
The company's cost-cutting efforts are bearing fruit, with year-over-year reductions of
The planned entry into reverse mortgages through the Waterfall Asset Management deal is a strategic move to diversify revenue streams and hedge against forward MSR volatility. This sector has been growing due to demographic trends and Onity's expansion here could open up new growth avenues.
The rebranding to Onity Group and NYSE listing under 'ONIT' may enhance the company's visibility and potentially its valuation. However, the true test will be in maintaining and improving operational performance in the coming quarters.
- Net income of
$11 million and diluted earnings per share of$1.33 ; annualized return on equity of10% - Adjusted pre-tax income of
$32 million , driven by servicing segment 28% annualized adjusted pre-tax return on equity$19 billion in total servicing additions ($12 billion in subservicing additions)- Debt-to-equity ratio of 3.88 to 1
- Entered into a letter of intent in July for the acquisition of reverse mortgage assets from Waterfall Asset Management
WEST PALM BEACH, Fla., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”), a leading non-bank mortgage servicer and originator, today announced its second quarter 2024 results and provided a business update.
The Company reported GAAP net income of
“I’m thrilled with the performance of the Onity platform, which turned in powerful second quarter results reflecting increased adjusted return on equity and enhanced book value per share, an improved debt-to-equity ratio, and continued progress on our strategic initiatives,” said Onity Group Chair, President and CEO Glen Messina. “This quarter’s results provide the clearest demonstration yet that our articulated strategy and financial objectives are sound, and our execution is strong. We look forward to further delivering on our commitments in the second half of the year as we seek to close the gap on shareholder value and capture tremendous upside potential.”
In addition to a strong second quarter, on July 26, 2024, Onity entered into a letter of intent with Waterfall Asset Management, LLC (“Waterfall”) to acquire reverse mortgage assets of Mortgage Assets Management, LLC (“MAM”), a subsidiary of investment funds managed by Waterfall. The transaction would include a reverse mortgage servicing portfolio, which is currently subserviced by PHH Mortgage, with a projected unpaid principal balance of approximately
Messina commented, “We are pleased to announce the proposed transaction with Waterfall. We expect this transaction to be accretive to earnings and cash flows immediately upon closing, while strengthening our position in reverse servicing as a hedge to forward MSRs, providing incremental asset management opportunities, and improving our capital structure. MAM has been a valued subservicing client, and we look forward to closing the transaction with Waterfall and pursuing future business opportunities.”
Additional Second Quarter 2024 Operating and Business Highlights
- Rebranded to Onity Group Inc. and began trading on the NYSE under the stock symbol “ONIT” effective June 10, 2024
- Total ending servicing UPB of
$304 billion and ending subservicing UPB of$173 billion , up6% and10% , respectively, compared to December 31, 2023 - Year-over-year servicing and originations cost structure continued to improve, down
17% and22% , respectively - Originations volume of
$7 billion , up51% compared to the first quarter 2024, demonstrating MSR replenishment capability - Variance between GAAP income and adjusted pre-tax income due to unfavorable MSR fair value adjustments driven by elevated hedge costs
- Total liquidity improved to
$231 million as of June 30, 2024 - Book value per share improved to
$57 as of June 30, 2024
Webcast and Conference Call
Onity will hold a conference call on Thursday, August 1, 2024, at 8:30 a.m. (ET) to review the Company’s second quarter 2024 operating results and to provide a business update. A live audio webcast and slide presentation for the call will be available by visiting the Shareholder Relations page at onitygroup.com. Participants can access the conference call by dialing (800) 343-4849 or (203) 518-9843 approximately 10 minutes prior to the call; please reference the conference ID “Onity.” A replay of the conference call will be available via the website approximately two hours after the conclusion of the call. A telephonic replay will also be available approximately three hours following the call’s completion through August 15, 2024 by dialing (844) 512-2921 or (412) 317-6671; please reference access code 11156410.
