Walker & Dunlop, Inc. (NYSE:WD) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Ginna Semmes - Investor Relations Willy Walker - Chairman and Chief Executive Officer Greg Florkowski - Executive Vice President and Chief Financial Officer Conference Call Participants Jay McCanless - Wedbush Securities Steve Delaney - JMP Jade Rahmani - KBW Ginna Semmes Good morning, I’m Ginna Semmes, Senior Analyst for Investor Relations at Walker & Dunlop and I would like to welcome you to Wal ...

Financial Performance - Total revenues for Q2 2022 reached $340848 thousand, a 21% increase compared to $281411 thousand in Q2 2021[8, 11] - Adjusted EBITDA for Q2 2022 was $94844 thousand, compared to $66514 thousand in Q2 2021[9] - Walker & Dunlop's (W&D) deliveries to GSE increased to $15891 million YTD 2022, resulting in a market share of 139%[19] - Adjusted Net Income increased to $68929 thousand, compared to $46514 thousand in the same period last year[49] - Adjusted Diluted Earnings Per Share increased to $204, compared to $144 in the same period last year[49] Segment Performance - Capital Markets total revenues for Q2 2022 were $208022 thousand, a 6% increase compared to $195905 thousand in Q2 2021[34] - Servicing & Asset Management (SAM) total revenues for Q2 2022 were $132551 thousand, a 56% increase compared to $85155 thousand in Q2 2021[36] - SAM Adjusted EBITDA for Q2 2022 was $105062 thousand, a 43% increase compared to $73703 thousand in Q2 2021[36] - Corporate segment reported negative Adjusted EBITDA of $27098 thousand for Q2 2022, compared to negative $21404 thousand in Q2 2021[37] Transaction Volume - Debt brokerage volume surged to $9258 million in Q2 2022, a 47% increase compared to $6281 million in Q2 2021[14] - Property sales volume increased to $3342 million in Q2 2022, a 648% increase compared to $447 million in Q2 2021[14]

Loan Origination and Transaction Volumes - In Q1 2022, new loans represented 68% of refinancing volumes and 25% of total transaction volumes from new customers [136]. - Total transaction volumes increased by 56% in the first half of 2022 compared to the same period in 2021, with multifamily property sales up 141% [182]. - Fannie Mae and Freddie Mac had multifamily origination volumes of $34.7 billion and $29.6 billion for the six months ended June 30, 2022, representing increases of 7.1% and 9.2% respectively from the first half of 2021 [184]. - Total debt financing volume for the three months ended June 30, 2022, was $14.65 billion, up from $10.19 billion in the same period in 2021 [193]. - Property sales volume for the six months ended June 30, 2022, was $11.42 billion, compared to $4.74 billion in the same period in 2021 [193]. Company Acquisitions and Subsidiaries - The company acquired GeoPhy B.V. on February 28, 2022, to enhance its small-balance lending platform and technology-enabled appraisal services [139]. - Apprise, a subsidiary of the company, has seen rapid revenue growth and increased volume of appraisal reports generated [150]. - Zelman & Associates, a subsidiary owned 75% by the company, enhances market insight in housing trends and generates revenue through the sale of research data and investment banking services [162]. Financial Performance and Revenue Growth - Total revenues for the three months ended June 30, 2022, increased by 21% to $340,848,000 compared to $281,411,000 in the same period of 2021 [198]. - For the six months ended June 30, 2022, total revenues increased by 31% to $660,292,000 compared to $505,699,000 in the same period of 2021 [200]. - Adjusted EBITDA for the three months ended June 30, 2022, was $94,844,000, an increase of 43% compared to $66,514,000 for the same period in 2021 [218]. - The company reported a net income of $70,236,000 for the six months ended June 30, 2022, a 40% increase from $50,125,000 in 2021 [269]. Expenses and Cost Management - Total expenses for the three months ended June 30, 2022, rose by 29% to $267,238,000 compared to $207,113,000 in the same period of 2021 [198]. - The company experienced a 23% increase in personnel expenses for the three months ended June 30, 2022, totaling $138,913 compared to $119,994 in 2021 [238]. - Other operating expenses for the three months ended June 30, 2022, increased by $3.9 million, primarily due to higher professional fees and costs from acquired subsidiaries [277]. Risk Management and Credit Losses - The company has risk-sharing obligations on nearly all loans originated under the Fannie Mae DUS program, absorbing losses on the first 5% of the unpaid principal balance, with a maximum loss capped at 20% of the original unpaid principal balance [154]. - The calculated CECL reserve for the company's $51.2 billion at-risk Fannie Mae servicing portfolio as of June 30, 2022, was $37.7 million, down from $52.3 million as of December 31, 2021 [324]. - Defaulted loans as a percentage of the at-risk portfolio increased to 0.15% as of June 30, 2022, compared to 0.10% in the previous year [316]. Technology and Operational Efficiency - The company leverages technology and data analytics to improve the consistency and speed of multifamily property appraisals [150]. - The company’s growth strategy includes strategic investments in technology to enhance customer experience and operational efficiencies [136]. Shareholder Returns and Dividends - The company paid a cash dividend of $0.60 per share for Q2 2022, which is 20% higher than the dividend paid in Q2 2021 [304]. - Cash dividends paid increased by 25% to $40,143,000 in 2022, up from $32,122,000 in 2021 [231]. Market Conditions and Economic Indicators - Multifamily occupancy rates and demand for new leases reached record highs, with overall vacancy rates at 3.7% [179]. - The loss rate used in the forecast period was updated from three basis points to 2.2 basis points in Q2 2022, reflecting expectations of economic conditions [169].

