Finance Of America Companies Inc. · NYSE:FOA
Finance Of America Companies — Q1 2022 Earnings Presentation
15 slides from Finance Of America Companies's earnings presentation, May 9, 2022
Slide 1: Earnings Presentation | Q1 2022
Earnings Presentation | Q1 2022 May 2022 ©2022 Finance of America Companies
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The actual results of Finance of America Companies Inc., together with its subsidiar
Slide 3: Q1 2022 Highlights
Q1 2022 Highlights Continued growth across • Record quarterly funded volumes in Reverse, Commercial(1) and segments Home Improvement despite recent market volatility • Non-agency Mortgage volume increased to 22% as a portion of overall Mortgage volume in the quarter Sustained high levels • Net loss
Slide 4: SF&S volumes remain strong despite the impact of market volatility
SF&S volumes remain strong despite the impact of market volatility Reverse Origination Volumes Commercial Originations Volumes 2,000 800 94% Increase in Commercial 92% Increase Originations ex FarmOp Q1 2022 vs. Q1 2021 Q1 2022 vs. Q1 2021 1,475 1,500 600 580 573 1,322 98 73 1,157 447 1,013 400 43 1
Slide 5: Q1 2022 saw unprecedented changes in the capital markets
Q1 2022 saw unprecedented changes in the capital markets Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity(1) Commentary 2.75 • Capital markets were extremely volatile, especially toward the end of Q1 2.50 49 2022 2.32 bps 2.25 • The 10-year treasury yield jumped nearly 50 basis
Slide 6: Our SF&S businesses grew Adjusted Net Income compared to Q1 2021
Our SF&S businesses grew Adjusted Net Income compared to Q1 2021 despite these unprecedented market conditions Total Adjusted Revenue ($M)(1) Adjusted Net Income ($M)(2) $600 $200 $510 $500 $150 $400 $107 $363 $100 $320 $300 $135 $72 $37 $50 $200 $47 $35 $- $228 $(10) $100 $190 $(50) $- Q12021 Q1 20
Slide 7: We are committed to our three key strategic priorities
We are committed to our three key strategic priorities 3 ▪ Meet our customers where they are and interact on their terms Transform to a customer-centric organization ▪ Delight our customers in every interaction with meaningful experiences 2 ▪ Marketing and product innovation to capitalize on the ▪ D
Slide 8: We have taken several steps to optimize the Mortgage Originations business
1 We have taken several steps to optimize the Mortgage Originations business Pivot to purchase • In March, purchase volume accounted for 63% of total volume • We expect this to increase in Q2 Focus on non-agency • Non-agency volume now comprises 22% of Mortgage volumes Reduced fixed costs • Reduced
Slide 9: We continue to invest in our growth businesses
2 We continue to invest in our growth businesses Reverse Originations Headcount | Quarter End Commercial Originations Headcount | Quarter End 600 400 51% Increase 84% Increase Q1 2022 vs. Q1 2021 506 Q1 2022 vs. Q1 2021 342 465 300 416 277 400 377 239 334 200 186 200 - - 1Q 2021 2Q 2021 3Q 2021 4Q 2
Slide 10: We continue to evolve toward a customer-centric future
3 We continue to evolve toward a customer-centric future, which should lead to an increase in cross sell revenue and lifetime customer value Meet Delight Deliver Drive our customers where our customers in every the right products at the valuable lifetime they are and interact interaction with right
Slide 11: Our unique products are a true differentiator
Our unique products are a true differentiator Recent feedback from a Finance of America loan officer My team helped a married couple purchase their home back in 2015. At the time, 2015 Helped purchase they were 58 years old buying their first home with down payment first home assistance. Refinance t
Slide 12: Q2 Guidance
Q2 Guidance Q1 2022 Actual Revenue & Margin Q2 2022 Projected Revenue & Margin Specialty Specialty Mortgage Finance & Mortgage Finance & Services Services ($ million) ($ million) Total revenue $135 $132 Fair value changes - (96) Total revenue $125-145 $195-215* Adjusted revenue $135 $228 Adjusted ne
Slide 13: Supporting Materials
SUPPORTING MATERIALS FINANCE OF AMERICA COMPANIES | Slide 13
Slide 14: Non-GAAP Reconciliation for FOA
Non-GAAP Reconciliation for FOA All values in $ millions Q1 2022 Q1 2021 Net income (loss) $(64) $124 Add back: Provision (benefit) for income taxes (13) 1 Net income (loss) before taxes (77) 125 Adjustments for: Changes in fair value(1) 96 11 Amortization and impairment of goodwill and intangibles(
Slide 15: Non-GAAP Reconciliation for Mortgage and SF&S
Non-GAAP Reconciliation for Mortgage and SF&S Mortgage All values in $ millions Q1 2022 Q1 2021 Net income (loss) before taxes $(22) $96 Adjustments for: Changes in fair value(1) - - Amortization and impairment of goodwill and intangible assets(2) 2 - Share-based compensation(3) 2 - Certain non-recu
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