About Onity Group
Onity Group Inc. (NYSE: ONIT) is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan” “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding delivering on our commitments in the second half of the year and capturing potential upside, and the expected closing of our pending acquisition of reverse mortgage assets of MAM and the potential benefits of such acquisition. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Readers should bear these factors in mind when considering such statements and should not place undue reliance on such statements.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the timing for the closing of our transaction with Waterfall and its impact on our business and financial results; the potential for ongoing disruption in the financial markets and in commercial activity generally as a result of U.S. and global political events, changes in monetary and fiscal policy, and other sources of instability; the impacts of inflation, employment disruption, and other financial difficulties facing our borrowers; the timing and terms on which we will refinance our senior corporate debt; the adequacy of our financial resources, including our sources of liquidity and ability to sell, fund and recover servicing advances, forward and reverse whole loans, future draws on existing reverse loans, and HECM and forward loan buyouts and put backs, as well as repay, renew and extend borrowings, borrow additional amounts as and when required, meet our MSR or other asset investment objectives and comply with our debt agreements, including the financial and other covenants contained in them; our ability to interpret correctly and comply with current or future liquidity, net worth and other financial and other requirements of regulators, the Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), and the Government National Mortgage Association (Ginnie Mae), including our ability to identify and implement a cost-effective response to Ginnie Mae’s risk-based capital requirements that take effect in late 2024; our ability to timely reduce operating costs, or generate offsetting revenue, in proportion to the industry-wide decrease in originations activity; the impact of cost-reduction initiatives on our business and operations; the impact our rebranding initiative; the amount of senior debt or common stock or that we may repurchase under any repurchase programs, the timing of such repurchases, and the long-term impact, if any, of repurchases on the trading price of our securities or our financial condition; breach or failure of Onity’s, our contractual counterparties’, or our vendors’ information technology or other security systems or privacy protections, including any failure to protect customers’ data, resulting in disruption to our operations, loss of income, reputational damage, costly litigation and regulatory penalties; our reliance on our technology vendors to adequately maintain and support our systems, including our servicing systems, loan originations and financial reporting systems, and uncertainty relating to our ability to transition to alternative vendors, if necessary, without incurring significant cost or disruption to our operations; the extent to which MAV, other transactions and our enterprise sales initiatives will generate additional subservicing volume, and result in increased profitability; MAV’s continued ownership of its MSR portfolio, and any impact on our subservicing income as a result of the sale of MAV’s MSRs; the future of our long-term relationship with Rithm Capital Corp. (Rithm); the timing and amount of presently anticipated forward and reverse loan boarding; our ability to close acquisitions of MSRs and other transactions, including the ability to obtain regulatory approvals; our ability to grow our reverse servicing business; our ability to retain clients and employees of acquired businesses, and the extent to which acquisitions and our other strategic initiatives will contribute to achieving our growth objectives; increased servicing costs based on increased borrower delinquency levels or other factors; uncertainty related to past, present or future claims, litigation, cease and desist orders and investigations regarding our servicing, foreclosure, modification, origination and other practices brought by government agencies and private parties, including state regulators, the Consumer Financial Protection Bureau (CFPB), State Attorneys General, the Securities and Exchange Commission (SEC), the Department of Justice or the Department of Housing and Urban Development (HUD); the reactions of key counterparties, including lenders, the GSEs and Ginnie Mae, to our regulatory engagements and litigation matters; increased regulatory scrutiny and media attention; any adverse developments in existing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and contractual compliance obligations; our ability to comply with our servicing agreements, including our ability to comply with the requirements of the GSEs and Ginnie Mae and maintain our seller/servicer and other statuses with them; our ability to fund future draws on existing loans in our reverse mortgage portfolio; our servicer and credit ratings as well as other actions from various rating agencies, including any future downgrades; as well as other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2023. Anyone wishing to understand Onity’s business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.
Note Regarding Non-GAAP Financial Measures
This press release contains references to adjusted pre-tax income (loss), a non-GAAP financial measure.
We believe this non-GAAP financial measure provides a useful supplement to discussions and analysis of our financial condition, because it is a measure that management uses to assess the financial performance of our operations and allocate resources. In addition, management believes that this presentation may assist investors with understanding and evaluating our initiatives to drive improved financial performance. Management believes, specifically, that the removal of fair value changes of our net MSR exposure due to changes in market interest rates and assumptions provides a useful, supplemental financial measure as it enables an assessment of our ability to generate earnings regardless of market conditions and the trends in our underlying businesses by removing the impact of fair value changes due to market interest rates and assumptions, which can vary significantly between periods. However, this measure should not be analyzed in isolation or as a substitute to analysis of our GAAP pre-tax income (loss) nor a substitute for cash flows from operations. There are certain limitations to the analytical usefulness of the adjustments we make to GAAP pre-tax income (loss) and, accordingly, we use these adjustments only for purposes of supplemental analysis. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Onity’s reported results under accounting principles generally accepted in the United States. Other companies may use non-GAAP financial measures with the same or similar titles that are calculated differently to our non-GAAP financial measures. As a result, comparability may be limited. Readers are cautioned not to place undue reliance on analysis of the adjustments we make to GAAP pre-tax income (loss).