JOIN US AS WE CONTINUE THE DRIVE TO 25 WALKER DUNLOP VIRTUAL INVESTOR D May 19, 2022 Forward-Looking Statements Some of the statements contained in this presentation may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by th ...

Walker & Dunlop, Inc. (NYSE:WD) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Kelsey Duffey - VP, IR Willy Walker - Chairman, CEO Steve Theobald - EVP, CFO Conference Call Participants Jade Rahmani - KBW Steven Delaney - JMP Jay McCanless - Wedbush Securities Kelsey Duffey Good morning, everyone. I'm Kelsey Duffey, Senior Vice President of Investor Relations at Walker & Dunlop, and I'd like to welcome you to Walker & Dunlop's first quarter 2022 earnings conference call and web ...

| --- | --- | --- | |-----------------------------|-------|-------| | | | | | | | | | FIRST QUARTER 2022 EARNINGS | | | | May 5, 2022 | | | Forward-Looking Statements Some of the statements contained in this presentation may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some c ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited Q1 2022 consolidated financial statements, detailing revenue and net income growth, and asset changes Condensed Consolidated Balance Sheet Highlights (As of March 31, 2022 vs. December 31, 2021) | Account | March 31, 2022 ($ thousands) | December 31, 2021 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **4,339,631** | **5,205,989** | **(16.6%)** | | Loans held for sale, at fair value | 703,629 | 1,811,586 | (61.2%) | | Goodwill | 908,744 | 698,635 | 30.1% | | **Total Liabilities** | **2,702,460** | **3,627,782** | **(25.5%)** | | Warehouse notes payable | 924,280 | 1,941,572 | (52.4%) | | **Total Equity** | **1,637,171** | **1,578,207** | **3.7%** | Condensed Consolidated Statement of Income Highlights (For the three months ended March 31) | Account | 2022 ($ thousands) | 2021 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **319,444** | **224,288** | **42.4%** | | Loan origination and debt brokerage fees, net | 82,310 | 75,879 | 8.5% | | Property sales broker fees | 23,398 | 9,042 | 158.8% | | Other revenues | 81,749 | 8,782 | 830.9% | | **Total Expenses** | **229,454** | **151,118** | **51.8%** | | Personnel | 144,181 | 96,215 | 49.9% | | **Walker & Dunlop Net Income** | **71,209** | **58,052** | **22.7%** | | **Diluted EPS** | **$2.12** | **$1.79** | **18.4%** | Condensed Consolidated Statement of Cash Flows Highlights (For the three months ended March 31) | Cash Flow Activity | 2022 ($ thousands) | 2021 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | 971,928 | 1,315,692 | | Net cash used in investing activities | (44,440) | 81,179 | | Net cash used in financing activities | (1,096,656) | (1,423,259) | | **Net (decrease) in cash** | **(169,168)** | **(26,388)** | - In Q1 2022, the company transitioned to three new operating segments: Capital Markets (CM), Servicing & Asset Management (SAM), and Corporate, reflecting management's evaluation post-growth and acquisitions[112](index=112&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses Q1 2022 financial performance, market conditions, segment changes, liquidity, and capital resources Total Transaction Volume (For the three months ended March 31) | Volume Type | 2022 ($ thousands) | 2021 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Debt Financing Volume | 9,135,017 | 7,826,869 | 16.7% | | Property Sales Volume | 3,531,690 | 1,395,760 | 153.0% | | **Total Transaction Volume** | **12,666,707** | **9,222,629** | **37.3%** | - The company acquired **GeoPhy** on February 28, 2022, to accelerate growth in its small balance lending and appraisal platforms[130](index=130&type=chunk) - The