The following is a summary of the Finance of America Companies Inc. (FOA) Q4 2023 Earnings Call Transcript:
Financial Performance:
Finance of America reported a GAAP net income of $171 million or $0.72 per basic share and an adjusted net loss of $20 million or $0.09 per fully diluted share, a 20% improvement from the third quarter.
The company originated $436 million in loan volumes in Q4, a decrease of 7% from the third quarter, and $1.6 billion for the full year.
Fourth quarter revenue margins improved to 9.2%, increasing by 18% from the previous quarter.
Operating expenses decreased by $7 million or 7% from the third quarter, leading to a nearly 10% reduction in the expense base.
Year-end cash balance was $46 million, down from $66 million in September.
Business Progress:
Finance of America launched a new loan origination platform and a second lien home equity loan product as part of their strategic plan.
The company reported a nearly 40% market share in the reverse mortgages market and saw growth in non-agency volume, with 50% more proprietary production in Q4 compared to Q3.
FOA has directed investments towards customer-centered experiences and digital technology aiming to increase adoption of reverse mortgages.
Despite a decrease in loan volumes, the company retains a significant share of both the HECM reverse market and non-agency market due to strategic transactions in 2023.
Finance of America plans on becoming a leading provider of modern retirement solutions by expanding their product offering and enhancing customer experience using AI. The company expects to return to profitability by end of Q2 2024.
More details: Finance of America IR
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