Notables
In the table below, we adjust GAAP pre-tax income (loss) for the following factors: MSR valuation adjustments, expense notables, and other income statement notables. MSR valuation adjustments are comprised of changes to Forward MSR and Reverse mortgage valuations due to rates and assumption changes. Expense notables include significant legal and regulatory settlement expenses, expense recoveries, severance and retention costs, LTIP stock price changes, consolidation of office facilities and other expenses (such as costs associated with strategic transactions). Other income statement notables include non-routine transactions that are not categorized in the above.
| (Dollars in millions) | Q2’24 | Q1’24 | Q2’23 | |
| I | Reported Net Income (Loss) | 11 | 30 | 15 |
| A. Income Tax Benefit (Expense) | (3) | (2) | (1) | |
| II | Reported Pre-Tax Income (Loss) [I – A] | 14 | 32 | 16 |
| Forward MSR Valuation Adjustments due to rates and assumption changes, net (a)(b)(c) | (13) | 18 | (23) | |
| Reverse Mortgage Fair Value Change due to rates and assumption changes (b)(d) | (3) | 2 | (10) | |
| III | Total MSR Valuation Adjustments due to rates and assumption changes, net | (16) | 20 | (33) |
| Significant legal and regulatory settlement expenses | 2 | (2) | 28 | |
| Expense Recoveries | - | - | - | |
| Severance and retention (e) | (1) | (2) | (1) | |
| LTIP stock price changes (f) | 1 | 3 | (1) | |
| Office facilities consolidation | 0 | (0) | 0 | |
| Other expense notables (g) | (1) | (1) | 0 | |
| B. Total Expense Notables | 1 | (2) | 28 | |
| C. Other Income Statement Notables (h) | (3) | (0) | (1) | |
| IV | Total Other Notables [B + C] | (2) | (2) | 27 |
| V | Total Notables (i) [III + IV] | (18) | 18 | (6) |
| VI | Adjusted Pre-Tax Income (Loss) [II – V] | 32 | 14 | 23 |
| a) | MSR Valuation Adjustments that are due to changes in market interest rates, valuation inputs or other assumptions, net of overall fair value gains / (losses) on MSR hedge, including FV changes of Pledged MSR liabilities associated with MSR transferred to MAV, RITM and others and ESS financing liabilities that are due to changes in market interest rates, valuation inputs or other assumptions, a component of MSR valuation adjustment, net | |
| b) | The changes in fair value due to market interest rates were measured by isolating the impact of market interest rate changes on the valuation model output as provided by our third-party valuation expert | |
| c) | Beginning with the three months ended March 31, 2023, for purposes of calculating Income Statement Notables and Adjusted Pre-Tax Income (Loss), we changed the methodology used to calculate MSR Valuation Adjustments due to rates and assumption changes to exclude actual-to-model variances of realization of cash flows, or runoff; the presentation of past periods has been conformed to the current presentation; if we had used the methodology employed prior to Q1’23, Forward MSR Valuation Adjustments due to rates and assumption changes, net would have been | |
| d) | FV changes of loans HFI and HMBS related borrowings due to market interest rates and assumptions, a component of gain on reverse loans held for investment and HMBS-related borrowings, net | |
| e) | Severance and retention due to organizational rightsizing or reorganization | |
| f) | Long-term incentive program (LTIP) compensation expense changes attributable to stock price changes during the period | |
| g) | Includes costs associated with but not limited to rebranding and other strategic initiatives | |
| h) | Contains non-routine transactions including but not limited to gain on debt extinguishment and fair value assumption changes on other investments recorded in other income/expense | |
| i) | Certain previously presented notable categories with nil numbers for each period shown have been omitted | |
Adjusted Pre-Tax Income (Loss) ROE Calculation
| (Dollars in millions) | Q2’24 | Q1’24 | Q2’23 | |
| I | Reported Net Income (Loss) | 11 | 30 | 15 |
| II | Notable Items | (18) | 18 | (6) |