Federal Reserve's increase in its target Federal Funds Rate has led to higher long-term mortgage interest rates, impacting the company's lending basis[172](index=172&type=chunk) - The Board approved a new **$75.0 million** stock repurchase program and declared a **$0.60 per share** Q1 2022 dividend, a **20%** increase YoY[109](index=109&type=chunk)[110](index=110&type=chunk)[262](index=262&type=chunk) [Business and Segments](index=32&type=section&id=Business%20and%20Segments) Describes the company's commercial real estate services and its Q1 2022 reorganization into three new operating segments - The Capital Markets segment offers commercial real estate finance products, including Agency lending, debt brokerage, property sales, and appraisal services[134](index=134&type=chunk) - The Servicing & Asset Management segment focuses on loan servicing, managing third-party capital, and providing housing market research[143](index=143&type=chunk) - The Corporate segment includes treasury operations, corporate debt management, strategic investments, and various support functions[133](index=133&type=chunk) [Consolidated Results of Operations](index=42&type=section&id=Consolidated%20Results%20of%20Operations) Details Q1 2022 consolidated financial performance, including 42% revenue growth, 52% expense increase, and 23% net income rise Consolidated Financial Results (For the three months ended March 31) | Account | 2022 ($ thousands) | 2021 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **319,444** | **224,288** | **42%** | | Property sales broker fees | 23,398 | 9,042 | 159% | | Other revenues | 81,749 | 8,782 | 831% | | **Total Expenses** | **229,454** | **151,118** | **52%** | | Personnel | 144,181 | 96,215 | 50% | | **Income from operations** | **89,990** | **73,170** | **23%** | | **Walker & Dunlop net income** | **71,209** | **58,052** | **23%** | - The significant increase in 'Other revenues' was primarily due to a **$39.6 million** one-time gain from the revaluation of the Apprise investment[189](index=189&type=chunk)[190](index=190&type=chunk) Adjusted EBITDA Reconciliation (For the three months ended March 31) | Account | 2022 ($ thousands) | 2021 ($ thousands) | | :--- | :--- | :--- | | Walker & Dunlop Net Income | 71,209 | 58,052 | | Adjustments | (8,573) | 2,615 | | **Adjusted EBITDA** | **62,636** | **60,667** | [Segment Results](index=51&type=section&id=Segment%20Results) Presents Q1 2022 operational results by segment, showing Capital Markets decline, Servicing & Asset Management growth, and reduced Corporate loss Income from Operations by Segment (For the three months ended March 31) | Segment | 2022 ($ thousands) | 2021 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Markets | 59,407 | 70,733 | (16.0%) | | Servicing & Asset Management | 40,876 | 34,743 | 17.6% | | Corporate | (10,293) | (32,306) | (68.1%) | | **Total Income from Operations** | **89,990** | **73,170** | **23.0%** | - Capital Markets' debt financing volume increased to **$9.0 billion**, but MSR income rate on Agency volume declined from **1.83%** to **1.56%**[215](index=215&type=chunk)[224](index=224&type=chunk) - Servicing & Asset Management's total managed portfolio grew to **$132.9 billion** from **$111.7 billion** YoY, with AUM increasing to **$16.7 billion** due to the Alliant acquisition[236](index=236&type=chunk) - The Corporate segment's revenue was positively impacted by a **$39.6 million** gain from remeasuring its Apprise equity investment to fair value upon acquisition[252](index=252&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's strong liquidity and capital