Walker & Dunlop(WD) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenues decreased by 1% year-over-year to $270.7 million in Q2 2024[1] - Net income for Q2 2024 was$ 22.7 million, down 18% from Q2 2023, with diluted earnings per share at $0.67[1] - Adjusted core EPS rose by 26% year-over-year to$ 1.23 in Q2 2024[1] - Net income for Walker & Dunlop in Q2 2024 was $40,432,000, reflecting an increase of$ 4,700,000 or 13% compared to Q2 2023[12] - Walker & Dunlop net income for Q2 2024 was $(28,808,000), a 19% decrease from$ (24,204,000) in Q2 2023, reflecting a variance of $(4,604,000)[14] - Walker & Dunlop's net income for YTD Q2 2024 was$ 83,715,000, down 4% from $86,816,000 in YTD Q2 2023[22] - Walker & Dunlop reported a net income of$ 22.663 million for Q2 2024, a significant increase from $11.866 million in Q1 2024[39] Revenue Streams - Total transaction volume for Q2 2024 was$ 8.4 billion, flat compared to Q2 2023[1] - The servicing portfolio grew to $132.8 billion as of June 30, 2024, up 5% from the previous year[1] - Brokered transaction volume increased by 16% year-over-year, driven by higher demand for capital[2] - The total managed portfolio reached$ 150.3 billion, reflecting a 5% increase from the previous year[3] - The Servicing & Asset Management segment reported total revenues of $148,232,000 in Q2 2024, an increase of$ 5,392,000 or 4% from Q2 2023[12] - Total revenues for YTD Q2 2024 increased to $289,467,000, up 5% from$ 276,036,000 in YTD Q2 2023, representing a variance of $13,431,000[22] Expenses and Costs - Total expenses for Q2 2024 increased to$ 45,060,000, a 19% increase from $37,862,000 in Q2 2023, reflecting a variance of$ 7,198,000[14] - Personnel expenses rose to $38,132,000, a 4% increase from$ 36,530,000 in the previous year[22] - Total expenses for YTD Q2 2024 were $181,824,000, an 11% increase from$ 164,296,000 in YTD Q2 2023, resulting in a variance of $17,528,000[22] - Interest expense on corporate debt increased by 5% year-over-year, primarily due to rising interest rates[9] - Interest expense on corporate debt increased by$ 3.2 million, or 10%, year-over-year due to rising interest rates[16] Portfolio and Loan Performance - The at-risk servicing portfolio increased to $60,122,274 in Q2 2024 from$ 56,430,098 in Q2 2023, reflecting a $3,692,176 increase or approximately 7%[8] - Defaulted loans in the at-risk portfolio rose to five loans with an aggregate unpaid principal balance of$ 48.6 million in Q2 2024, compared to two loans with a UPB of $37.0 million in Q2 2023[8] - Defaulted loans as a percentage of the at-risk portfolio decreased to 0.08% from 0.11% in Q1 2024, indicating improved loan performance[33] Dividends and Shareholder Returns - The company declared a quarterly dividend of$ 0.65 per share for Q3 2024[1] - Cash dividends paid per common share were $0.65, consistent with Q1 2024[31] Market and Future Outlook - Walker & Dunlop's future outlook remains positive, with expectations for continued growth in adjusted core net income and EPS[39] - The company is focusing on market expansion and new product development to drive future revenue growth[39] Balance Sheet and Assets - Total assets increased to$ 4,175,398 thousand as of June 30, 2024, up from $3,825,912 thousand on March 31, 2024, representing a growth of 9.1%[30] - Total liabilities increased to$ 2,441,604 thousand, up from $2,090,004 thousand, reflecting a rise of 16.8%[30] - The company reported a total stockholders' equity of$ 1,696,900 thousand, down from $1,715,336 thousand, a decrease of 1.5%[30] Adjusted Metrics - Adjusted EBITDA increased by 15% year-over-year to$ 80.9 million, reflecting strong recurring revenue streams[1] - Adjusted EBITDA for YTD Q2 2024 was $244,159,000, reflecting a 10% increase from$ 221,434,000 in YTD Q2 2023[22] - Adjusted Core Net Income for Q2 2024 was $41.702 million, compared to$ 40.352 million in Q1 2024, reflecting a growth of 3.34%[39]