| III | Income Tax Benefit (Expense) | (3) | (2) | (1) |
| IV | Adjusted Pre-Tax Income (Loss) [I – II – III] | 32 | 14 | 23 |
| V | Annualized Adjusted Pre-tax Income (Loss) [IV * 4] | 127 | 56 | 91 |
| Equity | ||||
| A Beginning Period Equity | 432 | 402 | 416 | |
| C Ending Period Equity | 446 | 432 | 434 | |
| D Equity Impact of Notables | 18 | (18) | 6 | |
| B Adjusted Ending Period Equity [C + D] | 464 | 414 | 440 | |
| VI | Average Adjusted Equity [(A + B) / 2] | 448 | 408 | 428 |
| VII | Adjusted Pre-Tax Income (Loss) ROE [V / VI] | 28.3% | 13.8% | 21.2% |
Condensed Consolidated Balance Sheets
| Assets (Dollars in millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 |
| Cash and cash equivalents | 203.1 | 185.1 | 213.4 |
| Restricted cash | 46.3 | 66.1 | 119.1 |
| Mortgage servicing rights (MSRs), at fair value | 2,327.7 | 2,374.7 | 2,675.7 |
| Advances, net | 550.6 | 602.7 | 602.7 |
| Loans held for sale | 1,107.0 | 1,028.9 | 1,356.5 |
| Loans held for investment, at fair value | 8,227.8 | 8,130.5 | 7,680.7 |
| Receivables, net | 153.4 | 152.1 | 188.6 |
| Investment in equity method investee | 31.3 | 37.6 | 34.6 |
| Premises and equipment, net | 12.3 | 11.8 | 16.9 |
| Other assets | 84.3 | 84.3 | 80.5 |
| Contingent loan repurchase asset | 341.0 | 416.3 | 247.1 |
| Total Assets | 13,084.7 | 13,090.1 | 13,216.0 |
| Liabilities & Stockholders’ Equity (Dollars in millions) | June 30, 2024 | March 31, 2024 | June 30, 2023 |
| Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value | 8,035.4 | 7,945.0 | 7,486.4 |
| Other financing liabilities, at fair value | 845.9 | 906.8 | 1,274.0 |
| Advance match funded liabilities | 405.0 | 440.2 | 430.4 |
| Mortgage loan financing facilities, net | 1,190.5 | 1,108.9 | 1,515.0 |
| MSR financing facilities, net | 927.7 | 964.1 | 864.8 |
| Senior notes, net | 555.2 | 552.0 | 605.0 |
| Other Liabilities | 337.9 | 324.7 | 359.5 |
| Contingent loan repurchase liability | 341.0 | 416.3 | 247.1 |
| Total Liabilities | 12,638.4 | 12,658.0 | 12,782.2 |
| Total Stockholders’ Equity | 446.2 | 432.1 | 433.8 |
| Total Liabilities and Stockholders’ Equity | 13,084.7 | 13,090.1 | 13,216.0 |
Condensed Consolidated Statements of Operations
| (Dollars in millions) | Three Months Ended | ||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | |
| Revenue | |||
| Servicing and subservicing fees | 210.8 | 204.5 | 237.6 |
| Gain on reverse loans held for investment and HMBS-related borrowings, net | 8.5 | 15.4 | 0.7 |
| Gain on loans held for sale, net | 16.5 | 10.9 | 25.3 |
| Other revenue, net | 10.6 | 8.3 | 8.5 |
| Total revenue | 246.4 | 239.1 | 272.0 |
| MSR valuation adjustments, net | (32.7) | (11.6) | (48.9) |
| Operating expenses | |||
| Compensation and benefits | 55.0 | 53.6 | 57.7 |
| Servicing and origination | 13.9 | 15.0 | 17.6 |
| Technology and communications | 13.0 | 12.7 | 13.0 |
| Professional services | 10.7 | 12.0 | (16.9) |
| Occupancy, equipment and mailing | 7.5 | 7.7 | 7.7 |
| Other expenses | 3.9 | 3.4 | 5.1 |
| Total operating expenses | 104.0 | 104.4 | 84.3 |
| Other income (expense) | |||
| Interest income | 22.5 | 17.5 | 20.3 |
| Interest expense | (73.1) | (67.4) | (68.3) |
| Pledged MSR liability expense | (46.1) | (44.9) | (73.0) |
| Earnings of equity method investee | 3.1 | 2.7 | 2.9 |
| Gain on extinguishment of debt | - | 1.4 | - |
| Other, net | (2.7) | (0.6) | (4.4) |
| Other income (expense), net | (96.2) | (91.3) | (122.5) |
| Income (loss) before income taxes | 13.5 | 31.8 | 16.3 |
| Income tax expense | 3.0 | 1.7 | 0.9 |
| Net Income (loss) | 10.5 | 30.1 | 15.5 |
| Basic EPS | |||
| Diluted EPS | |||
For Further Information Contact:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
FAQ
What were Onity Group's (ONIT) key financial results for Q2 2024?
How much did Onity Group (ONIT) add in servicing volume during Q2 2024?
What acquisition did Onity Group (ONIT) announce in July 2024?
How does Onity Group (ONIT) plan to finance the acquisition from Waterfall Asset Management?
What was Onity Group's (ONIT) debt-to-equity ratio in Q2 2024?