position, exceeding regulatory requirements, and outlines key cash uses and debt structure - The company satisfied its Fannie Mae net worth requirement with **$704.8 million** against a required **$261.2 million** as of March 31, 2022[261](index=261&type=chunk) - A new stock repurchase program was approved in February 2022, authorizing up to **$75.0 million** in common stock repurchases, with no shares repurchased in Q1 2022[264](index=264&type=chunk) - The company's at-risk servicing portfolio was **$50.2 billion**, with defaulted loans at **0.16%** and maximum potential loss exposure of **$10.2 billion**[275](index=275&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses exposure to interest rate and market value risks, detailing the impact of rate changes on earnings, expenses, and MSR fair value Annualized Impact of a 100 Basis Point Interest Rate Increase (as of March 31, 2022) | Item | Impact ($ thousands) | | :--- | :--- | | Increase in escrow earnings | 24,807 | | Increase in net warehouse interest expense | (8,929) | | Increase in interest expense on corporate debt | (4,728) | - The fair value of MSRs is sensitive to discount rate changes; a **100-basis point** increase would decrease fair value by approximately **$39.1 million** as of March 31, 2022[292](index=292&type=chunk) - The company is managing the transition from LIBOR to SOFR, having already transitioned its Term Loan and several warehouse facilities to SOFR-based rates[294](index=294&type=chunk) [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal controls - The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of the period end[296](index=296&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[297](index=297&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, none of which are considered material or expected to have an adverse effect - In the ordinary course of business, the company may be party to various claims and litigation, none of which management believes is material[299](index=299&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred regarding the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K - No material changes have occurred regarding the Risk Factors disclosed in the company's 2021 Form 10-K[300](index=300&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q1 2022 equity security transactions, including shares purchased for tax withholding and shares issued as earnout consideration - The company purchased **195,431** shares at an average price of **$138.28 per share** to satisfy grantee tax withholding obligations[301](index=301&type=chunk) - As of March 31, 2022, the company had **$75.0 million** of authorized capacity remaining under its stock repurchase program[301](index=301&type=chunk) [Item 6. Exhibits](index=69&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including agreements, corporate documents, and required CEO/CFO certifications

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35000 Walker & Dunlop, Inc. (Exact name of registrant as specified in its charter) Maryland 80-0629925 (State or other jurisd ...

Walker & Dunlop Inc. (NYSE:WD) Q4 2021 Results Conference Call February 3, 2022 8:30 AM ET Company Participants Kelsey Duffey - VP, IR William Walker - Chairman, CEO Stephen Theobald - EVP, CFO Conference Call Participants Henry Coffey - Wedbush Securities Jade Rahmani - KBW Steven Delaney - JMP Kelsey Duffey Good morning, everyone. I'm Kelsey Duffey, Vice President of Investor Relations at Walker & Dunlop, and I'd like to welcome you to Walker & Dunlop's Fourth Quarter and Full Year 2021 Earnings Conferenc ...

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